KUALA LUMPUR — September 3, 2017: The association representing lorry operators in the country is supportive of the proposal by Maju Holdings to take over PLUS Expressways Berhad.
This is because it sees the proposal as benefitting both the public and the government as it will be able to shed some of its liabilities and stop paying compensation to the concessionaires.
Under the existing concession contracts, the government is required to pay RM900 million in compensation to PLUS if the highway operator is not allowed to increase the toll rates every three years.
The proposal by Maju Holdings includes a promise not to increase toll rates for the next twenty years.
President of the Pan-Malaysia Lorry Owners’ Association Anthony Tan said PLUS, being the operator of the largest network of highways in Malaysia, should be managed by those who could offer toll rates which will not burden the people.
“This proposal will indeed be very beneficial for the logistics industry and for all road users,” he added.
Tan also questioned UEM Edgenta over its claim that it will be able to reduce the maintenance cost of the highways, adding that association members welcomed the fact that Maju Holdings is also proposing to enhance security along the highways.
Maju Holdings recently disclosed that it had made a bid of more than RM36 billion to take over PLUS, which is controlled by the UEM Group under Khazanah Nasional and the Employees’ Provident Fund.