as long as cheaper, i am ok

Your RM1 now is surely bigger than your RM1 after 20 years

Without taking this into the consideration, the comparison is just wrong. Any further discussion upon a wrong thing is just a waste of time.

Hype

https://themalaysianreserve.com/2019/10/14/...ers-to-benefit/

EPF paid about RM16 billion for a 49% stake in PLUS and got about RM0.5 billion in annual dividend. That's about a measly 3% annual return for the investment. Correct.?

It was more like EPF funds were used to benefit BN cronies who got fat profits from maintenance contracts with PLUS. This is BN 2.0.?

If you dun care as long as EPF got annual dividends from PLUS, then might as well let PLUS toll be forever and toll can increase 5% every 3 years.
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It's more like the bank extend your car loan by 10 years by giving you 9% discount for your monthly instalments = the bank will still make more profits and you will still be paying more to the bank.
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except this is not a bank, and it is not mandatory installment

not to mention, take in the consideration of inflation and salary adjustment, the expenses are lower

https://themalaysianreserve.com/2019/04/04/...2b-debt-to-pay/ ....... In 2016, the Rakyat paid about RM4,000 million or RM4 billion in tolls to PLUS.

Now got 18% discount on toll but 20-year extension to toll collection from 2038 to 2058. Apa erti ini.?
....... In simple math term, .......

18% discount = Rakyat save RM720 million per year for 18 years from 2020 to 2038 = save RM12,960 million over 18 years.

20-year extension = Rakyat have to pay RM3,280 million per year for 20 more years from 2038 to 2058 = pay RM65,600 million over 20 more years.

RM65,600 million - RM12,960 million = RM52,640 million.

So, this deal by Dr M will result in the Rakyat paying extra RM52,640 million to PLUS from 2038 to 2058 or extra RM3.2 billion per year.

Unless the RM falls in value by a few hundred % from 2020 to 2038, RM52.6 billion will still be a huge amount of money that the Rakyat will have to pay PLUS from 2038 to 2058, ie RM3.2 billion per year.

Eg in 2000, a DST house in PJ cost about RM500k and costs about RM800k today in 2020. So, RM3.2 billion in 2038 is about equivalent to RM2 billion today in 2020. RM52.6 billion in 2038 is about equivalent to RM33 billion today in 2020.

https://www.thestar.com.my/Business/Busines...-due-next-year/
If factor in the 5% increase in toll rates every 3 years from 2020 to 2038 that PLUS has to forego with this new deal by Dr M, the RM52.6 billion figure will have to be subtracted by about RM5,400 million or RM5.4 billion, ie RM300 million X 18 years. This will still mean the Rakyat will be paying extra RM47.2 billion from 2038 to 2058, ie RM52.6 - RM5.4 billion.

NB: increase of 5% on the RM4 billion in annual tolls = RM200 million per year = averages out to about RM300 million per year over 18 years from 2020 to 2038.
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Wrong assumption, you're assuming 2.35% p.a. inflation, that's even lower than nationally 'controlled' inflation.

Vista Komanwel in Bkt Jalil, 1200 sqft condo transaction priced at RM184k in 2004, it fell even lower to RM16xk during 2008-2010, but now it's about RM550k-RM600k-ish.

That DST house in PJ why so lousy appreciation (2.35% p.a.) vs the Vista Komanwel (7.41% p.a.)?

All other calculation is just a blur to me since the assumption using PJ DST house is wrong.

Thank you for sharing the maths.

I gave up when people told me its better because EPF can continue paying dividend. 

Its like we should try our very best to give all money making tools to EPF for them to pay dividend.
Tongkat mentality at its finest.

Thanos made those 2 look more stupid now.

If Lapiji to return someday when Anwar become #PM8, he basically will kena roast.

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If you want Pure Maths term, then the DST house in PJ cost about RM400k in 2000 and costs about RM1,000k or RM1 million today in 2020, ie over 20 years.

Based on this historical inflation rate, the Rakyat will have to pay extra about RM47.2 billion in total toll from 2038 to 2058, which is equivalent to about RM18.8 billion today in 2020. Over another 20 years, ie from 2038 to 2058, this RM18.8 billion is equivalent to about RM12 billion today in 2020.

Even if based on your historical inflation rate for Vista Komanwel of 7.41% p.a or about 200k vs 600k, the RM47.2 billion in 2038 is equivalent to about RM15.7 billion today in 2020, and over another 20 years is equivalent to about RM10 billion today in 2020. This is no small figure for the Rakyat to bear from 2038 to 2058, especially during balik-kampung periods.
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Bro, I gotta give it to you, you really like to do the numbers.

All those are more or less give a picture of what the rakyat is in for, and I am of the same opinion that this is not the best deal for the rakyat, but better than selling it to some private company.

Do you know what, this realisation just came to me, even if govt take over the highways, tolls might not be abolished because there are maintenance that is needed on the highways.

Do you know the time value of RM3.28b in 2058 at 7.41% inflation rate is about RM200m in 2020? I don't think that amount is enough to maintain the highway on an annual basis.

Better hope the inflation rate is about 4.5% or below, at which point RM3.28b in 2058 is about RM600m in 2020 terms, that is better (without knowing how much PLUS is spending yearly to maintain and run the operations of the highway).

But looking at toll collection that you mentioned of RM4b, dividend of RM1b is 50% of profit, meaning the cost of maintaining and running the highway is about RM2b annually. RM600m in toll collection is seriously going to hamper PLUS operations in 2058.

Some years down the road, the toll rate is going to go up. Even though the agreement is to extend the concession to 2058, I think half way thru it, PLUS going to complain and get the toll rates increased, concession agreement to freeze the toll hike in exchange for extra 20 yrs concession can go to the dustbin.

Looking at it that way, we might not be getting such a bad deal after all.

BR1m berapa?

Bro, I gotta give it to you, you really like to do the numbers.

All those are more or less give a picture of what the rakyat is in for, and I am of the same opinion that this is not the best deal for the rakyat, but better than selling it to some private company.

Do you know what, this realisation just came to me, even if govt take over the highways, tolls might not be abolished because there are maintenance that is needed on the highways.

Do you know the time value of RM3.28b in 2058 at 7.41% inflation rate is about RM200m in 2020? I don't think that amount is enough to maintain the highway on an annual basis.

Better hope the inflation rate is about 4.5% or below, at which point RM3.28b in 2058 is about RM600m in 2020 terms, that is better (without knowing how much PLUS is spending yearly to maintain and run the operations of the highway).

But looking at toll collection that you mentioned of RM4b, dividend of RM1b is 50% of profit, meaning the cost of maintaining and running the highway is about RM2b annually. RM600m in toll collection is seriously going to hamper PLUS operations in 2058.

Some years down the road, the toll rate is going to go up. Even though the agreement is to extend the concession to 2058, I think half way thru it, PLUS going to complain and get the toll rates increased, concession agreement to freeze the toll hike in exchange for extra 20 yrs concession can go to the dustbin.

Looking at it that way, we might not be getting such a bad deal after all.

Everything want free... bloody scum. You want a service, pay for it.

Do you know PLUS highway making losses in 2018?

Ever wonder why sgd so strong?

Do you know PLUS highway making losses in 2018?

u bodo ka.
janji and begging, 2 different issue.