PETALING JAYA: Malaysian corporates with a presence in Australia are set to benefit from the country’s resilient economy and rising investment in infrastructure, renewable energy (RE) and property, says CIMB Research.
In a report, the research house said Malaysian firms with established operations were well placed to tap “targeted opportunities in Australia”, particularly from infrastructure development, the energy transition and favourable population trends.
“Backed by a resilient economy (gross domestic product grew by 0.4% quarter-on-quarter in the second quarter), we observed that Australia remains a viable investment destination for Malaysian corporates looking for regional diversification, scalable operations, favourable net migration trends, and a sound business framework,” it said following a visit to the Australian operations and project sites of several Malaysian companies in July.
The research house said Malaysian investments in Australia were centred on four sectors with long-term appeal – infrastructure, mining, real estate and RE.
Of these, the energy transition is opening up further opportunities for Malaysian firms with capabilities in infrastructure and RE, as Australia works towards its renewable electricity target.
“More private investments in RE assets are required to meet Australia’s 82% renewable electricity target by 2030.”
Against this backdrop, CIMB Research named Gamuda Bhd
as its top pick for exposure to Australia’s infrastructure and RE pipeline, with Australian jobs accounting for 35% of its RM61.6bil order book.
Since entering Australia in 2015, the research firm said, Gamuda has expanded its presence beyond rail and road projects, with the acquisition of DT Infrastructure Pty Ltd widening its geographical reach and capabilities in the country.
The acquisition has also accelerated Gamuda’s expansion into RE, alongside its existing infrastructure operations, CIMB Research noted.
“Gamuda is the other entity besides Gentari Sdn Bhd that is exploring investments in Australian clean energy assets.”
The move is in line with Gamuda’s target of building a portfolio of RE assets totalling five gigawatts by 2031, with the bulk coming from Australia.
Beyond infrastructure and RE, CIMB Research notably sees opportunities for Malaysian property developers in Australia’s student accommodation and co-living segments.
“Buoyed by Australia’s status as a global education hub, we note that upcoming launches for Malaysian developers in Australia are skewed towards the student accommodation and co-living sectors (mostly in Melbourne and Sydney).”
The research house added that Gamuda had secured its first over-station development project in Parramatta, while Malaysian Resources Corp Bhd and UEM Sunrise Bhd had ventured into Brisbane and Western Australia, respectively.
CIMB Research favours SP Setia Bhd and Sime Darby Property Bhd for their traction in the student accommodation market.
