Search Articles

Find tips, tools and how-to guides on every aspect of property

Takeover of 4 highway concessions saves users up to RM2 bln


HAZIM MOHAMMAD / Bernama Images

9 July, KUALA LUMPUR – The takeover of four highway concessions by the government and introduction of a congestion charge to replace the current toll system would save users up to RM2 billion, says the Finance Ministry.

The four highways are the LDP, Sprint, Kesas and SMART Tunnel highways.

Minister Lim Guan Eng told the Dewan Rakyat that the concession charge to be introduced will in principle give up to 30 per cent discounts for travel during normal hours and free travel during off-peak hours between 11pm and 5am.

“Users of these highways will enjoy savings of up to RM180 million a year… this means they will save up to RM2 billion over the highways’ concession period,” he said in reply to a question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) on the rationale behind the government’s takeover of the four highway concessions.

Lim said the concession period of the four highways is between nine and 20 years, adding the period will not be extended after the takeover.

“After the concession ends, the congestion charge will be further reduced in order to cover only the operating and maintenance costs, without any profit element,” he said.

On Feb 23, Prime Minister Tun Dr Mahathir Mohamad announced a proposal to take over the four highway concession companies, and on June 21 the Finance Ministry officially made a conditional offer to acquire the four concessionaires.


Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More Articles