This document provides an overview of PLUS, the largest highway concession company in Malaysia. It discusses PLUS' history, beginning in 1986 as Highway Concessionnaires Berhad and expanding its network until completing the 847.7 km North-South Expressway in 1994. It also covers PLUS' corporate structure, products, core values, vision, mission, and board of directors. Additionally, the document performs a PESTEL analysis to examine the political, economic, social, technological, environmental, and legal factors affecting PLUS' industry and business operations.

1. CHAPTER 1
1.1 INTRODUCTION
1.2 METHODOLOGY
The members of this research are consisted of 4 people, Amira Nadia, Atikah, Nadya, Zul .
We use information technology as ourway of collecting data. The type of data that we used is
secondary data from the official site of PLUS itself aand development graphs/charts of PLUS
externally.
We use PLUS official website through PLUS annual report to support our ideas and
arguments in a research paper. The advantages are it lets us look at specific topics from an
interdisciplinary perspective and the ability to gain access to the most current information.
Direct access to current information increases the effectiveness in our search for information.
1. Development graphs/charts : we use graphs/charts as our type
of data to know the development externally and the company
growth.
Data Analysis Method
In this research, we use several analysis methods:
1. Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix - to help the company to
understand its internal capabilities and external market conditions. Then, use it to develop a
strategy for business that gains benefit from the strengths and opportunities while avoiding
weaknesses and threats.

2. 1.3 PLUS HISTORY
The PLUS Expressways or PLUS Malaysia Berhad (PMB) or known as Projek Lebuhraya
Usaha Sama Berhad (PLUS), (formerly Projek Lebuhraya Utara Selatan Berhad (PLUS).
PLUS is the largest highway concessionaries or build–operate–transfer(BOT) operator
company in Malaysia. BOT is one of the parts of privatisation policy.
The company was founded on 27 June 1986 known as Highway Concessionnaires
Berhad, a member of the United Engineers Malaysia Berhad (UEM). Generally, UEM Group
is a wholly owned subsidiary of Khazanah Nasional Berhad, the investment arm of the
Government of Malaysia. The factor contributing to the construction of the North-South
highway is the network facilities that are good for connecting major cities in western
Peninsular Malaysia and make Malaysia a centre for investment and tourism in the region of
Southeast Asia. The results of a survey conducted in 1970 found that the overall objective can
be achieved by the highway network faster and more secure. In 1977, the Public Works
Department (JKR) has received official instructions for drafting the highway from the
Malaysian-Thai border (Bukit Kayu Hitam) to the Causeway. In 1980, the Malaysian
Highway Authority (LLM) was established to monitor the progress of work for the first
national highway.
Between years 1981 to 1988, all construction works is fully managed by the
Malaysian Highway Authority before submission to the PLUS Expressway Berhad in 1988.
The development of the national highway network was first carried out in stages from 1981
to 1995. The Malaysian Highway Authority was established in the year 1980 to monitor the
early stages of development work before the assignment is left entirely to the PLUS
Expressway Bhd began in 1988. North-South Expressway operates in stages. First stage is
highway Kuala Lumpur to Seremban. For Ipoh highway to Changkat Jering, there is along 60
km costing RM165 million and overall length of only 220 km in Perak. The constructions
encompass of bridge across Sungai Perak over 366 meters, a 622 meter long tunnel through
the tunnel Ranges Carranza and this is called Menora Tunnel. Then the Ipoh highway is
proceed to Bidor along 48 km costing RM135 million.
Highway along the 847.7 km completed within a period of 7 years (September 1988 -
September 1994). The entire project was completed 15 months ahead of plan early and it was
opened by former prime minister of Malaysia, Tun Dr. Mahathir Bin Mohamad on 8

3. September 1994. Briefly, the entire project of North-South Expressway is costing about 6
Billion and handled by Plus Expressway Berhad as concession company, where the
concession start from Mei 1988 till Mei 2018. The duration is about 30 years.

