In order to nationalise and subsequently end toll charges in Malaysia, the government will have to defray the costs related to the takeover of the expressways’ assets. In addition, the government will also have to assume the debt obligations of the toll concessionaires. However Pakatan Harapan, in its 2018 alternative budget, had pointed out that buying back toll concessionaires would be more cost-effective, in comparison to paying periodic compensation to toll concessionaires. The country’s toll concessionaires will likely be watching the developments related to toll charges closely. “The abolition of toll charges could result in a one-off cash injection, following the disposal of toll concession assets which comes at the expense of earnings from the collection of tolls.

Source: The Star May 17, 2018 23:15 UTC