PLUS, Prolintas Begin MLFF Trial Runs to Resolve Toll Payment Issues

Source: The Edge Malaysia

Highway concessionaires in Malaysia, led by PLUS Expressways Bhd, are moving forward with their own Multi-Lane Free Flow (MLFF) systems after failing to reach an agreement with the government-backed KJS-SEP joint venture. The initiative aims to create a more transparent and efficient toll collection system while addressing concerns about profiteering.

The move comes after a breakdown in negotiations between toll operators and the government in December 2024. Highway operators now believe that controlling MLFF implementation themselves is the best way forward.

Highway Operators Conduct Their Own MLFF Trials

Several major concessionaires, including PLUS, Prolintas, and Amanah Lebuhraya Rakyat, have begun trial runs of MLFF on closed highways. Prolintas, which operates six city highways, has already started its trials, while PLUS is set to launch its own MLFF system by April 2025.

One key proposal is to integrate MLFF with the Road Transport Department (RTD), allowing concessionaires to link unpaid tolls to road tax renewals. This would prevent motorists from avoiding toll payments by ensuring that outstanding balances must be settled before their road tax can be renewed.

An industry executive explained that current laws do not allow highway operators to pursue toll evaders once they have exited the highway. The proposed partnership with RTD aims to close this loophole and improve compliance.

A Unified MLFF System Through a Non-Profit Model

Highway concessionaires are also exploring the idea of creating a single MLFF system through the Malaysian Association of Highway Concessionaires Company. The proposal involves all operators taking a stake in a central entity that would manage MLFF, ensuring transparency in cost management and preventing excessive profits.

This plan is seen as a response to concerns that a third-party operator might impose high charges, affecting toll pricing and revenue distribution. If concessionaires collectively own the MLFF system, they believe there will be greater control over operating costs and fewer disputes.

Why the KJS-SEP MLFF Proposal Failed

In 2021, the government opened bids for MLFF implementation, leading to the selection of the KJS-SEP joint venture. This entity, made up of YTL Power International and SEP Synergy, was expected to manage toll collections through a Centralised Tolling Agency.

Under this model, KJS-SEP would be responsible for building gantries and maintaining the MLFF system, receiving an annual fee of RM650 million. The government argued that this cost was lower than the RM850 million concessionaires currently spend on maintaining toll booths.

Despite the cost-saving claims, highway concessionaires rejected the proposal, stating that they were not properly consulted before the government attempted to appoint an external operator. They argued that since they were financing the MLFF transition, they should have the authority to select the best system that aligns with their financial commitments.

The Berjaya Group was also reported to be interested in running the MLFF system at a lower cost than KJS-SEP, but no further developments have been confirmed.

Will This Finally Resolve Malaysia’s Toll System Issues?

Malaysia has long faced challenges with toll collection, from congestion at booths to unpaid tolls. Highway operators now believe that by taking charge of MLFF, they can implement a system that is fairer, more transparent, and more efficient.

The government’s previous attempt to introduce a third-party operator was met with strong resistance, but the latest initiative by concessionaires themselves could offer a practical solution. The proposed integration with RTD may also improve toll payment enforcement.

With PLUS and Prolintas already running MLFF trials, the future of toll collection in Malaysia is taking shape. The question now is whether this move will bring lasting improvements or if further challenges will arise in the implementation process.