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RM 380 million windfalls for 9 toll concessionaires following the toll hike in 2008 is against national interests, principles of justice and sharing our hardships together when the 9 toll concessionaires already record billions of ringgit in annual profits


Press Statement

by Lim Guan Eng



(Petaling Jaya, Friday): The RM 380 million windfall for 9 toll concessionaires earned solely from the toll hike next year in 2008 “stinks to high heaven” as it is against national interests, principles of justice and sharing our hardships together when the 9 toll concessionaires already recording billions of ringgit in annual profits. Works Minister Datuk Seri S. Samy Vellu said in Parliament on 22.11.2007 that the 9 highway concessionaires are scheduled to increase their respective toll rates from 1.1.2008, except Penang Bridge which will increase its rate from 1.10.2008. The breakdown of the RM 380 million compensation to be paid to nine highway concessionaires is:

1. Ampang-Hulu Klang Elevated Highway – RM28 million
2. North South Expressway (Central Link) – RM18 million
3. Seremban-Port Dickson Highway – RM178 million
4. Kulim-Butterworth Highway – RM10 million
5. Malaysia-Singapore Second Link – RM6 million
6. Sprint Highway – RM34 million
7. North Klang Valley Expressway Highway – RM9 million
8. Penang Bridge – RM22 million; and
9. Litrak, operator of the Damansara Puchong Expressway - RM75 million year to reduce its toll rate of RM2.20 to RM1.60

An analysis of toll collections against the construction and maintenance of 8 of the highway concessionaires (see below) shows huge profits earned that does not justify any toll increase next year. These 8 concessionaires are profitable, with toll collections of RM 21.19 billion as compared to the total cost of RM 19.05 billion comprising of RM 6.85 billion in maintenance and RM 12.2 in construction. In other words the 8 concessionaires have already earned profits of RM 2.14 billion by 2006 and still have nearly 30 years of profits to be earned.

And this is not all because the RM 2.14 billion profits to date do not include the government compensation paid to these companies for deferring toll hikes. No estimate is available as to the amount of compensation paid by the government but it must be substantial when Samy announced in September 2006 that the government paid compensation amounting to RM 38.5 billion to the highway companies.

That is why any rejection of the 10% hike in toll rates is meaningless when the public will still have to pay PLUS in the form of government compensation. Only when there is no toll hike and no government compensation made, will the highway companies be considered as contributing to the interests of Malaysians and real benefits enjoyed from the rejection of toll hike.

What is 10% toll hike when these 8 concessionaires has already made RM 2.14 billion in profits and is expected to make tens of billions of ringgit more? PLUS which comprise 85% of the highways in Malaysia has earned even more with RM 3.7 billion in only 19 years without taking into account the amount of government compensation received. As PLUS has a 50 year concession agreement, it still has 31 years to earn tens of billions of profits. Why should the government help these companies earn more money by approving toll hikes?

This will be test of resolve for Prime Minister Datuk Seri Abdullah Badawi whether he is concerned about the plight of tens of millions of ordinary Malaysians who will be the hardest hit by the toll hike or more concerned about padding the profits of several companies. Allowing toll hikes will only increase transportation costs and worsens inflation which has seriously eroded the real incomes and purchasing power of ordinary Malaysians.

Why should the toll companies earn increasing profits at the time when Malaysians face difficulty maintaining the same standard of living and making ends meet because of inflation? The toll companies should share the financial burdens with ordinary Malaysians in the national interests by forgoing such toll hikes next year. Badawi should ensure that if there is no 10% hike in toll rates, there should also be no corresponding compensation payment to the highway companies.

Total maintenance and construction cost for 8 concessionaires till year 2006


Highway concession period

Total collected till 2006 (RM)





cost (RM)

Total construction

cost (RM)

Total maintenance +


cost (RM)

North South (plus) / 50 years

15.91b since 1988





North-South-central link (elite) / 36 years

1.05b since 1994





Penang bridges/ 25years

1.70b since 1993





Second Link / 45years

350m since 1993





Butterworth-Kulim/ 32years

18m since 1994





Elevated Ampang-Kl/ 33years

13m since 1996





New North Klang Strait Bypass/ 25years

90m since 1995





LDP/ 33 years

970m since 1996






21.19 billion


6.854 billion


























* Lim Guan Eng, Secretary-General of DAP

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