KUALA LUMPUR: A total of RM82.3 billion worth of construction and infrastructure projects are expected to be implemented this year at the tail end of the government’s stimulus package and the Ninth Malaysia Plan (2006-2010), said the Construction Industry Development Board (CIDB).
Its senior general manager and CEO Abdul Latif Hitam said RM19 billion in construction and infrastructure projects were implemented in the first half of 2010.
For 2011, he said about RM70 billion in projects are expected to be implemented. Projects that are expected to take off during the 10th Malaysian Plan (10MP, 2011-2015) are the LRT expansion, new LCCT, electricity generation plants, world-class luxury condominium projects, Greater KL and the five economic regions.
“However, the 10th Malaysian Plan projects’ implementation is expected to take time due to the procurement process,” said Abdul Latif in his presentation “Construction Outlook and Prospect 2010/2011 — Gearing the Industry towards the High-Income Economy” at the 7th Malaysian Construction Review and Outlook Seminar here yesterday.
He also said economic momentum was expected to be slow next year due to impact of European and US economy. The construction sector is expected to grow 3.7% annually in 2010 and 2011, with RM77.4 billion and RM80.3 billion worth of projects required, respectively.
Meanwhile, CIDB’s construction business environment development sector senior general manager Sariah Abdul Karib said the government had allocated RM230 billion for development expenditure under the 10MP.
“From trends, we know that 60% of that development expenditure will go into physical construction works. For the whole of 10th Malaysia Plan, RM138 billion of the RM230 billion will go into construction plus the private sector which we expect RM250 billion,” said Sariah.
Meanwhile, in his speech, Works Minister Datuk Shaziman Abu Mansor said the government would table the Construction Industry Payment and Adjudication Bill (CIPAA) at year-end.
“With the enactment of CIPAA, we will soon see a healthy payment conscious culture becoming a norm in the entire construction industry, easing and improving cash flow during project implementation,” said the minister whose speech was read out at the seminar.
This bill, when it becomes law, would help resolve delayed payments over construction projects. Suppliers and contractors whose payments were delayed could seek the help of the adjudicator.
This article appeared in The Edge Financial Daily, August 4, 2010.
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