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PLUS Does Not Need To Add On To Its RM 736 Million Profits Together With Additional Benefits Such As The 5 Year Corporate Tax Exemptions And Waiver Of Interest Payments For The RM 1.65 Billion Government Loan

Press Statement
 by Lim Guan Eng

(Petaling Jaya, Wednesday): In receiving the Committee Against Unfair Toll Increases led by its Chair Teresa Kok, Plus stressed that it owes obligations only to its stakeholders - the government, its lenders, shareholders, employees as well as highway users. PLUS is wrong because they have overlooked the most important stakeholder – 25 million Malaysians!

Even if there is no direct stake by Malaysians, PLUS must perform the principle of social corporate responsibility by given full accountability to those affected by its quest for profitability. They can not just give lip service to corporate social responsibility without being fully responsible to the social impact of its business operations.  

PLUS appears to have forgotten that Malaysians have a direct interest in PLUS through Khazanah Nasional bhd, SOCSO and EPF with a total stake of nearly 40%. Therefore PLUS has a responsibility to explain why it needs the 10% toll hike or an extra RM 154 million when it recorded RM 736 million for 2003. According to financial analysts, PLUS is expected to record profits of RM 760 million in 2004 and RM 937 million in 2005, with the latter caused by the 10% toll hike. 

Is it not unethical to allow a company making RM 760 million to earn an extra RM 154 million? Can PLUS not forgo the 10% toll hike or extra RM 154 million revenue when it enjoys:

  • a highest operating margin in the world around 83%;

  • a 5-year tax exemption on corporated tax from 2002-6;

  • almost RM 1 billion in compensation by the government;

  • infrastructure cost borne fully or partly by the government such as the widening of the highway costing RM 962 million; and

  • waived from making all interest payments for the RM 1.65 billion loan from the government.

Which companies in Malaysia enjoys such benefits especially tax exemptions for 5 years and waiver of all interest payments from loans taken from the government. Even government companies such as Petronas do not enjoy such benefits. For Works Minister Datuk Samy Vellu to claim he had no choice but to support the 10% toll hike because the government can not afford to pay RM 154 million in annual compensation or RM 38 billion throughout is  ridiculous when he himself had signed the contract in 1987. As the culprit behind the favaourable highway contract to PLUS. Datuk Samy must assume full responsibility and resign. 

The time has come for the people of Malaysia to join the CAUTI by participating in nation-wide demonstrations at the toll plazas on Sunday. Such demonstrations may not change the government’s mind but it is a first step towards demanding a complete and comprehensive review of the toll contract with PLUS.

(23/12/2004)

* Lim Guan Eng, DAP Secretary-General