KUALA LUMPUR: Economists laud the move not to sell Projek Lebuhraya Utara-Selatan (PLUS) Malaysia Bhd, allowing Khazanah Nasional Bhd and the Employees Provident Fund (EPF) to retain control of the country’s largest toll concessionaire.
Putra Business School business development manager Associate Professor Dr Ahmed Razman Abdul Latiff said the decision would keep toll rates affordable by ensuring that the cost was managed effectively.
“It also serves as an additional potential revenue as it will be managed by a professional management team practising the highest form of good governance,” he told the New Straits Times yesterday.
He said the government’s decision should be welcomed positively, particularly by PLUS highway users, given the pledge to reduce toll rates by 18 per cent.
“This will help alleviate the burden of high transport costs incurred by the people, especially those in the bottom 40 group.
“Of course, more details on this decision will come out soon, and hopefully, the government will explain how the decision of not selling PLUS and reducing the toll will not just benefit highway users, but it will also not be burdened by additional costs.”
He said it was important for the people to know the details of the proposed restructuring exercise, allowing them to assess whether it was the best option available given the current economic situation and high level of government debt.
Razman said the government must evaluate all options thoroughly to ensure that the benefits of not selling PLUS would be greater than the highway acquisition cost.
“This helps government to reduce its expenditure in managing these highways.”
The Institute for Democracy and Economic Affairs (IDEAS) believes the decision would end speculation on the sale of national assets.
The think tank said it was imperative for the government as the guardian of national assets to produce and communicate a comprehensive divestment policy framework to encourage policy clarity and certainty.
The framework should consider the implications of reforming government-linked companies (GLCs), which might entail asset sales, to the broader socio-economic dynamics.
IDEAS chief executive officer Ali Salman said this was due to an absence of a clear framework for GLC reform, which should also include divestment.
“A transparent divestment process should be in place before the government engages in privatisation.”
He said the framework should be emphasised in anticipation of the tabling of the 12th Malaysia Plan (2021-2025) by mid-year.
This would outline the long-term economic direction of the country as well as the relationship between the government and the private economic sector.
IDEAS said the role of GLCs and statutory bodies had to be revisited and made relevant to better address socio-economic challenges of the future.
Ali said IDEAS would organise a series of consultative roundtables with stakeholders to contribute towards policy recommendations on reforming GLCs.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the move signalled that the government was weighing its options and wanted to strike a balance between its finances and obligation to the well-being of the people.
“Perhaps, the government would try to achieve the middle ground between the two needs,” he said.