MALAYSIA COUNTRY REPORT Presented by Foo Chek Lee
MALAYSIA COUNTRY REPORT Presented by: Foo Chek Lee, President MASTER BUILDERS ASSOCIATION MALAYSIA (MBAM) 48 th ACF Council Meeting 12 – 13 September 2019 Nusa Dua, Bali
Brief Outlook on Malaysian Economy
Brief Outlook on Malaysian Economy 77. 6 79. 5 USD 1. 00 = MYR 4. 00 82. 6 85. 2 81. 8 83. 1 86. 3 89. 3 85. 4 87. 2 Source: Department of Statistics Malaysia, 16 th August 2019 (Friday) Malaysia Economic Performance Second Quarter 2019
Malaysia Construction Industry Performances
Total Construction GDP Year to Year Construction Industry Performances Real GDP 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0. 3 Manufacturing (5. 8) 4. 1 5. 3 7. 1 5. 2 5. 9 6. 3 4. 6 (1. 7) 7. 4 5. 1 5. 6 4. 7 6. 0 5. 0 4. 2 5. 9 4. 7 4. 0 8. 2 8. 8 5. 1 7. 8 3. 1 1. 3 (0. 3) 11. 9 4. 7 4. 8 3. 5 6. 2 4. 9 4. 4 6. 0 5. 0 Services 5. 8 4. 1 6. 7 6. 5 6. 4 9. 6 7. 3 2. 6 7. 4 7. 0 6. 4 5. 9 6. 5 5. 1 5. 6 6. 2 6. 8 Agriculture (0. 9) 3. 0 5. 5 5. 0 2. 5 6. 4 2. 2 3. 8 0. 4 2. 4 5. 8 1. 0 2. 1 1. 2 (5. 1) 7. 2 (0. 4) Mining (0. 8) 3. 7 4. 8 4. 1 1. 4 0. 7 3. 3 4. 7 2. 2 1. 0 (1. 6) Construction 2. 1 2. 3 1. 9 18. 1 10. 9 11. 8 8. 2 7. 4 6. 7 4. 2 (0. 8) (0. 9) 4. 2 (1. 9) (1. 6) (0. 5) 5. 5 (0. 8) (3. 8) (0. 3) (5. 5) 2. 1 5. 7 11. 4 4. 7
Malaysia Real GDP Vs Construction Growth From 2001 ~ 4 Q, 2018 Percentage (%) Construction Industry Performances 18, 1 10, 9 7, 1 2, 1 0, 3 Real GDP Construction 2001 0, 3 2, 1 4, 1 2, 3 2002 4, 1 2, 3 5, 2 5, 9 6, 3 5, 5 8, 2 7, 2 5, 3 5, 1 4, 6 5, 6 4, 7 6, 0 5, 0 7, 4 4, 2 2, 1 1, 9 2003 5, 3 1, 9 4, 6 5, 7 11, 8 2004 -1, 9 7, 1 1, 9 2005 -1, 6 5, 2 1, 6 -0, 5 2006 5, 9 0, 5 2007 6, 3 5, 5 2008 4, 6 2, 1 2009 -1, 7 5, 7 2010 7, 2 5, 3 2011 5, 1 4, 6 2012 5, 6 18, 1 2013 4, 7 10, 9 2014 6, 0 11, 8 2015 5, 0 8, 2 2016 4, 2 7, 4 6, 7 5, 9 5, 4 4, 5 4, 4 4, 7 4, 9 4, 7 4, 6 2017 1 Q, 2018 2 Q, 2018 3 Q, 2018 4 Q, 2018 5, 9 5, 4 4, 5 4, 4 4, 7 6, 7 4, 9 4, 7 4, 6 2, 6
Construction sector grew marginally at 0. 5% in Q 2’ 19 contributed by Civil Engineering and Specialised construction activities. Source: Department of Statistics Malaysia, 16 th August 2019 (Friday) Malaysia Economic Performance Second Quarter 2019
The value of construction work done in Q 2’ 19 recorded a growth of 0. 8% year-on-year, amounting to USD 8. 98 billion (RM 35. 9 billion) Source: Department of Statistics Malaysia, 9 th August 2019 (Friday) Quarterly Construction Statistics, Second Quarter 2019
Building Material Prices
