KUALA LUMPUR (Oct 2): Another association has expressed concern about potential toll rate hikes at PLUS Malaysia Bhd’s network of highways, and urged the government to “weigh in” on the matter.

The statement from the Pan-Malaysia Lorry Owner’s Associations today comes after a similar statement from the Association of Malaysian Hauliers last Friday on the matter.

Anthony Tan, the lorry operators group’s president, voiced his worries on the plan by UEM Edgenta Bhd, a unit of UEM Group Bhd, to take on the maintenance of the network of highways for the next two decades.

“We have read with some concern, media reports on the proposal by UEM Edgenta for a contract of over RM20 billion to maintain all PLUS highways for 21 years.

“This figure seems significantly high and we are concerned that this will lead to toll hikes which would burden lorry operators as well as other road users,” said Tan. “The logistics industry cannot be facing increment of toll rates every three to five years.”

“When is this going to end with the ever-increasing of toll rates that will affect all Malaysians? We appeal to the government to weigh in on this to iron out these issues,” he added.

Tan also pointed negatively to UEM Edgeneta’s plan to further reduce maintenance cost for PLUS highways. “As UEM Edgenta is already an existing service provider for PLUS and has been for some years, we find it disconcerting that they are only planning to do this now,” Tan said.

Additionally, Tan questioned UEM Edgenta’s plan to undertake other capital investments, such as the establishment of a road resurfacing research centre, and development of plants along the highway.

“We are unclear what this would entail, whether this is necessary, and if this will have an impact on costs,” said Tan.

Meanwhile, Tan welcomed the proposal by Maju Holdings Sdn Bhd, that has offered to buy over PLUS for over RM36 billion, not to raise the toll rates of PLUS highways for another 20 years and to “enhance security” along the highways.

“It is beneficial to the government, as the company intends to reduce contingent liabilities and forfeit the government’s toll compensation to PLUS.

“As we have invested substantially on our trucks, this [proposal to enhance security] would be another welcome move which would attract many lorry operators to utilise the highway,” it added.

The association’s view is in contrast to that of the Malaysian government, which was reportedly concerned over Maju Holdings’ proposal to buy PLUS, as it fears the nation’s strategic assets would fall into foreign entities since it did not know where the funds that will be utilised for the takeover will come from.

UEM Group and the Employees Provident Fund (EPF) respectively hold 51% and 49% stake in PLUS. In a statement dated Sept 12, UEM Group and EPF said they are were reviewing Maju Holdings’ offer, but had no intention to sell for now.