Malaysia
Don’t ask compensation if choose to maintain toll rates, highway firms told
A Malaysian highway user pays a toll station in Kuala Lumpur December 18, 2013. u00e2u20acu201d Picture by Choo Choy May

SHAH ALAM, Dec 19 — Toll operators in Selangor have been told not to ask for compensation if they decide not to increase charges as suggested by the Selangor government.

Works Minister Datuk Fadillah Yusuf told the highway concessionaires they had the right to increase charges but they must come clean on their decision.

“Don’t ask for compensation from the federal government if you chose not to increase toll charges,” he said.

“It is their right. I am glad if they are willing to maintain the present toll charges so as not to burden the people.

“However, the concessionaires must write to the federal government and promise they will not ask for any compensation later if they decide not to increase the rates.”

On the move by Selangor Menteri Besar Tan Khalid Ibrahim to instruct state subsidiaries holding a stake in concessionaire companies to object to any increase, Fadillah said: It is the companies’ affair. They should resolve it in their board of directors meeting.

“As far as the government is concerned, we are bound to the agreement signed with concessionaires,” he said, adding that according to the agreement, the toll rates would be reviewed every three years.

Khalid said he had instructed state subsidiaries with shareholdings in toll concessionaires to oppose the increase. 

He said he had also directed the subsidiaries to propose suggestions to the concessionaires so people would not be burdened.

The state has about 30 per cent share in the Shah Alam Expressway (Kesas) via the Selangor State Development Corporation, and 20 per cent share each in Western Kuala Lumpur Traffic Dispersal System (Sprint) and the Damansara-Puchong Expressway (LDP) via Kumpulan Perangsang.

“We have directed board members who represent PKNS in the concessionaire companies to make suggestions to the boards not to increase charges to protect the welfare of the people,” Khalid said. 

“However, the final decision still lies with the board of directors of the companies. The state does not have the final say.

“PKNS has earned more than 35 per cent in returns from its investment in the highways companies. Therefore, there is no need to increase the rates although the concessionaire agreement allows them to do so,” Khalid said after chairing state executive councillor meeting here yesterday. 

Earlier, Selangor economic adviser Datuk Seri Anwar Ibrahim said Khalid agreed there was a need to issue a directive to highway concessionaires through the state’s subsidiaries to not support the toll rate increase. 

“We are sending a message to the federal government that it can do the same with its government-linked companies (GLCs) which own shares in the highway concessionaire companies.

“If the Selangor government can choose to forego bigger profits, then the federal government can do so, too,” Anwar said. 

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