The construction sector has achieved success repeatedly in the first half of the year, with a total of 26.36 billion ringgit in secured contracts. Analysts said that this sector is set to soar in the second half of the year with the support of large-scale infrastructure projects, forecasting contracts worth over 40 billion ringgit, reaching a new high since 2016.
Fung Lum Investment Bank's research report released on Wednesday stated that the astounding value of contracts won in the domestic construction sector in the first half of 2024 amounted to 20.738 billion ringgit, a 41% year-on-year increase, nearly on par with the sector's total contract value of 21.8 billion ringgit received in 2023.
Analysts point out that the main reason for the significant increase in contract value so far this year is the increase in the number of sector contracts, with 97 contracts in just the first half of the year, far surpassing the 51 contracts in the same period last year.
We found that the contract value in the sector 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 explain that despite the lack of significant infrastructure projects driving the sector during this period, achieving such outstanding results is undoubtedly a great achievement.
"We believe that the property developers' sentiment is bullish, along with the contracts related to data centers driving the significant increase in construction contracts."
Analysts say that in the second half of this year, in addition to data centers continuing to dominate contract areas, it is expected that supported by the launch of large-scale public infrastructure projects, this sector will still develop positively.
"In short, the large projects postponed in the first half of the year are believed to be the main axis leading the development in the second half of the year."
Analysts believe that in the second half of the year...