KUALA LUMPUR (Oct 13): The Associated Chinese Chambers of Commerce and Industry Malaysia today urged that the toll hike of nearly all highways in the Klang Valley — slated to start on Thursday, Oct 15 — be withdrawn immediately.

"The increase in toll rates will affect all walks of life and severely hit and affect the business community, as well as burden the rakyat as cost of living will increase greatly.

"At this juncture, the ACCCIM would like to urge the decision to increase the toll rates be withdrawn immediately," it said in a statement, expressing its shock and strong disapproval against the toll hike.

It said the cost of doing business has already increased tremendously in recent years, made worse by the recent economic downturn, as business activities in all economic sectors are slowing down.

Instead of hiking toll rates, it said priority should be given to introducing more business-friendly policies to reduce the cost of doing business, revive the economy, attract foreign direct investment and encourage consumption.

It also noted that the announcement contradicts with the government's promise to reduce the burden of the rakyat.

“The lack of transparency of the agreement with highway concessionaires has caused the concessionaires to have the power to raise the toll rates every 1 or 3 years, otherwise the government would have to pay a huge amount of compensation to them.

“While the amount of toll charges collected well exceed the estimated figure, it is so unreasonable for the concessionaires to keep increasing the toll rates,” said ACCCIM.

Hence, it urged the government to thoroughly review all highway concession contracts to put a halt to the demand by concessionaires to raise toll rates, once and for all.

"The current practice of negotiating or paying compensation or extending the concession period every few years, does not completely solve the problem and adds burden to the rakyat.

The association added that many intracity tolled highways are badly congested, especially during peak hours and festive seasons, yet the concessionaires are not penalised, nor compelled to expand the capacities, while toll concessions are increasing merely due to volume growth.

“We pay toll for hassle free flowing traffic and there must always be alternative non-tolled routes available. Unfortunately, these alternative routes are not available or are unrealistic alternative routes.

“It is imperative that the government compel the concessionaires to improve the carrying capacities and ensure free flowing traffic to justify any toll collections and toll reviews,” said ACCCIM.

The association said in order to encourage these concessionaires to seriously upgrade their highways, tolls should be suspended if, say, motorists are required to queue for more than 5 minutes to pay toll, or have to queue after paying toll.

“The temporary toll suspension should only be lifted, once traffic is free flowing. This will force the concessionaires to upgrade and deliver their promise of hassle-free travel for the right to collect toll,” said ACCCIM.