Works Minister Datuk Seri Alexander Nanta Linggi announced that the government plans to negotiate with highway concession companies to reduce toll rates once they achieve their return on investment (ROI).

He stated that tolls are necessary to repay loans used for highway development but could be reduced after ROI is reached.

However, eliminating tolls entirely could affect highway maintenance, which relies on toll revenue, he added.

“This is the government’s hope because tolls are collected as long as an agreement is in place. The toll concession companies take loans from banks to develop a highway, which must be repaid through toll collection.

“Once the highway companies have achieved ROI (return on investment), negotiations can be held to reduce tolls,” he said at a press conference after the launch of the sustainable Rest and Relaxation (R&R) area on Malaysian highways at the Seremban R&R (Southbound) today.

On the other hand, the government will consider reducing tolls when concession agreements end.

Alexander also encouraged highway companies to improve services and highlighted the launch of the Seremban R&R (Southbound), Malaysia’s first sustainable rest area, equipped with green technologies.

Today, Prime Minister Datuk Seri Anwar Ibrahim also said  that toll rates could be reduced if highway development costs are managed effectively and are free from leakage or corruption.

Anwar highlighted that highway development costs could be lowered but have instead risen due to excessive fees imposed during the approval process.

“This must stop. I believe for the next project, the works ministry and the Malaysian Highway Authority (LLM) should ensure a more expedited approval process.

“This can be achieved if everyone takes responsibility and recognises that this (highway project) is for the people,” he said at a press conference after officiating the Seremban R&R (Southbound) area today. - Sept 8, 2024 

https://focusmalaysia.my/govt-to-negotiate-toll-reductions-after-roi-says-works-minister/