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12 Malaysian highway concessions recorded losses last year

Deputy Works Minister reveals 12 out of 33 highway concessions suffered losses in 2023 due to insufficient traffic volumes across multiple routes

KUALA LUMPUR: Twelve out of 33 highway concessions recorded financial losses last year due to insufficient traffic volumes.

Deputy Works Minister Datuk Seri Dr Ahmad Maslan revealed this information in the Dewan Rakyat today.

The affected highways include the Kuala Lumpur-Putrajaya Maju Expressway (MEX) and KL-Karak Expressway (KLK).

Other loss-making concessions are the Kemuning-Shah Alam Highway (LKSA) and Damansara-Shah Alam Elevated Expressway (DASH).

The Senai-Desaru Expressway (SDE) and South Klang Valley Expressway (SKVE) also reported losses.

Setiawangsa-Pantai Expressway (SPE) and Kajang-Seremban Highway (LEKAS) were among the twelve affected.

Sungai Besi-Ulu Klang Elevated Expressway (SUKE) and Stormwater Management and Road Tunnel (SMART) completed the list.

West Coast Expressway (WCE) and Butterworth Outer Ring Road (LLB) also recorded insufficient traffic volumes.

Ahmad Maslan cautioned that new highway proposals require proper traffic calculations.

“If the traffic volume is inadequate, there is no guarantee it will be profitable,” he said.

He warned that unprofitable highways might require government takeover and loss absorption.

The minister was responding to a supplementary question from Zahir Hassan (PH-Wangsa Maju).

Regarding the Bandar Baharu Toll Plaza to Sungai Petani stretch, Ahmad Maslan said the upgrade proposal remains unapproved.

He explained that project prioritisation typically determines approval decisions.

The Northern Corridor Highway was initially proposed from Taiping to Bukit Kayu Hitam.

The original alignment was found not viable, leading to a revised Taiping-Sungai Petani route.

The Public Private Partnership Unit (UKAS) is currently managing the request-for-proposal stage. – Bernama

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