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admin2021-04-0712

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,Malaysia construction

PETALING JAYA: Two mega rail projects laid the tracks of positive momentum for the construction sector as more clarity began to emerge on Malaysia’s mega infrastructure projects.

Following the confirmation that the once-shelved third MRT line (MRT3) is now a go, the government has also announced that the East Coast Rail Link (ECRL) will now be reverted back to its original alignment and is estimated to cost around RM50bil.

The reversal of the two decisions made by the predecessor of the current government breathed a new set of optimi *** into construction counters yesterday as it signified a possible increase in job awards locally, a long awaited catalyst by the market.

Since 2018, there has been a growing trend of construction firms aggressively seeking jobs overseas to diversify their earnings following the change of government that had led to reviews of mega projects to be rolled out.

On the latest developments for the ECRL, an equity *** yst with a local research house said the realignment, coupled with the commitment for at least a 40% local participation for the construction and supply of building materials for the project, bode well for the local construction sector.

The project owner Malaysia Rail Link Sdn Bhd (MRL) and the main contractor for engineering, procurement, construction and commissioning (EPCC), China Communications Construction Company Ltd (CCCC) reached an agreement for this in January for the civil works, excluding tunelling works, then estimated to be up to RM10bil.Gamuda workers undroing training in tunnelling

“With the MRT3 back on track and the latest ECRL 3.0 alignment, industry players are looking at brighter prospects ahead with opportunities to replenish their order books.

“We are also closely watching when the 12th Malaysian Plan will be tabled as it will give us a longer term view on the sector’s prospects, ” he said.

Investors reacted positively on Bursa Malaysia yesterday, which saw the Construction Index gaining 4.08 points or 2.24% to a three-week high of 186.42 points. The FBM KLCI fell by 0.07% points.

Out of the 51 constituents in the Construction index, 25 advanced while only nine declined.

Gabungan AQRS Bhd, which is involved in the subgrade, drainage and culvert works for the ECRL project in Pahang, led the gainers after adding 5.5 sen or 8.59% to 69.5 sen yesterday.

Bigger players like Gamuda Bhd rose 8 sen or 2.23% to RM3.66 while IJM Corp Bhd

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