11MP a shot in the arm for Malaysian infrastructure players


KUCHING: The upcoming 11th Malaysia Plan (11MP) to be tabled on May 21, 2015 will likely be a boon for construction and infrastructure players in the country as the five-year development plan will chart directions for the nation as the last mile towards a high-income nation status by 2020.

It will target to enhance inclusive development, improve people’s wellbeing, achieve sustainable development and identify new sources of growth.

The estimated budgeted development expenditure for 11MP is expected to be higher at RM250 billion as compared to RM230 billion under 10MP, said Maybank Investment Bank Bhd (Maybank IB Research).

“In the 11MP, we believe infrastructure development will still play a pivotal role in Malaysia’s future national transformation agenda. Construction GDP has grown consistently in tandem with the rising percentage contribution to the total Gross Domestic Product,” it said in a note on the sector yesterday.

The research house highlighted some of the key areas construction would contribute include improving mobility via improved public transportation system and highways; supporting the 12 National Key Economic Areas; enhancing basic infrastructures in rural areas; economic corridors development including theSarawak Corridor for Renewable Energy (SCORE); flood mitigation, and affordable housing.

“According to Datuk Sri Abdul Wahid bin Omar, Minister in the Prime Minister’s Department, about 61 per cent of the projects under the 10MP have been completed as of March 17, 2015,” it noted. “This is equivalent to 7,229 projects of the total 11,843 approved projects. The incomplete projects will be brought forward to the 11MP.

Among the mega infrastructure projects that will be brought forward include Kuala Lumpur-Singapore High Speed Rail, Klang Valley Mass Rapid Transit 2 and 3, Klang Valley Light Rapit Transit 3, Pan Borneo Highway, Penang Transport Master Plan, Pengerang project and the planned Klang Valley highways that have yet to be executed.

The government land development such as Tun Razak Exchange, KL118 Tower, Bandar Malaysia and Rubber Research Institute Land, Sg Buloh would also progress under the 11MP.

“Despite the existing strong pipeline of infrastructure projects, we still believe there would be roll-out of more projects, including both new and revived projects. These new projects, if announced, would spark stronger interest in the construction sector.”