KUALA LUMPUR: The country's construction industry is expected to record slower growth next year amid revision of mega projects and in line with the slowdown in the global construction sector, said Works Ministry Secretary-General Datuk Seri Zohari Akob.
“Despite the slower growth projection for the construction industry next year, we are confident that the sector's contribution to the gross domestic product (GDP) will remain positive for the year ahead,” he said when commenting on the industry's outlook next year at a press conference here today.
The news conference was held in conjunction with the launch of the International Construction Week (ICW 2019) and ASEAN Super 8.
Zohari said the construction industry contributed 5.9 per cent to the GDP in 2017, while total industry growth for the year stood at 6.7 per cent.
The new ruling Pakatan Harapan administration has initiated reviews of several mega projects and Prime Minister Tun Dr Mahathir Mohamad recently stated that Budget 2019 would see a cut in the development expenditure.
Besides, the development expenditure ceiling will be rationalised from the original allocation of RM260 billion to RM220 billion for the overall 11th Malaysian Plan as proposed during its mid-term review.
For the first half of 2018, the domestic construction sector recorded RM35.6 billion worth of construction works.
Meanwhile, the ICW 2019, which will be co-organised by the Construction Industry Development Board (CIDB) and United Business Media (UBM), is expected to attract 20 international buyers and targeted to record RM300 million sales next year.
The ICW is a platform for the construction industry players in Malaysia and the region to showcase, learn and explore the latest trends, developments and technologies surrounding the construction industry.
The four-day ICW 2019 starting March 18 themed “Construction Beyond 2020” is set to attract about 60 event partners, 650 exhibitors and about 30,000 visitors, said CIDB Chairman Tan Sri Ahmad Tajuddin Ali, adding that CIDB would collaborate with UBM to organise ICW for the next five years. - Bernama