4. CHAPTER 2
2.1 Company Profile
On 13 May 1988, the Highway Concessionaires Berhad changes its name to Projek
Lebuhraya Utara Selatan Berhad (PLUS). On 29 January 2002, PLUS Expressways Berhad
(PEB) incorporated in Malaysia as the Public Company. But in 2011 PLUS delisted from
Public Company and making corporate restructuring to revise the rates of toll increases under
their operating. Eight years later, PLUS Malaysia Berhad (PMB) was incorporated on 29
November 2010 and is involved in investment holding.
On 29 November 2011, PMB completed the acquisition of PLUS Expressways Berhad's
(PEB) assets and liabilities. PMB became the holding company of Projek Lebuhraya Utara-
Selatan Berhad (PLUS), Expressway Lingkaran Tengah Sdn Bhd (ELITE), Linkedua
Malaysia Berhad (LINKEDUA), Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd
(KLBK), Teras Teknologi Sdn Bhd (TERAS), PLUS Helicopter Services Sdn Bhd and the
substantial shareholder of Touch 'n Go Sdn Bhd. In addition, PMB also acquired Penang
Bridge Sdn Bhd (PBSB) from UEM Builders Berhad.
Projek Lebuhraya Usaha Sama Berhad (PLUS), a wholly owned subsidiary of PMB, was
incorporated on 27 July 2011 to undertake the consolidation of all highway concessionaries
acquired under a single entity. The acquisition of all five highway concession assets was
completed on 12 January 2012.
In 2010, PLUS also own 100% equity in toll system provider by TERAS and 20% interest in
Touch N Go. It allow plus the opportunity to participate in the Electronic Payment System or
EPS market in line with the government, move towards the creation of an e-payment society
in Malaysia.
In terms of international business, the Group continued to consolidate its presence in India
with a successful bid for the RM655 million Jetpur – Somnath four laning project in Gujarat,
to be undertaken with joint bidding partner, IDFC Projects Limited (IP). Together with the
completed acquisition of 49% interest in Indu Navayuga Infra Project Pvt. Ltd. (INIPPL) and
the on-going operations of the Bhiwandi Kalyan Shilphata Toll Road (BKSP) near Mumbai,
this most recent addition to the Group’s international portfolio has positioned PLUS
Expressways well for further expansion in India in years to come. In Indonesia meanwhile,
the disposal of PLUS Expressways’ entire equity interest in PT Cimanggis Cibitung Tollways
(CCTW) will allow the Group to focus its resources on construction of the 116 km Cikampek

5. – Palimanan Expressway in West Java, targeted to commence in Q4 of 2011. To date, close
to 90% of the land required for the project has been acquired
With the completion of the acquisition, PLUS is the largest toll expressway operator
in Malaysia and one of the largest in Southeast Asia, Asia, and the eighth largest in the world.
2.2 VISION AND MISSION STATEMENT
Vision Statement
- To be a ‘Premier Global Expressway Group’
Mission Statement
- Providing Efficient and Safe Expressway Network that Enhances Quality of life.
Corporate Statement

6. Board Of Director
Tan Sri Dato’ Mohd Sheriff Mohd Kassim ( Chairman)

8. 2.2 COMPANY STRUCTURE

9. 2.3 PRODUCTS

11. 2.4 CORE VALUE
PLUS Grand strategy is Growth Strategy. The company is actively seeking for opportunities.
PLUS is expanding its expressway to India, Singapore and Indonesia. It also widen and
improve it expressway by doing lane widening, Additional Linkage or Interchange,
Upgrading the toll service required to increase mainline capacity. Plus also do promoting and
marketing. Using their expertise and experience in expressway it also improves their
operation and management.
- Organizational Structure
- Marketing Segmentation
- Financial Position

