KUALA LUMPUR (Aug 24): WCE Holdings Bhd (KL:WCEHB) is awaiting complete information from the government on the proposed southern extension of the West Coast Expressway (WCE) under a privatisation model, before determining whether the project is viable.
Chief executive officer Lyndon Alfred Felix said the extension from Banting, Selangor to Gelang Patah, Johor requires several aspects to be examined to assess its viability for the group — including the funding structure, development costs, land acquisition issues and the level of government support.
“The proposal is certainly attractive as the extension could potentially bring more traffic to WCE. However, we need to look at it objectively and assess all risks first,” Lyndon told reporters after the company’s annual general meeting on Monday.
"Rising construction costs and land acquisition risks must be taken into account. Without government support to address these matters, the risk level may be too high,” he added.
Lyndon said the group does not yet have sufficient information to carry out a comprehensive evaluation of the proposed extension. Even so, he noted that any government allocation for development along the WCE corridor would likely boost traffic volumes and stimulate economic growth in areas served by the highway.
He was optimistic that the proposed extension to Gelang Patah could expand the group’s network towards the south, opening opportunities to boost traffic flow and strengthen WCE Holdings’ long‑term prospects.
In April, the government said it plans to explore two major highway projects under a privatisation model — a proposed 303.5km southern link of WCE from Banting to Gelang Patah and a 118.7km road linking Simpang Pelangai in Pahang to Putrajaya.
The move is aimed at optimising cost management and enhancing the country’s fiscal efficiency. Both projects are intended to serve as high‑capacity alternatives to reduce congestion on the North‑South Expressway and the Kuala Lumpur-Karak Expressway.
It is understood that a privatised highway would get no government funding, unlike the 233km WCE tolled highway from Banting to Taiping, Perak, which received a RM2.24 billion soft loan and up to RM980 million for land acquisition.
The decision to pursue the projects via privatisation was made at the 50th National Physical Planning Council meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim. Further discussions with the relevant state governments will be held to refine implementation methods and ensure economic benefits for local communities.
For the Banting-Gelang Patah route, the project was previously announced under Budget 2025 as a 230km initiative to be implemented through a public‑private partnership.