Reprivatising the North-South Expressway (Plus) will be turning the clock back to 1980s "cronyism", Malay rights group Perkasa said.
The NGO's integrity bureau chief Syed Osman Syed Mansor said this despite claims that privatisation will halt toll hikes until 2038 and save the government RM40 billion.
“(This claim) does not make sense and does not come with concrete evidence.
"If this is privatisation is allowed, it will be accused of cronyism just like in the 1980's,” he said in a statement.
He was responding to a StarBizreport that businessman Halim Saad's (left) Idaman Saga Sdn Bhd had submitted a proposal to take over the highway.
Its proposal reportedly projected traffic growth at 4 percent per year and a traffic volume estimate of 55 million passenger car units per kilometre.
It also estimated operating cost and recurring capital expenditure at RM1 billion a year.
This will allow it to cap toll rates at 13.6 sen per kilometre for the duration of the concession which ends Dec 31, 2038.
'Privatising key assets a mistake'
According to Syed Osman, Plus should not be privatised because it is a backbone of connectivity in peninsular Malaysia.
“All critical assets, like a highway which cuts across eight states on the peninsular should remain with the government, that is through the Employees Provident Fund and UEM...
“In fact, Perkasa proposes that the highways be nationalised completely in order to control toll rates,” he said.
He added that privatisation of critical assets like highways, energy and water was a “mistake” as concessionaires gained from “easy access to finance”, while the state loses control on the end rates.
“The excuse that the government has no money (to run these assets) does not make sense and is just said to hand over these assets to cronies. In the end, the people are burdened with higher rates.”
Plus was constructed in 1982 to 1988 under the administration of the Malaysian Highway Authority and was transferred to Plus Bhd upon completion.
Idaman Saga submitted its proposal in March, but there has been no word on whether it has been accepted.
The NGO's integrity bureau chief Syed Osman Syed Mansor said this despite claims that privatisation will halt toll hikes until 2038 and save the government RM40 billion.
“(This claim) does not make sense and does not come with concrete evidence.
"If this is privatisation is allowed, it will be accused of cronyism just like in the 1980's,” he said in a statement.
He was responding to a StarBizreport that businessman Halim Saad's (left) Idaman Saga Sdn Bhd had submitted a proposal to take over the highway.Its proposal reportedly projected traffic growth at 4 percent per year and a traffic volume estimate of 55 million passenger car units per kilometre.
It also estimated operating cost and recurring capital expenditure at RM1 billion a year.
This will allow it to cap toll rates at 13.6 sen per kilometre for the duration of the concession which ends Dec 31, 2038.
'Privatising key assets a mistake'
According to Syed Osman, Plus should not be privatised because it is a backbone of connectivity in peninsular Malaysia.
“All critical assets, like a highway which cuts across eight states on the peninsular should remain with the government, that is through the Employees Provident Fund and UEM...
“In fact, Perkasa proposes that the highways be nationalised completely in order to control toll rates,” he said.
He added that privatisation of critical assets like highways, energy and water was a “mistake” as concessionaires gained from “easy access to finance”, while the state loses control on the end rates.“The excuse that the government has no money (to run these assets) does not make sense and is just said to hand over these assets to cronies. In the end, the people are burdened with higher rates.”
Plus was constructed in 1982 to 1988 under the administration of the Malaysian Highway Authority and was transferred to Plus Bhd upon completion.
Idaman Saga submitted its proposal in March, but there has been no word on whether it has been accepted.
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