Even though the government is open to all proposals from the private sector for the purchase of PLUS Malaysia, finance minister Lim Guan Eng has said that the government is also considering the possibility of taking over the company itself. “We have the magic bullet; we are able to borrow at very low rates — that is what we want to take advantage of,” said Guan Eng in an interview with The Edge. Currently, ownership of PLUS Malaysia is split between Khazanah Nasional, which controls a 51% stake through UEM Group, and the Employees Provident Fund (EPF) with 49%. According to Guan Eng, the former has submitted a proposal to sell PLUS to the government, as it is concerned about the diminishing of assets by selling the company to private parties. He noted that any proposed acquistion of Malaysia’s largest toll concessionaire must have no impact on the government’s debt service charge, entail any compensation on freezing toll hikes and provide substantial … [Read more...] about Government considering possibility of buying PLUS Malaysia
Local News
Decision on Johor-Singapore RTS link by end-October
The transport ministry says that a decision on whether Malaysia will continue with the Johor Bahru-Singapore Rapid Transit System Link (RTS Link) project will be made by the end of October, as per the deadline extension agreed upon by Malaysia and Singapore, Bernama reports. During the tabling of Budget 2020, finance minister Lim Guan Eng said the government intends to proceed with the RTS project. “This is an indication of the government’s support for the project, but I cannot provide further details as it will be discussed and decided in cabinet within the next two weeks,” said transport minister Anthony Loke. He said following the cabinet’s decision, he will contact his counterpart, Singapore’s transport minister Khaw Boon Wan. “After that, we (the federal government) are confident that an official announcement will be made by the end of this month. We are committed to the October 31 deadline, so an official announcement can be made by that … [Read more...] about Decision on Johor-Singapore RTS link by end-October
Automation incentives to boost confidence
Incentives proposed for automation in Budget 2020 will help boost business confidence in investments, said Malaysia Automotive Robotic and IoT Institute (MARii) CEO Datuk Madani Sahari according to Bernama. “The government has taken a step in the right direction in spurring smart manufacturing, particularly in incentivising the adoption of automation technology to boost productivity and quality,” Madani said. The announcement of the extension for the Accelerated Capital Allowances (ACA), as well as matching grants for 2,000 manufacturing and services companies is a welcome step as investment decisions are a key consideration for businesses, especially for small and medium enterprises (SMEs) within the automotive and mobility sectors, he said. Increased allocation for technical and vocational education and training also adds a new dimension to the automation adoption process, as human capital development is essential for a sustainable technological ecosystem, Madani said. … [Read more...] about Automation incentives to boost confidence
Buyer of PLUS must ensure 18% toll reduction
PLUS has been in the news a fair bit lately. There have been much talk about the government considering the sale of the highway operator that holds the concession of the North South Highway, among other tolled roads, and in last Friday’s 2020 Budget tabling, finance minister Lim Guan Eng announced that PLUS will offer a minimum reduction of average toll charges by 18% from 2020. Now it looks like both are connected. The Sun reports Lim as saying that companies who wish to acquire the PLUS must fulfil two conditions before they can proceed, and the first condition is to fulfil the minimum 18% average toll reduction that was announced. The second criteria is to make sure that it is fiscally positive. “It must not increase the government’s debt burden and also not increase the government’s debt servicing charges,” he said at a press conference after the Budget 2020 briefing to elected representatives on Saturday. The 18% drop requirement shouldn’t be … [Read more...] about Buyer of PLUS must ensure 18% toll reduction
October 2019 week two fuel price – RON 97 up 7 sen
Today marks the announcement of Bajet 2020 but it’s also Friday, so time for another weekly fuel update. After some relief for RON 97 users last week, the price of the fuel is set to go up again for the coming week. From tomorrow, October 12, RON 97 will be priced at RM2.67 a litre, which is a seven sen increase from last week. As before, RON 95 petrol will continue to be sold at RM2.08 per litre, the maximum price that consumers will pay no matter how high market prices push pump prices, at least for now. Next year will see the start of the government’s targeted fuel subsidy scheme for RON 95 petrol, which will see the current price cap of RM2.08 per litre be removed and the fuel floated. Based on the finance ministry’s Automatic Price Mechanism (APM) calculations, RON 95 would be priced at RM2.37 per litre without the price cap in place. Meanwhile, Euro 2M diesel will continue to retail at RM2.18 per litre, while Euro 5 diesel – which is 10 sen more than Euro … [Read more...] about October 2019 week two fuel price – RON 97 up 7 sen