• A win-win partnership
Al l in, AllianceDBS Re se a r ch opi ne d that whi le Chinese contractors appear to be aggressive in Malaysian markets, it bel ieved that the projects that China are bringing into Malaysia can also offer orderbook opportunities, and more.
It noted that the Chinese contractors are the most aggressive in pr iv a t e sector residential high- rise developments with thei r attractive financing schemes and abi lity to accept part payment in residential units.
“While Chinese contractors a re making inroads in the infrastructure space which have largely been i n government - re l at e d transportation jobs, there will be orderbook opportunities via subcontracting or JV roles for local players. These large- scale projects usually come with associated funding.
“In conclusion, we are of the view that contractors which have the highest exposure to private sector building jobs would be the more affected. This would probably be more apparent for the higher- end condominium developments and to a lesser extent the massmarket projects. Contractors which rely on building- related jobs but have internal property arms would be less impacted,” it commented.
Nevertheless, it pointed out that contractors with strong execution track record in the infrastructure space and have experience in large- scale project management roles will be beneficiaries of some of the key government infrastructure projects.
Looking ahead, the research team projected that in the l ong e r te rm, domes ti c contractors would likely venture overseas for new orderbook opportunities.
“This could be government led where CIDB recent ly signed six memorandums of understanding ( MoUs) with Indian industry partners today on sharing of expertise in infrastructure development in India.