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Private investment slows, propped up by MRT-like mega projects, says RHB Research

MRT, RHB Research Institute


KUALA LUMPUR: RHB Research Institute says slowing growth in the second half of the year could be supported by mega infrastructure projects such as the Mass Rapid Transit (MRT) line extension.

Private investment is expected to grow at a slower pace of 6% year-on-year in the second half of 2015 (2H15), from 7.5 per cent in 1H15.

"The construction of MRT Line 2 linking Bandar Utama, Shah Alam and Klang and the Pan-Borneo Highway project will provide impetus for private investments in the coming years.

In a statement yesterday, RHB Research said this was due to the Goods and Services Tax implementation, introduction of real property gains tax and lower oil prices.

"The weakness in the ringgit will also likely prompt some investors to delay their investments as well.

"We also expect private investment to slow down to 6.8 per cent for the whole year from the 11 per cent growth achieved in 2014," it said.

"Flood-related rebuilding activities in the East Coast of Peninsular Malayisia will also support construction-related sectors," it said.

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