Construction Sector: A Safe Haven Amid Tariffs?
$Construction (LIST22974.MY)$ $IJM (3336.MY)$ $GAMUDA (5398.MY)$ $SUNCON (5263.MY)$ $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$
Construction sector in Malaysia is likely to have less affected by US tariffs, as it mainly serves the domestic market.
Major Construction Company like IJM, GAMUDA, SUNCON has a very strong order books. which will offer stability, though indirect cost pressures from tariffs may exist.
Why Construction Sector?
In the current world of US tariffs, the construction sector stands out as a safer place to invest. US tariffs, which are taxes on imports into the US, mainly impact export-oriented industries. However, the construction sector in Malaysia is largely domestic-focused, meaning it serves the local market rather than relying on exports to the US. This makes it less vulnerable to trade disruptions caused by tariffs.
How does Order Books provide Stability?
In construction, a healthy order book provides stability by representing a pipeline of future projects, reducing uncertainty and allowing for more efficient resource allocation. It essentially indicates a firm's workload and potential profitability for a specified period, providing a degree of confidence in the company's future operations.
What potential risks could exist?
While the sector is insulated from direct tariff impacts, there could be indirect effects, such as higher costs for imported materials like steel or cement if global prices rise due to supply chain disruptions. However, these effects are generally considered minimal for construction compared to export-driven sectors.
Comprehensive Analysis: Construction Sector Resilience to US Tariffs and Investment Safety
This comprehensive analysis examines the construction sector’s resilience to US tariffs, focusing on its domestic orientation and the role of order books in investment safety. Given the recent 10% imposition of US tariffs on Malaysian goods, effective April 9, 2025. Investing in construction companies like Gamuda, IJM, and SunCon likely to have less affected by US tariffs.
Construction Sector’s Domestic Orientation
Research indicates that the construction sector in Malaysia is fundamentally domestic-facing, relying on local demand for infrastructure, residential, and commercial projects rather than exports. According to MIDF Amanah Investment Bank Bhd, as reported on April 7, 2025, “construction is largely insulated from trade-related shocks, apart from potential cost pressures BERNAMA - RECIPROCAL TARIFF IMPACT ON MALAYSIA'S CONSTRUCTION SECTOR IS MINIMAL -- MIDF. This insulation stems from the sector’s minimal direct revenue exposure to the US market, unlike sectors such as automotive or consumer electronics.
The Star’s analysis on April 6, 2025, further supports this, noting that “domestic-oriented industries such as services, construction, domestic sales driven manufacturing and agriculture sector will be relatively insulated from the tariffs shock as they apply only to physical exported goods” Trump’s tariffs: What is the impact on Malaysia? | The Star. This suggests that construction companies, serving internal markets, are less vulnerable to the tariff-induced trade disruptions affecting Malaysia’s export performance.
Indirect Effects and Cost Pressures
While direct impacts are minimal, indirect effects could arise through input inflation. MIDF notes that “tariffs may indirectly affect the sector via input inflation, especially if global steel or cement prices rise due to supply chain distortions” BERNAMA - RECIPROCAL TARIFF IMPACT ON MALAYSIA'S CONSTRUCTION SECTOR IS MINIMAL -- MIDF. For instance, US tariffs on steel and aluminum, as seen in 2018, increased domestic production but raised costs for downstream industries, including construction How Tariffs May Impact the Construction Industry in 2025 | Dodge Construction Network. However, given Malaysia’s reliance on local and regional material sourcing, these effects are likely limited compared to export-oriented sectors.
Order Books as Indicators of Stability
Order books, representing the value of secured contracts, are critical for assessing investment safety in construction. A larger order book indicates a stable revenue pipeline, reducing execution risk.
Construction Sector: A Safe Haven Amid Tariffs?
Gamuda’s significantly larger order book suggests greater stability, but all three companies benefit from domestic demand, aligning with the sector’s tariff resilience.
Order Book Updates for Gamuda, IJM, and SunCon that announced but Awaiting Quarterly Confirmation in 2025
Gamuda appears to have secured a significant new order in 2025 for the Penang LRT – Mutiara Line Phase 1, with Gamuda’s share valued at RM5.0 billion. This was announced in January 2025 and is part of their ongoing efforts to expand their infrastructure portfolio.
SunCon seems to have secured a RM1.5 billion contract for the Rapid Transit System Transit-Oriented Development (RTS TOD) at Bukit Chagar, Johor, with the announcement made on March 5, 2025. This project involves construction works for transit infrastructure, enhancing their order book for the year.
As of April 10, 2025, IJM Corporation Bhd has yet to announce any new order book additions this year, with its last reported order book standing at RM6.5 billion as of August 2024. However, a potential opportunity looms on the horizon.The Penang International Airport (PIA) expansion, CIMB Securities Sdn Bhd estimates this contract, which includes the construction and renovation of the main terminal building, at RM1.2 billion, with bidding slated for May 2025 and completion targeted for 2027.
If you found this analysis helpful or insightful, I’d appreciate it if you’d give it a “like” to support my work! Your feedback keeps me motivated to dig deeper into these stories.
Authored by 慧投必财 from MOOMOO

