Construction sector to see more contract awards in the near future
KUCHING: Malaysia’s construction sector will likely see more contract awards in the near future as major infrastructure projects kick into high gear next year, analysts say.
RHB Research Sdn Bhd (RHB Research) in its recent strategy report for 2017, highlighted that there are enough outstanding jobs to be awarded in the short and medium term.
“Aside from the remaining packages for mass rail transit line 2 (MRT2) and Pan Borneo highway (Sarawak), there are still a few more projects in the pipeline scheduled to be awarded in the coming months through the first half of 2017 (1H17).
“All eyes are on the light rail transit line 3 (LRT3) and Pan Borneo highway (Sabah),” it said.
Additionally, RHB Research pointed out that there are still a few more work packages from the West Coast Expressway (WCE), the Refinery and Petrochemical Integrated Development (RAPID) project, and long awaited sub-contracting works for the Gemas-Johor Bahru electrified double tracking (EDT) project.
“There are also several mega projects in the early stages of construction and planning, such as the Tun Razak exchange (TRX) and Bukit Bintang city centre (BBCC) projects.
“Award for these projects can be expected in the coming months, and possibly extend to the next few years given that some of the mega development projects may take decades to be fully implemented,” it added.
Meanwhile, the research arm of Maybank Investment Bank Bhd (Maybank IB Research) believed that China’s interest in investing on infrastructural and property projects Malaysia could add a new dimension to the country’s construction sector.
“China’s ‘One Belt One Road’ initiative will continue to put Malaysia in the limelight of Chinese investments due to Malaysia’s strategic position on the Straits of Melaka.
“With the ability to provide attractive financing packages, we could potentially see Chinese contractors being involved in the major rail projects such as the KL-SG high speed rail, Gemas-Johor Bahru double track rail and the East Coast Rail Line.”