This article first appeared in The Edge Financial Daily, on March 11, 2016.

KUALA LUMPUR: The government has yet to decide on the toll hike that PLUS Malaysia Bhd has been lobbying for months.

“On the PLUS highway toll hike, discussions between us and [the] Ministry of Works are ongoing. We are currently waiting for the government’s position on this and we target to conclude the discussions by June,” said UEM Group Bhd chief executive officer and managing director Datuk Izzaddin Idris at the press conference after the group’s 50th anniversary celebration yesterday.

PLUS, in which UEM Group owns a 51% equity stake, has five highway concessions under its belt — the PLUS expressways (North-South Expressway [NSE], New Klang Valley Expressway, Federal Highway Route 2, Seremban-Port Dickson Highway), North-South Expressway Central Link, Malaysia-Singapore Second Link, Butterworth-Kulim Expressway and the Penang Bridge.

Employees Provident Fund (EPF) is the co-owner holding the remaining 49% stake in the highway concessionaire.

After UEM Group and EPF took the toll operator private in 2011, PLUS’ concession agreements were renegotiated and the permitted toll hike was reduced to 5%, instead of 10% previously, every three years.

PLUS’ last toll hike was in 2005.

Nonetheless, PLUS’ proposal on the toll hike has drawn criticism considering the domestic economy is facing some headwinds currently. Higher toll charges on the heavily travelled NSE is expected to create inflationary pressure in the form of higher transportation costs.