In a report yesterday, the daily said the proposal of businessman Abu Sahid Mohamed, who controls Maju Holdings, was “too coveted to be pooh-poohed”.
The deal includes a pledge not to raise toll rates for the next 20 years, a write-off of some RM900 million in compensation due to PLUS Malaysia for keeping toll rates, and RM30.2 billion in contingency liabilities taken off the government’s books, the report added.
It quoted economist Yeah Kim Leng, who said these elements would greatly benefit the country given the rising cost of transport.
Yeah, who is director of Economic Studies Programme at the Jeffrey Cheah Institute on Southeast Asia, told the daily that the government should establish a task force to look into the deal.
If UEM and EPF remain adamant on their decision not to sell their stakes, he added, they should come up with a counter proposal to Abu Sahid’s.
“That way, we can develop ourselves into a more contestable market… it is a public asset that should contribute to the long term sustainability of the economy,” he was quoted as saying.
On Aug 1, The Edge reported that Abu Sahid wanted to buy up both the 51% share held by UEM and the 49% held by EPF in an acquisition which could cost RM30 billion or more.
The Maju Holdings group executive chairman told the financial daily he was “very confident” of pulling off the deal, adding that he had “everything” ready.
“I have the money, I have the blessing from the highest levels in the country, I have the advisers and bankers all ready, and I have the formula to do it,” he said.
On Sept 13, however, UEM and EPF issued a joint statement saying they had no intention of selling their stakes in PLUS Malaysia.
PLUS Malaysia has five concessions: Projek Lebuhraya Utara-Selatan Bhd which has under its umbrella the North-South Expressway, the New Klang Valley Expressway, Federal Highway Route 2 and Seremban-Port Dickson Highway; Expressway Lingkaran Tengah Sdn Bhd which includes the North-South Expressway Central Link; Linkedua (M) Bhd, which owns the Malaysia-Singapore Second Crossing; Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd, also known as the Butterworth-Kulim Expressway; and Penang Bridge Sdn Bhd.
All of PLUS Malaysia’s concessions end in December 2038.
In its report, theSun said Abu Sahid’s proposal deserved a review, and “even serious consideration”.
“A contestable market allows for the threat of competition to promote efficiency and lower costs which can later be translated into savings for the people.
“And that is how the people can win,” it said.