KUALA LUMPUR: The positive outlook and “overweight” rating on the construction sector following the rollout of infrastructure projects nationwide continues to lift market sentiment.
As the second quarter of 2024 (2Q24) approaches, Budget 2024’s RM90bil development expenditure allocation to fund projects should drive contract flows this year.
The projects include the Penang light rail transit (LRT), Pan Borneo Sabah Phase One, mass rapid transit three (MRT3), large-scale flood mitigation projects, Sabah-Sarawak Link Road, Kuching Urban Transportation System-Green Line and water-related projects. Contract awards are expected to be forthcoming in the first half of this year.
Research houses RHB Investment Bank Bhd, Kenanga Research, Hong Leong Investment Bank (HLIB) Research and Rakuten Trade Sdn Bhd are broadly optimistic about the industry.
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