ALR aims to boost business growth, expedite repayment of RM5.5 billion sukuk

KUALA LUMPUR: Amanat Lebuhraya Rakyat Bhd (ALR) aims to diversify its revenue stream and reduce traffic congestion in the short term to achieve greater business growth and expedite its RM5.5 billion sukuk repayment.

The sukuk, which forms part of ALR’s financing structure, was issued to fund the acquisition and sustainable operation of four major Klang Valley highways – the Shah Alam Expressway (Kesas), Damansara-Puchong Expressway (LDP), Sprint and the Stormwater Management and Road Tunnel (Smart).

ALR group CEO Muhammad Nizam Alias said the company is exploring partnerships and monetising its assets to gain a return, rather than relying on toll collection as its main contributor.

“We are also exploring ways to monetise our assets. There are pockets of land within the highway and road reserves which hold commercial potential.

“Currently, our highways already host petrol stations and eateries, but we want to go beyond that by, perhaps, developing lifestyle centres along these routes. To realise this, we are engaging potential third-party partners,” he told Bernama in an exclusive interview recently.

Muhammad Nizam said that with the ALR concession period nearing its end, the company must ensure a sufficient return on investments from the partnerships, as they will require a reasonable gestation period to recoup their investment.

“We are working closely with local authorities, including Malaysian Highway Authority and the Department of Director-General of Lands and Mines, to explore solutions on land tenureship,” he said.

Muhammad Nizam said the company is committed to reducing traffic congestion entirely, giving shorter travel times and reduced queue lengths along its key highways.

“Congestion is actually our enemy, because of congestion, our highways are not operating optimally. We put more focus on reducing congestion points, as this should be able to draw new traffic into the network and make more revenue,” he said.

In order to reduce congestion, Muhammad Nizam noted that the company has identified 16 congestion points across its highways, particularly on Kesas, LDP and Sprint.

“Our main congestion points will be Persiaran Kewajipan in Subang Jaya, Petaling Jaya Selatan-Toll Plaza and two to three locations along Sprint. After identifying the points, we will establish a baseline for speed and then remeasure to see if we meet the target.

“In another way, this will position our highways as the preferred routes on navigation apps like Waze and Google Maps, ultimately enhancing user experience and attracting more vehicles to our network,” he said.

The company is working closely with the government and relevant agencies to support national development, easing the government’s fiscal burden while ensuring sustainable highway operations.

“We are not here to make money for ourselves. By foregoing our rights to toll compensation, we are effectively giving back over RM400 million a year to the nation.

“These funds could be channelled into other priorities such as maintaining federal roads, as well as building schools and hospitals and make us distinct from profit-oriented concessionaires. We hope this distinction will be recognised in government policies as well as decision-making,” said Muhammad Nizam.

He underscored the importance of maintaining a healthy cash flow to meet its debt obligations, while balancing revenue growth and cost management.

“We are proud of helping the government move closer to a ‘nominal toll era’ and a strong partnership with the authorities will ensure long-term benefits for both the public and the nation,” said Muhammad Nizam.

In April 2025, ALR completed its fifth sukuk profit payment under its RM5.5 billion nominal value AAA-rated Senior Sustainable and Responsible Investment (SRI) Sukuk Murabahah programme.

The latest payment was RM130.96 million, raising ALR’s total payments to RM1.021 billion.

ALR has repaid a total of RM686.31 million in sukuk profit payments and RM335 million in sukuk principal repayments. This combined RM1.021 billion represents 13% of its total sukuk profit and principal obligations of RM7.94 billion. – Bernama