Against a robust backdrop of a rapidly expanding construction industry supported with heavy fiscal investment from the local government, GL E&C will be extending its services to meet the marine & engineering needs of the country.
Malaysia’s construction sector is expected to grow by eight per cent to RM170 billion in 2017, boosted by the numerous mega infrastructure projects in the country as projected by the Construction Industry Development Board (CIDB). Of this, non-residential construction contributed 22.5 per cent growth at RM37.4 billion.
Based on Malaysia Infrastructure Report Q3 2017 published by BMI Research, Malaysia’s construction industry has been forecast to see continuous grow at robust rates over the next 10 years, supported by government-led infrastructure projects and rising levels of private investment in non-residential building.
Malaysia’s construction industry will grow by 6.7% in real terms in 2017 and at an annual average of 5.8% between 2017 and 2021.
Government-led infrastructure developments, especially in the transport sector, will provide support for the construction industry over the next five years. Projects in the pipeline include a high-speed railway to Singapore, port expansions and upgrades to Kuala Lumpur’s mass transit network.
Over a 10-year forecast, it is expected that upgrades to road, rail and port networks will lead to increased investment in industrial and commercial construction, especially in less-developed regions such as the east coast.
According to the Department of Statistics Malaysia (DOSM), the total construction value of civil engineering was last recorded MYR36.6 billion (US$9.4 billion) in 2015. Over the next few years until 2020, the Malaysian construction industry is expected to continue to expand in real terms, supported by the government’s plan to improve the country’s transport network and tourism infrastructure, and increase the volume of renewable projects.
Within the mid-term period, GL E&C targets specific opportunities in Malaysia’s port expansion and renewable projects where the company’s specialized expertise in the construction of jetties, wharves, ports, sea water intake & outfall structures for power plants and desalination plants can be winning competitive advantage to secure projects.