New Construction research report from Business Monitor International is now available from Fast Market Research

Boston, MA -- (SBWire) -- 01/09/2014 --Despite a strong performance by the residential and non-residential buildings sector in Q313, we continue to expect construction activity in Malaysia to slow its pace of expansion in 2014. This is because we expect the demand for residential and non-residential buildings to fall in 2014, while fiscal concerns will continue to present financing risks for public-funded projects, particularly within the infrastructure sector. Having said that, the government has been very successful in attracting foreign and private sector parties to implement and finance its investment plans, and we believe this success is a positive tailwind for construction activity.

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Key developments that will impact growth:

- In September 2013, the Malaysian government stated that it will invest MYR160bn (US$49bn) in the development of the country's rail infrastructure, reports Railway Technology. The investment will be used to develop three lines of the mass rapid transit system, as well as the new Malaysia-Singapore highspeed railway line. The 330km-long line will reduce the time taken to travel between the two countries to approximately 90 minutes. The investment will be made in the period up to 2020. - - In October 2013, a consortium led by Chinese state-owned construction companies has signed the preliminary agreement with the state government of Penang to develop the state's MYR6.3bn (US $1.97bn) integrated road project, which includes Malaysia's first undersea tunnel. The consortium, known as Consortium Zenith BUCG, consists of Malaysia companies Zenith Construction, Sri Tinggi, and Juteras as well as Chinese state-owned construction companies Beijing Urban Construction Group (BUCG) and China Railway Construction (CRCC). The project will be carried out over four phases under a 30-year concession, with the consortium in charge of conducting the feasibility and environmental studies as well as designing, building and operating the different roads. The project is scheduled to start construction works in 2015 and be completed by 2025. - -

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