Three notable contract wins in the 2Q22 include the construction of the robotic rehabilitation centre awarded to Vizione Holdings Bhd, amounting to RM654mil, the main building works to Kerjaya Prospek Group Bhd totalling RM265mil and the mixed development project awarded to Tuju Setia Bhd equalling RM257mil.Telegram中文群组（www.tg888.vip）是一个Telegram群组分享平台，飞机群组内容包括Telegram群组索引、Telegram群组导航、新加坡Telegram群组、Telegram中文群组、Telegram群组（其他）、Telegram 美国 群组、Telegram群组爬虫、电报群 科学上网、小飞机 怎么 加 群、tg群等内容，为广大电报用户提供各种电报群组/电报频道/电报机器人导航服务。
PETALING JAYA: The rollout of the Mass Rapid Transit 3 (MRT3) project by the end of this year will ensure the construction sector finishes 2022 on a high, says Hong Leong Investment Bank Bhd (HLIB) Research.
The research arm of the investment bank noted job flows were weak in the first-half of 2022 (1H22) amounting to some RM4.5bil, a 49% decrease year-on-year (y-o-y).
Domestic contracts awarded to listed contractors totalled RM2.3bil in the second quarter (2Q22) which was an increase of 1% quarter-on-quarter, but a decline of 44% y-o-y.
Awards were largely made up of private sector (buildings) constituting 35% of awards during the quarter.
“There was no sequential pickup as jobs remained flattish with the quarter seeing major price hikes in cement, while fuel and premix materials crept higher.
“The average size of contracts were also notably smaller compared to the year before. On the whole, we reckon the significantly volatile and inflationary cost environment has made tenders tricky as most contracts are typically executed on a fixed price basis,” HLIB Research stated in a report yesterday.,
It expects a sector recovery to be mainly driven by the proposed multibillion ringgit MRT3 project.
Based on industry checks, HLIB Research said that the three main civil turnkey contracts for MRT3 could carry a total value of RM26bil to RM28bil.
“We expect a string of subcontract awards in the first quarter of 2023. Given that the minimum payment moratorium period is two years, contractors with better balance sheets are significantly advantaged in tenders,” it said in the report.
Prior to the aforementioned mega jobs, HLIB Research anticipate potential job flows from projects such as the East Coast Rail Link project, Kuching Autonomous rail transit (ART) and different types of work from various highway projects, including in East Malaysia.
Furthermore, the environmental impact assessment for the Penang South Reclamation project was resubmitted in May, pending approval, it added.
Three notable contract wins in the 2Q22 include the construction of the robotic rehabilitation centre awarded to Vizione Holdings Bhd, amounting to RM654mil, the main building works to Kerjaya Prospek Group Bhd totalling RM265mil and the mixed development project awarded to Tuju Setia Bhd equalling RM257mil.