The anticipated revival of the MRT 3 project and other government infrastructure initiatives could signal a brighter outlook for Malaysia’s construction sector heading into FY2025, according to CGS International. The MRT 3, known as “The Circle Line”, is poised to span 51km around Kuala Lumpur’s perimeter, integrating with existing MRT, LRT, KTM, and monorail lines through 10 interchange and connecting stations.
On Aug 30, 2024, Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) announced the commencement of a revised public display for the MRT 3 project, which will run from Sept 2 to Dec 2, 2024. This public display aims to gather feedback on the proposed alignment, sites, and other project details. The exercise includes 35 designated locations, eight MRT information kiosks, and 27 MRT information trucks at key sites across the city.
The proposed revival comes after a significant revision in the project’s alignment, requiring a new railway scheme. While the MRT 3 project timeline remains uncertain, the public display is seen as a clear indication of the government’s intention to move forward with the project, potentially in the near future.
CGS International, a reputable research and investment firm, also noted that the government appears to be prioritising infrastructure projects to boost the economy. In addition to the MRT 3, other significant projects, such as the Penang LRT and the expansion of Penang International Airport, are expected to see accelerated progress, with potential awards anticipated by the fourth quarter of 2024.
The potential revival of MRT 3 could offer substantial opportunities for contractors and related industries. Companies like Gamuda Bhd, YTL Corporation Bhd, WCT Holdings Bhd, Sunway Construction Group Bhd, and IJM Corporation Bhd, which have been involved in previous MRT projects, are expected to be key beneficiaries. Building material suppliers and piling contractors, such as Malayan Cement Bhd and Econpile Holdings Bhd, could also see significant gains from the renewed project flow.
Current government estimates place the project cost at RM45 billion, down from RM68 billion in 2018. The MRT 3 revival is expected to stimulate growth in the construction sector, bolster industry sentiments, and provide a strong foundation for the sector’s expansion in 2025.
