User-pay solution for infrastructure

Photo: SHAARI CHEMAT/The Star

In Budget 2025, the Prime Minister introduced a new approach to financing public infrastructure through the “user-pay” concept, positioning the public and private sectors as active partners in national development through public-private partnerships (PPP).

The primary goal is to alleviate the government’s financial burden by distributing the costs of developing and operating these facilities between the government, private sector and users, thereby creating a more sustainable and viable funding model.