KUALA LUMPUR: The toll hike for five major highways has been deferred indefinitely to ease the burden of the people during the economic slowdown.

The cabinet decided on this respite for motorists during its meeting yesterday, a day after Works Minister Datuk Seri Mohd Zin Mohamed had announced the new toll rates, which would have taken effect tomorrow.

The increase for the stretches run by PLUS Expressways Bhd would have been by 0.68 sen per km, Sprint Highway (Kerinchi Link and Daman-sara Link) by 50 sen and 30 sen respectively, Ampang-Kuala Lumpur Elevated Highway (Akleh) by 50 sen, Sungai Besi Highway (Besraya) by 10 sen and New Pantai Expressway (NPE) by 40 sen.

Following the deferment, the government will have to pay compensation in accordance with agreements between the government and the concession holders, estimated at RM287 million this year. 

Commenting on the decision, Prime Minister Datuk Seri Abdullah Ahmad Badawi said it had nothing to do with the by-elections in Kedah, Perak and Sarawak.

He said deferring the toll hike was the most logical move as "we are not in the same situation that we were when studies for the hike were made".

"What was announced (on Thursday) was the outcome of a study done at a time when the economy was not as bad as now. 

"As the government would now have to take over the burden, I hope the people will appreciate this," Abdullah said after meeting Thai Prime Minister Abhisit Vejjajiva on the sidelines of the 14th Asean Summit in Hua Hin, Thailand, yesterday.

Abdullah had called on the cabinet to review the decision to raise the toll rates when he was in Pattaya for the 3rd Asean Defence Ministers' Meeting on Thursday. 

"I had asked (Deputy Prime Minister) Datuk Seri Najib Razak to discuss this (at the cabinet). 

"At a time when we are planning a stimulus package in the form of a mini-budget to help the people, toll hikes are impractical. 

"There was also a lot of resistance."

Asked if the government would consider taking over the toll concessions, he said: "Toll concessions are big. We would have to study this. 

"We are already spending money on the stimulus packages."

In Putrajaya, Najib, who chaired yesterday's cabinet meeting, gave an assurance that there would be no toll hikes this year.

Asked how long this decision would stay, he said: "It is indefinite. We don't know yet as it depends on whether we can afford it.

"But the public is so averse to any increase. We can understand that, so the government decided against it, but it also means we have to set aside more money as compensation," Najib, who is finance minister, said. 

At a separate news conference, Zin said the government would have to pay RM287 million in compensations to the concessionaires following the deferment of toll increases.

The estimated compensation for PLUS was RM195 million, Sprint RM36 million, Akleh RM27 million, NPE RM20 million and Besraya RM9 million.