AS most industries in Malaysia are hoping for a wind of change in the local economic landscape, the construction sector remains confident.
Construction Industry Development Board (CIDB) chief executive officer Datuk Seri Dr Judin Abdul Karim said the sector would continue to be robust.
There are many high-value projects already in the pipeline despite the current challenging economic condition.
“Besides the Light Rail Transit 3 (Line 3) project, affordable housing and highway projects are also coming on stream,” he said.
Besides, with the development in Pengerang, Johor, being chosen as an oil and gas hub, it would add strength to the construction sector, he added.
The Pengerang deepwater terminal is a RM5 billion project with storage capacity of five million cu m and land reclamation of 201ha. The construction of a deepwater jetty facility there would be able to facilitate very large crude carriers.
Most analysts have positive expectations on Malaysia’s construction sector.
The government’s announcement of several mega projects, including the Mass Rapid Transit 2 (MRT2), Line 3 and more Bus Rapid Transit projects under the 11th Malaysia Plan (11MP) will be a major boost to the industry.
RHB Research Institute (RHBIB) said development expenditure during the 11MP was projected at RM260 billion, which is 16 per cent higher than the RM223.6 billion incurred during the 10th Malaysia Plan.
Urban public transport is a key focus area under the 11MP, as 75 per cent of the population in Malaysia will live in cities by 2020.
The 11MP has set a 40 per cent public transport share in the Klang Valley by 2020 from 17.1 per cent last year.
“This is hardly a surprise to us as we hold the view that spending on MRT developments will be one of the key pillars of support for the construction sector in Malaysia over the next decade and beyond, particularly in the Klang Valley and Penang,” RHBIB said.
RHBIB maintained an “overweight” stance on the construction sector.
Hong Leong Investment Bank (HLIB) Research expects construction sector in Malaysia to continue its upward momentum in the future.
HLIB Research also maintained its “overweight” outlook on the sector.
“The current construction sector’s data on contract awards validates that the momentum of job wins remains strong for contractors. 11MP has witnessed a 13 per cent allocation increase to RM260 billion, which will help sustain the flow of contracts for the next five years.”