MOTORISTS TO BEAR THE BRUNT OF TOLL RATES HIKE IN MALAYSIA?

PETALING JAYA, Malaysia - Toll rates along several major highways in the country will increase between 20 sen and RM4.70. 
The hike in toll rates, effective today(Thursday), will likely result in lower traffic volumes, as motorists take on the full burden under the respective highway concession agreement (CA).

“While concessionaires will still be effectively receiving their CA rate post-hike, traffic volume is likely to suffer, as motorists will now be paying more with the subsidy removed,” said Hong Leong Investment Bank (HLIB) Research in a note.

It added that every 10% toll rate increase would result in a 1% drop in traffic volume.

“However, given that the hike this time is more widespread, the price elasticity of motorists could be higher,” it said.

The Government reportedly paid some RM559mil in compensation to toll concessionaires as a result of the actual toll rates being lower than the stipulated rates in their respective CA.
The highways are the Kajang Traffic Dispersal Ring Road, the Duta-Ulu Kelang Expressway, Maju Expressway,the Kuala Lumpur-Karak Highway, the KL-Kuala Selangor Expressway, the SMART Tunnel, the New Pantai Expressway (NPE), Besraya Highway, Lebuhraya Kajang Seremban (Lekas), the Guthrie Corridor Expressway, the Kemuning Shah Alam Expressway, the Ampang Kuala Lumpur Elevated Highway, Lebuhraya Damansara-Puchong, Sprint, Grand Saga Expressway, Senai-Desaru Expressway and the Butterworth Outer Ring Road.

Source: The Star...More...