Toll Freeze Only For 2025, No Extensions Planned

The toll hike freeze applies only for 2025, clarified Works Minister Datuk Seri Alexander Nanta Linggi, as he confirmed that the government has no intention to renegotiate the terms or durations of existing highway concession agreements.

This comes after the government's recent announcement to postpone toll rate increases on 10 major highways for the year, a move that marks the second such deferment since 2021.

While short-term deferrals can still be negotiated with concessionaires, typically through compensation arrangements, Nanta stressed that a full-scale renegotiation of the original concession contracts is not being considered.

“Each highway operates under a separate agreement with different durations and conditions,” he explained. “We can negotiate postponements, yes but even that comes at a cost, because we still have to pay compensation.”

“To overhaul an entire contract would require the concessionaire’s agreement. So far, there is no direction or decision to renegotiate any of the existing deals,” he added.

Responding to public concerns over the long-term burden of tolls, Nanta said the government’s current approach focuses on providing temporary relief for road users without disrupting the contractual balance that underpins the country’s highway system.

The toll freeze for 2025 alone is expected to cost the government more than RM500 million in compensation to concession companies.

Source: NST