12. CHAPTER 3
Industry Definition
General Enviroment (PESTEL)
PLUS PESTEL Analysis
Political Forces
 Introducing privatization and allowing B.O.T (Built –Operates- Transfer )
implementation by private sector.
 Negative perception of toll increases amongst the public
 Political unrest in invested country.
The government must create economic policies that will foster the growth of businesses.
PLUS, fortunately, has been helped by the Malaysian Government policies which enable it to
advance its products and services. The support accorded to PLUS by the Malaysia
government, particularly in the general macroeconomic stability, low interest rates, stable
currency conditions and the international competitiveness of the tax system, form the
foundation critical to PLUS’s growth. The privatization method of choice for highway
development has been the Build-Operate-Transfer (BOT) method where the government of
Malaysia allow the private sector to develop the highway and in return gives them toll
charging rights. However due to privatization and agreement between government and
concession, the toll price may be increased 10% after each 3 years have get the critical issue
by public user. There are forces and suggestion by other party to nationalization the highway
and abolish the toll.
Economic Forces
 Slowdown in the economy and currency down turn in year 1997
 Increase the company's debt concessions
 The rapid economic growth along the highway
 Economic growth in 2010
In the early 1980s, Malaysia embarked on an infrastructure privatisation policy that was
aimed at accelerating national growth and improving productivity, without putting undur
pressure on the Government’s financial position. Against this backdrop, private companies
such as Renong Berhad (Renong) were entrusted to execute landmark national projects such
as the construction of the 775km North-South Expressway.
The privatisation of the North-South Expressway was hailed as one of the most successful
ever, demonstrating the capabilities of the Malaysian private sector, while furthering the
development of a Bumiputera entrepreneur class. The success of the highway project fuelled
the expansion and diversification of the Renong Group into areas such as banking,
telecommunications, media, public transportation and property development.

13. However, with the onset of the Crisis, Renong’s business conditions began to deteriorate.
Revenues stalled due to the weak domestic economy, while earlier rounds of diversification
did not immediately generate sufficient income to compensate for the heavy debt-load
incurred to pay for expansion.
As the Ringgit depreciated and domestic interest rates spiked, Renong’s over-diversification,
lack of business focus and heavy indebtedness pushed group earnings into the red. For the
financial year ended 30 June 1998, Renong posted a pre-tax loss of RM812 million,
compared to the RM703 million profit for the preceding year.
However, in year 2010, economic growth increased by 7.2% for the year as a result
of the measures introduced by the Government to stimulate the economy. Generally, the
Malaysian economy is expected to benefit from the Government’s implementation of the
Economic Transformation Programme from 2011 onwards, as well as the policy reforms to
further liberalise the economy.
Social Forces
 Increase in the traffic and the number of vehicles in Malaysia
 Interconnected road network system is a requirement for any country in the world.
 Public / users attitude towards road safety.
Road networks will enable the movement of people and goods efficiently and this ability is
crucial as it in turn enable economic activities such as trade. As a nation develops, so will its
need for efficient road transportation. Increase in traffic and trade volume among others leads
to the need for an increase in traffic efficiency. The roads need to be wider, with more lanes
to cater for higher volume of traffic and in the same time longer to connect more places and
ultimately shorten the travelling time. In order to fulfill these needs, a nation has to upgrade
its road networks to highway networks. PLUS introducing MUFORS was set up to empower
Malaysians to voice out their thoughts and concerns on road safety in the country. More
importantly, it also serves as a platform for everyone to think about how each of us can play
our part to improve road safety and save lives.
Ecology Forces
 Reduce effect of Green House Gas
 Go Green Campaign and going paperless
 Global warming awareness among people in the world
PLUS aim to minimise environmental impact by continuously deploying comprehensive
operational controls, appropriate technology and sustainable maintenance and construction
activities as well as focussing their services on addressing environmental issues.

