KUALA LUMPUR: The construction sector is expected to grow eight per cent to RM170 billion this year, said a top industry executive.
Construction Industry Development Board (CIDB) chief executive Datuk Ahmad Asri Abdul Hamid said this would be higher than the 7.4 per cent expansion last year.
He said the growth would be mainly driven by projects such as the Refinery and Petrochemical Integrated Development in Johor, Mass Rapid Transit 2 in the Klang Valley and the Pan-Borneo Highway.
“The construction industry achieved an astounding average growth of 11 per cent during the 10th Malaysia Plan while surpassing the performance of other economic sectors in the country,” he said at the Eighth Malaysian Construction Summit, here, yesterday.
Construction value increased from RM140 billion involving 7,455 projects in 2015 to RM166.4 billion involving 6,305 projects last year, he added.
The industry’s growth last year was driven by infrastructure projects, which accounted for 49.7 per cent (RM82.7 billion) of the total projects.
The second highest contributor was residential projects, which accounted for 23 per cent (RM38.3 billion), followed by non-residential construction at 22.5 per cent (RM37.4 billion), said Ahmad Asri.
Meanwhile, Works Minister Datuk Seri Fadillah Yusof said under Phase 1 of the Pan-Borneo Highway, there were 35 packages worth RM28.5 billion.
“For Phase 1, the total value of contracts is RM12.5 billion for Sabah and RM16 billion for Sarawak. They include land compensation, construction cost and so on. So far, five packages have been awarded,” he said after opening the summit.
The rest of the packages would be awarded by the end of this year, he added.
“Phase 1 will be completed in five years while Phase 2 will hopefully start next year,” he said. Amir Hisyam Rasid