KUALA LUMPUR: The Malaysian construction fraternity hopes the government will expedite the award and implementation of public projects to sustain the growth of the local sector.
In a statement yesterday, Master Builders Association Malaysia (MBAM) president Kwan Foh Kwai said by virtue of the construction industry having a multiplying impact on over 140 other sectors, MBAM hopes policymakers will speed up the award of new projects, especially initiatives with a high impact on the economy.
“For projects involving foreign direct investment and domestic investors, the timely issue of construction permits will further improve investor confidence,” he said.
He said while MBAM applauded the government’s decision to spur the growth of the construction sector for a targeted growth of 7% in 2012, much has to be done now to meet this challenging target.
The economy expanded at a faster pace of 5.8% in 3Q but whether the growth momentum could continue in the 4Q is still uncertain, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said last Friday during the announcement of the country’s economic performance.
She said the stronger 3Q growth was due to robust domestic demand, driven by the expansion in both household and business spending as well as higher public sector expenditure. However, for 4Q, there would be uncertainties due negative developments in the external economic environment.
On the supply side, the construction component industry expanded 3% year-on-year in 3Q, higher than the 0.6% y-o-y growth recorded in 2Q. In 1Q, the sector expanded 3.8%. The domestic construction industry grew 5.3% in 2010.
Kwan said by virtue of the growth rates for the construction sector so far in 2011, MBAM is concerned that the sector might not reach its intended growth targets if 4Q numbers do not improve substantially.
According to Kwan, timely awards and implementation of projects under the 10th Malaysia Plan and Economic Transformation Programme will contribute positively to the growth of the local building sector in 2012 as the projects require a gestation period to generate a positive impact on the economy.
“This planned and progressive award of projects will reduce any abrupt increase in demand for building materials and manpower which may jeopardise the targeted growth due to temporary shortages in supply. This will also prevent unnecessary price increases which will add a burden to contractors,” Kwan said.
This article appeared in The Edge Financial Daily, November 22, 2011.
In a statement yesterday, Master Builders Association Malaysia (MBAM) president Kwan Foh Kwai said by virtue of the construction industry having a multiplying impact on over 140 other sectors, MBAM hopes policymakers will speed up the award of new projects, especially initiatives with a high impact on the economy.
“For projects involving foreign direct investment and domestic investors, the timely issue of construction permits will further improve investor confidence,” he said.
He said while MBAM applauded the government’s decision to spur the growth of the construction sector for a targeted growth of 7% in 2012, much has to be done now to meet this challenging target.
The economy expanded at a faster pace of 5.8% in 3Q but whether the growth momentum could continue in the 4Q is still uncertain, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said last Friday during the announcement of the country’s economic performance.
She said the stronger 3Q growth was due to robust domestic demand, driven by the expansion in both household and business spending as well as higher public sector expenditure. However, for 4Q, there would be uncertainties due negative developments in the external economic environment.
On the supply side, the construction component industry expanded 3% year-on-year in 3Q, higher than the 0.6% y-o-y growth recorded in 2Q. In 1Q, the sector expanded 3.8%. The domestic construction industry grew 5.3% in 2010.
Kwan said by virtue of the growth rates for the construction sector so far in 2011, MBAM is concerned that the sector might not reach its intended growth targets if 4Q numbers do not improve substantially.
According to Kwan, timely awards and implementation of projects under the 10th Malaysia Plan and Economic Transformation Programme will contribute positively to the growth of the local building sector in 2012 as the projects require a gestation period to generate a positive impact on the economy.
“This planned and progressive award of projects will reduce any abrupt increase in demand for building materials and manpower which may jeopardise the targeted growth due to temporary shortages in supply. This will also prevent unnecessary price increases which will add a burden to contractors,” Kwan said.
This article appeared in The Edge Financial Daily, November 22, 2011.
