“A resumption of construction work for the East Coast Rail Link, Light Rail Transit 3 and other mega projects should pull productivity growth back up, starting from the third quarter this year,’’ said Pong Teng Siew, head of research, Inter-Pacific Securities.
THE collapse of giant British construction firm Carillion may not have a direct impact on markets but it is a sign that risks are emerging from debt-funded projects.
“Unprecedented levels of optimism does not mean risks are absent. ‘Fingers of instability’ are creeping into the system. Such optimism is engendered by actions like cutting rates or ceasing rate hikes especially when equity markets are in trouble.
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