News – Govt takes over highway

This is not a bailout or buying something many times its initial value! Since every action government do is for the people. Also because one of government tasks is to be a businessman and running a business. Because government is capable of running a business and generating a profit. Right? But if not mistaken, government main task is to spend. Spend and spend some more. But maybe I’m wrong. If government take over the infrastructure, absolutely there will be no toll. That’s great! But I cannot dismiss the thought of how much is being “given” to MRCB as a compensation to “take over” the highway. Surely, MRCB is getting “less benefit” than the people. Right?

 

The Government will acquire the Johor-based Eastern Dispersal Link (EDL) from Malaysia Resources Corp Bhd (MRCB), confirming speculation on the matter and turning analysts bullish on outlook of the construction giant.

Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop, was quoted by Bernama as saying that details of the takeover would be discussed at a later date.

The minister’s press secretary Mohd Kamel Oth man said that the matter had been annou nc ed by the minister but there were no details on the purchase.

“The cost of this purchase was not announced by him,” Kamel told StarBiz.

Analysts were generally positive about this dev elopm ent but their analysis would hinge on the final price of the EDL by MRCB to the Government.

SJ Securities analyst Nick Foo said this was “good n ews for MRCB” and he would likely re-rate this stock.

 

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