Media Statement
A high toll on ordinary Malaysians
Aliran is appalled by Prime Minister Mahathir Mohamad's threat not to build new roads just because the public is not willing to pay the exorbitant toll demanded by toll concessionaires.
He keeps saying that our toll rates are among the lowest in the world. He compares us with Japan, but our cost of living and income levels are much lower than Japan's. Why doesn't he compare Malaysia to countries that provide free expressways for their motorists such as the United Kingdom and Australia, where very few roads are tolled? Until the late 1980s, successive administrations had built an extensive road system throughout the country with hardly any toll. How was that possible then and not now?
We find it distressing that the Cabinet is often seen to be more concerned about the profits of toll concessionaires rather than the plight of ordinary commuters, who have to fork out ever-increasing amounts of toll every year.
We are disturbed that the government had guaranteed traffic volumes to the concessionaires and now has to compensate them for lower-than-projected figures. The huge compensation that the government pays is actually public money coming from taxpayers. This is in addition to the road tax that motorists have to pay every year. In this respect, why do motorists have to pay both toll and road tax (for their vehicles)?
It is a pathetic excuse to say that toll rates have to be raised because concessionaires are suffering losses. One of the key objectives of privatisation is to transfer the element of risk to private owners. Toll concessionaires should not be allowed to hive off profits at the expense of motorists without also absorbing the risks inherent in the project such as lower-than-forecast traffic volumes.
Apart from lower traffic volumes, the astronomical tolls can also be attributed to the government's practice of awarding contracts to privileged companies without calling for an open tender. Without an open tender, there is no way of selecting the most cost-efficient expressway builder. In the end, it is the motorists who have to pay for the expressway builders' inefficiency.
It is unethical for the government to keep the agreements with concessionaires secret when the terms of the agreements commit motorists to stumping out more and more toll every year. Even Singapore complained that they were not aware of Malaysia's plans, highlighted in the media here, to build a new causeway linking the peninsula to the republic.
Higher tolls will only burden motorists and push up the inflation rate at a time when Malaysians are feeling the effects of the ongoing recession. It is time the government puts the interests of ordinary Malaysians above those of toll concessionaires.
Instead of threatening Malaysians, the government should come up with an integrated system of public transport for the whole nation. We probably have enough highways for a small nation such as ours and what we need now are faster, more efficient inter-city and urban light rail systems that are integrated with modern urban bus and tram services.
Anil Netto
Aliran Executive Committee
28 January 1998