KUALA LUMPUR: The construction sector’s output this year looks set to surpass last year’s RM93 billion, fuelled by ongoing and new public sector projects.
The sector has seen a year-on-year growth of 20% for the first quarter, boding well for the entire year’s prospects, Master Builders Association Malaysia (MBAM) president Matthew Tee said yesterday.
Despite the sector unlikely to surpass the historical high of RM120 billion in 2012, the outlook for the next five to six years looks rosy thanks to the projects being undertaken by the government to bolster the economy and improve infrastructure, he said.
The implementation of the ongoing Economic Transformation Programme, Pan Borneo Highway in Sabah and Sarawak, as well as public transport projects such as the light rail transit, mass rapid transit and high-speed rail link between Kuala Lumpur and Singapore are expected to translate into healthy growth for the sector.
Tee was speaking to reporters after the launch of MBAM’s coffee table book by Deputy Works Minister Datuk Rosnah Abdul Rashid Shirlin to commemorate the association’s 60th anniversary this year.
However, MBAM cautioned against the possibility of the construction sector overheating.
“The government shouldn’t implement all the projects at one go, but to carry them out periodically.
“This will prevent the construction sector from overheating and help contain escalating raw material prices,” Tee said. — Bernama
This article first appeared in The Edge Financial Daily, on May 16, 2014.
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