14. The environmental guidelines are in line with the International Environmental Standard (ISO
14001:2004) with an objective to minimise the impact of our business activities on the
environment. PLUS environmental activities cover all aspects of expressway development,
operations and maintenance such as reduce global warming along mainland and toll plaza by
reducing congestion thus reducing Green House Gas (GHG) emission. PLUS also do other
initiatives to sustain their environmental ecology by monitory slope stability and manage
scheduled wastes. The eco-friendly approach at each of the RSAs (Rest Service Area) allows
for better lighting and ventilation system which reduces our dependency on energy.
Technology Forces
 Enhancement of technology adoption on toll systems.
 Operation integration among concessionaries led to the enhancement the technology
of infrastructure networking.
 Introduction and wider using of Smart Card and Touch n Go as current payment
option by user.
 Stringent maintenance and safety requirements by authorities.
Projek Lebuhraya Utara-Selatan Berhad (PLUS) is the concessionaire for the longest toll
expressway in Malaysia with 70 toll plazas located over 848km of both closed and open toll
systems. Since 2002, PLUS has undertaken an initiative to implement an Intelligent Transport
System (ITS) along the PLUS expressway addressing the following ITS needs: Network
infrastructure upgrade; Control Centres upgrade; CCTV surveillance at mainlines; Variable
Message Signage (VMS); Automatic Vehicle Detection System (AVDS); and basic system
integration. The design of the system has also cater for seamless assimilation with ITS
components installed at the ELITE and LINKEDUA highways following the establishment of
PLUS Expressways Berhad as the common operator for all three concessions. Other ITS-
related applications currently in place include an Electronic Toll Collection (ETC) system
with a choice of 2-piece tag non-stop ETC (SmartTAG) or smartcard common transportation
payment system (Touch ‘n Go). This ETC system has been accepted and implemented as the
common ETC system providing interoperability for all toll highways in Malaysia. Also
available are drive-through ETC refill lanes which allow customers to conveniently top-up
their toll smartcard during entry / exit transactions. Since 2002, PLUS has also implemented a
Global Positioning System (GPS) for tracking, surveillance and monitoring of its RONDA
Highway Surveillance Service comprising 91 units of patrol vehicles equipped with the GPS
Tracking System. Close monitoring of the RONDA service now includes easily retrievable
real-time and updated information on the exact vehicle location, vehicle speed,
forward/reversing direction, start/stop of engine and even snail trail. The deployment of the
GPS Tracking System under the ITS has enhanced the PLUS RONDA Surveillance Service
in terms of providing faster response times especially during emergency incidents, as well as
improvement of operational efficiencies and effectiveness in workforce management.
Legal Forces
 Corporate Social Responsibility

15.  Challenges of Implementation of Land gazetting - for highway alignment includes the
interchange and layby
 Challenges of implementation of Land alienation – for commercial sites i.e Rest
Service Area (RSA), Toll Supervision Building, Section & Regional Offices
Definition of Gazette Land (under Section 5 National Land Code) Land which is gazetted for
public purposes according to Section 62 National Land Code In Malaysia, Natural Land
Council headed by Deputy Prime Minister to ensure land policy is user friendly to all level of
government agency, private sector and public Gazetting the highway is a complex task
whereby involved certain and strict processes to be adhered by respective government
agencies. The purpose to gazette PLUS highway - has legal right and to protect the highway
right-of-way (ROW) encroach by third party.
There are 2 type of processes involved with land in PLUS highway: i) Land gazetting - for
highway alignment includes the interchange and layby ii) Land alienation – for commercial
sites i.e Rest Service Area (RSA), Toll Supervision Building, Section & Regional Offices
Both of the processes required land to be registered under Federal Land Commissioner (i.e.
Director General, Department of Director General of Lands & Mines). But there are some
problem causes delaying of the gazetting Required Approval from Higher State Authority
Gazetting. Bureaucracy, Frequent Transfer of Land Office Staff, Complex Task with Legal
Impact.
Plus Porter’s Five analysis
1) Threats to New Entrance (Low)
Barrier to entry in the transportation and logistics industry are high due to several
factors. As a market leader in highway concessions in Malaysia, PLUS have very
capital intensive in this industry. Even thought it would not be difficult for a new
company or concession to obtain own technology and labor needed to build highway
through BOT system , there is almost no chance for them to gain popularity in such a
mature industry and compete with the strong and wide name for the territory of
peninsular Malaysia. The loyalty is extremely strong and it would be very hard for a
new entrance to take the loyal public user from the already existent player. Economies
of scale pay a huge role as well as and the bigger player have an advantage of given
low price especially toll price. The industry itself is in consolidated phase and only
the big ones will survive. The large companies are strategically and constantly
acquiring small company companies. Small companies are bought before they
become a threat to the bigger ones and before they have a chance to gain market
share. In other words, it is possible to grow in this industry because someone will take
over your company. Projek Lebuhraya Usaha Sama Berhad (PLUS), a wholly
owned subsidiary of PMB, was incorporated on 27 July 2011 to undertake the

