A private sector proposal for the implementation of the multi-lane fast flow (MLFF) toll collection system is facing resistance from toll concessionaires who feel that any solution should come from within the industry, The Edge Malaysia has reported.
A meeting organised by the Malaysian Highway Authority (LLM) and the works ministry two months ago saw concessionaires presented with a proposal to implement MLFF through a privately held company that is 60% controlled by a local conglomerate with interests in power, telecommunications and construction businesses, according to the report.
Concessionaires present at the meeting were briefed on the concept of the proposed MLFF system that would cost an estimated RM3.46 billion for the 33 highways currently in Malaysia, The Edge Malaysia wrote. According to its sources, the proposal generally centralises operations, maintenance and collections at all toll booths.
An executive told The Edge Malaysia that top officials from the works ministry were present at the meeting. “The concessionaires are open to any proposal for a MLFF [system] but it should be a transparent process. If there is going to be a switch to the MLFF system, there should be a request for proposals from several companies,” the executive told the publication.
Toll fare leakage – such as from toll evasion – is currently 0.01%, according to a source, who questions the ability of a third-party collection in sustaining the low rate of leakage with a barrierless system
“Why must it be given to any one company that does not even have a track record in toll collection? And the process to appoint the company with the mandate to implement the MLFF should be managed by the concessionaires, not the government or any of the agencies under it,” they continued.
Sources tell The Edge Malaysia that the concessionaires were not comfortable with third parties undertaking toll collection on their behalf because there could be leakages, which could affect overall toll collection. The current rate of leakage from vehicles not paying toll charges is 0.01%, and a source questions the ability of a third-party collection in sustaining the low rate of leakage from a barrierless toll system, the report wrote.
“While the system may seem more efficient, it has not been tested. It is also not as straightforward as the company operating the toll system needs enforcement powers to go after those who do not pay the toll,” another source told the publication.
The MLFF toll fare collection system has been expected to be implemented by 2025, though public works minister Datuk Seri Alexander Nanta Linggi said in July that he hopes to get an earlier agreement with the companies in order for MLFF to be implemented sooner at the end of 2024.
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