THE Ninth Malaysia Plan (9MP) has provided a ray of hope to the local construction industry.
Many construction companies are feeling upbeat about the future and have plans lined up until 2010.
Some of the major infrastructure projects to be implemented under the 9MP are the second Penang Bridge, the Penang monorail, the eastern dispersal link in Johor, the Pahang-Selangor inter state raw water yransfer, the Triang and Batu Hampar water supply scheme in Negeri Sembilan, Sandakan phase 2 in Sabah and phase 2 of the Langat Water treatment plant in Selangor.
Generally, analysts have painted an optimistic outlook for the sector, which has contracted over the last two years and have identified UEM Builders Bhd, Ranhill Bhd, GAMUDA BHD, Road Builder (M) Holdings Bhd and WCT Engineering Bhd as potential benefactors.
Malaysia Resources Corp Bhd (MRCB) expects to perform strongly on a solid platform for future growth and profitability across all of its core business activities.
Group managing director and chief executive officer Shahril Ridza Ridzuan (pic below) said although the last two years had been difficult for the construction industry, the company had started several new development projects and was expected to achieve revenue growth of at least 50% this year.
“We expect further growth in revenue and profit through 2007 and 2008 at least on the back of projects already underway and those that we expect to commence this year,” Shahril told StarBiz.
He said the 9MP included new infrastructure and development projects and related activities, which would be a boost to the construction sector as a whole.
“MRCB’s 70% growth in revenue last year is indicative of our ability to outperform general trends and we believe we can continue that growth this year,” Shahril said.
On the outlook of the construction sector over the next five years, he was confident that more infrastructure investment would take place under the 9MP, leading to opportunities for companies such as MRCB.
“We believe our competitive positioning will give us opportunities under the 9MP based on our previous track record and specialisation.
“We have set ourselves targets for new developments as well as revenue and profit growth this year and feel that these are achievable,” Shahril said.
Tronoh Consolidated (M) Bhd has outlined a strategic plan to further grow its business, with the first phase to run until 2010.
“There are values to be unlocked within the group, which can propel us further from where we are now. We want to grow our business both domestically and abroad,” said chief operating officer Khoo Boo Seong.
He said the company had achieved success in India and remained hopeful of achieving success in Indonesia and the Middle East, which offered promising opportunities.
“The local market would remain important to us and we hope to benefit from the construction growth in the 9MP,” he said, adding that the expected growth of 3% in the construction sector this year was encouraging.
Click here for the full text of the Prime Minister's speech on the Ninth Malaysia Plan to Parliament.
Click here for the full text of the Ninth Malaysia Plan.
Read our Special Report on the Ninth Malaysia Plan here.