Malaysia’s construction boom has peaked, says new Business Monitor report

Malaysia’s construction boom has reached its peak, according to a new Business Monitor (BM) report on the country’s infrastructure investment. The leading global independent business research data provider’s report states that Malaysia’s construction activity in Q2 2013 represented the lowest pace of expansion since Q4 2011. BM expects this slowdown to intensify, primarily due to falling demand for residential and non-residential buildings, as well as concerns about Malaysia's fiscal position. These concer
October 30, 2013 Read time: 2 mins

Malaysia’s construction boom has reached its peak, according to a new Business Monitor (BM) report on the country’s infrastructure investment.

The leading global independent business research data provider’s report states that Malaysia’s construction activity in Q2 2013 represented the lowest pace of expansion since Q4 2011. BM expects this slowdown to intensify, primarily due to falling demand for residential and non-residential buildings, as well as concerns about Malaysia's fiscal position. These concerns have increased financing risks for public-funded projects, say BM, particularly within the infrastructure sector. As a result, BM has maintained its construction growth forecasts for 2013 (10.1%) and 2014 (6.7%), but revised down its longer-term forecasts, from an annual average of 5.0% to 4.5% between 2015 and 2017.

The BM report notes how in July 2013 the Malaysian Highway Authority said that the government was considering plans to construct a new coastal highway along the east coast of Peninsular Malaysia, from Kota Bahru in the state of Kelantan to Pengerang in Johor. The government would consider the viability of the project before undertaking it, according to the Malaysian Highway Authority's Director Datuk Ismail Md Salleh. There is a need to improve connectivity and accessibility in the eastern coast of the country, while most parts in the western coast areas are well-connected and served with roads and highways, Salleh added. The project is expected to create economic spillover effects and open new growth centres in the east coast areas.

Highway & Network Management

Related Content

  • CECE equipment manufacturer’s conference in Berlin looks ahead for construction market growth
    October 29, 2012
    The construction equipment market has been hit hard in Europe and further afield, with economic uncertainty slowing orders. But there is light on the horizon. A range of key industry speakers made presentations at the recent Committee for European Construction Equipment (CECE) congress in Berlin, outlining prospects for the next few years in Europe as well as around the world.
    Read More
  • China on road spending spree
    December 11, 2012
    Figures recently released indicate that construction spending in China will increase 8.8% each year in real terms through to 2016. Ongoing urbanisation and industrialisation; rebounding foreign investment funding; rising personal income levels and further population and household growth will all work to drive gains. However, further growth will be prevented by a slow-down in the Chinese economy through the forecast period, especially in fixed asset investment. These and other trends are presented in Constru
    Read More
  • Caterpillar reports slight sales dip for full year 2014
    February 16, 2015
    Global construction equipment manufacturer Caterpillar reported full-year 2014 sales $55.184 billion, down from $55.656 billion in 2013. Caterpillar also reported fourth-quarter 2014 sales of $14.244 billion, again slightly down at 1% from $14.402 billion in the fourth quarter of 2013. The results and a continued weak to modest improvement has dampened Caterpillar’s expectation of increased sales for 2015, likely to be around $50 billion. “Overall, we had many positives and a better year in 2014 than 2013,”
    Read More
  • Interest strong in Mexican highway tender
    July 28, 2014
    Interest has been strong for a Mexican highway contract. In all 13 companies are considering bidding for the Tuxpan-Tampico highway concession in Veracruz state, reports Business News Americas. Local firms Tradeco Infraestructura, OHL México, Mota Engil México, La Peninsular Compañía Constructora, Acciona Infraestructuras México and Coconal have all shown interest in the project. The contract is for a 106.6km highway, which will run from Tuxpan-Ozuluama and connect two of the country’s busiest Gulf Coast po
    Read More

Highlighted Content