The outlook for the construction sector remains challenging as the federal government is reviewing ongoing infrastructure projects to reduce costs by 20%-33%.

Financial year 2018 (FY18) core earnings growth was supported by higher construction work recognition and record property presales of MYR3.59 billion in FY18.

The higher progress billings for the Klang Valley’s mass rapid transit line 2 (MRT2) project spurred construction profit before tax (PBT) growth of 26% y-o-y in FY18.

Sime Darby Property has been actively rationalising its non-core assets and selling down its inventories. 

Even though the finance ministry has given the green light for the construction work of LRT3, the project cost review and ongoing negotiations between the George Kent-MRCB joint venture (JV) and the government took longer than expected.

Landed homes in these five neighbourhoods saw capital growth of up to 239% from 2001 to 2017. They demonstrate why property continues to be a solid investment choice.

PNB has given an undertaking letter to Sapura Energy to subscribe for its rights entitlement and the excess shares and warrants not taken up by the other shareholders, up to an equity stake of 40% in the group. This could mean that PNB alone will be taking up to 57% of the rights share offering.

The management is confident that the mall will be able to attract quality tenants, as Central Pattana has over 30 years of experience in retail development. Currently, the mall has a committed occupancy rate of around 70%, and I-Bhd aims to hit 85% before the launch date. Anchor tenants include Sogo, Village Grocer and TGV.

Pestech share price has been lacklustre for more than two years and it has finally secured this highly anticipated project, which was complicated earlier by the GE14. As this announcement is only for the electrification portion, Kenanga Research says they understand that there are still signalling and communication portions worth as high as RM500 million to be announced.

Supply has outstripped demand, but the costs of land and building prohibit the lowering of prices much more.