Domestic contract awards in the construction sector totalled RM10.7bil in 1H17, declining 72 percent year-on-year, according to The Star report.
However, this is primarily because 2016 was a boom year, with the awarding of the MRT2 underground works (RM15.5 billion), DUKE3 (RM3.7 billion) and Sarawak Pan Borneo Highway packages (RM3.2 billion), as noted by HLIB Research.
In the second quarter of 2017, domestic contract awards for listed contractors amounted to RM4.1 billion. Most of the jobs were smaller in size, with only one contract—the Bintulu Port supply base wharf—exceeding RM500 million.
In 2H17, HLIB expects the flow of contract awards to pick up, with the rollout of LRT3 (RM9 billion), and to see a further boost in 2018 with other mega rail projects, such as the East Coast Rail Link (RM55 billion), High Speed Rail (RM60 billion) and MRT3 (RM50 billion).
“We expect a strong revival in job flows next year, driven by several mega rail projects,” the report said. “The significance of these mega rail projects to the construction sector should not be underestimated.” — Construction+ Online