You know, just sometime back, I debated with so many people who says that the tolls will be abolished. Financially, it will not be possible unless the government forced its way through to this decision. However, if the government forces its way this way, then in the future, no private entities would dare to do any projects for the government where they get a toll concession because they know the government could suddenly take it back anytime. If you are that company, would you want to take the risk?
Remember too, the world is watching. How many foreign companies will now be worried to invest here in Malaysia? Anyway, there is now a final decision on the tolls for the PLUS highways. If we look at the decision on a longer term, I think this is already the best compromise. Remember too, PLUS Malaysia is jointly owned by EPF too which indirectly belongs to the people too; the profits. Here’s that news from Prime Minister’s Office of Malaysia (PMO)
Article in edgeprop.my The Prime Minister’s Office of Malaysia (PMO) said there will be no toll rate hikes on PLUS Malaysia Bhd’s highways as PLUS’ concessions will be extended for 20 years from 2038 to 2058. PMO also said the government will implement an 18% reduction in toll charges on private vehicles plying PLUS-owned highways as early as Feb 1, 2020. Khazanah Nasional Bhd and the Employees Provident Fund will remain as shareholders of PLUS.
These are the highways with the 18% reduction: North-South Expressway, New Klang Valley Expressway, North-South Expressway Central Link (ELITE Highway), Malaysia-Singapore Second Link, phase two of the East Coast Highway, Seremban-Port Dickson Highway, Butterworth-Kulim Expressway and the Penang Bridge. The toll rate will be reduced from 13.6 sen/km to 11.15 sen/km and this is lower than even the toll rate in 1999 which was 11.24 sen/km. Do read the full announcement in Article in edgeprop.my
Are you happier with this announcement? I travel via the PLUS highways every day and I think I will soon be happier every day. I will start to save 18% of what I pay for tolls when I travel via the PLUS highway, soon. Actually, that toll we pay today, say RM10 per day will now remain unchanged till 2058. Putting inflation into the picture, this RM10 will continue to become smaller as our salaries grow bigger over the years. And any profits which PLUS makes, it will still belong to the EPF. I think I will take this as the best decision under all the circumstances. Happy driving via PLUS highways.
Next suggested article: Moderating property price. just 2.5%… Still a huge plus actually.