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Plus Expressway SR 2011 Community .pdf



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OUR
COMMUNITY
At PLUS, we give back to the community in areas where we
conduct our business by empowering our neighbours with
sustainable economic opportunities which contribute to their
socio-economic development.

our community

Creating Social Enterprises through our
operations
PLUS has an obligation to manage and maintain 987 km of
expressways across the country. In taking on this obligation
we believe that we have a responsibility to provide an
efficient and safe expressway network that will enhance the
development of improving quality of life for our communities
as well as our customers.
As part of our contribution to Community Investment and
Development, we provide opportunities for social enterprises
and apply commercial strategies from our Group operations
to maximise improvements in human and environmental wellbeing as well as supporting profits for our shareholders.
Central to this aim are our Rest and Service Areas (RSAs)
which are located at intervals of 50 to 60 km along the
expressways and our laybys, conveniently situated at every
20 to 40 km along the expressways. These facilities are
constantly maintained at a cost of RM23 million a year,
focussing on safety, hygiene and cleanliness.

PLUS Sustainability Report 2011

In addition, we are constantly searching for ways to combat
vandalism and find avenues to better performance in terms
of quality deliverance of our products & services.
We make the investments because we believe that our RSAs
and laybys contribute greatly to the socio-economic
development of the local communities in nearby areas.
The businesses we help to create in our RSAs are primarily
social businesses whose surpluses are principally reinvested
for social objectives. They are mainly enterprises that are
owned by the people who work there or who reside within
20km of the locality. They share three common characteristics
of Social Enterprises as defined by the international expert
group Social Enterprise London.
First, PLUS helps them to be Enterprise Oriented and directly
involved in producing goods or providing services to users of
the highways as viable trading organisations creating operating
surpluses that is invested in the long-term sustainability of
the business and its local stakeholders.

page 62

Second, with our assistance they have achieved specific
Social Aims such as job creation, training or the provision of
local services. The social aims are underpinned by ethical
values including a commitment to local capacity building and
direct accountability to their stakeholders and the wider
community for their social environmental and economic impact.

travellers. We have also been credited with an award by the
Malaysian Institute of Architects in 2004 in the Public and
Civic Building category. The upgraded works at these RSAs
and laybys have, over the years, served as a popular tourist
attraction and established PLUS as the preferred travel route
for interstate land travel.

Third, we encourage them to follow a Social Ownership
model as autonomous organisations with governance and
ownership structures based on participation by stakeholder
groups including their families and other members of the
local community. Surpluses from trading are distributed
across a wider stakeholder group or used for the benefit of
the community.

We try to ensure the cleanliness and hygiene standards of
the facilities and services provided at these RSAs and laybys
are maintained at a high level. Our group of personnel at
each RSA and layby is committed to ensuring the toilets are
cleaned on a regular basis round the clock.

Contributing to Socio-Economic Development
and Nation-Building
Building Social Enterprise infrastructure
and capability: The Rest and Service Areas
(RSAs) and Laybys
As the biggest Highway Concessionaire or Build-OperateTransfer (BOT) operator company in Malaysia, part of our
responsibility is to ensure that the collections from the toll
are reinvested into the provision of high quality products and
services and the maintenance of our facilities and
expressways. In addition to the 24 RSAs mentioned above,
there are also the 43 laybys provided at every 20 to 40
kilometres along our expressways.
Facilities at each RSA include petrol and service stations,
restaurants, food and beverage outlets, fruit and handicraft
stalls, public toilets, wakaf at picnic grounds and prayer
rooms. The laybys, on the other hand, have a public parking
area, public toilets, wakaf and public telephones and are
relatively smaller in size. Snacks and cut local fruits from
specially-licensed temporary hawkers are available for purchase
at these laybys.
These RSAs and laybys have been upgraded to provide more
than just a stop-over for motorists. They are renovated with
specific themes that reflect the attraction associated with
the locality thereby promoting local tourism amongst the

