The Malaysian Deputy Finance Minister Datuk Amiruddin Hamzah has announced that the decision to abolish toll in Malaysia can be done, but it will be done slowly.
He had said that the abolishment of tolls in Malaysia can help the economy significantly. “Abolishment of toll can significantly help to reduce the price of goods as this is determined by the cost incurred by traders”. If toll is abolished, a component of the cost is removed, so the impact is it will reduce cost”
However, the Council of Eminent Persons (CEP) Tun Daim Zainuddin has suggested that the government should not abolish any tolls for the time being. He said that the citizens of Malaysia will understand the decision to delay the promise of abolishing tolls. This is due to the compensation that is required to pay concessionaires.
The Finance Ministry special officer and MP of Damansara Tony Pua, previously reveal that the Government will need to spend RM400 billion to takeover Plus Malaysia Berhad, the organisation that is holding rights to the tolls. Tony Pua said that “We will only pay the compensation based on the contract rate, that is the construction cost of the highways. We have to do the calculation again, and it will not include future profits.”
The Government can only free up RM400 billion in budget when the country’s economy and finances stabilize.
Former Employees Provident Fund (EPF) CEO Sharil Ridza Ridzuan also came out to support the decision. He revealed that it is difficult for the Pakatan Haparan (PH) Government to abolish the tolls in 100 days. This mainly due to the differing interest in all the stakeholders. Stakeholders such as EPF and Khazanah National Bhd’s subsidiary owns 49% and 51% respectively. He reminded the public that investors in both EPF and Khazanah have different interest from the Government.
By: EL Cheng
Aug 21, 2018 @ 17:35