Construction Boost from 9th Malaysia Plan

Kuala Lumpur (Malaysia Star) -- CONSTRUCTION companies can look forward to rosier times as the long list of Ninth Malaysia Plan (9MP) development projects is expected to keep them busy for the next five years.

The Government's pump priming of the infrastructure and construction sector is necessary to meet the construction gross domestic product (GDP) growth of 3% targeted for this year.

Industry observers are excited by the Government's big allocation for infrastructure development, as it will be as good as ending...

Govt confident 3.5pc growth for construction sector
21 August, 2007

Kuala Lumpur: The government is confident of achieving the 3.5 percent growth target set for the construction sector under the Ninth Malaysia Plan (9MP) with the implementation of various projects under the plan.

Works Minister Datuk Seri S. Samy Vellu said the implementation of economic development corridors would further boost growth and drive the business momentum and the industry in the future.

"The implementation of projects under regional development initiatives is set to boost construction even further and I believe the construction sector is gearing itself to secure business opportunities from the various high-impact projects under the initiatives," he said at the Malaysian Construction Sector Review 2006/2007 And Outlook seminar organised by the Construction Industry Development Board Malaysia (CIDB) here Monday.

His speech was delivered by Works Deputy Minister Datuk Ir Mohd Zin Mohamed.

Samy Vellu said the government has embarked on yet another major development initiative destined to tip the scale for construction industry players to drive the momentum of their businesses and the industry.

He said the Iskandar Development Region (IDR) in Johor stood to provide opportunities for foreign investments in the region of RM38.70 billion over a period of 15 years.

"I see the IDR's potential in helping to boost Malaysia's current position as one of the countries with the highest foreign direct investments in the region," he said.

On Malaysian construction companies overseas, Samy Vellu said the companies todate have secured a potential of 383 projects worth RM58 billion.

The projects are spread out in 37 countries including India, Pakistan, Kenya and the Middle East.

In 2005 and 2006, Malaysian contractors clinched overseas jobs worth RM28.6 billion including in China, India, the Middle East, Sudan and Asean member countries.

This more than doubled the average value of overseas construction projects at an estimated RM1.55 billion secured in the preceding years of 1997 and 2001, he said.

This year, Malaysian-led firms have acquired a total of RM4 billion to RM5 billion in project revenue from overseas clients, he said.

There are also talks on designs for a new township in Kerala, a light rail transit system and two highways in Pakistan, infrastructure development in Kenya and a township similar to Putrajaya in Syria, the minister added. - Bernama

Vietnam Report extract ? date unknown

Construction has been one of the driving forces of economy, growing at 15% a year. The construction sector consists of about 3,500 companies, including 270 foreign invested enterprises worth more than $3.5.

However, The state-dominated industrial sector, which accounts for about 45% of the country's GDP, is still marked by inefficiency and low productivity and has retarded the growth of the private sector. This is due the low level of development, characterized by obsolete plants and machinery, shortages of capital, raw materials, energy and transport, and a command-style economic system. Vietnam's assets include low wages, good skill levels, and a motivated work force.

 

Vietnam PM Approves Plan to Restructure Construction Sector

Repeating to insert dropped word in headline.

HANOI, Nov 15 Asia Pulse - Prime Minister Nguyen Tan Dung has ratified a plan to restructure the Ministry of Construction's State-owned enterprises beginning now through to 2010.

Under last week's decision, the ministry will equitise 13 of its affiliated corporations during the period.

The next year alone will see equitisation in 22 subsidiary companies.

The Construction Publisher, a Viglacera subsidiary which produces bathroom fittings, together with Bach Dang Construction Corp's Material Construction and Transport Co, are also to be restructured.

These companies will not be equitised but either reformed into one-member limited liability companies, sold or dissolved.

Existing one-member limited liability companies Housing and Urban Service, under the Housing and Urban Development Corp (HUD), and Hai Phong Shipbuilding, under Lilama Corp, will remain unchanged.

MoC has recently submitted a plan to the government requesting permission to set up three business groups, which will play important roles in different sectors of the economy.

Under the proposal, MoC will choose three corporations to receive and manage the state-owned capital transferred from other enterprises operating in the same field.

The select companies will join forces with MoC corporations to form the economic partnerships.

MoC's hand-picked corporations are Song Da Construction, Lilama, and HUD.

Song Da Construction will form the nucleus of the Construction Industry Group concentrating on construction works. It will pocket capital transferred from COMA (Construction Machinery Corp), Song Hong Corporation and Vinaconex (Viet Nam Construction Import and Export Corp).

Lilama will link up with Infrastructure Development and Construction (Licogi), Bach Dang Construction, and Midland Construction to create a business group which will specialise in the design and manufacture of equipment used in heavy industry.

The Housing and Urban Development Group will see HUD as the chief component with other companies contributing to the management of the partnership.

 

Construction spending analysis and forecast for Vietnam ? current report