Berjaya Group Eyes Toll Plaza Transformation with Barrier-Free System Bid

A major public company believed to be Berjaya Group, is reportedly seeking support from highway concessionaires for a competing bid to install a barrier-free system at toll plazas. This move comes after 32 highway toll concessionaires opposed the government’s plan to appoint a unit of YTL Holdings for the same purpose.

According to FMT, Senior executives from Berjaya Group have allegedly held individual meetings with representatives of the 32 concessionaires to explain their proposal and gather feedback before submitting the final proposal to the works ministry. The Berjaya offer is more favourable than the earlier proposal being considered by the government.

Under Berjaya’s plan, highway companies would construct multi-lane free-flow toll booths, while Berjaya or another company would provide toll collection services. This arrangement would allow concessionaires to receive revenue the next day, similar to the current practice. Additionally, the company providing toll collection services would address revenue leaks from motorists driving through without paying.

The concessionaires are advocating for the barrier-free system to be implemented only at major toll plazas in high-traffic areas like the Klang Valley, Penang, and Johor, aiming to reduce congestion. This approach is estimated to cut the cost of implementing the system by 30%.

In March 2023, RM3.46 billion was allocated to implement a barrier-free system at highway toll plazas by 2025. However, last year, the government reportedly signed an agreement with a YTL company to build the free-flow system and manage toll collection, sparking objections from the highway concessionaires.

The Association of Highway Concessionaires Malaysia raised concerns about potential integrity issues regarding traffic and toll revenue under the YTL plan. Prime Minister Anwar Ibrahim assured the highway companies that no final decision had been made, following the association’s objection.

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