The construction sector has achieved repeated success in the first half of the year, with a total of 26.36 billion ringgit worth of contracts secured. Analysts predict that the second half of the year in this sector will soar with the support of large infrastructure projects, forecasting contracts exceeding 40 billion ringgit, reaching a new high since 2016.
On Wednesday, Fenglong Investment Bank released a report stating that the astonishing value of contracts secured in the domestic construction sector in the first half of 2024 reached as high as 20.738 billion ringgit, a 41% year-on-year increase, nearly matching the total contract value of 21.8 billion ringgit received by the sector in 2023.
Analysts pointed out that the main reason for the significant increase in contract value this year is the rise in the number of contracts in the sector, with 97 contracts secured in just the first half of the year, far exceeding the 51 contracts in the same period last year.
"We found that the contract value in this sector for this quarter is 13.8 billion ringgit, the second highest quarterly record since we started compiling the database in 2009, second only to 2016."
Analysts further stated that achieving such excellent results in this sector during a period without significant infrastructure projects driving it is undoubtedly a great achievement.
"We believe that the sentiment of property developers is bullish, and the increase in construction contracts is driven by the datacenter-related contracts."
Analysts indicate that in the second half of this year, apart from the datacenter continuing to lead in contract areas, it is expected that supported by the launch of large-scale public infrastructure projects, this sector will still see positive development.
"In short, the large projects postponed in the first half of the year are believed to be the mainstay leading the development of the sector in the second half of the year."
Analysts believe that in the second half of the year...