Latest news with #MEXExpressway
The Sun
2 days ago
- Business
- The Sun
Abolishing tolls not feasible, says minister
PETALING JAYA: Abolishing highway tolls is not a simple solution as it would require the government to set aside billions of ringgit for highway maintenance and infrastructure, Works Minister Datuk Seri Alexander Nanta Linggi told the Dewan Rakyat yesterday. Replying to a supplementary question from Besut MP Datuk Che Mohamad Zulkifly Jusoh, Nanta said the funds could be better allocated to develop infrastructure in states with limited highway access, such as Terengganu, Kelantan, Sabah and Sarawak. 'It's not an easy move. If tolls are removed, the government must bear the cost of maintaining these highways and that figure runs into the billions.' He added that a more realistic and sustainable approach would be to reduce toll rates once highway concessionaires have recovered their return on investment (ROI). Nanta's remarks came in response to a question about the government's 2022 manifesto pledge to abolish tolls. In the lead-up to the 2022 general election, Pakatan Harapan promised to eliminate tolls on the North-South Expressway (PLUS) if given the mandate to govern. However, Nanta said a complete removal may not be necessary if concessionaires have already recouped their investments. 'Once the ROI has been achieved, we can revisit the rates, particularly if they are burdensome to the public.' In a related development, Nanta said the government's move to postpone toll hikes at 10 highways is expected to benefit close to one million users, particularly Class 1 vehicle drivers. (Class 1 is the category for trucks, lorries or large and heavy commercial vehicles). He said the decision followed a significant gap between current toll rates and those outlined in concession agreements which permitted increases ranging from 50 sen to RM4.56, or a 79% to 83% hike. 'For example, on the MEX Expressway, the toll rate set for 2025 is RM6.90, but users are currently paying RM3.50 per trip. That's a saving of RM6.80 for a round trip. Over 20 working days, that amounts to RM136 in monthly savings, or RM1,632 annually.' Nanta was responding to a question from Pekan MP Datuk Seri Sh Mohmed Puzi Sh Ali on the potential impact on motorists had the toll hikes not been deferred. On July 23, Prime Minister Datuk Seri Anwar Ibrahim announced that the government had agreed to postpone the planned toll rate increases as part of an 'announcement of appreciation for Malaysians', allowing users to continue paying the current rates. The highways included in the deferment are the MEX Expressway, South Klang Valley Expressway (SKVE), Senai–Desaru Expressway (SDE), Duta–Ulu Kelang Expressway (DUKE) and Kuala Lumpur–Kuala Selangor Expressway (Latar).
Malaysian Reserve
3 days ago
- Business
- Malaysian Reserve
Nanta: Toll hike postponement at 10 highways to benefit nearly one million users
KUALA LUMPUR — Nearly one million users are expected to feel a significant impact following the postponement of toll rate hikes at 10 highways, due to a substantial gap between the current toll rates paid by users and the rates stipulated in concession agreements. Works Minister Datuk Seri Alexander Nanta Linggi (picture) said the quantum of increase for Class 1 vehicles, as set out in the concession agreements for the 10 affected highways, ranges between 50 sen and RM4.56, equivalent to a 79 to 83 per cent hike. For instance, he said Class 1 vehicle users passing through the Kuala Lumpur–Putrajaya Expressway (MEX) Toll Plaza will save RM6.80 for a round trip. This is because the toll rate under the concession agreement for 2025 is RM6.90, but the current toll rate is being maintained at RM3.50 per one-way trip, he added. 'If this saving is multiplied over 20 days, or a typical month's usage, or 240 days in a year, the user will save RM136 a month or RM1,632 annually,' he said during the Minister's Question Time in the Dewan Rakyat today. He was responding to a question from Datuk Seri Sh Mohmed Puzi Sh Ali (BN–Pekan) on the implications for highway users if the government had not postponed the toll rate increase for 2025. On July 23, Prime Minister Datuk Seri Anwar Ibrahim, in an 'announcement of appreciation for Malaysians', said the government had agreed to postpone the toll rate hikes for 10 highways so that the public could continue to enjoy existing rates. The affected highways include the MEX Expressway, South Klang Valley Expressway (SKVE), Senai–Desaru Expressway (SDE), Duta–Ulu Kelang Expressway (DUKE) and Kuala Lumpur–Kuala Selangor Expressway (LATAR). Meanwhile, to a supplementary question from Datuk Che Mohamad Zulkifly Jusoh (PN–Besut), who asked why tolls in Malaysia are not abolished altogether, Nanta said it is not easy to abolish tolls, as the government would need substantial funding, including for maintenance works, which could run into billions of ringgit. He said such funds could otherwise be channelled to other purposes, including for the people in states without highways. 'However, once the concession companies have reached their return on investment (ROI), the current toll rates, which are said to be burdensome, can be reduced. That would be a more practical and realistic approach,' he said. — BERNAMA
The Sun
3 days ago
- Business
- The Sun
Toll hike delay at 10 highways aids nearly one million users
