The toll problem of 'private' highways in Malaysia which are normally built with funds from the public (on at least guaranteed by the public via short fall annual compensation) is a perennial issue that just refuses to go away.
Malaysia must be one of the few countries in the world where there is absolutely zero risk for a 'private' company that is fortunate enough to be given a toll highway concession. In any business, especially where private equity/loan is used to fund a venture, the investor would do unending due diligence and studies to ascertain viability of a project. If the project shows unfavourable return, and there are no alternatives, the project would be abandon.
Not so in Malaysia; all one needs to do is get the concession, and even if the project shows negative return, dont worry, the government will compensate you, annually, if at the end of the day, no one uses the highway because it is too expensive, there is absolutely no difference between using the highway or public road since both are equally jammed up, or your financial projections were so optimistic that you knew there would be shortfall for the next 20 years in terms of utraffic volume, fret not. The government will pay you!!
So, what is there to worry?
And now we have this so called Minister telling the whole world that it will take some RM231 billion to take over the highway because he has factor in 'future incurring cost'. That is the same as saying, tomorrow we will pave the highway with gold, or why even stop at RM231 billion? Why not go all the way and say it will cost us RM450 billion in the future??
This has got to be the most 'stupid' comment from a person who is suppose to be the person in charge of the financial health. Either he is completely devoid of business sense or he is really stupid.
take you pick..
Here is the
story....