KUALA LUMPUR: Road congestion on the streets of Kuala Lumpur translates into income losses up to almost RM20 billion annually.
This can shave between 1.0 and 1.8 per cent off Malaysia's gross domestic product from delay costs alone, said a latest report from the World Bank.
"Including the costs of fuel wasted and the economic cost of carbon dioxide and other emissions, the total cost of congestion in Greater Kuala Lumpur is estimated conservatively at 1.1 –2.2 per cent of GDP in 2014. These estimates do not account for the reduction in subjective well-being with commuting."
The report, part of the World Bank’s Malaysia Economic Monitor, described urbanisation as a key driver of the nation's success, but growing challenges in urban mobility threaten to dampen the benefits of cities.
Nearly 75 per cent of Malaysians now lived in cities compared to the 51 per cent in 1985.
Rapid urbanisation, the report said, boosted productivity and access to economic opportunities, and helped raise incomes and reduce poverty.
"Today, road congestion is increasing in Malaysia's cities - there is insufficient public transit as an alternative to car use, and public satisfaction with public transport is low."