The Company wishes to announce that it had on 10 September 2026 received a letter from the Government of Malaysia ("GoM"), through the Ministry of Works, informing that the Cabinet of Malaysia had agreed-in-principle to the implementation of the proposed Bandar Malaysia-Seri Kembangan Expressway ("BSE"). The proposed BSE will be implemented under a privatisation arrangement based on a build-operate-transfer model and will be jointly undertaken by Pertama Makmur Sdn. Bhd. and LSH Infra Sdn. Bhd., a wholly-owned subsidiary of the Company, through a special purpose vehicle equally owned by the parties ("PMSB-LSH JV"), subject to further technical and financial studies as well as the negotiation and finalisation of the concession agreement.
The proposed BSE will have an estimated overall length of approximately 8.2 kilometres, commencing from the Salak Interchange on the Setiawangsa-Pantai Expressway ("SPE") near the Bandar Malaysia development area and extending 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 Serdang Perdana, Jalan Kuda Emas and Jalan Serdang Raya.
The proposed BSE is envisaged to serve as a strategic 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.
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. The proposed BSE is expected to be financed via a combination of internally generated funds, borrowings and/or other fund-raising exercise.
The proposed BSE, including the estimated construction cost, construction period and proposed concession period of 60 years (inclusive of the construction period), remains subject to, among others, the finalisation of detailed technical and financial studies, the negotiation and execution of the concession agreement between PMSB-LSH JV and the GoM, and the obtaining of all relevant approvals required in connection therewith. Pursuant to the approval-in-principle, the relevant studies and concession agreement negotiations are required to be completed within 12 months. In the event the aforementioned matters are not concluded within the stipulated timeframe, the proposal will be tabled to the Cabinet of Malaysia for reaffirmation.
The approval-in-principle does not impose any obligation on the GoM to proceed with the proposed BSE. The GoM reserves the right, at its sole discretion, to defer, vary, modify or not proceed with the proposed BSE and shall not be liable for any costs, expenses or losses incurred or to be incurred by PMSB-LSH JV in connection with the proposed BSE or the approval-in-principle granted.
Further announcements will be made to Bursa Malaysia Securities Berhad as and when there are material developments in relation to the proposed BSE.
This announcement is dated 10 September 2026.