KUALA LUMPUR: Nearly one million users are expected to feel a significant impact following the postponement of toll rate hikes at 10 highways, due to a substantial gap between the current toll rates paid by users and the rates stipulated in concession agreements. Works Minister Datuk Seri Alexander Nanta Linggi said the quantum of increase for Class 1 vehicles, as set out in the concession agreements for the 10 affected highways, ranges between 50 sen and RM4.56, equivalent to a 79 to 83 per cent hike. For instance, he said Class 1 vehicle users passing through the Kuala Lumpur–Putrajaya Expressway (MEX) Toll Plaza will save RM6.80 for a round trip. This is because the toll rate under the concession agreement for 2025 is RM6.90, but the current toll rate is being maintained at RM3.50 per one-way trip, he added. 'If this saving is multiplied over 20 days, or a typical month's usage, or 240 days in a year, the user will save RM136 a month or RM1,632 annually,' he said during the Minister's Question Time in the Dewan Rakyat today. He was responding to a question from Datuk Seri Sh Mohmed Puzi Sh Ali (BN–Pekan) on the implications for highway users if the government had not postponed the toll rate increase for 2025. On July 23, Prime Minister Datuk Seri Anwar Ibrahim, in an 'announcement of appreciation for Malaysians', said the government had agreed to postpone the toll rate hikes for 10 highways so that the public could continue to enjoy existing rates. The affected highways include the MEX Expressway, South Klang Valley Expressway (SKVE), Senai–Desaru Expressway (SDE), Duta–Ulu Kelang Expressway (DUKE) and Kuala Lumpur–Kuala Selangor Expressway (LATAR). Meanwhile, to a supplementary question from Datuk Che Mohamad Zulkifly Jusoh (PN–Besut), who asked why tolls in Malaysia are not abolished altogether, Nanta said it is not easy to abolish tolls, as the government would need substantial funding, including for maintenance works, which could run into billions of ringgit. He said such funds could otherwise be channelled to other purposes, including for the people in states without highways. 'However, once the concession companies have reached their return on investment (ROI), the current toll rates, which are said to be burdensome, can be reduced. That would be a more practical and realistic approach,' he said. - Bernama
New Straits Times
03-05-2025
- Business
- New Straits Times
Expert calls for govt intervention to complete MEX II without bailout
KUALA LUMPUR: The government should intervene in the delayed Maju Expressway Extension (MEX II) project to ensure its completion without a bailout, a transport expert said. Transport consultant Wan Agyl Wan Hassan said a sustainable solution would be to form a Special Purpose Vehicle (SPV) with equity from government-linked companies (GLCs), partnered with private developers. This approach, he said, would allow for the raising of a new sukuk to finance the remainder of the highway's construction. "I'm not saying the government should bail it out, but it should consider forming a new SPV with equity from GLCs, then partnering with private developers and using a structured asset takeover from MEX Highway Sdn Bhd under the Insolvency Act. "This is because MEX Highway Sdn Bhd is insolvent and under the receivership of the insolvency department. So, we can proceed with a takeover under the Insolvency Act – or perhaps grant a new concession for future development. "This way, there's no direct government bailout, as we would be using GLC involvement and partnering with private developers," he said when contacted today. Earlier, Works Minister Datuk Seri Alexander Nanta Linggi said the government is actively engaging with stakeholders to resolve the prolonged delays in the MEX II project, which was originally scheduled for completion in December 2019. The highway, considered a vital link between Putrajaya, Cyberjaya and Kuala Lumpur International Airport (KLIA), has been plagued by financial setbacks and is currently under scrutiny by the Malaysian Anti-Corruption Commission (MACC). Nanta said the project had faced persistent cash flow issues that halted construction, but efforts are now being stepped up to revive the stalled works. The 18km extension to the MEX Expressway has come under renewed public attention following MACC investigations into alleged false claims involving RM360 million. Last week, four individuals, including a 'Datuk Seri', were remanded in connection with the alleged submission of false claims amounting to RM360 million, purportedly using sukuk funds for a Klang Valley highway project valued at RM1.3 billion. Earlier today, a former chief executive officer was also remanded for three days. Wan Agyl, who is also the founder and chief operating officer of MY Mobility Vision, suggested that any SPV formed should include an independent Project Management Office (PMO) and be monitored by the Public Accounts Committee (PAC). He also proposed limited non-bailout support via partial credit guarantees to attract new institutional investors. "Everything needs to be repackaged with a very clear objective. The government must ensure the MEX II Highway is completed," he said. He said that the project's completion is crucial for enhancing logistics and supporting national growth. "The most important thing is to realise that the MEX II Highway must be completed, as it provides a shorter travel route to Putrajaya, Cyberjaya and KLIA. "Of course, the new highway will also improve logistics efficiency, especially since the KLIA corridor is currently very congested," he added. He said the expressway would also help ease congestion on existing highways and improve regional airport access. "When there is a state visit, like when Xi Jinping visited Malaysia, this highway would allow a direct link from KLIA to Putrajaya," he said. Wan Agyl added that prolonged delays have negatively affected surrounding property developments, leading to stagnating prices and declining investor confidence. He said the project's sukuk had been downgraded multiple times due to ongoing uncertainty.
