Expert calls for govt intervention to complete MEX II without bailout

New Straits Times

03-05-2025

KUALA LUMPUR: The government should intervene in the delayed Maju Expressway Extension (MEX II) project to ensure its completion without a bailout, a transport expert said.
Transport consultant Wan Agyl Wan Hassan said a sustainable solution would be to form a Special Purpose Vehicle (SPV) with equity from government-linked companies (GLCs), partnered with private developers.
This approach, he said, would allow for the raising of a new sukuk to finance the remainder of the highway's construction.
"I'm not saying the government should bail it out, but it should consider forming a new SPV with equity from GLCs, then partnering with private developers and using a structured asset takeover from MEX Highway Sdn Bhd under the Insolvency Act.
"This is because MEX Highway Sdn Bhd is insolvent and under the receivership of the insolvency department. So, we can proceed with a takeover under the Insolvency Act – or perhaps grant a new concession for future development.
"This way, there's no direct government bailout, as we would be using GLC involvement and partnering with private developers," he said when contacted today.
Earlier, Works Minister Datuk Seri Alexander Nanta Linggi said the government is actively engaging with stakeholders to resolve the prolonged delays in the MEX II project, which was originally scheduled for completion in December 2019.
The highway, considered a vital link between Putrajaya, Cyberjaya and Kuala Lumpur International Airport (KLIA), has been plagued by financial setbacks and is currently under scrutiny by the Malaysian Anti-Corruption Commission (MACC).
Nanta said the project had faced persistent cash flow issues that halted construction, but efforts are now being stepped up to revive the stalled works.
The 18km extension to the MEX Expressway has come under renewed public attention following MACC investigations into alleged false claims involving RM360 million.
Last week, four individuals, including a 'Datuk Seri', were remanded in connection with the alleged submission of false claims amounting to RM360 million, purportedly using sukuk funds for a Klang Valley highway project valued at RM1.3 billion.
Earlier today, a former chief executive officer was also remanded for three days.
Wan Agyl, who is also the founder and chief operating officer of MY Mobility Vision, suggested that any SPV formed should include an independent Project Management Office (PMO) and be monitored by the Public Accounts Committee (PAC).
He also proposed limited non-bailout support via partial credit guarantees to attract new institutional investors.
"Everything needs to be repackaged with a very clear objective. The government must ensure the MEX II Highway is completed," he said.
He said that the project's completion is crucial for enhancing logistics and supporting national growth.
"The most important thing is to realise that the MEX II Highway must be completed, as it provides a shorter travel route to Putrajaya, Cyberjaya and KLIA.
"Of course, the new highway will also improve logistics efficiency, especially since the KLIA corridor is currently very congested," he added.
He said the expressway would also help ease congestion on existing highways and improve regional airport access.
"When there is a state visit, like when Xi Jinping visited Malaysia, this highway would allow a direct link from KLIA to Putrajaya," he said.
Wan Agyl added that prolonged delays have negatively affected surrounding property developments, leading to stagnating prices and declining investor confidence.
He said the project's sukuk had been downgraded multiple times due to ongoing uncertainty.