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

As long as EPF and Khazanah still hold all the shares to PLUS, I'm quite ok with it I suppose ... everyone gets back some money in yearly dividends.

Honestly I don't see how JKR or federal gov would be able to maintain such a long stretch of highway if they were to take over ...

Not talking about the financial aspect but more on the quality of work done ... just looking at the condition of the trunk roads, I would dread to think driving on PLUS highway with those type of conditions.

Life is sometimes funy. I remember back then; i.e about a year or so ago; ohman, myself and more others were so hard defending this government.

Nevermind; i'll wait till tun retire gracefully.

Shud hv increase more so epf can gip better dividend

btw i didnt use plus highway,

thx to all who paying.

Only group that hates GSt is big taukeh and their crony. Then marpup price as usual. Then their macai go singkapork to work and no complain also. Lancau.

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.
.

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

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.

.
Privatization of highway building of PLUS and the lengthy concession period to collect tolls in the 1980s, was for the private company to recoup its huge investment and make some profits.  At the end of the concession, the government will regain ownership of the highway and its management plus maintenance, which costs should be from the roadtax and other taxes collected, like before the era of privatization in the 1980s. Worse come to worse, the government can continue to collect nominal toll for management and maintenance costs.

Problem was, the private PLUS company was a likely  songlapping BN-crony who likely had to be ploteked by the BN-government at all costs. Hence, the extensions from 30-years to another 20 years by the ex-BN government. Why is Dr M likely doing the same as the ex-BN government, ie extending the concession by another 20 years.?
....... It should be better for the Rakyat to let the terms of the PLUS concession agreement remain, ie no 20-years extension to 2058, no 18% discount and yes 5% rise in toll every 3 years until 2038.

On paper, privatization sounded good but it got abused by corrupt BN politicians at the expense of the Rakyat.

One of the responsibility of a government is to ensure a smooth-running, peaceful and orderly society, besides taking care of national defence, border security, foreign relations, school education, basic healthcare, etc. Good and smooth-running road/highway infrastructure was and should be the government's responsibility, in order for businesses to run efficiently = government collects more tax. That was why we have roadtax since the British colonial days.

To me, such privatization is just an excuse for the government leaders to enrich themselves or to buy votes with the collected roadtaxes and other taxes  that do not have to be used for highway building and maintenance.
....... Maybe, the government should also privatize the police, Army, Immigration, schools, hospitals, etc.? *sarcasm*
.

.
Afaik, companies normally pay out dividends from their gross profits. If loss, usually no dividends are paid out. In the case of PLUS, it seems dividends are paid out to the EPF and Khazanah from revenue, even if PLUS had to incur losses by doing that. Hence PLUS still has about RM30 billion of debts after about 30 years of operation in collecting tolls of about RM4 billion yearly. Wonder where all the collected toll money gone.?
.

TS have you heard of interest rate.

There's something called current value.
Do you even economics.

I don’t think it’s that simple mathematics calculation la.

First of all,houseloan have to pay interest, whether it is 3 generations or 3 days it is still the same because the current value is mostly the same.
Second of all,rm8 today doesn't have the same value as rm8 in 2040.

logic is simple
either TS pay higher toll rate to shorten the concession (plus take the risk of highway in bad maintenance mode after handling back to JKR/LLM)

or TS pay a lower toll rate with the concession extended until your great grand children also wonder why they still need to pay toll

your choice.