PLUS has been in the news a fair bit lately. There have been much talk about the government considering the sale of the highway operator that holds the concession of the North South Highway, among other tolled roads, and in last Friday’s 2020 Budget tabling, finance minister Lim Guan Eng announced that PLUS will offer a minimum reduction of average toll charges by 18% from 2020.
Now it looks like both are connected. The Sun reports Lim as saying that companies who wish to acquire the PLUS must fulfil two conditions before they can proceed, and the first condition is to fulfil the minimum 18% average toll reduction that was announced. The second criteria is to make sure that it is fiscally positive.
“It must not increase the government’s debt burden and also not increase the government’s debt servicing charges,” he said at a press conference after the Budget 2020 briefing to elected representatives on Saturday.
The 18% drop requirement shouldn’t be a problem, based on what we’ve heard from bidders so far. MEX Highway operator Maju Holdings is touting a reduction of between 25% to 36% in its proposal to the government, for instance, while RRJ Capital – a Malaysian-led, Hong Kong-based private equity firm – has proposed 20% lower toll in exchange for a 20-year extension to the concession period after it ends in 2038.
Earlier this month, prime minister Tun Dr Mahathir Mohamad said that the Pakatan Harapan government is ready to review bids to purchase PLUS. It came shortly after Khazanah Nasional MD Datuk Shahril Riza Ridzuan’s statement on October 5, in which he said Malaysia’s largest highway operator was not for sale.
“Any bid by anyone will be reviewed by the government, [and] if it complies with our needs, we will entertain their request,” the PM declared. Asked if sales of income generating assets such as PLUS would affect the nation’s coffers, Tun M said “we have a committee to look into debt and repayment issues. It (the committee) will make any proposal to reduce the country’s debt.”
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If follow previous dedak ridden Government, PLUS would be 30% more expensive now instead of 18% reduction.
Syukur syukur syukur!
We don’t want 18% reduction. We want toll free as per promised during GE14.
Kalau tak suka …
Bajet terbaek sejak 1980, kurang la beban rakyat.
highest allocations for Health, study & defend …
why want to sell PLUS since it is belong to Khazanah and EPF? Sell it to private sector then buy it back again? Totally nonsense!
Budget primarily is a “balancing act” of the many and varied citizens/stakeholders that is between revenue from taxes & duties and cost. BTW they are many areas in Malaysia where there is no toll, and to them it is a KV issues.
Boycott gamuda highways: ldp, smart, kesas & akleh. Remember what Koon Yew Yin said?