Construction Sector: A Safe Haven Amid Tariffs?
$Construction (LIST22974.MY)$ $IJM (3336.MY)$ $GAMUDA (5398.MY)$ $SUNCON (5263.MY)$ $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$
Construction sector in Malaysia is likely to have less affected by US tariffs, as it mainly serves the domestic market.
Major Construction Company like IJM, GAMUDA, SUNCON has a very strong order books. which will offer stability, though indirect cost pressures from tariffs may exist.
Why Construction Sector?
In the current world of US tariffs, the construction sector stands out as a safer place to invest. US tariffs, which are taxes on imports into the US, mainly impact export-oriented industries. However, the construction sector in Malaysia is largely domestic-focused, meaning it serves the local market rather than relying on exports to the US. This makes it less vulnerable to trade disruptions caused by tariffs.
How does Order Books provide Stability?
In construction, a healthy order book provides stability by representing a pipeline of future projects, reducing uncertainty and allowing for more efficient resource allocation. It essentially indicates a firm's workload and potential profitability for a specified period, providing a degree of confidence in the company's future operations.
What potential risks could exist?
While the sector is insulated from direct tariff impacts, there could be indirect effects, such as higher costs for imported materials like steel or cement if global prices rise due to supply chain disruptions. However, these effects are generally considered minimal for construction compared to export-driven sectors.
Comprehensive Analysis: Construction Sector Resilience to US Tariffs and Investment Safety
This comprehensive analysis examines the construction sector’s resilience to US tariffs, focusing on its domestic orientation and the role of order books in investment safety. Given the recent 10% imposition of US tariffs on Malaysian goods, effective April 9, 2025. Investing in construction companies like Gamuda, IJM, and SunCon likely to have less affected by US tariffs.
Construction Sector’s Domestic Orientation
Research indicates that the construction sector in Malaysia is fundamentally domestic-facing, relying on local demand for infrastructure, residential, and commercial projects rather than exports. According to MIDF Amanah Investment Bank Bhd, as reported on April 7, 2025, “construction is largely insulated from trade-related shocks, apart from potential cost pressures BERNAMA - RECIPROCAL TARIFF IMPACT ON MALAYSIA'S CONSTRUCTION SECTOR IS MINIMAL -- MIDF. This insulation stems from the sector’s minimal direct revenue exposure to the US market, unlike sectors such as automotive or consumer electronics.
The Star’s analysis on April 6, 2025, further supports this, noting that “domestic-oriented industries such as services, construction, domestic sales driven manufacturing and agriculture sector will be relatively insulated from the tariffs shock as they apply only to physical exported goods” Trump’s tariffs: What is the impact on Malaysia? | The Star. This suggests that construction companies, serving internal markets, are less vulnerable to the tariff-induced trade disruptions affecting Malaysia’s export performance.
Indirect Effects and Cost Pressures
While direct impacts are minimal, indirect effects could arise through input inflation. MIDF notes that “tariffs may indirectly affect the sector via input inflation, especially if global steel or cement prices rise due to supply chain distortions” BERNAMA - RECIPROCAL TARIFF IMPACT ON MALAYSIA'S CONSTRUCTION SECTOR IS MINIMAL -- MIDF. For instance, US tariffs on steel and aluminum, as seen in 2018, increased domestic production but raised costs for downstream industries, including construction How Tariffs May Impact the Construction Industry in 2025 | Dodge Construction Network. However, given Malaysia’s reliance on local and regional material sourcing, these effects are likely limited compared to export-oriented sectors.
Order Books as Indicators of Stability
Order books, representing the value of secured contracts, are critical for assessing investment safety in construction. A larger order book indicates a stable revenue pipeline, reducing execution risk.
Construction Sector: A Safe Haven Amid Tariffs?
Gamuda’s significantly larger order book suggests greater stability, but all three companies benefit from domestic demand, aligning with the sector’s tariff resilience.
Order Book Updates for Gamuda, IJM, and SunCon that announced but Awaiting Quarterly Confirmation in 2025
Gamuda appears to have secured a significant new order in 2025 for the Penang LRT – Mutiara Line Phase 1, with Gamuda’s share valued at RM5.0 billion. This was announced in January 2025 and is part of their ongoing efforts to expand their infrastructure portfolio.
SunCon seems to have secured a RM1.5 billion contract for the Rapid Transit System Transit-Oriented Development (RTS TOD) at Bukit Chagar, Johor, with the announcement made on March 5, 2025. This project involves construction works for transit infrastructure, enhancing their order book for the year.
As of April 10, 2025, IJM Corporation Bhd has yet to announce any new order book additions this year, with its last reported order book standing at RM6.5 billion as of August 2024. However, a potential opportunity looms on the horizon.The Penang International Airport (PIA) expansion, CIMB Securities Sdn Bhd estimates this contract, which includes the construction and renovation of the main terminal building, at RM1.2 billion, with bidding slated for May 2025 and completion targeted for 2027.
If you found this analysis helpful or insightful, I’d appreciate it if you’d give it a “like” to support my work! Your feedback keeps me motivated to dig deeper into these stories.
Authored by 慧投必财 from MOOMOO

