Questions are now being asked about the financial impact of dividends of the toll reductions as there will be multi-faceted influence on PLUS and its shareholders.
For the public, dividends it gets through the 49% ownership in PLUS by the Employees Provident Fund will see a near-term hit given the lesser dividends PLUS will pay to its shareholders. For Khazanah and EPF, PLUS generates enough money to pay about RM800mil yearly to both the shareholders. EPF reported a total investment income of RM13.5bil in the third quarter ended Sept 30,2019 which is a drop of 7.6% from the same quarter a year ago. The decline was due to operating in uncertain and volatile equity markets which had worsened since 2018.
“But I am disappointed that the private sector is not given a major dominant role to play in the ownership of PLUS.’’ The good news for PLUS highway users is that the toll rates will be stagnant for 38 years. The bad news is that they now have to pay toll for a longer period up to 38 years from 18 earlier.
Now that PLUS is going to be earning less and paying out less dividends, it cannot compromise on the safety and maintenance of the highways. In comparison, in FY16, PLUS recorded a net profit of RM288.21mil on the back of RM4.07bil in revenue. “Now it is a matter of how it restructures the company and its bonds so that PLUS can service its debts without burdening the government or users and the dividends payouts to its shareholders especially EPF are not affected, ’’ says an analyst.
Its always shareholders dividends profits Rich fat greedy pariah elite Never about Rakyat's wellbeing National economic growth Inspite of natural riches Land sea oil gas Good rainfall Rich soil terrain Equatorial jungle Sun year round No natural disasters Wake up Msians..
Capital cost of the project must have been fully paid of by now. Plus no longer has to pay capital repayment and interest cost anymore.
Well they (the minority) can exit by selling their shares, afterall a large portion is held by Khazanah and PNB and the Govt. People come first and its Free market Stop your nonsense instigating articles TheEstherSY Stop being a puppet to MCAHQ weekasiongmp
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