For Whom The Tolls Toll
Probably My Least Popular Posting
As reported in Reuters:
Malaysia will announce on Thursday a sharp rise in road toll rates to help trim state subsidies, in a move that could spark a public outcry and raise inflation. Tolls will go up by as much as 60 percent and will affect users of five highways in and around the capital, Kuala Lumpur. The new rates take effect on Jan. 1. A spokesman for the Works Minister confirmed that an announcement would be made at a news conference at 3.15 p.m. (0715 GMT) on Thursday. He declined to give details. Under toll concession agreements that critics say favour operators, the government has to reimburse operators if traffic volumes and revenues fall short of pre-agreed projections. Works Minister S. Samy Vellu said recently the government would have to fork out 2 billion ringgit (US$565 million) in compensation to five highway operators if toll rates were not revised. The operators include listed firms Gamuda Bhd and Lingkaran Trans Kota Holdings Bhd. Litrak operates the 40 km Damansara-Puchong highway, where the toll is to rise 60 percent, to 1.60 ringgit from 1 ringgit now. The real toll is 2.10 ringgit, so the government is still subsidising 50 sen for each user. Residents along the densely populated stretch had protested strongly against an initial proposal to levy a toll of 1.50 ringgit, forcing the government to fix it at 1 ringgit. Some 418,000 vehicles used the highway daily on average, reflecting a 14.5 percent compounded annual growth rate for the past seven years, rating firm RAM said in a review of Litrak. Government officials told the briefing that one reason for the shortfall in toll collection was due to motorists switching to alternative non-toll roads, the source said. The toll hikes, however, will not apply to Malaysia's biggest toll-road firm, Projek Lebuhraya Utara-Selatan (PLUS), a PLUS spokeswoman said. PLUS' rate increase is fixed at 10 percent every three years and the next increase is not due until January 2008. Malaysia's annual inflation was 3.1 percent in October year-on-year, down from a 7-year-high of 4.8 percent in March.
My Lima Sen:
a) Its a good move, I know the Bandar Utama and Taman Tun residents will yell and scream, but hey, you can afford it.
b) Why are we jumping up and down on something which has been written in contract to the companies?
c) There is only so much a country can do to subsidise infrastructure, would you mind paying even higher taxes?
d) Of course if you harp on the enormous wastage in bribery, inefficiency and misallocation of resources... that is a completely seperate issue. Toll roads would not be built if there was no toll. You think this is your grandfather's road aaahhh?
e) You use, you pay, if not then the rest of the nation is shouldering the toll for you, including the pakciks and grandfathers back in Ulu Langat or Kuala Lipis.
f) WE CANNOT KEEP SUBSIDISING the economy or even pockets of the economy. Be it in petrol prices or otherwise. That would create an inefficient allocation of cost and resources. Of course we cannot withdraw all subsidies all at once, we have to do it gradually. Live with it.
g) If we can withstand a 33 sen increase at the petrol pump, this is nothing.
h) While this may sould like a propaganda piece from the government, somebody must always see things from a bigger perspective.
i) No point saying how much money we make from oil and gas, or lose to corruption, or misallocation of resources - say that during a seperate platform. Just on toll roads alone, voice your dissatisfaction based on toll roads issue alone.
j) Its good for the toll companies as their cash flow is more assured instead of up in limbo.
k) In the long run, the government is just preparing the nation to live with the "real cost of living", and for companies to "operate on real cost of production". Its kinda neat if you think about it.... about time man!!
pssstt ... don't I sound like KJ??!!... lol... if only he was talking sense, if only...
Probably My Least Popular Posting
As reported in Reuters:
Malaysia will announce on Thursday a sharp rise in road toll rates to help trim state subsidies, in a move that could spark a public outcry and raise inflation. Tolls will go up by as much as 60 percent and will affect users of five highways in and around the capital, Kuala Lumpur. The new rates take effect on Jan. 1. A spokesman for the Works Minister confirmed that an announcement would be made at a news conference at 3.15 p.m. (0715 GMT) on Thursday. He declined to give details. Under toll concession agreements that critics say favour operators, the government has to reimburse operators if traffic volumes and revenues fall short of pre-agreed projections. Works Minister S. Samy Vellu said recently the government would have to fork out 2 billion ringgit (US$565 million) in compensation to five highway operators if toll rates were not revised. The operators include listed firms Gamuda Bhd and Lingkaran Trans Kota Holdings Bhd. Litrak operates the 40 km Damansara-Puchong highway, where the toll is to rise 60 percent, to 1.60 ringgit from 1 ringgit now. The real toll is 2.10 ringgit, so the government is still subsidising 50 sen for each user. Residents along the densely populated stretch had protested strongly against an initial proposal to levy a toll of 1.50 ringgit, forcing the government to fix it at 1 ringgit. Some 418,000 vehicles used the highway daily on average, reflecting a 14.5 percent compounded annual growth rate for the past seven years, rating firm RAM said in a review of Litrak. Government officials told the briefing that one reason for the shortfall in toll collection was due to motorists switching to alternative non-toll roads, the source said. The toll hikes, however, will not apply to Malaysia's biggest toll-road firm, Projek Lebuhraya Utara-Selatan (PLUS), a PLUS spokeswoman said. PLUS' rate increase is fixed at 10 percent every three years and the next increase is not due until January 2008. Malaysia's annual inflation was 3.1 percent in October year-on-year, down from a 7-year-high of 4.8 percent in March.
My Lima Sen:
a) Its a good move, I know the Bandar Utama and Taman Tun residents will yell and scream, but hey, you can afford it.
b) Why are we jumping up and down on something which has been written in contract to the companies?
c) There is only so much a country can do to subsidise infrastructure, would you mind paying even higher taxes?
d) Of course if you harp on the enormous wastage in bribery, inefficiency and misallocation of resources... that is a completely seperate issue. Toll roads would not be built if there was no toll. You think this is your grandfather's road aaahhh?
e) You use, you pay, if not then the rest of the nation is shouldering the toll for you, including the pakciks and grandfathers back in Ulu Langat or Kuala Lipis.
f) WE CANNOT KEEP SUBSIDISING the economy or even pockets of the economy. Be it in petrol prices or otherwise. That would create an inefficient allocation of cost and resources. Of course we cannot withdraw all subsidies all at once, we have to do it gradually. Live with it.
g) If we can withstand a 33 sen increase at the petrol pump, this is nothing.
h) While this may sould like a propaganda piece from the government, somebody must always see things from a bigger perspective.
i) No point saying how much money we make from oil and gas, or lose to corruption, or misallocation of resources - say that during a seperate platform. Just on toll roads alone, voice your dissatisfaction based on toll roads issue alone.
j) Its good for the toll companies as their cash flow is more assured instead of up in limbo.
k) In the long run, the government is just preparing the nation to live with the "real cost of living", and for companies to "operate on real cost of production". Its kinda neat if you think about it.... about time man!!
pssstt ... don't I sound like KJ??!!... lol... if only he was talking sense, if only...
No comments:
Post a Comment