RM6.2 bil for tolled highways better spent elsewhere, says economist

KUALA LUMPUR: A prominent economist has disagreed with the finance ministry’s decision to acquire four urban tolled highways for RM6.2 billion, saying the money would be better spent on education or public transport.

Speaking to reporters after a forum at Universiti Malaya here yesterday, Muhammed Abdul Khalid said if the objective was to reduce the cost of living by any significant degree without exposing the government to additional debt, the proposed acquisition would not meet the criteria.

“The majority of people won’t see a single sen in benefits because the toll rates during peak hours will be the same,” said Khalid, who is the economic adviser to Prime Minister Dr Mahathir Mohamad.

Adding that those in other states would not see the benefits either, he said the only discount people would get is if they travel at midnight.

“How many workers travel at midnight?”

Finance Minister Lim Guan Eng announced that the government would acquire the Kesas, LDP, SPRINT and Smart Tunnel from Gamuda Bhd during the tabling of the 2020 Budget on Oct 11.

The move was also criticised by transport expert Rosli Azad Khan, who described the RM6.2 billion cost as exorbitant especially given that the Kesas concession would expire in 2028.

Muhammed, who earlier spoke at a forum titled “National Budget Dissection”, also said he welcomed the government’s plans to encourage people to use e-wallets.

However, he suggested the use of existing mechanisms rather than the allocation of some RM450 million to give RM30 to those aged 18 and above who earn less than RM100,000 a year.

“Perhaps we could take a portion of the money from the Cost of Living Aid and put it into the e-wallet,” he said. “Then you save half a billion ringgit that could be used for other purposes.”

He also welcomed the government’s move to introduce a tax identification number (TIN) to be submitted by anyone making purchases of above RM20,000.

He said this would reduce losses in government revenue and capture information on those who avoid tax. -FMT