KUCHING: Two Sarawakian firms — Cahya Mata Sarawak Bhd (CMS) and KKB Engineering Bhd (KKB) — are slated as frontrunners for the pending roll-out of infrastructure projects in Sarawak.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a construction sector update, the state government recently announced a record budget of RM9.1 billion for development.
“Accordingly, the amount will be utilised to fund few major infra projects including the Coastal Road, Second Trunk Road and the Water Grid Project,” it said in a note on Monday.
“Approximately 67 per cent of the RM9.1 billion allocation for development expenditure will go to the development of rural areas.”
It further noted that the RM9.1 billion allocated for development is also the biggest in the history of Sarawak, since the previous budgets for 2017 and 2018 allocated only RM2.982 billion and RM3.062 billion respectively.
“From the RM6.049 billion for rural development, RM1.535 billion will go to Projek Rakyat, RM500 million for Rural Transformation Projects (RTP), RM243 million for Minor Rural Projects, and RM72 million for ‘Program Penambahbaikan Rumah Miskin Sarawak’ (PPRMS), which will repair houses for the poor.”
MIDF Research went on to add that a sum of RM1.1 billion will be allocated for the implementation of various projects because Sarawak is investing in more infrastructure projects such as roads, bridges, and jetties to further improve connectivity.
“Following our optimistic view on Sarawak, we would recommend investors to consider CMS and KKB, which we opine to be the front-runner for the pending roll-out of the infrastructure projects aforementioned.”