The problem of nationalizing the Toll Roads – who actually pays for it

The talk about the Government buying up the toll roads to enable users to use the roads for free is a very interesting topic which has many hidden problems. It is true that only the Government will have the necessary resources to buy such an asset but it is also true that such resources must come from somewhere.

The first problem is of asset allocation.

The suggested asset to be purchased is specific with specific contribution to the national economy as well as to a specific section of the population. One important question that should be asked: will it benefit the general population? Definitely NOT. Ask the people from Sabah, Sarawak, Kelantan, Terengganu, and Pahang. Do they get any direct benefit from it?

If you get the Government to allocate a substantial amount of asset for the purchase of the toll roads, some other parts of the national service machinery will have to suffer. Education? Medical? Security? Can we actually afford to give this subsidy when it will impact the general living standards of all Malaysians?

The second problem is maximization.

Free market economy dictates that resources should go to activities that can maximize its potential. Governments do not operate under the same mindset. If Governments have the same thinking, we would not have schools in the rural areas nor will we have security in the vast majority of towns in Malaysia as all will be concentrated in Kuala Lumpur. Let free market operate under the maximization axiom and let Government focuses on providing basis services. This two should not mix.

The final problem is cost.

It is not cheap to buy a major asset such as the toll roads. The Government will have to borrow and this will affect our economy. For the benefit of a few, the whole country will have to take the burden.

THIS IS NOT FAIR!