TOLL rates for highways owned by PLUS Malaysia Bhd will be reduced by 18% from February 1, the Prime Minister’s Department said today.

This includes the New Klang Valley Expressway, North-South Expressway Central Link, Malaysia-Singapore Second Link Expressway, East Coast Expressway Phase 2, Seremban-Port Dickson Highway, Butterworth-Kulim Expressway and the Penang Bridge.

The extension of PLUS Malaysia’s concession period for another 20 years from 2038 to 2058 is in line with the decision to reduce toll rates, it said.

This means that there will be no toll increase on PLUS highways for the next 38 years, from this year.

The extension of the concession period also means that the government will not have not have to compensate PLUS for not increasing toll rates.

The statement follows Prime Minister Dr Mahathir Mohamad’s announcement yesterday that the government will keep PLUS, despite receiving takeover offers from private sector players.

Meanwhile, the rate reduction is subject to the approval of PLUS’ shareholders – Khazanah Nasional Bhd and the Employees’ Provident Fund.

The previous concession agreement stipulated that the toll rates will be hiked in phases.

Putrajaya is also expected to realise savings of RM42billion throughout the concession period.

“The RM42billion savings can be used by the government for other initiatives that are beneficial for the people,” it said.

PLUS will remain as the operator and will continue to foot the operations cost for maintenance while also bearing the company’s assets and liabilities.

Khazanah and EPF will maintain ownership over the asset. Khazanah, through UEM Group Berhad, has a 51% stake in PLUS and EPF the rest.

The decision was made after a year-long study and gathering feedback from several parties, including the Works Ministry, Finance Ministry and Economics Affairs Ministry.

“The cabinet has vetted and scrutinised several proposals which was put forward to make the best decision for all parties especially the people,” it said. – January 17, 2020.