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2025-07-31 17:48:48
[Malaysia's Infrastructure Boom: Will a RM430 Billion Budget Ignite a Golden Era for the Construction Industry?] 1. CIMB Securities analyst Mak Hoy Ken predicts that Malaysia's RM430 billion development budget under the 13th Malaysia Plan (2026-2030) will significantly accelerate public infrastructure spending. 2. This spending peak is expected to occur between the end of 2025 and the end of 2027. 3. The report notes that East Malaysia, particularly Sabah and Sarawak, may receive higher allocations, owing to elections in 2025 and 2027, respectively. 4. Specific projects, such as the Penang Airport upgrade, Johor's public transportation system development, and the promotion of solar energy, are expected to gain strong momentum. 5. Despite concerns about US export restrictions on artificial intelligence chips, Mak stated that contract signing momentum for large-scale data centers and advanced industrial facilities is expected to pick up soon as bidding activity recovers. ⑹ CIMB maintains its "overweight" rating on Malaysian contractors, with Gamuda, IJM, and Malaysian Resources as top picks in the sector. ⑺ This analysis suggests that despite global economic challenges, Malaysia's infrastructure investment boom is expected to provide continued growth opportunities for the country's construction industry.
