Malaysia and Singapore trim PLUS Expressways toll

Both governments are optimistic that a cut will promote expressway use while analysts see reduction in operator’s profit.

Toll rates on the second link connecting Malaysia and Singapore will be reduced by 30 percent from 1 August, 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 (of the expressway)," Malaysian Prime Minister Najib Razak said in 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.

View the full story in Reuters.