The abolition of toll fare collection on highways would have significant implications for the country’s financial position, as proposals to abolish toll collection in the country would need the government to compensate highway concession companies more than RM450 billion, said deputy works minister Datuk Seri Ahmad Maslan, reported Bernama.

“The [estimated cost] in 2019 to abolish tolls would require us to pay compensation to highway concessionaires over RM400 billion. The estimated cost now surely has increased, [and] I estimate it is around RM450 billion,” the deputy works minister said.

“We know that the national budget is around RM388 billion annually, [so] if we want to abolish tolls with a value of RM450 billion within that one year period, we won’t have salaries to give for other purposes. I don’t see tolls being abolished,” he added.

The Malaysian government is spending RM20 million a day for payments to highway concessionaires on the provision of toll-free highway travel during festive celebrations, Ahmad Maslan added.

Last month, prime minister Datuk Seri Anwar Ibrahim said that toll concessions for highways around Kuala Lumpur can be renegotiated once the country’s financial situation improves, agreeing to a statement that there were too many toll plazas on highways around the nation’s capital.

Earlier, amendments involving 16 clauses in the Highway Authority Malaysia (Incorporation) Act 1980 aimed to improve the functions and powers of the Malaysian Highway Authority (LLM) in addition to strengthening its role as a stable, efficient and effective regulatory body in line with the government’s aspirations, the deputy works minister said wne tabling the second reading of the bill.

The amendment to the act would not have any financial implication for the government or any increase in toll rates agreed upon in the agreement between the government and the highway concession companies, he added. The bill was passed with more votes in favour, after 12 government and opposition members of parliament took part in a debate session, Bernama reported.

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