Friday 29 Mar 2024
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KUALA LUMPUR (Nov 2): The construction sector is expected to improve in 2019 by 4.7% year-on-year (y-o-y), following an increase in new planned supply in the affordable homes and industrial segments, according to the Ministry of Finance's (MoF) Economic Report 2018/19, titled Fiscal Outlook 2019 . 

The MoF, however, noted that the review of several infrastructure projects, as well as subdued activities in non-residential subsector is expected to weigh down the sector's performance.  

The ministry said the construction sector grew 4.8% y-o-y during the first half of 2018, supported by the civil engineering subsector.  

"For the year, the sector is expected to expand, albeit moderately at 4.5%, following near completion of several mega projects and overhand, particularly in the non-residential subsector," it said.
 
Mof added that the civil engineering subsector is expected to continue to remain as the driver of the construction sector in 2018 and 2019, largely supported by ongoing projects.   

Some of the infrastructure projects highlighted by MoF were the Pan Borneo Highway, Central Spine Road, Mass Rapid Transit (MRT) Sungai Buloh-Serdang-Putrajaya (SSP) Line and Light Rail Transit Line 3 (LRT3). 

Meanwhile, ongoing projects in the petrochemical and power plant segment are the Deepwater Petroleum Terminal 2 at the Refinery and Petrochemical Integrated Development (RAPID) Complex in Johor, Floating LNG 2 in Sabah, and the Central Processing Platform in Sarawak.  

"In addition, mixed-development projects such as the Tun Razak Exchange and Bukit Bintang City Centre in Kuala Lumpur are expected to support the growth of the subsector," MoF added. 

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