According to BMI Research’s latest Risk/Reward Index (RRI), Malaysia is the fifth best construction destination out of 105 countries across the globe and second in Asia.
This is mainly attributed to China’s financing of major local infrastructure developments and several upcoming large-scale projects, such as the Singapore–Kuala Lumpur High Speed Rail, the East Coast Rail Link and the second phase of the Mass Rapid Transit line.
“Many infrastructure, residential and non-residential projects are supported by financing from China, with Malaysia being the focal point for Belt & Road related investments,” said BMI, according to a report in the Malay Mail Online.
The RRI runs from 0 to 100, with higher scores denoting greater attractiveness; Malaysia’s index rose from 67.4 previously to 70.3.
Malaysia’s highest scores in RRI components were in construction timeliness and economic risk, while the lowest are in competitive landscape and GDP per capita growth. The country was rated average in infrastructure competitiveness, due to government-dominance in financing and operating roles. — Construction+ Online