16. consolidation of all highway concessionaries acquired under a single entity. The
acquisition of all five highway concession assets was completed on 12 January 2012.
2) Bargaining power of Buyer (High)
The presence of powerful buyers can reduces the profit potential in an industry.
Buyers increase competition within an industry by forcing down prices, bargaining for
improved quality or more services, and playing competitors against each other.
The result will diminished industry profitability. The toll price is the main issue
because after privatisation it gave more chances to concessionaries to gain profit by
increasing the price 10% after each 3 years through the agreements. For PLUS
Malaysia Berhad, the increase of toll price had controlled after government decide to
incorporating PLUS Malaysia Berhad, the combination of UEM and EPF , and
completed the acquisition of the assets and other liabilities of PLUS. In terms of
switching cost, the public user can choose other option to use federal road but it will
takes time and costing especially for logistic company to travel for south to north or to
airport and seaport. So the federal road is not the main option for them. For public
user they will choose either airplane or train as option beside using the PLUS highway
but that is not major effect for PLUS because not all user are able and can reach that
kind of service unless emergency. They only use the alternative highway in Klang
Valley or Seremban if highly traffic jam at PLUS Highway. In part of user the main
complained is traffic jam during the festival and public holiday. Increase of traffic jam
at some toll plaza is the major problem for PLUS and need strategic plan to overcome
that situation. By improvise the Traffic Monitoring System, road schedule, add the
lane and implementation of Smart Tag and Touch n Go it slowly reduce the problem
over time.
3) Bargaining power of Supplier ( Low)
PLUS Highway is very dependent on the service. In real is no actual supplier involve
through the manufacturing of product. For PLUS the maintenance service, provide
Touch N Go and Smart Tag service, Rest Service Area (RSA) and PLUS Ronda are
the core business for PLUS. They need supplier and contractor as the backbone to
maintain their service. By subsidies supplier like TERAS, PLUS have no problem to
get all the service and sustain their high quality service without bargaining price. The
vendor involve in RSA include petrol and service stations, restaurants, food and
beverage outlets, fruit and handicraft stalls, public restrooms, rest shelters and prayer
rooms. PLUS also ensure vendors who operate food outlets at the RSAs are supported
in every aspect of the business, including high attention to hygiene standards,
customer service, food quality and competitive price. PLUS maintain long-term
relationships with the suppliers through systematic and transparent procurement
system in e-bidding and procurement process that aims to ensure quality, delivery,
time and costs for suppliers, contractors and PLUS, whilst promoting open-tender to
new suppliers.

17. 4) Threats to Rival (Low)
For local there is no much competitor against of the PLUS especially in their
operation for South North Expressway, because PLUS the only concessionaries
provide the longest expressway in Malaysia and the great networking with other
concessionaries after the acquisition and advantages being subsidiaries. The only part
that will compete in the Klang Valley with small concession companies such as MEX
(Maju Expressway), SILK, Idaman saga, Litrak,LEKAS and Latar. But competitors
only covers some areas and higher charges for tolls price. PLUS necessary to maintain
and improve their services, especially in NKVE and Lebuhraya seremban-kl to
ensure maintain as the largest concession without the threat of acquisition by a
smaller companies.
Globally, PLUS is moderate facing the competition with the other Largest
concessionaries like Hopewell Highway Infrastructure Peer Group, CCR SA and
Atlantia SpA. By partnership with concessionaries and complete acquisition at India
and Indonesia PLUS will meet the challenges with major international player in the
industry.
5) Threats to Substitute (LOW)
The substitution for PLUS is more on the alternative road option by user. There is no
much real substitution in same product/ service category. The service provided like
Touch n Go or Smart Tag from other concessionaries are the opportunity for Plus to
gain profit because they have 20% shareholder in Touch N Go Sdn Bhd. For RSA,
PLUS already focus on the maintaining of the quality and comfort for the user.

