Are Toll Freezes Draining Taxpayers’ Money?

Pressure is mounting on the government to declassify highway concession agreements and rethink toll policy, as critics warn that repeated toll freezes funded by public compensation are fiscally unsustainable and unfair to taxpayers.
Transport economist Dr Rosli Azad Khan said concession agreements remain hidden under the Official Secrets Act, denying the public visibility over how taxpayer money is committed. Speaking to the New Straits Times, he said declassification would improve transparency, strengthen accountability and allow for a fairer toll framework.
Rosli argued that freezing toll rates offers short-term relief to motorists but simply shifts the cost to taxpayers through compensation payments. He described the practice as “double taxation”, with the public paying tolls while also funding compensation via taxes, effectively protecting private operators with public funds.
Meanwhile, Universiti Teknologi Mara’s Dr Mohamad Idham Md Razak said toll compensation has become a quasi-subsidy that disproportionately benefits higher-income households reliant on private vehicles. Since 2016, RM7.7 billion has been spent on such payments, money he said could have delivered far greater returns if invested in public transport.

Although this year’s RM591.5 million allocation to freeze toll hikes on 10 highways signals some fiscal restraint, Idham said it fails to address the underlying problem. He called for renegotiated concession terms, including variable tolling, partial buybacks or revenue-sharing models, to reduce dependence on recurring compensation.
Transport think tank MY Mobility Vision echoed these concerns. Co-founder Rahman Hussin said toll compensation is effectively a broad-based subsidy for private car use, paid for by all Malaysians, including rural communities and households without vehicles.
Rahman noted that successive governments have relied on compensation to defer toll hikes, with RM7.7 billion spent over the past decade. While this year’s allocation is among the lowest in recent years, based on figures reported, he said the funds could instead support thousands of daily bus trips or expanded feeder services.
-full_normal.jpg)
Instead, compensation has become a recurring expense that stabilises toll rates without expanding capacity or reducing car dependence. He added that payments often extend to mature, profitable highways as well as weaker concessions.
Rahman and former deputy transport minister Datuk Ab Aziz Kaprawi urged the government to redirect funds from toll compensation towards system-wide transport improvements, including better bus services and first- and last-mile connectivity.
With the National Transport Policy targeting lower private vehicle dependence and higher public transport use, critics say the continued reliance on toll compensation runs counter to national goals, raising questions over how long Malaysia can afford to keep freezing its transport choices.
Written By
Kumeran Sagathevan
More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!
JPJ Running Numbers
KUALA LUMPUR
VRT5010
SELANGOR
BSU3506
JOHOR
JF5246J
PULAU PINANG
PSG3242
PERAK
APM1549
PAHANG
CFH9853
KEDAH
KGJ4161
NEGERI SEMBILAN
NEM2451
KOTA KINABALU
SJU5018
KUCHING
QAB7418P
Last updated 10 Oct, 2026
Fuel Price
Petrol
RON 95
RM 3.97
+1.38
RON 97
RM 4.90
+1.75
RON 100
RM 7.20
+2.20
VPR
RM 8.23
+2.00
Diesel
EURO 5 B10
RM 5.12
+2.08
EURO 5 B7
RM 5.32
+2.08
Last updated 30 Apr, 2026
Related News
Toll Exemptions On Dec 23, 24 For Class 1 Vehicles
The government has announced free tolls on December 23 and 24 for the Christmas holiday.
21-12-2024
Two Days Of Free Toll For Deepavali This Weekend
The government has decided to exempt highway users from toll charges in conjunction with the Deepavali celebration.
10-11-2023
Free Toll Ends Today
The four-day free toll which began on April 19 until April 21 will end today on Monday (April 24).
24-04-2023
Free 'Rahmah' Toll For Aidilfitri To Cost Government RM93m - Ahmad Maslan
Government will bear approximately RM93 million to implement the free Rahmah toll initiative.
21-04-2023
2.3 Million Vehicles Expected Daily On Three Major Highways During Raya - PLUS, KL - Karak And East Coast Expressway 1
LLM announces more than 2.3 million vehicles expected to flood daily on three major expressways.
19-04-2023
Highway Maintenance Work Halted For Smooth Traffic Flow, Says Nanta
The government confirms highway maintenance work will be halted to ensure smooth traffic flow.
19-04-2023
4 Days Of Toll Exemptions For Eid Celebration
The government announced free toll rates across 33 highway concessionaires on April 19 through April 21, as well as April 24.
18-04-2023
Govt’s Initiative To Lessen Traffic Jams Through Barrier-Free System
The Malaysian government will implement a new toll system to prevent traffic congestion due to outdated toll technology currently in use in the nation.
21-03-2023
Latest News
BUDI Diesel: 400 Litres A Month, But How Many Owners Actually Need That Much?
Fewer than 7% of eligible owners exhausted their 400-litre BUDI Diesel quota in September. Here's what the figures reveal about actual fuel usage.
09-10-2026
Jetour Is Moving Upmarket, And Its Malaysian Sales Tell An Interesting Story
Chery wants to take Jetour upmarket, while the T1 and T2 accounted for 69% of its Malaysian registrations in August 2026. Here's why that matters.
09-10-2026
Chery Omoda 5 Rear Axle Detaches In JB. Is It Linked To The 2024 Issue?
A Chery Omoda 5 has been seen with its rear axle detached in Johor Bahru. Is it related to the model's 2024 axle issue? Here's what we know.
08-10-2026
40.77 Million Vehicles In Malaysia?! Hold On, There's More To That Number
Malaysia has 40.77 million registered vehicles, but only 26.6 million are active. Here's what the huge figure actually means.
07-10-2026
Putrajaya's RM1 Autonomous Bus Is Now Running. Here's What You Need To Know
Putrajaya's P113 autonomous EV bus starts passenger service from Oct 7 for RM1. Here's its route, schedule, payment method and what to know.
07-10-2026
Even If RM314 Million Is Settled, MyEG's JPJ Services May Not Return The Same Way
Zetrix has proposed a solution over RM314 million in outstanding government revenue, but settling it may not mean MyEG's JPJ services return as before.
06-10-2026
Mat Rempit Could Face Jail From Nov 1. Here's What We Know So Far
Mat Rempit could face tougher penalties, including jail, from Nov 1. Here's what's changing, what Section 42A means and what still needs to happen.
06-10-2026
He Painted Sepang's Giant Flag With His Dad. 22 Years Later, It Means Everything
At 15, Ady says he painted Sepang's giant Malaysian flag with his father. Twenty-two years later, F1's return brought back a priceless memory.
05-10-2026
Show More
trending_flat
Malaysia First Used Car and EV Consignment Platform
This is the best place to sell your car at true market value. Instead of accepting low dealer trade-ins, we handle everything and connect your car directly to genuine buyers for the highest price.

Understanding CariCarzAutomall Consignment Plan


Approved 200-Check Points Inspection

7 Day Money Back Guarantee

One Year Extended Warranty

No Hidden Charge