9MP, Corridors Pave Way for Stronger Building Sector

By Rajan Moses; Kamarul Yunus; Rupa Damodaran; Vasantha Ganesan; Zaidi

THE construction sector is poised to strengthen further on the back of ongoing infrastructure projects under the Ninth Malaysia Plan (9MP) and the development of growth corridors.

Growth would also come from the implementation of major transport- related projects such as the second Penang bridge, Penang Monorail, Ipoh-Padang Besar Double Tracking Rail Project and the extension of the Ampang and Kelana Jaya Light Rail Transit lines.

Efforts to develop southern Johor as one of the world’s largest integrated petroleum logistics hub and the Northern Corridor Economic Region will add more jobs to the sector.

With all these new developments, the construction industry is expected to grow by 6.3 per cent in 2008 compared with 5.2 per cent in 2007.

The residential and non-residential sub-sectors are also expected to strengthen due to bullish consumer sentiment and better foreign demand.

The removal of real property gains tax and easier approval rules is expected to support the sector.

The non-residential sub-sector also registered better performance in line with the strong economic performance in the first half of 2007.

This was reflected by increased construction activity especially for office buildings.

Eight new hotels with 967 rooms were also completed, increasing the existing stock level to 2,180 hotels with 149,820 rooms.

The value of property transactions increased 12.4 per cent to RM32.3 billion.

Residential transactions accounted for 63.6 per cent of the total, agricultural, 20 per cent; commercial, 8.8 per cent, development, 4.9 per cent and industrial, 2.6 per cent.

(c) 2007 New Straits Times. Provided by ProQuest Information and Learning. All rights Reserved.