KUALA LUMPUR: Gamuda Bhd will be the major early beneficiary from the revival of domestic Mass Rapid Transit 3 (MRT3) project, MIDF Research said.
The firm said this was premised on MMC-Gamuda consortium to be the frontrunner in clinching the MRT3 deal as turnkey contractor or project delivery partner (PDP).
MIDF Research said Gamuda was also the contractor for the tunnel works, which is estimated to be worth almost half of the contract value, given its experience in both MRT1 and MRT2.
Other beneficiaries previously involved in MRT2 are potential winners for MRT3's job awards as well.
They are IJM Corporation Bhd, Sunway Construction Group Bhd, WCT Holdings Bhd, Gabungan AQRS Bhd, Malaysian Resources Corporation Bhd and Malayan Cement Bhd.
"The much anticipated revival of domestic MRT3 project and its potential roll-out will boost the positive sentiments on the sector and order book replenishment prospects moving forward.
"We expect the impending roll-out of MRT3 in the second half of 2021 is expected to catalyse the sector by lifting market sentiments positively in terms of higher order book replenishment prospects and earnings recovery momentum for the construction players under our coverage," MIDF Research said in a report today.
The firm said as the government's prioritising development expenditure (DE) on high impact projects, it forecasted a growth of 14.9 per cent year-on-year (Y-o-Y) for the construction sector gross domestic product (GDP) in 2021.
This signals a strong rebound from 2020 which experienced a -19.7 pe cent Y-o-Y decline as the sector was adversely impacted by the Movement Control Order 1.0 (MCO1.0), particularly in the second quarter of 2020.
MIDF Research has maintained its "positive" call on the sector.
"The construction sector is set for an upcycle in view of the expansionary 2021 Budget, the largest ever development expenditure as well as a potentially strong earnings recovery and order book replenishment prospects in 2021 and onward," it said.