OSK: More construction jobs ahead of S'wak polls

KUALA LUMPUR: Construction jobs worth billions of ringgit are expected to be dished out, closer to the 10th Sarawak state elections, slated to be held this year, according to OSK Research.

In a research note on Friday, Feb 11, OSK Research believed that most of these jobs would focus on basic infrastructure in the rural areas to ensure continued political support.

"The state election should be held this year before its official deadline of July 23, it said.

OSK Research also said it thought the Sarawak elections will take place sometime mid-year.

It noted that tenders for RM2.0 billion worth of road jobs which recently closed include, 73 kilometres to the Baleh dam, 60 kilometres to the Baram dam, 22 kilometres to the Limbang dam and 136 kilometres to the Nanga Meritcoal mine.

"We understand that the government has set aside RM1.0 billion for a mass affordable housing project and another RM1.0 billion for rural infra and utilities," the research house said.

Other upcoming projects in the near term are the Mukah Airport extension, Tanjung Manis Airport extension and a skills training institute.

OSK Research said home grown "Sarawakian" contractors were the ultimate beneficiaries of heightened infrastructure contracts, since most jobs in the state are usually awarded to them.

It has a "buy" rating for Naim Holdings, Hock Seng Lee and KKB Engineering based on the previous state elections in 2006.

"Investors can consider riding on this election play, but we advise that they lock in gains on nomination day, which is usually one or two weeks before the actual polls," it said. — Bernama