Travel Demand Management: Lessons for Malaysia

Abstract

The growth in the number of motor vehicles has exacted costs on both the Malaysian economy and environment. For reasons such as increasing disposable incomes and poor management of the public transportation system, the number of vehicles has grown unabated and, in fact, is aided by various contradictory policy measures such as national car projects and the existence of fuel subsidies. A phased, five-pronged Transport Development Management-based approach is recommended towards targeting a sustainable transportation system in Malaysia: (1) alteration of charges on road taxes and car insurance, (2) elimination of fuel subsidies, (3) imposition of fuel taxes and amendments in the bases for car taxation, (4) congestion charging, particularly in Kuala Lumpur, and (5) national road pricing. This move towards an eventual sustainable transportation system is presented for consideration.

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