Will RM143 billion in mega-projects be rolled over into Budget 2021?

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Mega-Projects Worth RM143 Billion May Be Rolled Over into Budget 2021

Six significant infrastructure projects, collectively valued at RM143.06 billion and initially announced under Budget 2020, are being considered for inclusion in the upcoming Budget 2021. These projects faced delays and tender disruptions due to the COVID-19 pandemic and subsequent movement control orders. Their potential inclusion signifies a continuation of major infrastructure development plans amidst economic recovery efforts.
Key Projects Under Consideration

The roster of potential mega-projects includes the ambitious Kuala Lumpur-Singapore High-Speed Rail (HSR), estimated at RM68 billion, and the Mass Rapid Transit Line 3 (MRT3), with a projected cost of RM45 billion. Other substantial projects being reviewed for rollover are the Penang Transport Master Plan (RM18 billion), the Serendah-Port Klang Rail Bypass (RM8.3 billion), the Johor Baru-Singapore Rapid Transit System (RTS) (RM3.16 billion), and Phase 1 of the Pan Borneo Highway (RM600 million).
Integration with Economic Recovery Plans

These projects are anticipated to form a significant component of both the Economic Recovery Plan (ERP) and the 12th Malaysia Plan (12MP). The government has been actively engaging with industry stakeholders, particularly concerning the MRT3, to devise a viable model for its potential implementation in 2021. This indicates a strategic approach to integrating these large-scale developments into broader economic strategies.
Progress and Outlook for Key Projects

While the review period for the Kuala Lumpur-Singapore HSR, set to end in December, remains unchanged, there is optimism regarding its potential outcome. Analysts suggest it might adopt an implementation model similar to the Johor Baru-Singapore RTS. Separately, IJM Corporation Bhd has been identified as a potential beneficiary of the MRT3 project, given its prior success in securing substantial packages for MRT1 and MRT2.
Sectoral Outlook and Preferred Companies

Despite the potential rollover of these mega-projects, the overall construction sector is viewed with neutrality due to ongoing political uncertainties and a lack of detailed information on recovery plans, with the medium- to long-term ERP announcement delayed. However, YTL Corporation Bhd and Malaysian Resources Corporation Bhd are highlighted as preferred investment opportunities. YTL Corporation Bhd is seen as a potential early beneficiary of civil works packages, while Malaysian Resources Corporation Bhd is linked to the development of the HSR terminus at Bandar Malaysia.

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Will RM143 billion in mega-projects be rolled over into Budget 2021?

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