Possible headwinds from mega project review

PETALING JAYA: The new ruling coalition Pakatan Harapan’s (PH) move to review some mega projects may create some headwinds in the construction sector in the short term, but as clarity prevails, it could benefit the sector on the whole and ease expected selling pressure on construction stocks.

As it is still too early at this juncture to predict the fate of mega projects like the East Coast Rail Link (ECRL) and the KL-Singapore high-speed rail (HSR) project under PH’s rule, some analysts told StarBiz that they are hopeful that these projects could still take off, although there could be some delays as the ruling coalition partly would need to further assess them, adding that these were key projects that would benefit the economy in the long term.