PETALING JAYA, Oct 14 — A minister said yesterday it was unlikely the increase in toll charges starting tomorrow will bring up the cost of living, but an association has come out to say the opposite.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Hamzah Zainuddin said not every highway would be affected by the toll increase and therefore, it was unlikely to drive up the prices of goods.
He said the new toll charges were decided after an analysis found the money saved from reducing the toll subsidy could be put to better use.
“The money can be used to improve the ministry’s many programmes that offer assistance to both consumers and traders,” he said at the launch of a consumerism event in Putrajaya.
Expressing its strong “disapproval and objection”, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said it was shocked the toll charges of 17 intracity highways would increase simultaneously by 15 per cent to 200 per cent
“The cost of doing business has increased tremendously in recent years. This was made worse by the recent economic downturn as business activities in almost all economic sectors are slowing down,” it said.
“The increase in toll rates will affect all walks of life and severely hit the business community as well as burden the rakyat as the cost of living will increase.”
The chambers urged the government to withdraw the new toll charges immediately.
It felt the government should give priority to introducing more business-friendly policies to reduce the cost of doing business, revive the economy, attract foreign direct investment and encourage consumption.
“ACCCIM has constantly suggested freezing and effectively controlling the prices of various public utilities and infrastructure,” it said.
“The toll hike contradicts the government’s promise to reduce the burden of the rakyat.”
It also claimed a lack of transparency in the agreement with highway concessionaires had allowed the concessionaires to raise their rates every one to three years.
“ACCCIM urges the government to review all contracts signed with highway concessionaires and put a halt to the demand by the concessionaires to increase the toll rates once and for all,” it said.
“The current practice of negotiating or paying compensation or extending the concession period every few years does not completely solve the problem.”
It said many intracity tolled highways were badly congested, especially during festive seasons, but the concessionaires were not penalised or compelled to expand their capacity even though toll collection was increasing.
“We pay toll for hassle free flowing traffic and there must always be alternative non-tolled routes available. Unfortunately these alternative routes are not available or are unrealistic alternative routes. It is imperative the government compels the concessionaires to improve the carrying capacities and ensure free flowing traffic to justify any toll collections and toll reviews.
“In the meantime, encourage these concessionaires to seriously upgrade their highways, tolls should be suspended if, say, motorists are required to queue for more than five minutes to pay toll or have to queue after paying toll. The temporary toll suspension should only be lifted once traffic is free flowing.”
