The RM3 billion KL Monorail extension project will boost the order books of construction firms lucky enough to be selected for the mega project, according to CIMB Research. It will also further increase the positive effect of the Mass Rail Transit (MRT) and the KL-Singapore high-speed rail (HSR) to Malaysia’s construction industry.
As such, CIMB Research deems the construction sector to be ‘overweight’ “as government execution on larger-scale projects will be more rapid in the coming months.”
Moreover, the proposed project, which may involve extending the alignment to Bandar Sunway, has piqued the interest of many firms.
According to sources, Malaysian Resources Corp Bhd (MRCB) already filed its proposal for the KL Monorail extension project, while other firms such as IJM Corp are also planning to submit their own proposals.
Despite different proposals, Scomi Engineering will be the one to provide rail cars and systems.
“This news is not surprising as we are aware that proposals and tenders for the KL Monorail extension will progress in the second half. However, stretching the KL Monorail extension to Bandar Sunway is a positive surprise,” noted CIMB Research, adding that the news bodes well for the entire construction sector.
As such, CIMB Research deems the construction sector to be ‘overweight’ “as government execution on larger-scale projects will be more rapid in the coming months.”
Moreover, the proposed project, which may involve extending the alignment to Bandar Sunway, has piqued the interest of many firms.
According to sources, Malaysian Resources Corp Bhd (MRCB) already filed its proposal for the KL Monorail extension project, while other firms such as IJM Corp are also planning to submit their own proposals.
Despite different proposals, Scomi Engineering will be the one to provide rail cars and systems.
“This news is not surprising as we are aware that proposals and tenders for the KL Monorail extension will progress in the second half. However, stretching the KL Monorail extension to Bandar Sunway is a positive surprise,” noted CIMB Research, adding that the news bodes well for the entire construction sector.
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