Putrajaya to issue RFP as 'plan B' for RM3.5 bil multi-lane free flow project

KUALA LUMPUR (July 1): The federal government intends to issue a request for proposal (RFP) as an alternative approach for the RM3.46 billion Multi-Lane Free Flow (MLFF) project, said Deputy Works Minister Datuk Seri Ahmad Maslan.

This move aims to potentially reduce the project's costs, Ahmad said, adding that the ministry had already announced its intention to issue the RFP.

"We have announced that we will issue an RFP as a 'plan B'. At the same time, we are giving until December for the companies involved in the MLFF proposal project," Ahmad said in response to a supplementary question in the Dewan Rakyat from Roslan Hashim (Perikatan Nasional-Kulim Bandar Baru), who sought updates on the status of the MLFF project.

The MLFF is a barrier-free system designed to replace the existing booth-based toll collection system with overhead gantries. These gantries will collect tolls using radio-frequency identification devices (RFID) along with an automated number plate recognition (ANPR) system.

The proposed MLFF system is estimated to cost RM3.46 billion for 33 highways in Malaysia.

According to a report by The Edge Malaysia weekly, citing sources, a private entity — 60%-controlled by YTL Corp Bhd and 40%-owned by a state-owned entity — organised a briefing with the Malaysian Highway Authority and the Ministry of Works in July 2023 to present its proposal for the MLFF implementation to highway concessionaires.

However, the YTL-linked proposal reportedly faced resistance from toll concessionaires who criticised the private entity's lack of track record. They expressed concerns that allowing a third party to take over toll collection might result in leakages.

Last week, Works Minister Datuk Seri Alexander Nanta Linggi stated that negotiations for the MLFF system are ongoing, with several stages yet to be finalised before a decision is reached.

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