Building sector seen busy over next 5 months

by **hlk** Thu 08 Dec 2011, 19:48

Gamuda Group Managing Director Datuk Lin Yun Ling said today the Malaysian construction industry is expected to be active over the next five months.

He told reporters after the group's annual general meeting here today that
the next five months would also be the procurement phase for the Mass Rapid
Transit (MRT) project.

"I think more than 50 packages of works, big and small, for underground,
elevated and civil works, stations, park and ride facilities as well as systems

packages will have tenders called.

"In fact, some of the tender packages, have already been called with the
valuation having been done," he said.

Lin said the construction industry next year would be quite active and
provide a multiplier effect across the whole economy, that should help Malaysia counter the effects of an economic slowdown in Europe and in the United States.

He also said that Gamuda through its joint-venture company for the MRT
project, MMC-Gamuda JV, had yet to submit the tender for the project which would close towards the end of January next year.

On prospects for the property sector in the country, he said the supply
of commercial properties was quite plentiful and as a player, the group noticed
that in the last three years, demand had been very strong.

On the issue of a housing "bubble", Lin said a good indicator as to whether
this was the case at present, is to use the ratio of house prices to income as a
rule of thumb.

"Currently, the ratio is between six to seven and if it hits 10, you have to
worry," he added.

On Gamuda's overseas ventures, Lin said the group had allocated more than
US$1 million to study the business potential in Myanmar which was slowly opening up to more democratic rule.

"We are studying the infrastructure needs in Myanmar and assessing the
supply chain there. This is so that, when the situation permits, we will be
ready," he added.

Meanwhile, for the financial year ended July 31, 2011, the group recorded a
revenue of RM2.67 billion from RM2.46 billion previously, while pre-tax profit
surged to RM544.5 million from RM412.3 million. -- Bernama