#Economic Report 2011/2012* Construction growth to double to 7%

KUALA LUMPUR: The construction sector is expected to get more prominence in the Economic Report 2011/2012 with its growth targeted at 7% in 2012 from 3.4% in 2011 as large infrastructure projects including the Mass Rapid Transit project in KL take off.

The Report — released on Friday, Oct 7 — said underpinning the sector's growth would be the commencement of large infrastructure projects and vibrant housing construction activities.

"The civil engineering subsector will be supported by the implementation of development projects to enhance the long-term potential growth of the economy," it said.

Among the projects are the construction of the Sungai Buloh-Kajang MRT line, integrated transport terminal in Gombak to improve public transportation and to ease traffic congestion in the Klang Valley.

The report said the development of the Sabah Gas and Oil Terminal, including the 300 MW gas-fired power plant in Sabah would support the subsector,

Other projects are the construction of the KLIA2, expansion of clean water supply and electrification projects to rural areas, especially in Sabah and Sarawak, as well as the construction of 430.7km of rural roads.

The government expects the ongoing development projects in the various corridors to support the growth, including the Lido Boulevard and Legoland Malaysia in Iskandar Malaysia and the upgrading of coastal roads in the East Coast Economic Region.

The housing sector is also expected to see stronger growth, fuelled by rising demand, accommodative financing and the government's continuous support for home ownership, in particular the Program Perumahan Rakyat 1Malaysia.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.