With the COVID-19 pandemic and movement control order (MCO) causing delays and tender disruptions on construction projects, CGS-CIMB Research expects six mega projects announced under Budget 2020 to be rolled over into the upcoming budget.
With a total value of RM143.06 billion, these projects include the RM68 billion Kuala Lumpur-Singapore High-Speed Rail (HSR), the RM45 billion Mass Rapid Transit Line 3 or MRT3 and the RM18 billion Penang Transport Master Plan, reported Bernama.
The others are the RM8.3 billion Serendah-Port Klang Rail Bypass, the RM3.16 billion Johor Baru-Singapore Rapid Transit System (RTS) and the RM600 million Phase 1 of the Pan Borneo Highway.
The research house believes these potential projects will be part of the Economic Recovery Plan (ERP) as well as the 12th Malaysia Plan (12MP).
“There has been greater engagement between the government and industry players on the MRT3 to potentially formulate a suitable model should the MRT3 be chosen as one of the key projects in 2021,” it said.
It also noted that the expiry of the Kuala Lumpur-Singapore HSR’s end-December review period remains unchanged.
CGS-CIMB, however, remained optimistic of the project’s potential outcome, which it expects to emulate the implementation model for the Johor Baru-Singapore RTS.
With this, the research house remains “neutral” on Malaysia’s overall construction sector considering the lingering political uncertainties at this time as well as the limited details on the recovery plans for the sector.
Notably, the medium- to long-term ERP’s announcement, which was previously set to this month, was reportedly delayed to December.
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