KUALA LUMPUR, Feb 26 — Zones in Kuala Lumpur exempt from the planned congestion fee during certain hours may be introduced to balance business needs with traffic management, Federal Territories Minister Dr Zaliha Mustafa said.
Currently, the implementation of the congestion charge is still being researched by the Malaysian Institute of Road Safety Research (MIROS) and the Malaysian Green Technology and Climate Change Corporation (MGTC).
Dr Zaliha said the study covers various aspects, including implementation mechanisms, projected traffic reductions, and the potential increase in public transport usage if the charge is introduced.
“I was also made to understand that the impact on the economy after the implementation of the congestion charge in other countries will decline for about two to three years. It will resume for the better thereafter.
“The implementation of the congestion charge also has its positive impacts, if we look at the benefit for small business owners,” she said, citing an international study that showed long-term benefits through increased foot traffic and public transport usage, which can bring more customers to commercial areas.
“However, for Kuala Lumpur, I emphasise the logistics and delivery sector, where we can consider several measures. For example, an exclusion zone during certain hours to enable vehicles to operate without being charged outside of peak hours. That we can consider.
“Vehicles such as e-hailing services, taxis, or private vehicles owned by building owners or hotel guests in central business districts (CBDs), we can also provide discounts or certain targeted incentives such as being excluded from the congestion charge.
“This can be considered,” Dr Zaliha said.
She added that discounts and exemptions could also be considered for tourism buses and vans.
Dr Zaliha was responding to a supplementary question from Ledang MP Syed Ibrahim Syed Noh, who asked how the congestion charge would impact the economy in towns, particularly for small business owners, logistics operators, and tourism businesses. He also queried whether the government planned to provide small incentives to those affected by the charge.
In her ministerial winding-up speech on Tuesday, she highlighted a 2020 study by Prasarana Malaysia Berhad, which found that traffic congestion resulted in national losses amounting to RM20 billion.
In her initial statement of reply, Dr Zaliha said this meant that for every 1 per cent reduction in congestion—especially in central business districts (CBDs) such as Bukit Bintang, Lembah Pantai, Setiawangsa, and Wangsa Maju—the government could potentially reduce national losses by RM200 million.
She said the government had identified three cities where the congestion charge could be implemented: Kuala Lumpur, George Town, and Johor Baru.
“In line with international research findings, if the congestion charge is implemented in Kuala Lumpur, it is expected to reduce congestion by around 20 per cent. For it to be successful, the rate of the congestion charge cannot be too low and must be set at a level that deters—or in other words, discourages—road users. However, the government also does not want the charge to place an additional burden on users if it is set too high,” she said.
Dr Zaliha noted that Kuala Lumpur recorded an average of 1.5 million vehicle movements daily, with approximately six million vehicles in the capital at any given time.
“At the same time, the proportion of public transport users in Kuala Lumpur is only 25 per cent. Road users prefer to drive their own vehicles rather than use public transport due to weaknesses in first-mile and last-mile connectivity,” she said.
