Government May Extend Highway Concessions To Avoid Toll Hikes

According to The Edge, the federal government is considering extending the concession periods of peninsula highway operators for up to 30 years in order to prevent future toll rate increases. The unnamed sources stated that such a deal has yet to receive Cabinet approval, but if approved, it could be announced in the second half of this year. “I was told the government is looking to raise it up to 30 years for all concessionaires,” one source was reported as saying.

“It is likely to be announced in the second half of the year,” the same source continued, adding that highway operators have already been notified by the government of the possible extension of their concession periods. The government has reportedly notified some highway operators that their concession periods may be extended, the same source added. Another source close to a concessionaire attributed the extension to the government's desire to avoid a toll hike while avoiding compensating highway operators.

According to a third source, the longer concession periods may result in lower toll rates. “It is likely that the highway owners would need to reduce their toll rates in exchange for a longer concession period,” the source was quoted as saying. According to a fourth source, the deal is currently being reviewed.

In the interest of the public, Datuk Seri Fadillah Yusof, the senior works minister at the time, reportedly stated that the government would discuss restructuring terms with highway concessionaires. For the record, PLUS Malaysia Berhad, the country's largest highway operator, reduced toll fares by 18 sen beginning in February 2020 and promised not to raise them again until 2058 in exchange for its concession being extended another 20 years from 2038. Source: The Edge, Malay Mail, Paul Tan