Malaysia is preparing to overhaul its highway toll collection method with a new barrier-free toll system that mirrors Singapore’s Electronic Road Pricing (ERP) model. The multi-lane free flow (MLFF) system aims to tackle persistent traffic congestion, especially on major expressways and border checkpoints.
Under this new initiative, motorists will no longer need to stop or slow down at toll gantries. Instead, charges will be made directly to users’ credit or debit cards via an open payment platform, enabled through automatic number plate recognition (ANPR) cameras and advanced e-payment systems.
This smart mobility solution is currently undergoing proof-of-concept trials along the Kemuning–Shah Alam Expressway. Malaysia’s Works Ministry is collaborating with Touch ’n Go and CIMB Bank to test out the system at Alam Impian toll plaza in Selangor.
Trial Expands to North-South Expressway
Another public trial, managed by Plus Malaysia, the country’s largest highway operator, is set to commence in mid-August 2025 along the heavily used North-South Expressway. If successful, the MLFF system will roll out nationwide by 2027.
Currently, Malaysian drivers must physically tap a card at toll booths, often leading to bottlenecks and delays. With the new setup, ANPR technology will automatically charge vehicles as they pass under a gantry — no tapping, no SmartTAGs, no RFID. This mirrors the contactless tolling approach long used in Singapore.
According to insiders, the new system is expected to be four times faster than RFID and SmartTAG systems. This could drastically reduce wait times at busy toll points — a welcome change for over four million Singaporeans who drive across the border each year.
Government Spending Avoided With B2B Model
Notably, the implementation will not incur government spending. Malaysia’s Deputy Works Minister Ahmad Maslan clarified that the project will be run under a business-to-business (B2B) model, allowing private players to deal directly with the 33 existing highway concessionaires.
This move comes after earlier delays when the government failed to secure unanimous cooperation from all toll operators. Concerns had surfaced previously over a projected RM3.46 billion (S$1.06 billion) public expenditure for the upgrade, but these have since been addressed.
Maslan assured that the government’s decision to go with the B2B model effectively nullifies the projected RM3.46 billion cost.
Singapore Motorists Will Benefit Too
The new MLFF system will also benefit Singaporean drivers heading into Malaysia. By eliminating the need for SmartTAGs or RFID devices — which many Singaporean motorists struggle with — the open-payment method will simplify toll payments and reduce the stress of cross-border travel.
As both countries increasingly invest in digital infrastructure, seamless and interoperable mobility systems could become the regional standard. For Singaporeans, this could mark a future where cashless, contactless travel across ASEAN becomes a reality.