KUALA LUMPUR: The government's decision to offer a 50 per cent toll discount for private vehicles during the Chinese New Year celebration has drawn mixed responses from economists, who are calling for long-term strategies over short-term festive benefits.
Putra Business School economic analyst Dr Ida Yasin argued that the focus should be on affordability in general, rather than periodic incentives.
"We should not be giving a lot of incentives such as this. For those who use highways, you have to pay.
"The government needs to consider whether the toll price is affordable in general, rather than give free tolls once in a while," she said when reached by the New Straits Times.
"At the end of the day, we have to return to reality and ask, 'Do we have the money?' If the government had the money, we wouldn't need to pay tolls anymore.
"This is just like birthday presents—just because someone gives it to us this year doesn't mean they will give it next year," Ida explained.
Earlier today, Works Minister Datuk Seri Alexander Nanta Linggi announced a 50 per cent toll discount for private vehicles in conjunction with the Chinese New Year celebration.
LINK: https://www.nst.com.my/news/nation/2025/01/1165752/updated-50pct-toll-cu...)
Nanta added that the financial implication of this initiative, which compensates the affected toll concessionaires, is estimated at RM20.08 million.
This was after he announced on Jan 15 that the government will no longer offer highway toll exemptions for festive occasions following a cabinet decision, with the last being Christmas of 2024.
LINK: https://www.nst.com.my/news/nation/2025/01/1164003/updated-nanta-no-more...
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid urged the government to communicate its fiscal strategies more effectively if it goes ahead with plans to end free tolls for holidays.
"The narratives on fiscal consolidation must be properly and clearly communicated to the public. The strategy should be crafted to ensure the rakyat fully understands and supports such a move," Afzanizam said.
He described the 50 per cent discount as a necessary compromise, given the impending celebration.
"Since there is no mechanism to clearly distinguish between those who are qualified and not, the 50 per cent discount can be deemed necessary."
Universiti Teknologi Mara's Malaysian Academy of SME and Entrepreneurship Development (Masmed) coordinator Dr Idham Razak said that while the discount offers short-term benefits, it should be paired with broader transportation and fiscal policies.
"People tend to spend more on travel and celebrations during festive seasons, and the discount helps reduce these expenses for middle and lower-income groups like the B40 and M40 populations," he explained.
He added that the policy supports economic activity in rural areas.
"The discount reduces travel costs, fuelling domestic movement, helping family reunions, and driving economic activity in local communities, especially in rural areas and small towns that rely on festive travel revenue."
Idham suggested more sustainable solutions, highlighting public transport as an alternative.
"The toll discount reflects festive season intentions, but sustainable transport solutions could include broad policies that promote public transit during peak travel times," he said.
Nanta said that the financial implication of this initiative, which compensates the affected toll concessionaires, is estimated at RM20.08 million.
He added that this discount was "in line with the government's vision to promote unity and well-being among the people," despite the previous announcement.
Nanta said the discount initiative continues the festive toll relief measures that have been consistently provided by the government for the four major festive seasons in Peninsular Malaysia since
2023.
