KUALA LUMPUR (Jan 20): PLUS Malaysia Bhd says it is in talks with the government on the implementation of an 18% toll reduction on its highways.    

"Given the intended implementation date of 1st February 2020, we are presently engaging the government to confirm the scope and mechanics of the toll reduction,” PLUS chairman Datuk Mohamad Nasir Ab Latif said in a statement today.  

“This is because of the need to ascertain the current concession agreement status, as well as address any concerns that our sukuk holders may have," he added.  

PLUS welcomed the government's decision to retain the concessionaire under its present shareholders — Khazanah Nasional Bhd through UEM Group Bhd holding 51%, and the Employees Provident Fund (EPF) with the remaining 49%.  

It also took note of the implementation of 18% toll reduction for private passenger vehicles and a 20-year extension to the existing concession period, with toll rates remaining flat until the end of the concession tenure. 

"PLUS remains committed to delivering safe and comfortable highway travel by leveraging on innovation for the rakyat," it said.  

On Thursday (Jan 16), Prime Minister Tun Dr Mahathir Mohamad confirmed the Cabinet has decided PLUS will remain in the ownership of Khazanah Nasional and EPF, but the concessionaire would have to cut toll rates by 18%.

The toll rates reduction, according to a statement by the Prime Minister's Office (PMO), may take effect as early as Feb 1, 2020. The PMO also said there will be no further toll rate hikes on PLUS' highways, as the concessions will be extended for 20 years from 2038 to 2058.

It explained the 20-year concession extension for PLUS "is to ensure PLUS is able to maintain and operate its highways without depending on the government".

PLUS, the country’s largest highway concessionaire, holds five concessions — Projek Lebuhraya Utara-Selatan Bhd, Expressway Lingkaran Tengah Sdn Bhd, Linkedua (M) Bhd, Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd and Penang Bridge Sdn Bhd.