Kuala lumpur: The government is incurring financial implications of over RM500 million to maintain the existing toll rates on 10 major highways this year. Deputy Works Minister Datuk Seri Dr Ahmad Maslan stated that this amount is being paid to 10 concession companies following the government's decision made last December.

According to BERNAMA News Agency, Ahmad emphasized that any toll freezes or discounts during festive seasons are not complimentary but are covered by the government in accordance with previous concession agreements. In addition, the government is bearing around RM80 million annually to compensate all toll highway concessionaires due to a 50 percent toll discount offered during major festive seasons. This compensation goes to 33 highway concession companies for discounts provided during Hari Raya Aidilfitri, Chinese New Year, Deepavali, and Christmas.

The discounts are aimed at easing the cost of living, particularly during festive periods when many people travel to their hometowns. Ahmad further explained that due to financial constraints, the government is implementing tolled highway construction through privatization. This method requires concessionaires to secure bank financing for highway projects, which can cost billions of ringgit.

Ahmad noted that under privatization, companies borrow from banks to fund these projects, with toll collection serving as the means to recover the costs. The toll rates are determined by concession agreements for specified periods. While the agreement allows for rate increases, the government has chosen not to raise them, considering the impact on people's livelihoods.