Zaliha: Govt studying city congestion charge, report expected by year end

• A congestion charge is a fee imposed on vehicles entering certain busy areas, usually city centres, to reduce traffic congestion and encourage public transport use.

KUALA LUMPUR (Feb 27): The study on implementing a congestion charge in the city centre is expected to be completed by the end of this year and will be submitted to the Cabinet Committee on Road Safety and Traffic Congestion, said Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa. (pictured)

The study, conducted by the Malaysian Institute of Road Safety Research (MIROS) and the Malaysia Green Technology and Climate Change Corporation (MGTC), covers various aspects, including the implementation mechanism, projected traffic reduction, and the expected increase in public transport usage if the charge is introduced, she said.

"I have been informed that the report will be completed by the end of this year, and it will likely be presented to the committee chaired by Deputy Prime Minister Datuk Seri Ahmad Zahid [Hamidi]. We will assess its impact and consequences on the country and the people," Zaliha told the Dewan Rakyat during the Minister’s Question Time on Thursday.

She was responding to Datuk Azman Nasrudin (Perikatan Nasional–Padang Serai), who inquired about the congestion charge mechanism and its expected impact on reducing congestion.

A congestion charge is a fee imposed on vehicles entering certain busy areas, usually city centres, to reduce traffic congestion and encourage public transport use.

Zaliha said that, based on the initial study, the government is considering several congestion charge mechanisms used in international cities. These include New York’s automatic licence plate-based charging system, Singapore’s zone- and time-based Electronic Road Pricing, and London’s fixed-fee Congestion Charge Zone for peak hours.

Additionally, Jakarta and Beijing’s Road Space Rationing system, which restricts vehicle use based on odd or even licence plate numbers on specific days, is also being considered, she said.

If implemented in Kuala Lumpur, the congestion charge is expected to reduce traffic by 20%, Zaliha added. "For effectiveness, the fee must be high enough to discourage road use but not so high that it burdens drivers."

She also cited a 2020 study by Prasarana Malaysia Bhd, which estimated that traffic congestion costs the country RM20 billion. Reducing congestion by 1%, especially in key areas like Bukit Bintang, Lembah Pantai, Setiawangsa, and Wangsa Maju, could save RM200 million.

Currently, Kuala Lumpur sees 1.5 million vehicles entering and exiting daily, with six million on the roads at any time. However, only 25% of commuters use public transport, as many prefer private vehicles due to weak first-mile and last-mile connectivity, Zaliha said.

Thus, she agreed that a congestion charge should only be enforced once the city has a well-integrated public transport system.

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