2025年3月：更新的报道显示，GDS正在寻求34亿美元（约合143.3亿令吉）的贷款，用于其马来西亚数据中心运营。这笔贷款分为两部分：17亿美元的美元部分和75亿令吉（约合17亿美元）的本地货币部分，总额达到34亿美元。这将是GDS有史以来最大的贷款。 GDS计划在马来西亚投资34亿美元（150亿令吉，或你提到的300亿令吉），主要用于柔佛的数据中心项目（如Nusajaya Tech Park和YTL绿色数据中心园区）。这些项目需要大量建筑服务，包括基础建设、厂房建造等。GDS Holdings Limited与YTL Power International Berhad于2022年4月27日宣布合作，共同开发位于马来西亚柔佛的YTL绿色数据中心园区内的168兆瓦数据中心项目。

Dialog’s asset write-offs and impairments and EPCC provisions in 2QFY25 draw a line underneath its past business missteps. Dialog only has two legacy EPCC projects left and they are currently undergoing commissioning; it is unfortunate that nasty surprises turnedup even at this late stage. Nevertheless, Dialog said it has provided for all foreseeable EPCC losses until these two projects are handed over to their respective clients by Jun2025F. After this, Dialog does not foresee itself engaging in any further external EPCC jobs; hence, we do not expect any further EPCC losses from 1 Jan 2025 onwards.(CGS CIMB)

The loss after tax reported in the current financial quarter was mainly due to one-off impairment of investments in petrochemical and renewable projects, and EPCC projects cost overruns

By making this strategic decision, the Group will be able to realign its focus back to its core business, positioning the Group for long-term growth and resilience.

the continued volatility and challenging global chemicals market, and the uncertain macro-economic environment, has led the Group to make the strategic decision to discontinue this project.

the company only need 75% to be delisted from bursa, above 90% the bursa will auto

● To investors who have purchased MAHB shares with the intention of tendering the
shares to the joint offerors for RM11, we recommend calm and confidence that the offer
will ultimately succeed. Given the views of the independent directors, we think that the
most likely scenario is for the joint offerors to achieve at least 75% interest but fall short
of the 90% threshold; this may lead to a slight increase in the offer price to induce the
remaining minorities to accept the offer. Our second-most likely scenario is for the joint
offerors to achieve at least 90% interest. Our third scenario is if the joint offerors achieve
close to 75% stake; we then also expect a modest uplift in the offer price and for the
joint offerors to say that they do not intend to address any shortfall in the 25% public
spread requirement, which is a condition for MAHB to remain listed; this could
encourage the minorities to accept the offer if they do not want to hold unlisted shares
in MAHB. The upside risk to our Hold call is for an uplift in the offer price in the first and
third scenarios above. The downside risk is a fourth scenario whereby minorities
wholeheartedly reject the offer, leading to the joint offerors abandoning their effort to
privatise MAHB; this could cause the share price to correct significantly, in our view.(CGS CIMB)December 23, 2024

（笨珍15日讯）工程部副部长拿督斯里阿末马斯兰预计，明年国家建设项目支出将达2000亿令吉。

他说，这些支出将涵盖政府部门、官联公司（GLC）、官联投资公司（GLIC）和私人界建设项目，包括道路、收费公路、桥梁、坡道和建筑物的建设、各种设施维护及进行项目的延续。

他说，这笔资金中，有880亿令吉来自政府预算，约320亿令吉来官联公司和官联投资公司实施的项目，另外800亿令吉来自私人界。