Search Articles

Find tips, tools and how-to guides on every aspect of property

Construction Industry Development Bhd Projects 8% Growth For Construction Sector


Construction Industry Development Bhd Projects 8% Growth For Construction Sector

KUALA LUMPUR, 13 APRIL: Construction Industry Development Bhd (CIDB) is rooting for 8% growth in the construction industry after dipping to 7.4% last year from 8.2% in 2015, which the agency believes will be steered by mega projects.

CIDB CEO Datuk Ahmad Asri Abdul Hamid said a positive growth is expected while citing a few projects such as the likes of the Mass Rapid Transit, Petronas’ Rapid project in Pengerang, Johor and the Pan-Borneo highway in Sabah and Sarawak.

“As far as construction is concerned it is driven by the private sector and that’s why it keeps growing,” Asri added.

Last year, 70.9% of the 6,305 construction projects were from the private sector while the remaining 29.1% from the public sector.

Construction volume is expected to increase to RM170 billion this year from RM166 billion in 2016 with 6,305 projects and RM140 billion in 2015 which came from 7,455 projects.

Apart from the aforementioned mega projects involving infrastructure, residential projects are also seen as a key driver for growth, as it was the second highest contributor of the total volume of projects in 2016 accounting for 23% or RM38.3 billion, behind infrastructure projects which contributed 49.7% or RM82.7billion. The smallest contributor were social amenities projects which contributed 4.8% with RM8 billion.

Speaking to reporters at the opening of the 8th Malaysian Construction Summit in Kuala Lumpur yesterday, Asri said booming construction activities will boost activities in the manufacturing and its related sectors, especially with work packages being rolled out.

This he said, will drive up the economy.

Speaking at the same event, Works Minister Datuk Seri Fadillah Yusof said local companies are also going beyond Malaysian shores to bid for projects, citing an example of four local firms which had placed their bids for a RM7 billion 3,000km road construction project with six work packages in Rajasthan, India.

He said the bid was a Swiss challenge and the results for the submitted tenders is expected by May.

“Swiss challenge means we are the ones who submitted the proposal and based on that proposal, the Rajasthan government will publish it for others to compete with our proposals. If there is no one to compete, the project will be ours,” he said.

He said about 45 players are required for the process.

On another note, Fadillah said the construction for Phase2 of the Pan-Borneo highway will begin in 2018 while all remaining work packages for the highway is expected to be dished out by the end of this year.

All 11 work packages for Sarawak has been dished out while five out of the 35 packages in Sabah is expected to be awarded to the contractors by end of this year.

At this point, the government is in the talks with the Brunei government to resolve land matters for the portion of the highway, which ranges from Lawas and Limbang in Sarawak and cutting across Brunei. – The Sun

Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More Articles