The federal government will evaluate and prioritise every project for the people who need it most in Kelantan, which includes strengthening transport infrastructure connectivity and the provision of infrastructure projects that have a high impact on social and economic growth.
According to Economy Minister Rafizi Ramli, as infrastructure planning is a priority in Kelantan, the federal government will emphasise on projects that have a direct impact on the people.
“In planning the development and selection of projects that are a priority for the federal government, the main criteria for project selection are those that involve improving the sustainable economy and those focusing on the needs and wellbeing of the people,” he explained.
At the same time, RHB Investment Bank Bhd (RHB IB) believes that the country’s infrastructure project flows will dominate Malaysia’s construction industry in the coming month as year-to-date (YTD) contract flows from the government have exceeded from last year.
It said that the government projects awarded in the first 9 months of 2024 (9M24) stood at RM41 billion surpassing RM36.7 billion in 2023, and that well-flagged projects include the Penang Light Rail Transit and the Pan Borneo Highway Sabah Phase 1B – which costs RM15 billion – with 2 final packages yet to be awarded.
RHB IB also believes that water-related infrastructure may bring additional opportunities for contractors, such as the Sungai Damansara flood mitigation project and the RM4 billion allocated for water management in Perak, which includes providing treated water to Penang.
The value of contracts awarded to non-residential sub-sectors (comprising commercial buildings, factories, warehouses and data centres) stood at RM109 billion for 9M24, exceeding 2023’s full-year value of RM83.5 billion.
“The data centre investment cycle is still ongoing with a new planned data centre in Delapan, Kedah,” it added, causing the bank to maintain its ‘overweight’ call on the construction and engineering sector.
It also pointed out that the sector is anticipating more consistent news developments, including the water infrastructure and industrial opportunities to emerge between now and the first half of 2025.
“These include the elevation of feedback on Mass Rapid Transit (MRT) 3 alignment post-public inspection and the government’s decision on the viability of the Kuala Lumpur-Singapore High Speed Rail by end-2024”, it stated.
