Toll hike – are we over-reacting?

  Twelve major highway concessionaires in the Klang Valley today announced an increase in toll rates, ranging from between 10 sen and RM6 beginning Thursday. The new rates affect the Kuala Lumpur-Karak (KLK) Expressway, Maju Expressway (MEX), Kajang Highway-SILK, Duta-Ulu Kelang Expressway (DUKE), Stormwater Management and Road Tunnel (SMART), KL-Kuala Selangor Expressway (LATAR), Sungai Besi Highway (BESRAYA), New Pantai Expressway (NPE), Kajang Seremban Highway (LEKAS), Damansara Puchong Highway (LDP), Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT) and Cheras-Kajang Highway (GRAND SAGA). However, PLUS Malaysia Berhad in a statement said toll rates at its eight expressways remained the same as of now.

ANIH Berhad said the new KLK toll rate at the Gombak Toll Plaza is RM6 (class 1), RM12 (class 2), RM18 (class 3) and RM3 (class 4), while RM5 is maintained for class 5. "For the Bentong toll plaza, the rate for class 1 is RM3.50; class 2, RM7; class 3, RM10.50; class 4, RM1.80; and class 5, maintained at RM3," a spokesman said when contacted today. Class 1 is for cars; class 2 for less than one-tonne lorries; class 3 for heavy duty lorries and trailers; class 4 for taxis; and class 5 for buses. Meanwhile, Maju Expressway Sdn Bhd in a statement said the new toll rates for Salak Selatan are RM2 (class 1), RM4 (class 2), RM6 (class 3), RM1 (class 4) and RM1.50 (class 5).

The new rates for Putrajaya toll plaza are RM3.50 (class 1), RM7 (class 2), RM10.50 (class 3), RM1.80 (class 4) and RM2.50 (class 5). SILK Holdings Berhad said its new toll rates for Kajang highway-Silk are RM1.80 (class 1), RM3.60 (class 2), RM5.40 (class 3), 90 sen (class 4) and RM1 (class 5). For DUKE, North-East (KL) Highway Consortium Sdn Bhd announced that the new rates for Ayer Panas toll plaza, Sentul Pasar toll plaza and Kampung Batu toll plaza are RM2.50 (class 1), RM3.80 (class 2), RM5 (class 3), RM1.30 (class 4), while RM1.30 is maintained for class 5. Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd said the new rate for SMART tunnel would be RM3. For LATAR, KL-Kuala Selangor Expressway Berhad said the new rates for Ijok toll Plaza, Kuang Timur toll plaza, Kuang Barat toll plaza and Templer toll plaza are RM2.50 for class 1, RM5 for class 2, RM7 for class 3 and RM1.30 for class 4, while RM2 is maintained for class 5. Meanwhile, BESRAYA (M) Sdn BHD said its rates for the Mines toll plaza (North and South) would be RM2 for class 1, RM4 for class 2, RM4 for class 3 and RM2 for class 4, while RM1.30 is maintained for class 5.

The New Pantai Expressway Sdn Bhd (NPE) in a statement said the new rates for Pantai Dalam toll plaza and PJS5 toll plaza are RM2.30 (class 1), RM4.60 (class 2), RM6.90 (class 3), RM1.20 (class 4) and RM1.60 (class 5). For the PJS2 toll plaza, the rate for class 1 is maintained at RM1, while the new rate for class 2 is RM4.60, class 3 is RM6.90, class 4 is RM1.20 and class 5 remains unchanged. Kajang Seremban Sdn Bhd (LEKAS) announced a toll increase of between 10 sen and RM2 for its Kajang Selatan, Semenyih, Pajam, Mantin, Setul and Jelebu toll plazas. There is no toll increase for eight highways managed by PLUS, which are the the North-South Expressway (PLUS), New Klang Valley Expressway (NKVE), Federal Highway Route 2 (FHR2), Seremban-Port Dickson Highway (SPDH), North-South Expressway central Link (ELITE), Malaysia-Singapore Second Link (Linkedua), Butterworth-Kulim Expressway (BKE) and Penang Bridge.

Meanwhile, the holder of the Cheras-Kajang concession, GRAND SAGA Sdn Bhd also announced a toll rate hike for all classes of vehicles except for class 5, that is buses. The new toll structure at GRAND SAGA encompassed RM1.30 for class 1, RM2.60 for class 2, RM2.60 for class 3 and RM0.70 for class 4. The new rate involves toll collection system for consumers using the Ninth and 11th Mile Toll Plazas. For class 5, buses, the toll rate for the Ninth and 11th Mile Toll Plazas are each retained at RM1 and 90 sen respectively.

A question was asked as to whether Malaysians are over-reacting to highway toll rate hikes. Here are some of the realities of the situation.

1. The BN GE13 manifesto which promised a gradual reduction of intra-city tolls has not been fulfilled.

In reality, not only has the BN Government failed to keep its promise but the burden which was previously shared between motorists and the Government has now shifted solely to the motorists. Additionally, the increase in the rates of between 20 sen and RM3 exceeds what was proposed in August, 20 sen to RM1 increases.

2. Highway concessionaires seem to be getting sweet deals

One concessionaire, which expected a toll increase only in 2016 is actually getting it now. This occurs even as concessionaires are raking in higher collections than they were a few years ago on account of increased traffic, newly opened toll plazas (Loke Yew Toll Plaza) and maturing developments along the highway corridor e.g. Setia Eco Hill, Eco Majestic and Temiang Resort City.

3. The already burdened rakyat can expect to see their burdens increase even more

The new rates represent a hike of between 18% and 100% for car owners. Those who use public transportation have not been spared either since this comes hot on the heels of the announcement by the Land Transport Commission that LRT fares will increase next month.

The rate increases add to other burdens the rakyat has to contend with. The introduction of a 6% GST in April has put pressure on domestic prices while import costs keep rising on account of the ringgit’s slump. Add to that the fact that inflation has shot up (the inflation rate in Malaysia was recorded at 3.3% year-on-year in July and 3.1% in August from 1% in February 2015) and the rakyat’s problems seem almost unbearable.

Additionally, the timing of the rate hikes leaves much to be desired. It comes during a period of road closures and traffic jams due to MRT construction. Those who are tired of jams or don’t want to pay the toll have no recourse as alternative non-tolled routes are generally not available or not practical to use.

What makes all of this even worse is the lack of consequences for concessionaires who don’t keep up their end of the bargain and the lack of transparency in the management of tolled highway development.

The government must compel concessionaires to improve carrying capacities and ensure free flowing traffic to justify any toll collection and toll reviews. Bad congestion is experienced especially during festive seasons, but the concessionaires have not been penalised or requested to expand their capacity despite increases in toll collection. This has to change.

Tolled highway development in Malaysia is still considered classified and shrouded in secrecy. Why? If the Income Tax information, (which involves more money collected from the public through taxes) is in the public domain, why the secrecy for tolled highway development?

The PM noted that those who disclosed details of the meeting that discussed toll issues were betraying the trust of the Cabinet and the government.

Here’s the issue with that. Since the toll hikes pass the burden solely to the public, how could passing relevant information to the public be deemed a betrayal? Is it not the rakyat’s trust that is being betrayed instead, since it is the rakyat who voted the government into power?

The rakyat applauds the PM for his call for accountability and transparency in political funding. Likewise, there should also be accountability and transparency in the case of concessionaires.

Since the government is of the view that the money spent on compensation would be better used for development projects with multiplier effects on the economy, it is only fair that a detailed plan on how the money saved would be used be provided to the rakyat.

Given all this, do you still consider the rakyat’s response an overreaction?