PLUS Malaysia Bhd and Malaysian Resources Corp Bhd (MRCB), the two operators impacted following the government’s annoucement to abolish collection at several toll plazas, will seek more information from the authorities.
Prime Minister Datuk Seri Mohd Najib Razak last Friday announced the abolishment of tolls at Batu Tiga and Sungai Rasau, Selangor; Bukit Kayu Hitam, Kedah; and the Eastern Dispersal Link (EDL), Johor, effective Jan 1, 2018, during the Budget 2018 tabling at the Dewan Rakyat.
PLUS owns and operates the Batu Tiga, Sungai Rasau and Bukit Kayu Hitam toll plazas, while MRCB is the concessionaire and owner for the EDL.
MRCB has been planning to dispose of the EDL for over a year.
The government’s decision to halt the toll collection at the 8.1km highway would practically end interest for any suitors.
But MRCB is expected to be compensated for the loss of income following the decision as it is carrying the debt burden for the highway, which was constructed at the cost of RM1 billion.
Majority-owned by the Employees Provident Fund, MRCB is listed on Bursa Malaysia.
The government’s decision will have a bearing on MRCB’s financials.
“MRCB will make the necessary announcement upon receipt of further details from the government,” it said in a statement to Bursa Malaysia.
Malaysia’s largest toll operator PLUS, in response to the toll abolition announcement, said “discussions are ongoing” and the company will make the necessary announcement upon receipt of further details from the government.