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Cabinet still studying extension of PLUS highway concession

23 Nov 2020 / 16:55 H.

KUALA LUMPUR: The agreement to extend the concession agreements with highway concessionaire PLUS Malaysia Bhd (PLUS) is still being discussed by the Cabinet, Deputy Works Minister Datuk Eddin Syazlee Shith told the Dewan Rakyat today.

He said the government was still looking at other options and will take several matters into consideration with the aim of easing the burden faced by the government while balancing consumer needs.

He said the government would look at the agreements in detail as it involves sensitive issues including toll rates.

“At the same time, the government’s financial burden on these options would be considered, and the impact on the economy, foreign investor confidence, and the government’s overall capability would also be taken into account,“ he said to a question by Datuk Seri Mahdzir Khalid (BN-Padang Terap).

Mahdzir had asked for clarification on the decision by the Pakatan Harapan administration, announced in January, on the extension.

The PH government had agreed to the extension for PLUS which led to an 18% reduction in toll rates.

It said the 20-year concession extension was to ensure that PLUS is able to maintain and operate its highways without government help.

In January, several private companies had made proposals to acquire the highway concessionaire.

Khazanah Nasional Bhd holds 51%% equity interest in PLUS while 49% is held by the Employees Provident Fund (EPF).

Eddin said both parties needed to review revenue from tolls, and any decision taken should not burden the government and the people.

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