Construction sector to expand 8.3pc on mega projects
THE government expects the construction sector to expand 8.3 per cent next year, slightly slower than this year’s 8.7 per cent, buoyed by mega projects such as the Sg BulohSerdang-Putrajaya mass rapid transit line, Pan Borneo Highway, Sg Besi-Ulu Klang Elevated Expressway and Damansara-Shah Alam Elevated Expressway.
In the first half of the year, the construction sector grew 8.4 per cent.
According to the Economic Report 2916/2017, the robust dishing out of government projects outweighed muted residential activities and slowing growth in the building of commercial and industrial units.
Construction works expanded by 11.4 per cent to RM62 billion, much higher than RM56 billion posted a year ago.
Ongoing oil and gas projects included Refinery and Petrochemicals Integrated Development, Independent Deepwater Petroleum Terminal Phase 2 Pengerang and Petronas LNG Complex Bintulu.
Among the infrastructure projects are the upgrading of the Klang Valley Double Track Rawang-Salak Selatan Line; construction of new Deep Water Terminal at Kuantan Port, Pan Borneo Highway Phase 1 and Water Supply Scheme Kuala Terengganu North as well as road upgrades in Selangor, Pahang and Johor.
Road upgrade from the Klang Container Terminal to Northport and infrastructural input at the Malaysian Vision Valley are also expected support the sector going forward.
Meanwhile, the government is expected to continue expanding affordable housing programmes, particularly 1Malaysia Civil Servants Housing.
The report said construction of affordable houses in the Klang Valley continued to come on stream, although the take-up rates had been slower.
Transaction of residential properties in Kuala Lumpur shrank by 20 per cent, followed by Selangor (-14 per cent), Penang (-14 per cent) and Johor (-11 per cent). Residential overhang increased 63 per cent to 13,438 units, with Johor accounting for the bulk of unsold units.
In the first half, there had been further decline in construction of industrial, shopping complexes and shop units due to overhang issue.
As in June, the existing stock of shopping complexes and industrial segment stood at 14.2 million sq m, higher than 13.4 million sq m recorded in June last year.
like the MRT Sg Buloh-Serdang-Putrajaya Line are expected to help boost the construction sector. Pic by Saddam Yusoff