Malaysia’s construction sector expected a boost due to upcoming Budget 2020
The 2020 Malaysian Budget will be presented on 11 October 2019 and the construction sector is expected to have a boost of growth, according to Affin Hwang Capital research report.
The government is expected to revive large-scale infrastructure projects at a reduced cost and longer implementation timeline, such as the MRT3 and Pan Borneo Highway Sabah (PBH).
Affin Hwang Capital believes that the public transportation system in the Klang Valley will be enhanced if the MRT3 were to be constructed successfully, while PBH will improve road connectivity in Sabah and Sarawak.
According to their analysis, projects such as the Penang Transport Master Plan (PTMP) and HSR could be implemented based on a public-private partnership concept. However, the decision on whether the HSR will be revived is highly unlikely to be announced during the Budget 2020 announcement, since the deadline agreed between the Malaysia and Singapore governments is May 2020.
Benefiting the construction sector, the report expects the government’s development expenditure to emphasise on building new hospitals, water and sewerage systems, as well as rural roads to improve the lives of the people in towns and rural areas. — Construction+ Online