Many are eagerly waiting for the completion of the ECRL project. — Agencies
PETALING JAYA: The construction sector is poised for growth as the East Coast Rail Link (ECRL) spur line progresses, with research houses eyeing key beneficiaries amid a complex but promising infrastructure rollout.
According to CIMB Research, the government’s unveiling of the ECRL spur line aligned with earlier expectations and formed part of the original 665km alignment.
“While it might be premature to gauge the potential candidates to construct the ECRL spur line at this juncture, we believe that IJM Corp Bhd
stands to benefit once the ECRL service is commercially operational,” the research house stated.
IJM’s 60% stake in Kuantan Port Consortium, along with its recent memorandum of understanding with Malaysia Rail Link, positioned it to tap into increased multimodal connectivity opportunities, it noted.
“By leveraging the ECRL’s network, IJM believes that this multimodal service will enhance Kuantan Port’s logistical reach as the premier gateway to the East Coast of Peninsular Malaysia,” CIMB Research added.
Muhibbah Engineering (M) Bhd and Malayan Cement Bhd are also expected to benefit downstream from the project, with CIMB Research highlighting that the 500-acre Kuantan Maritime Hub is expected to transform into a maritime hub with world-class shipbuilding facilities.
The research house pointed out that Malayan Cement could secure further orders as it continues supplying cement to the project on a non-exclusive basis.
Meanwhile, Maybank Investment Bank Research (Maybank IB) also painted a “positive” picture for the construction sector, despite some mixed first-quarter (1Q) 2025 results.
It noted that Gamuda Bhd, Cahya Mata Sarawak Bhd and Prolintas Infra Business Trust underperformed, but Sunway Construction Group Bhd (SunCon) and IJM outperformed its expectations due to faster-than-expected construction billings.
Maybank IB added that the data centre story remained intact, with “a search engine giant buying land from Gamuda to build data centres and awarding it RM1bil of enabling works”.
The research house also noted that “an eCommerce giant awarded SunCon RM1.2bil of general construction works, reflecting a sustained pipeline for contractors”.
With the ECRL spur line set to strengthen trade flows via Northport and Westports and double-track modifications boosting freight capacity, the research house expects the sector to gain further momentum.