PLUS Sustainability Report 2011

It is our policy to encourage small and medium entrepreneurs
in our RSAs for vendors who reside within a 20-kilometre
radius of the RSAs. Many of these vendors have found an
improved quality of life since operating an outlet at our
RSAs. They have helped to provide a better and more stable
source of income for the vendors and their families.
Moreover, not only have they created employment
opportunities for the local residents, many of these stalls
have become the catalyst for family businesses.
PLUS also ensures vendors who operate food outlets at the
RSAs are supported in every aspect of their business,
including high attention to hygiene standards, customer
service, food quality and competitive price. Training courses
are conducted for the vendors to help them offer quality
vendor-customer relationship, hygienic food preparation as
well as display techniques that assure a sense of security
to their patrons. The prices of their goods are regulated to
make the travel experience on the PLUS expressways more
economical for our customers and the rental costs of the
stalls are also kept to a minimum. This is because we
believe that the main objective is to support the local
communities by allowing them to market their products in a
healthy and sustainable market.

page 63

our community

The RSAs and laybys serve as an avenue for local suppliers to supply their products too. Some even allow for Orang Asli to
offer their forest products, herbs and traditional medicine including wild honey, medicinal roots and petai for sale. Together
with the 5,500 employment opportunities that we provide in operations, maintenance and support services, these RSAs and
laybys have become a stable source of income for residents in the neighbourhood contributing greatly to the socio-economic
development of local communities.

The direct and indirect economic impact of our Social Enterprise strategy

For every RM1 invested,
a social value of RM2.35
is created by the SME

For every RM1 invested, a social
value of RM5.80 is created for
the employees of the RSAs.

Over 90% of income generated is retained
within the local community

PLUS Sustainability Report 2011

page 64

At PLUS, we try to go beyond just providing high quality
service to our customers or road users, instead we also aim
to fuel community development through our business
operations. Our policy to promote small to medium
entrepreneurs within a 20-kilometre radius of the RSAs is
effective in providing a sense of empowerment from economic
stability that also leads to greater community involvement.
This involvement comes from the direct interactions and
training we provide to the vendors to help them in their
businesses and in turn build healthy, sustainable communities.
In order to gauge the impact or economic value-add from our
investments in our RSA Business Communities we have
applied an analysis which captures the Social Return on
Investment (SROI) from the Social Entrepreneurs themselves,
from the perspective of the employees and in terms of the
economic value distributed to the local community.
We also estimated the direct and indirect economic impact
of our RSA Social Enterprise programme to see how much
value is created for the wider community.

Value add to Social Enterprises
The SROI of the 500 Social Enterprise stalls located at the
24 RSAs in the PLUS network is calculated as the ratio of
the revenue to the investments made.
This ratio is 2.35 which implies that for every RM1 that was
invested into an outlet or stall at a PLUS RSA, a social value
of RM2.35 is created. That is just in the perspective of the
vendors.
In addition to the 500 stallholders there are 60 kiosk
owners and 50 temporary hawkers. We assume that these
would have little difficulty in relocating elsewhere with the
same income levels so we do not calculate a value added
for these vendors from our activities.

The Value-added to Employees at the RSA Social
Enterprises
The RSA Social Enterprises create around 4,140 jobs directly.
We assume that half of these are new jobs that would not
be there without the RSA business opportunities and for
simplicity we assume that they pay at least the proposed
minimum wage of RM900 per month.
Based on these assumptions and the figures in Table 1, our
calculations have estimated the SROI for the employees of
our vendors at 5.8, which means that for every RM1 that was
invested into an outlet in our RSA, an additional social value
of RM5.80 was created for the employees of our vendors.

PLUS Sustainability Report 2011

page 65

our community

Table 1: Total Number of Employees at RSAs and Laybys
No. of Stalls

Estimated Total No. of Employees
for all shifts

Estimated Total Monthly Income
for all RSAs Employees (RM)

Food

164

1,476

1,328,400

Drinks

125

1,125

1,012,500

Handicraft

20

120

108,000

Fruits

100

600

540,000

Others

91

819

737,100

500

4,140

3,726,000

Type of Stalls

Total

Percentage of Income Distributed
Reinvestment or retention of economic value
in the local communities

7%
4%

The chart on the right exhibits the estimated income
distribution of our RSAs. The employees of the RSAs are
usually family members or local residents. Taking this into
account, the chart shows that over 89% of income is
reinvested into the community through Social Entrepreneurs
and their employees. If we assume that some of the
suppliers are also from the local community then over 90%
of the income generated is retained within the local
communities in some way.

