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There have been privatizations in Malaysia since 1983. Befuddled by privatizations, Malaysians are concerned about their effects on the country.

The Malaysian Government privatizes the construction and maintenance of major roads such as the North-South Highway for over a decade. The
concessionaires collect tolls. Toll rate is increased every one and a half
or two years.

If the Government does not allow the concessionaires to increase the tolls, it pays compensation. According to the Works Minister, it pays RM 1 billion annually. In the next 20 years, it will pay at least RM 8 billion.

Constructing and maintaining roads are expensive. Theoretically, privatizing road projects is a way of saving public money. However, if toll operators charge too much, the consumers suffer. The latter complain. Hence, the Government has to reduce tariffs and its compensation to the minimum.

NO MORE CONCESSION

Besides reviewing the agreements with the concessionaires for Shah Alam, Cheras-Kajang , Karak and Butterworth-Kulim highways, the Government must study that of other highways such as Kuching Road, Kuala Lumpur. After the abolition of toll along the Tanjung Malim Road, Perak, that at Kuching Road is one of the earliest, at least in the Federal Territory.

Originally, the concessionaire Kamunting's concession for Kuching Road has ended. The Government allows it to extend for another seven years, saying that the company had done extra works. Then, another company is supposed to take over the concession for several years. This new concessionaire has to undertake the construction of underpasses and roads away from the Kuching Road.

Once there is a road toll, it is difficult to stop. It becomes a momentum.
The Government has to stop this momentum by reviewing the policy of allowing concessionaires to extend the period for collecting toll.

The Malaysian Government has to strike a balance between saving public fund and forcing road users to pay toll along privatized roads. If the cost for construction of a road is unreasonably high and the toll rate is excessive, then the people are unhappy.

Dr Tan Seng Giaw