No hike in toll rates this year, says Muhyiddin
BOWING to public pressure, Malaysia's Deputy Prime Minister Muhyiddin Yassin announced yesterday that the government had decided not to impose toll-rate increases this year but would instead absorb the RM400 million (S$153 million) it would cost to compensate the concessionaires involved.
Mr Muhyiddin's announcement was not surprising as public outrage over accumulated price hikes owing to the government's subsidy rationalisation measures had been mounting.
A recent survey by the Malaysian Institute of Economic Research revealed that consumer confidence had plummeted to its lowest level since the 2009 global financial crisis. The main gripe was the rising cost of living.
On another level, the government also has to contend with a by-election scheduled for March 23. The by-poll was triggered by the resignation of Parti Keadilan Rakyat (PKR) assemblyman Lee Chin Cheh on Jan 27.
Mr Lee resigned to pave the way for opposition leader and PKR adviser Anwar Ibrahim to run and, if victorious, replace the state's current mentri besar, Khalid Ibrahim.
According to a senior PKR official who spoke to BT, Mr Khalid is "clean but so tight-fisted that the state's maintenance is being ignored". Mr Anwar is seen as the only choice acceptable to the Selangor PKR.
But whether the government's concession on the toll rates will have any effect on the by-election's outcome is doubtful.
In the May 2013 general election, Mr Lee won by a majority of over 6,000 votes and the general consensus is that Mr Anwar should win comfortably.
On another level, the amount of compensation Putrajaya will have to pay the toll concessionaires has once again sparked debate on the lopsided nature of privatisation agreements.
"The government must find ways to renegotiate the concession agreements," opposition lawmaker Gobind Singh Deo said in a press statement. "There should be limits on profit margins for these contracts, their duration, and if there are none, then Parliament should legislate to provide for it."
Mr Muhyiddin had said that the compensation would be for concessionaires in the Klang Valley which were supposed to have raised their toll rates this year.
The deputy premier said there were several other concessionaires including Projek Lebuhraya Utara-Selatan (Plus) which would not be increasing their toll rates.
"There are altogether 29 highway concessionaires, but only the ones in the Klang Valley are involved (getting compensation)," Mr Muhyiddin said. "If I'm not mistaken, there are nine of them."
Perhaps mindful of the debate, the deputy premier added that the Works Ministry would be asked to do a comprehensive study on the existing toll concessions in a long-term context, to see whether there was a way to renegotiate with the concessionaires on toll collection.
"If there are terms that both sides can agree upon, including extending the concession period as a means to ensure that toll rates will not be raised in future, these can be discussed," he told reporters.
