‘Construction sector sentiment recovering’

KUALA LUMPUR: Business sentiment among corporates and small and medium enterprises (SMEs) in the construction sector showed nascent recovery in the second and third quarters, according to the latest RAM Business Confidence Index (RAM BCI) survey yesterday.

The survey, conducted by RAM Holdings Bhd and RAM Rand RAM Credit Information Sdn Bhd, said the improvement was mainly due to a resumption of public sector projects and more clarity in government policies.

“The corporates construction sector exhibited a 0.2-point increase to give an overall construction index reading of 53.2.

“Sentiment among SMEs showed an even more significant turnaround, with the overall construction index rebounding to 51.2 from the previous negative sentiment reading of 49.7,” said RAM Holdings.

An index value of 50 is the neutral benchmark while a value above 50 indicates positive sentiment and below 50 is negative sentiment.

Despite pockets of sectoral improvements, the overall RAM BCI for the second and third quarters of this year continued to indicate a subdued level of optimism in the next six months, with the overall corporate and SME construction indices at 53.5 and 52.1, respectively.

The survey found the moderating trend was most stark among corporates, indicating continual dampened sentiment across the board in both performance and capacity building expectations.