KUALA LUMPUR (Dec 18): The government has decided not to raise toll rates for 10 major highway concessions nationwide in 2026, with the federal government set to fork out another RM591.56 million in compensation to concessionaires.
Communications Minister Datuk Fahmi Fadzil said the financial implications of the decision would be fully borne by the federal government in order to maintain existing toll rates for the affected highways.
Fahmi further noted that the "decision carries financial implications for the government" during his weekly press conference on Thursday, as it follows a similar move announced six months earlier, when Prime Minister Datuk Seri Anwar Ibrahim said the government would absorb more than RM500 million to prevent toll increases on the exact same expressways.
The Cabinet had retrospectively approved the continuation of existing toll rates at its meeting on Dec 17 (Wednesday), according to Works Minister Datuk Seri Alexander Nanta Linggi in a separate statement on Thursday.
“Although the government must bear substantial financial implications [...] it has chosen to prioritise the people,” his statement read. The toll hike freeze announcement back in July this year was actually one of several initiatives by Anwar Ibrahim, framed as a gesture of appreciation for Malaysians.
Listed companies linked to the affected highways include Bina Puri Holdings Bhd (KL:BPURI), which operates Latar; Taliworks Corp Bhd (KL:TALIWRK), which operates Grand Saga and NNKSB; and Ekovest Bhd (KL:EKOVEST), which operates DUKE.
Other concessionaires include Senai–Desaru Expressway Bhd, PLUS Malaysia Bhd (LPT2), SKVE Holdings Sdn Bhd, Ministry of Finance-owned Jambatan Kedua Sdn Bhd (JSAHMS), Maju Expressway Sdn Bhd (MEX), and Lingkaran Luar Butterworth (Penang) Sdn Bhd.
As early as 2023, there was talk that the government was considering extending highway concession periods nationwide to avoid toll hikes, but this would require Cabinet and bondholder approval, with bondholders potentially demanding early repayment instead.
Some concessions have already been extended:
- PLUS Malaysia Bhd: Concession extended to 2068 to maintain toll rates; an earlier extension to 2058 in 2020 led to an 18% toll cut.
- Anih Bhd: Concession for KL-Karak Highway and East Coast Expressway phase 1 extended by 37 years to 2069, from an original expiry in 2032.
Most recently, the concession for the New Pantai Expressway (NPE) was extended from 2030 to 2057, allowing a new 15km elevated NPE2 extension while keeping tolls at RM2.30 until 2057.
Unlike these cases, the current toll hike freeze for selected highways does not involve concession extensions, differing from past restructuring where extensions were used to cap or reduce tolls and limit government compensation.