This article first appeared in The Edge Financial Daily on August 27, 2019 - September 2, 2019

KUALA LUMPUR: Maju Holdings Sdn Bhd’s offer to take over highway concessionaire PLUS Malaysia Bhd “appears attractive” as it involves reducing toll rates significantly, said Works Minister Baru Bian.

In a statement yesterday, Baru confirmed that the ministry had received Maju Holdings’ proposal, and is evaluating its merits and feasibility.

“The proposed offer, involving a significant reduction in toll rates, appears attractive,” said the minister without elaborating.

However, he reiterated Prime Minister Tun Dr Mahathir Mohamad’s earlier statement that the government had yet to make a decision on the proposal “or any other proposals concerning the takeover of any tolled highways”.

“It should be noted the ministry will be tabling ‘The Way Forward for Toll Roads in Malaysia’ report before the cabinet early next month, based on the final report prepared by an independent consultant in January 2019.

“Only after a cabinet decision is made, the government would be able to seriously consider all proposals on taking over tolled highways in the country, including the Maju Holdings-PLUS offer,” he said.

In July, Maju Holdings, controlled by businessman Tan Sri Abu Sahid Mohamed, was said to have made a fresh proposal to take over PLUS — it first made an offer in 2017 — by forking out RM3.5 billion and assuming the concessionaire’s debts of about RM30 billion.

The renewed offer entails a discount of existing toll rates by 25% to 36%, depending on the concession period’s extension.

PLUS has five concessions overseeing six highways and two crossings, including the North-South Expressway, the Penang Bridge and the second Malaysia-Singapore crossing.