KUALA LUMPUR: The cabinet decision on the proposed takeover of PLUS Malaysia Bhd and four Klang Valley highways linked to Gamuda Bhd will likely be known next week.
Finance Minister Lim Guan Eng said the government must come to a decision as soon as possible to avoid paying compensation to toll operators for freezing toll hikes.
“The cabinet decision will be made most likely next week. We are freezing toll hikes for this year, and since we are freezing toll hikes, the government will need to pay compensation.
“So we need to reach a decision quickly or else the compensation (amount) will keep mounting,” he said yesterday.
He said the decision was important to show that the government was making progress in its promise to reduce toll rates as stated in the Pakatan Harapan manifesto. Lim said this after the closing ceremony of the Literacy in Financial Technology (LIFT) Festival 2019 here yesterday.
He said the decision on the takeover must ensure a “triple win” namely for the government, the owners of PLUS, which is owned by Khazanah Nasional Bhd (51 per cent) and the Employees Provident Fund (49 per cent) and the public.
The highways involved in the PLUS concession are the North-South Expressway, Second Link Expressway, Penang Bridge, North-South Expressway Central Link, Butterworth-Kulim Expressway and Seremban-Port Dickson Highway.
In its 14th General Election manifesto, PH had pledged to review all highway concession agreements and negotiate to get the best deals to take over each toll concession, with the ultimate objective of abolishing toll in stages.
On a separate matter, Lim said it should be left to the cabinet to decide on whether there should be a cut in allowances of ministers and politicians. He said the cost-saving measures were good and were welcomed.
“However, this matter involves ministers and their ministries, and I believe any implementation should be decided by the cabinet.”
Recently, Youth and Sports Minister Syed Saddiq Syed Abdul Rahman proposed that the government cut the allowances of politicians and ministers, following the controversial decision to cut the Critical Service Incentive Payment for new doctors, nurses, engineers and professionals joining the civil service starting Jan 1.