18. CHAPTER 4
4.1 SITUATIONAL ANALYSIS
Taking PLUS Private
Robust economic development over the decades has seen a rise in car ownership and
the use of highways has increased in tandem. Daily commutes along tolled highways
are a feature in high-density population areas such as the Klang Valley, which is home
to more than seven million people. It is therefore not surprising that the cost of using
tolled highways has become a key issue in the larger debate regarding the cost of
living. In 2010, Khazanah, through UEM Group, and the KWSP took PLUS private,
which was then known as PLUS Expressways Bhd and was listed on Bursa Malaysia.
The transaction involved a RM23 billion cash offer for the assets and liabilities of the
highway concessionaire. More significantly, it also involved a restructuring of
concession agreements that would result in a moratorium on toll increases built into
the agreements.
4.2 MANAGERIAL ISSUE
Debt and Freezing Toll Rate
In the aspect of tolling and expenses, plus having a debt of RM 30.6 billion,
repayment of loans and interest cover most of the costs incurred PLUS Malaysia.
After all the arrangements applicable, balance for PLUS Malaysia to be returned in
the form of dividends to shareholders KWSP and Khazanah Berhad (through UEM
Group Berhad) only RM 330 million. In the other words, the surplus fund PLUS is
returned to the people through the KWSP dividend and government revenue. Bank
loans come with interest, in addition to the repayment of loan principal, interest is also
payable which ended up much higher than the original loan amount.
Similarly incurred highway concessionaire including PLUS. With the
principal loan amount for such a large initial investment, interest rate of 5 per cents
will be translated with such a large amount of debt. More than RM 30.6 billion the
cumulative total to be paid to the borrower is RM 62 billion. Other than that provided
the conditions such as debt service cover ratio, financial service cover ratio and others
should be applied throughout the term of loan to ensure the ability of the borrower to

19. repay the loan principal and interest. The company's total debt increased during PLUS
delisted from the Bursa Malaysia in 2011, this was followed by a corporate
restructuring by PLUS that is intended to help reduce the burden on the public and
review of toll rate increases under operation.
To facilitate the determination of the direction of the company, PLUS
Expressway on that time required to repay the existing shares, including 12 per cent
foreign ownership. The company is taking proactive steps to respond to the
government's call to create a corporate restructuring that makes PLUS a private
company that is owned by two shareholders Khazanah ( through UEM – 51 per cents)
and KWSP – 49 per cents. The goal is want to freeze the toll rate increase for several
years and received increases much lower than the rates agreed previously. Results,
PLUS Malaysia announced the toll rates under operating do not raise for 5-year
period till year 2015.
Sukuk
4.3 Operational Issue
Overcome Traffic Jam

20. Plus Express SWOT analysis
1) Strength
1. PLUS is the largest listed Toll Expressway operator in Asia and their eight largest in the
world. Toll road primarily in Malaysia. Wholly own in Malaysia project. 3 wholly own
subsidiaries ( Elite, Linkedua, KLBK).
2. Customer friendly service like Rest Area (RA), 24 hours per day, vehicle repair services
(Plus Ronda)
3. Maintain more than 950 km of expressway that connected the major cities along the west
and continues of Peninsular Malaysia
4. Strong Financial Performance over the years
2) Weaknessses
1. Increasing debt burden is a concern. Announce by government to freezing the toll rate.
2. Unexpected glitche hinder UEM Group Bhd overseas
3. Lack of business alliances. Lack of communication with foreign company.
4. Lack of international operations
3) Opportunities
1. Network expansion and acquisition
2. Improving Traffic Management
3. Enhancing operational efficiency by making use of technology such as Traffic
Monitoring Center.
4. Increase population in Malaysia
4) Threats
1. Rising oil price may decrease total traffic value
2. Fluctuation of interest rates
3. Economic slowdown may effect commercial traffic volume, less company use
expressway for shipping,
4. Take over tax waiver and strategic asset , risk of other firm to take over

21. 5. CHAPTER 5
RECOMMENDATION