Amanat Lebuhraya Rakyat Bhd (ALR) is pursuing revenue diversification and short-term traffic congestion reduction to strengthen business growth and speed up repayment of its sukuk, valued at RM5.5 billion.
The sukuk was issued to finance the acquisition and sustainable operation of four major Klang Valley highways: Shah Alam Expressway, Damansara-Puchong Expressway, SPRINT Expressway, and SMART Tunnel.
ALR group chief executive officer Muhammad Nizam Alias said the company was exploring partnerships and better use of its assets to generate returns beyond toll collection, which remains its main source of income.
“We also see opportunities to leverage assets. There are land lots within highway areas and road reserves that could be commercialised. Currently, our highways have petrol stations and food outlets, but we want to develop further, perhaps even a lifestyle centre along the route. Discussions are ongoing with potential third-party partners,” he said in an interview with Bernama.
With the ALR concession period nearing its end, the company is focused on securing adequate investment returns, requiring reasonable maturity periods for recovery. ALR is coordinating with local authorities such as the Malaysian Highways Authority (LLM) and the Department of the Director-General of Lands and Mines (JKPTG) to address land tenure issues.
Reducing traffic congestion is a key priority for ALR. Muhammad Nizam described congestion as an obstacle to optimal highway operation and revenue growth. The company has identified 16 congestion hotspots mainly on Shah Alam Expressway, Damansara-Puchong Expressway, and SPRINT, including Persiaran Kewajipan in Subang Jaya and Petaling Jaya Selatan Toll Plaza.
ALR plans to set speed baselines and reassess progress to improve travel times and vehicle flow. This initiative is expected to position ALR highways as preferred routes on navigation apps like Waze and Google Maps, enhancing user experience and attracting more traffic.
ALR also works closely with the government to support national development and ease fiscal burdens, ensuring sustainable highway operations. By waiving toll compensation rights, ALR returns over RM400 million annually to the country. Muhammad Nizam noted that these funds help finance other priorities such as federal road maintenance, and construction of schools and hospitals, distinguishing ALR from other profit-driven concessionaires.
Maintaining a healthy cash flow is critical for balancing debt obligations with revenue growth and cost management. Muhammad Nizam expressed pride in assisting the government’s move towards the nominal toll era, stressing that strong collaboration with authorities will produce long-term benefits for the public and nation.
ALR has been steadily servicing its sukuk obligations under its AAA-rated Sustainable and Responsible Investment (SRI) Sukuk Murabahah Programme. In April 2025, it made its fifth sukuk profit payment of RM130.96 million, bringing its total repayments to RM1.021 billion.
So far, ALR has paid RM686.31 million in sukuk profits and RM335 million in principal, amounting to 13 per cent of its total obligations of RM7.94 billion.
Bernama
