Second link toll rates reduced by 30%

PUTRAJAYA, Malaysia, June 22 - Toll rates on the second link connecting Malaysia and Singapore will be reduced by 30 percent from August 1, the two governments said on Tuesday, a move analysts say could affect the operator's earnings.

The highway is run by Malaysian toll road operator PLUS Expressways .

"Hopefully with the reduction, we will see better utilisation ," Malaysian Prime Minister Najib Razak told a press conference after meeting Singapore Prime Minister Lee Hsien Loong.

Analysts said the toll rate reduction could have a slight impact on PLUS earnings for 2010.

"Assuming that PLUS is not compensated, the rate cut will reduce PLUS's net profit by slightly less than three percent for 2010," said an analyst with a local bank, who asked not to be named because of her company's media policy.

PLUS's shares had earlier finished 0.6 percent down at 3.38 ringgit. (Reporting by Razak Ahmad and Julie Goh; editing by Liau Y-Sing)



Wooooyoooooo lets hit the 2nd link.....

50 percent better ;-)