MRT3 Circle Line tenders likely to restart by mid-2026—MBSB Research

• The re-tender is anticipated due to changes in project alignment and station placements, following a 32% reduction in land plots required for acquisition to begin for MRT3 from 1,012 to 690 lots.

KUALA LUMPUR (July 18): New MRT3 Circle Line construction tenders may begin by mid-2026, said MBSB Research, after MRT Corp’s fourth and final tender validity extension lapsed in March 2024.

The re-tender is anticipated due to changes in project alignment and station placements, following a 32% reduction in land plots required for acquisition to begin for MRT3 from 1,012 to 690 lots.

“Construction of MRT3 may begin in CY27 (calendar year 2027), which will keep contractors busy possibly up to 2033,” MBSB said, adding that contract awards are expected towards the end of the land acquisition process between end-2026 and mid-2027.

The house maintained its 'positive' call on the sector, noting the project will serve as a timely continuation following the expected completion of the Johor-Singapore Rapid Transit System (RTS) and East Coast Rail Link (ECRL) by end-2026.

RHB Research on the other hand expects further details of MRT3, including the funding mechanism, revised cost estimates, and re-tendering plans, to be revealed as early as during the tabling of the 13th Malaysia Plan on July 31 or later during the Budget 2026 tabling on Oct 10.

The house said its top picks, Gamuda Bhd (KL:GAMUDA), with a target price of RM5.86, and Sunway Construction Group Bhd (KL:SUNCON), with a TP of RM2.64—both rated 'buy'—are expected to emerge as main contractors for the MRT3 project.

Other potential main contractors include IJM Corporation Bhd (KL:IJM), Malaysian Resources Corporation Bhd (KL:MRCB), WCT Holdings Bhd (KL:WCT), Gadang Holdings Bhd (KL:GADANG), and Mudajaya Group Bhd (KL:MUDAJYA).

Meanwhile, subcontractor roles could be filled by builders such as Econpile Holdings Bhd (KL:ECONBHD), Gabungan AQRS Bhd (KL:GBGAQRS), Kimlun Corporation Bhd (KL:KIMLUN), and TRC Synergy Bhd (KL:TRC). RHB Research maintained its 'overweight' stance on the sector.

The Bursa Malaysia Construction Index, comprising 59 constituents, has risen 2.78% year-to-date.

On Thursday, MRT Corp announced that Transport Minister Anthony Loke Siew Fook had approved the final MRT3 Circle Line plan, with land parcels to be acquired reduced from 1,012 to 690 and the acquisition target set for end-2026. 

The MRT3 Circle Line—a 51km orbital route that forms the final piece of the Klang Valley Mass Rapid Transit network—will circle Kuala Lumpur and integrate with existing MRT, LRT, KTM and Monorail lines via 10 interchange and connecting stations. The line will include 31 stations, with 40km of elevated track and 11km of underground track.

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