Malaysia's Cabinet to decide on whether to continue toll-free travel during festivals by this Friday

The reason for the possible removal of toll-free travel is said to streamline subsidies that are already in place and to move towards providing targeted subsidies instead.

Toll-free travels may no longer be in place for festivals in Malaysia this year.

On 21 January 2025 (Tuesday), The Star cited Minister of Works Datuk Seri Alexander Nanta Linggi as saying that it was decided that 2024 would be the final year to implement the above subsidy. The reason for the possible removal of toll-free travel is said to streamline subsidies that are already in place and to move towards providing targeted subsidies instead (i.e, lower-income groups).

As further noted in The Star's report, in 2024 and 2023, subsidies had been given to certain toll concessionaires for free-toll travel during festive periods such as Chinese New Year, Hari Raya Aidilfitri, Deepavali and Christmas. On Christmas eve and Christmas day alone, the government was said to have spent RM38mn on subsidies to highway operators while the Hari Raya Aidilfitri 2023 period saw RM93mn in expenditure to the concessionaires of 33 major highways.

Minister Nanta also added that any further changes to this decision will be up to the Cabinet’s discretion, The Star reported.

On Wednesday (22 January), according to a separate report by The Star, Communications Minister Fahmi Fadzil said the decision will be made by the Cabinet by this Friday (24 January), noting that Minister Nanta's announcement was based on prior policy decisions made.