The Malaysian Government has lost S$4.3 million due to lack of toll charges
07 Aug 2014|5,669 views
According to a Malaysian Cabinet Minister, the (Malaysian) Government has lost RM11 million (S$4.3 million) a month since 2012, as they decided against increasing toll charges at the Causeway.
The steep toll hike that took effect on the first of August sparked an uproar and drew criticism even from members of the ruling Barisan Nasional coalition.
According to information obtained by The Straits Times, the Cabinet met yesterday to think over measures to soften unhappiness over the near five-fold increase in toll charges although a change in pricing is unlikely at this juncture. "This is a revenue collection exercise. The government doesn't want to keep paying for it," one of the sources told the Singapore English daily.
According to the New Straits Times from Malaysia, Economic Planning Minister Abdul Wahid Omar revealed the decision in 2012 not to impose a toll for the Eastern Dispersal Link (EDL) had cost the government RM11 million monthly to the concessionaire Malaysian Resources Corporation Berhad (MRCB).
He also added alternative options including taking over the EDL - an elevated highway built to disperse traffic around Johor Baru that terminates at Sultan Iskandar Customs, Immigration and Quarantine Complex (CIQ) - were proposed but deemed unnecessary.
Money from the toll hike would cover MRCB's cost. Cars now pay RM16.50 (S$6.40) for a round trip, up from only RM2.90 (S$1.10) for entering Johor. Other vehicle types have been hit with similar increases.
The decision to increase toll charges has angered many in Johor, with the state's Public Works Executive Committee Chairman, Hasni Mohammad, demanding that Putrajaya justify the sudden increase.
Small-Medium Enterprises Association of Malaysia President, Teh Kee Sin, told The Straits Times that sudden changes like the toll increase made business planning difficult and anticipated an increase in the price of goods between 10 and 20 percent. In addition, Mr. Lim Kit Siang, opposition MP for Gelang Patah in Johor, accused Malaysian Prime Minister Najib Razak yesterday of breaking his 2012 promises to not apple toll charges on the EDL.
According to a Malaysian Cabinet Minister, the (Malaysian) Government has lost RM11 million (S$4.3 million) a month since 2012, as they decided against increasing toll charges at the Causeway.
The steep toll hike that took effect on the first of August sparked an uproar and drew criticism even from members of the ruling Barisan Nasional coalition.
According to information obtained by The Straits Times, the Cabinet met yesterday to think over measures to soften unhappiness over the near five-fold increase in toll charges although a change in pricing is unlikely at this juncture. "This is a revenue collection exercise. The government doesn't want to keep paying for it," one of the sources told the Singapore English daily.
According to the New Straits Times from Malaysia, Economic Planning Minister Abdul Wahid Omar revealed the decision in 2012 not to impose a toll for the Eastern Dispersal Link (EDL) had cost the government RM11 million monthly to the concessionaire Malaysian Resources Corporation Berhad (MRCB).
He also added alternative options including taking over the EDL - an elevated highway built to disperse traffic around Johor Baru that terminates at Sultan Iskandar Customs, Immigration and Quarantine Complex (CIQ) - were proposed but deemed unnecessary.
Money from the toll hike would cover MRCB's cost. Cars now pay RM16.50 (S$6.40) for a round trip, up from only RM2.90 (S$1.10) for entering Johor. Other vehicle types have been hit with similar increases.
The decision to increase toll charges has angered many in Johor, with the state's Public Works Executive Committee Chairman, Hasni Mohammad, demanding that Putrajaya justify the sudden increase.
Small-Medium Enterprises Association of Malaysia President, Teh Kee Sin, told The Straits Times that sudden changes like the toll increase made business planning difficult and anticipated an increase in the price of goods between 10 and 20 percent. In addition, Mr. Lim Kit Siang, opposition MP for Gelang Patah in Johor, accused Malaysian Prime Minister Najib Razak yesterday of breaking his 2012 promises to not apple toll charges on the EDL.
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