More positive news is expected for the construction sector with big contributions coming from the government mega projects in line with the Economic Transformation Programme (ETP).
“Recent news on the Gemas-Johor Bahru Double Track Railway project (Gemas-Johor project), contract award for Viaduct Guideway for Mass Rapid Transit and the West Coast Expressway has sparked interest in a few construction counters,” said Kenanga Investment Bank Bhd (Kenanga Research) in a report.
The research house said that the news flow was expected, as more potential contract are awarded for other projects including the Johor-Singapore undersea tunnel and the Penang Traffic Alleviation project.
However, Kenaga Research noted that the proposed Gemas-Johor project was a surprise because the project’s tender and negotiation phase showed slower progress. The tender was to be finalised in the coming two to three months.