‘Selangor can’t stop toll hikes’
Experts say the decision lies with all shareholders in the highway companies
Anisah Shukry, FMT
Experts have poured cold water on the Selangor government’s plans to reject the impending toll hike, pointing out that the final decision would lie with all shareholders in the highway companies.
“As minority shareholders, the Selangor government can object to the toll hike, but ultimately the decision would be put to a vote, and it may even be rejected,” Yeah Kim Leng, group chief economist of RAM Holdings, told FMT.
“So they actually have no ultimate power. They can only exercise their rights as a shareholder, and will have to go through due process by tabling their objection at the shareholder’s meeting.”
Subramaniam Pillay, an economist and associate professor at Taylor’s university, concurred with this, saying that “normally, the majority shareholder makes the final decision.”
But he added that the concession agreements might have allowed for an exception to allow minority stakeholders to make decisions.
Last week, Selangor economic advisor Anwar Ibrahim announced that the state government, through the Selangor State Development Corporation (PKNS) and Kumpulan Perangsang, would oppose the toll hike. PKNS owns 30% of the Kesas highway and Kumpulan Perangsang owns 20% in Sprint and Lebuhraya Damansara-Puchong (LDP)
Anwar said the state would use its stake in the highway companies to protect the people’s interest and rejected statements by Barisan Nasional leaders that the hike could not be avoided as it was provided for in the concession agreements.
“I understand that the issue will be brought to the state exco meeting today and orders will be given out to government representatives in the highway consortium involved to reject the toll hike,” Anwar told a press conference on Dec 18.
“They have a right to object as minority shareholders.”
