The nationwide implementation of Malaysia’s barrierless toll system, the multi-lane free flow (MLFF) barrierless toll collection system, has faced challenges regarding the selection of a toll collection company. The previous government’s deal with YTL-Konsortium Jaringan Selangor Sdn Bhd (KJS) has left toll concessionaires dissatisfied.
The government has not finalized an agreement with YTL-KJS, which owns a 60% stake in KJS through YTL Communications Sdn Bhd. KJS claims to be a “state-backed company” of Selangor and Negri Sembilan.
The estimated cost of the MLFF system is approximately RM3.46 billion, covering 33 highways in Malaysia. Toll concessionaires support the MLFF system for its efficiency compared to the current toll booth system.
However, they oppose the appointment of a third party for toll collection, as they have been managing toll charges themselves.
Datuk Seri Alexander Nanta Linggi, the current Works Minister, is aware of the concessionaires’ concerns and has given them one month to propose an alternative system.
Touch ‘n Go Sdn Bhd, the current payment system operator at toll booths, may submit a proposal for the toll collection.
While a third-party toll collection service would relieve concessionaires of toll booth operational costs, they firmly believe that managing the MLFF toll collection system themselves would be more cost-effective and, additionally, allow them to own the collected data.
The MLFF system will use Radio Frequency Identification (RFID) and an Automated Number Plate Recognition system for toll payments. Key concerns for concessionaires include cost, legal aspects, and potential revenue leakages.
Enforcement of the MLFF system is critical to prevent revenue leakages, particularly due to non-compliant fancy number plates and inadequate enforcement by the Road Transport Department.
Toll concessionaires seek government guarantees on leakages and compensation if enforcement falls short. The migration to the MLFF system requires approval from toll concessionaire lenders, as toll collection directly affects their revenue, making the entire process time-consuming.
The Works Minister aims to reach an earlier agreement with highway concession companies to expedite the MLFF system implementation by the end of 2024.
The Sungai Besi Highway will implement the first MLFF Proof of Concept in October 2023. Additionally, the MLFF system is already operational at toll plazas on the Sungai Besi-Ulu Kelang Expressway (SUKE).
Studies question the decision to implement the open payment system for expressways ahead of the MLFF implementation in 2025, suggesting it to be slower and unnecessary with the introduction of online toll payment.
Credit: The Star : Business Feed
