COMMENT | From Gamuda's viewpoint, ALR highway takeover a win-win

COMMENT | Whilst Gamuda is still considering and deliberating the offer from Amanat Lebuhraya Rakyat Berhad (ALR), and we will duly announce our decision on their offer immediately after our board has made a decision on it, we would like to make the following comment(s):

The toll industry has been in a quagmire for quite some time to find a suitable solution to alleviate the government of Malaysia from their burden of paying toll subsidy annually, which Works Minister Fadillah Yusof had mentioned previously on April 30, 2021, to be RM2.25 billion for 2021 alone (for the entire industry).

And yet, with the government being responsible to always ensure the sanctity of contracts as well as not wanting to burden the motoring rakyat with any toll rate hikes either (which is the obvious solution to reduce or eliminate the toll compensation subsidy), thus solving this quagmire has been very difficult indeed. Up until this week, that is.

As of Monday, with ALR’s proposed solution and offer - this quagmire seems to have been resolved. With their proposed structure, both the...