Twelve of 33 highway concessionaires recorded losses in 2024


KUALA LUMPUR: Twelve of the country’s 33 highway concessionaires recorded losses for the financial year ending 2024, the Dewan Rakyat was told.

Deputy Works Minister Datuk Ahmad Maslan said new highway proposals must be backed by realistic traffic projections and sound financial calculations.

“There are 12 loss making toll concessions, including the Kuala Lumpur–Putrajaya Expressway, KL–Karak Highway and East Coast Expressway Phase 1,” he said.

He also listed the Kemuning–Shah Alam Highway, Damansara–Shah Alam Elevated Expressway and Senai–Desaru Expressway.

Ahmad added the South Klang Valley Expressway, Setiawangsa–Pantai Expressway and Kajang–Seremban Highway are loss making.

He said the Sungai Besi–Ulu Kelang Elevated Expressway, SMART Tunnel and West Coast Expressway are also loss making.

Ahmad said 20 concessionaires reported profits, including the North–South Expressway and ELITE Highway.

He said the Butterworth–Kulim Expressway, Seremban–Port Dickson Highway, Linkedua and Penang Bridge were profitable.

Ahmad added East Coast Expressway Phase 2, Sungai Besi Expressway and Guthrie Corridor Expressway were profitable.

He said the Cheras–Kajang Highway and New Pantai Expressway were also profitable.

Others reporting profits include the LDP, KESAS, DUKE, SPRINT, AKLEH, LATAR, SILK and the Second Penang Bridge.

Ahmad said the data should caution those proposing new routes without weighing long term viability.

“Many want highways here and there, but if traffic is insufficient it is difficult,” he said on Wednesday (Nov 26).

“Some ask for an East Coast highway, for example from Terengganu to Kota Bharu. Will that be profitable,” he added.

He was responding to Zahir Hassan (PH-Wangsa Maju) on how many concessionaires recorded profits.

“With an estimated toll of RM70 and a construction cost of RM10bil, is it viable. If it is not, the burden falls back on the government,” he added.

He said the government may have to take over and absorb losses.

 

 

 

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