“The construction companies are reliant on public sector projects to replenish construction order books as construction demand from the property sector remains weak. “There is also the risk of a change in government that could lead to changes in policy on the government contract awards and infrastructure concessions, ” Affin Hwang Capital Research said.
KUALA LUMPUR: Affin Hwang Capital Research has downgraded its call on the construction sector to “underweight” due to the political uncertainty following the resignation of Prime Minister Tun Dr Mahathir Mohamad.
According to the research house, the sector is susceptible to changes in government policies and delays in public-sector project awards.
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