Construction sector to expand 7.5 pct in 2018

KUALA LUMPUR: The construction sector is expected to expand by 7.5 per cent next year compared with the estimated 7.6 per cent growth in 2017, said the Ministry of Finance in its 2017/2018 Economic Report released yesterday.

The growth will be supported by ongoing civil engineering infrastructure projects such as the East Coast Rail Link, Mass Rapid Transit Sung ai Bu lo h-S er dang-Put ra jay a Line, Electrified Double Track Gemas-Johor Bahru, Setiawangsa-Pant ai Expressway, Pan Borne o Highway and Bokor Central Processing platform.

The report said that the valueadded of the construction sector recorded a 7.4 per cent in the first half of 2017 against 8.5 per cent posted in the same period last year, underpinned by strong civil engineering activities.

“The total value of completed construction works increased 10.4 per cent to RM68.9 billion involving 18,977 projects (January-June 2016: 11.4 per cent; RM62.4 billion; 20,026 projects).

“The private sector contributed 63.6 per cent of the total value of construction works,” the report says.

Of the total value, the civil engineering was the major contributor constituting 35.3 per cent, followed by non-residential (31 per cent), residential (28.8 per cent) and specialised construction activities (4.8 per cent).

The civil engineering sub sector continued to record a double-digit growth supported by major infrastructure projects under the Eleven th Malaysia Plan.

“Among the rail projects were Mass Rapid Transit Sungai Buloh Serdang-Putrajaya line and Electrified Double-Track Gemas-Johor Bahru, upgrading of roads such as Set ia wan gs a-Pant ai Expressway and Pan Borneo Highway and turbine power plant in Melaka,” it said.

Meanwhile, the residential subsector grew 4.7 per cent, supported by firm demand of locations and easy access at 12.1 per cent to 67,662 units, (January-June 2016: 40 per cent; 60,378 units).

Condominiums and apartments accounted for 42.9 per cent of total housing starts inline with the increasing demand, especially for high-rise units in major cities.

“However, the increase was offset by a decline in incoming supply at 3.4 per cent to 485,433 units as developers were cautious in launching new projects to prevent accumulation of unsold properties,” it said.

Construction in then on-residential sub-sector, grew 4.9 per cent to RM6.4 billion compared to RM6.1 billion in the same period last year. The growth was mainly supported by starts for shops and service apartments which rebounded 29.3 per cent and 14 per cent respectively. — Bernama