Lim Seong Hai Capital Berhad (“LSH Capital” or the “Group”) has announced that it has received a letter from the Government of Malaysia (“GoM”), through the Ministry of Works, informing that the Cabinet of Malaysia has agreed in-principle to the implementation of the proposed Bandar Malaysia–Seri Kembangan Expressway (“BSE”) under a privatisation arrangement based on a build-operate-transfer model.
The proposed BSE will have an estimated overall length of approximately 8.2 kilometres. It will commence from the Salak Interchange on the Setiawangsa–Pantai Expressway (“SPE”) near the Bandar Malaysia development area and extend to the Sungai Besi Toll Plaza on the North–South Expressway (“PLUS”), with a spur link to the Maju Expressway (“MEX”) via the Bukit Jalil Highway.
The proposed BSE is expected to comprise four (4) interchanges and three (3) ramps, providing connectivity to, among others, the Kuala Lumpur–Seremban Expressway, SPE, East–West Link Expressway, New Pantai Expressway (NPE), Sungai Besi Expressway, Bukit Jalil Highway, MEX, PLUS, Jalan Kuchai Maju, Persiaran Serang Perdana, Jalan Kuda Emas and Jalan Serdang Raya.
The BSE is envisaged to serve as a highway-to-highway connector, enhancing connectivity between existing highways and road networks and facilitating access to the Kuala Lumpur–Karak Expressway, East Coast Expressway, New Klang Valley Expressway (NKVE) and PLUS, thereby easing movement in the Klang Valley and Greater Kuala Lumpur.
The proposed BSE will be jointly undertaken via a special purpose vehicle equally owned by Pertama Makmur Sdn Bhd (“PMSB”) and LSH Infra Sdn Bhd (“LSH Infra”), a wholly-owned subsidiary of LSH Capital. The total construction cost of the proposed BSE is estimated at RM1.75 billion (excluding sales and services tax), with a planned construction period of four (4) years.
Strengthening the Construction and Facilities Management Division
The proposed BSE, to be undertaken under a Private–Public Partnership (PPP) model, is expected to further expand and strengthen the LSH Capital group’s long-term construction and facilities management portfolio. Beyond contributing to the Group’s construction orderbook, the implementation of the proposed BSE is expected to stimulate economic activity within the construction sector.
Based on preliminary estimates, the proposed BSE is expected to support more than 100 trades across the construction supply chain and create approximately 15,000 employment opportunities during the construction phase. Upon completion of the construction phase, the proposed BSE is also expected to provide synergistic opportunities for the Group’s facilities management division to participate in the provision of operations and maintenance as well as related support services throughout the proposed concession period of 60 years (including the construction period). This supports the Group’s strategy of building a recurring income base that complements its construction activities. Based on current preliminary estimates and assumptions, operations and maintenance activities associated with the proposed BSE may contribute approximately RM20.0 million in revenue during the first year of operations.
Commenting on the achievement, Tan Sri Datuk Seri Lim Keng Cheng, Chairman of LSH Capital, remarked: “We are honoured by the confidence placed in us by the MADANI Government to implement this significant national infrastructure project. We would like to express our sincere appreciation to the Ministry of Works, Malaysian Highway Authority, Public Private Partnership Unit (UKAS), and all other ministries and agencies for their guidance and support throughout this process.
“The proposed BSE represents a transformational milestone for LSH Capital. In addition to strengthening our position as a key player in the construction and facilities management sectors, this concession will enable us to build a long-term infrastructure portfolio supported by stable and recurring income streams. With the addition of the proposed BSE to our portfolio, we remain committed to delivering long-term value for our shareholders while contributing meaningfully to the nation’s infrastructure development and economic growth.”
