Kuala Lumpur (17th July 2024) – In the first half of 2024, Malaysia’s construction sector secured RM26.36 billion in contracts. Analysts foresee an even stronger second half, predicting contracts to surpass RM40 billion, driven by large infrastructure projects, marking the highest since 2016.
According to Hong Leong Investment Bank Research, the sector saw a 41% increase in contract value year-on-year, totaling RM20.738 billion, nearing the total value of contracts in 2023.
Key factors include a significant rise in contract numbers, with 97 contracts awarded in the first half of 2024, compared to 51 in the same period last year. The second quarter alone saw RM13.8 billion in contracts, the second-highest quarterly record since 2009, only behind 2016.
Analysts attribute this success to increased property developer sentiment and contracts related to data centers. They expect continued growth, bolstered by the introduction of major public infrastructure projects in the second half.
Predicted investments will focus on ports, airports, water infrastructure, highways, and railways, with potential long-term opportunities from the Johor–Singapore Special Economic Zone (JSSEZ). Projects like the KL-Singapore High-Speed Rail (HSR), Johor’s Automated Rapid Transit (ART), and the Johor-Singapore Rapid Transit System (RTS) could further boost industry sentiment.
Analysts maintain an “overweight” rating for the sector, with Gamuda (GAMUDA) and Sunway Construction (SUNCON) as top picks.
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