33%

Social Entrepreneurs
Employees
Suppliers
Others
56%

The Direct and Indirect Economic Impact
We use the estimated annual revenue to gauge the direct economic impact of our RSAs on local communities. This is
approximately RM132,948,000 in revenues generated from the new businesses that have been established due to our RSA
Social Enterprise policy.
Since this income is distributed through the local economy one way or another, we can estimate the indirect economic impact
through the economic concept of a Consumption Multiplier. The Ratings Agency of Malaysia estimates that the multiplier effect
from private consumption is around 2.13 whereas the World Bank estimates that for Developing Countries such as Malaysia
it might be as high as 4.76. Applying these estimates the Indirect Economic Impact may be calculated as follows:
2.13 x RM132,948,000

RM283,179,240




Indirect Economic Impact
Indirect Economic Impact




4.76 x RM132,948,000
RM632,832,480

The above calculations help us to feel confident that our RSAs serve more than just a rest and service area for our
customers. They help to develop the local community and to provide economic stability for the local residents by empowering
them with sustainable business and employment opportunities that would not be there without the partnerships we build
with our local Social Entrepreneurs.

PLUS Sustainability Report 2011

page 66

Other Community Programmes: Serving
our community

Under the MUFORS banner, PLUS continuously organises
other road safety initiatives such as:

At PLUS, we operate our business as a responsible corporate
citizen whilst adhering to the guidelines of the Silver Book
for Malaysian government-linked companies. Focusing on
awareness on road safety and community engagements, our
efforts have seen us organised and participated in various
initiatives in our address of social issues that contributes to
sustainable growth in the reporting period. We are delighted
to be able to highlight some of these initiatives in our third
Sustainability Report for our stakeholders.

+ Respect Your Limits (RYL) Safety Seminars
+ MUFORS Road Reels Short Film Competition
+ Gerakan Motosikal Pencetus Amalan Keselamatan
MUFORS (GEMPAK MUFORS)
+ The MUFORS Gallery
+ MUFORS Inter-School Mural Competition

MALAYSIANS UNITE FOR ROAD SAFETY (MUFORS)
The Malaysians Unite For Road Safety (MUFORS) initiative,
spearheaded by PLUS, was launched on 9 September 2009
as a community project for Malaysians to express their opinions
and views on the level of road safety in the country.
MUFORS was set up to empower Malaysians to voice out
their thoughts and concerns on road safety in the country.
More importantly, it also serves as a platform for everyone
to think about how each of us can play our part to improve
road safety and save lives.

Respect Your Limits Safety Campaign
The Respect Your Limits safety campaigns consist of a
series of road safety seminars and road shows aimed at
educating heavy vehicle drivers and fleet operators on the
importance of road safety and the need to respect their own
physical and vehicle limitations.
Started in 2008, the RYL seminars also focus on practical tips
to follows during emergencies. To date, more than 4,000
heavy vehicle drivers and fleet operators have participated in
the RYL seminars held throughout the country.

In 2009, the MUFORS initiative started by urging Malaysians
to pledge on how they could help in making Malaysian roads
safer for all. The campaign has managed to gather as many
as 240,000 road safety pledges from the public.
As of January 2012, 560,000 votes on road safety were
recorded through the MUFORS website at www.mufors.org.
my. During the campaign, MUFORS urged Malaysian citizens
to vote for road safety as our utmost priority.
The focus of MUFORS is to provide a fresh platform,
especially through social media, that will allow Malaysians to
review their own attitudes or behaviours towards road safety.
Instead of being told what to do (as in previous road safety
campaigns), the Malaysians Unite for Road Safety initiative
gives Malaysians a chance to share their thoughts on what
we should be doing to improve road safety. In short, the
strategy is to empower Malaysians to improve road safety,
beginning with themselves.

PLUS Sustainability Report 2011

page 67


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