Cabinet decides to keep PLUS, says report

Updated 6 years ago · Published on 15 Jan 2020 8:15PM · 2 Comments

The government has decided to retain control over the country's biggest highway concessionaire, PLUS Malaysia Bhd, via Khazanah Nasional Bhd and the Employees Provident Fund. – The Malaysian Insight file pic, January 15, 2020.

HIGHWAY concessionaire PLUS Malaysia Bhd will not be sold and will remain under government control through Khazanah Nasional Bhd and the Employees Provident Fund (EPF), The Edge Markets reports.

Citing sources, it said PLUS will instead undergo restructuring “with an aim to reduce toll rates for the benefit of the people”.

Khazanah, though UEM Group Bhd, has a 51% stake in PLUS and EPF, the remaining 49%.

The cabinet at its weekly meeting today discussed various bids for PLUS.

Finance Minister Lim Guan Eng recently said that the government would make a decision this week on the takeover of the country’s largest highway concessionaire.

There is no official announcement on the matter as yet.

The Edge Markets today said it was informed by its sources that the cabinet did not make any decision today on the takeover of four other Klang Valley highways under Gamuda Bhd.

The four bids for PLUS that have been reported are by businessmen Halim Saad and Wong Gian Kui, Widad Business Group Sdn Bhd, Hong Kong-based Malaysian private equity firm RRJ Capital, and Maju Holdings Sdn Bhd.

In a press statement earlier today, Khazanah said it knew of “several unsolicited offers” for PLUS but the parties concerned have not directly engaged in talks with the sovereign wealth fund.

It said Putrajaya had been talking to PLUS shareholders “with the objective of reducing the burden of tolls on highway users, relieving the government of compensation pressures, as well as respecting the value of the highway concession for existing debt and equity holders.” – January 15, 2020.

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Comments

  • Khazanah and EPF are both govt. owned instituitions, compensation contract can be negotiated to ease the financial burden of rakyat. Plus already making huge sum of profit for the shareholders , so why must they insist on govt compensation to burden the rakyat. Reducing the tolls is a must for PH as they promised in their manifesto if they still interested to govt after GE15. By GE15, BN would have got rid if Zahid and the corrupted leaders, rakyat may want BN if PH can't keep their GE14 manifesto.

    Posted 6 years ago by James Wong · Reply

    • EPF is not govt. It is managing contributors' retirement money. Set up by government but has to act in the best interest of contributors.

      Posted 6 years ago by H. Mokhtar · Reply