No increase in toll charges with multi-lane fast flow system, says Deputy Works Minister

KUALA LUMPUR: There will be no increase in highway toll charges following the implementation of the Multi-Lane Fast Flow (MLFF) toll system, assured Deputy Works Minister Datuk Seri Ahmad Maslan.

He clarified that the proposed MLFF project has yet to receive Cabinet approval.

“The initial estimated cost of RM3.46bil will not be imposed on the government or highway users.

“This is because of the savings made by highway concessionaires due to reduced costs in maintenance, workers’ salaries, and electricity at toll plazas once the MLFF is implemented.

“These savings will be used for the MLFF system without increasing toll charges for users,” he said in response to a question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) in the Dewan Rakyat today.

Ahmad noted that the RM3.46bil estimate was provided under a previous proposal by KJS Sdn Bhd and SEP Snergy (M) Sdn Bhd, which was automatically terminated on Dec 16 last year.

He reiterated the government’s commitment to implementing the MLFF system as a solution to traffic congestion at highway toll plazas.

“The Cabinet will soon decide on the direction of the MLFF system’s implementation,” he added.

A Cabinet paper will be prepared once relevant feedback is obtained from the Transport Ministry, Finance Ministry, Attorney General’s Chambers (AGC), and the Public Private Partnership Unit under the Prime Minister’s Department.

Ahmad stated that the Prime Minister’s Department has yet to submit its views for the Cabinet paper on the MLFF system.

Several companies are expected to bid for the proposed MLFF project, which will require approval from all 33 highway concessionaires.

He added that the government will also consider recommendations by the Public Accounts Committee (PAC) to conduct a cost-benefit analysis for the proposed project.

On reports suggesting that the MLFF system would be implemented this April, Ahmad said it was being considered by PLUS Malaysia Berhad (PLUS).

“Highway concessionaires have the right to implement the MLFF independently, but this will be subject to the Cabinet’s directive and the overall direction of the MLFF system,” he said.

Although the PAC pointed out that the MLFF would not completely resolve congestion at highway toll plazas, Ahmad noted that it is a step towards addressing the issue.

He highlighted that the MLFF system has already been adopted in several countries, with Thailand and Indonesia currently working towards its implementation.

The MLFF is intended to replace toll booths with gantries and automated payment mechanisms, similar to Singapore’s Electronic Road Pricing system.

In December 2023, Prime Minister Datuk Seri Anwar Ibrahim stated that the MLFF project would be reviewed to ensure transparency and compliance with proper procedures.

The PAC launched its probe into the MLFF project last February following protests by 33 highway concessionaires against the direct awarding of the RM3.46bil project to a private company.

The concessionaires claimed that the project was awarded without consulting stakeholders, who would ultimately bear the cost of implementation.

In a statement on Tuesday, the PAC revealed that the Cabinet had approved the appointment of KJS Sdn Bhd and SEP Snergy (M) Sdn Bhd for the project on Dec 17, 2021, granting them a three-year period to negotiate with the highway concessionaires.

Although an agreement was signed on Nov 17, 2022, the PAC noted that it was automatically terminated on Dec 16, 2024 after no consensus was reached.

The PAC also found that the appointment of KJS-SEP Snergy as the Central Tolling Company (CTC) violated the concession agreements, which grant exclusive toll collection rights to highway concessionaires.