Building Material - Steel - T 10/T 12/T 40 (January 2018 ~ July 2019) USD/Bulk/Tonne 800, 00 700, 00 600, 00 500, 00 400, 00 300, 00 Building Material Prices 200, 00 100, 00 MMM MMM MMM MMM MMM yy yy yy yy yy High 730, 00 705, 00 725, 00 695, 00 665, 00 662, 50 657, 50 642, 50 625, 00 590, 00 595, 00 605, 00 600, 00 595, 00 600, 00 Low 695, 00 687, 50 682, 50 637, 50 655, 00 645, 00 650, 00 645, 00 625, 00 595, 00 557, 50 540, 00 580, 00 600, 00 595, 00 587, 50 592, 50 USD 1. 00 = MYR 4. 00 High Low Month
Building Material - Cement - Bag (January 2018 ~ July 2019) USD/50 Kg/Bag 6, 00 5, 00 4, 00 3, 00 2, 00 Building Material Prices 1, 00 MMM yy High 4, 81 Low 4, 06 MMM yy 4, 81 3, 59 MMM yy 4, 81 4, 56 MMM yy 4, 81 3, 59 MMM yy 3, 84 3, 71 MMM yy 3, 89 3, 84 MMM yy 3, 59 3, 34 MMM yy 4, 34 4, 21 MMM yy 3, 71 3, 59 USD 1. 00 = MYR 4. 00 High Low Month MMM yy 3, 59 3, 09 MMM yy 4, 46 3, 46 MMM yy 4, 21 3, 39 MMM yy 3, 39 3, 14 MMM yy 4, 21 3, 71 MMM yy 3, 84 3, 71 MMM yy 3, 96 3, 71 MMM yy 3, 71 2, 84
Building Material - Cement - Bulk (January 2018 ~ July 2019) USD/Bulk/Tonne 60, 00 50, 00 40, 00 30, 00 20, 00 Building Material Prices 10, 00 MMM yy High 53, 75 Low 47, 50 USD 1. 00 = MYR 4. 00 MMM yy 53, 75 47, 50 MMM yy 52, 00 45, 75 High MMM yy 50, 75 44, 50 Low MMM yy 50, 50 44, 25 Month MMM yy 50, 50 44, 25 MMM yy 50, 50 44, 25 MMM yy 50, 00 43, 75
Building Material - Ready Mix Concrete - Normal Mix (January 2018 ~ July 2019) 70, 00 60, 00 USD / M 3 50, 00 40, 00 30, 00 Building Material Prices 20, 00 10, 00 G 20 G 30 G 40 47, 50 52, 25 58, 25 USD 1. 00 = MYR 4. 00 47, 50 52, 25 58, 25 47, 50 52, 25 58, 25 G 20 47, 50 52, 25 58, 25 G 30 47, 50 52, 25 58, 25 G 40 47, 50 52, 25 58, 25 Month 41, 25 46, 00 52, 00 41, 25 46, 00 52, 00
Building Material - Sand (January 2018 ~ July 2019) 9, 10 9, 00 USD/Tonne 8, 90 8, 80 8, 70 8, 60 8, 50 Building Material Prices 8, 40 8, 30 8, 20 MMM yy High 9, 00 Low 8, 50 USD 1. 00 = MYR 4. 00 MMM yy 9, 00 8, 50 MMM yy 9, 00 8, 50 High MMM yy 9, 00 8, 50 Low MMM yy 9, 00 8, 50 Month MMM yy 9, 00 8, 50 MMM yy 9, 00 8, 50
Building Material - Common Clay Brick (January 2018 ~ July 2019) 0, 090 0, 088 USD/Piece 0, 086 0, 084 0, 082 0, 080 0, 078 0, 076 Building Material Prices 0, 074 0, 072 0, 070 MMM yy High 0, 088 Low 0, 081 USD 1. 00 = MYR 4. 00 MMM yy 0, 088 0, 081 MMM yy 0, 088 0, 081 High MMM yy 0, 088 0, 081 Low MMM yy 0, 088 0, 081 Month MMM yy 0, 088 0, 081 MMM yy 0, 078 0, 076 MMM yy 0, 078 0, 076
Building Material - Timber Plywood - 12 mm X 4' X 8' (January 2018 ~ July 2019) 18, 00 USD/Bulk/Tonne 16, 00 14, 00 12, 00 10, 00 8, 00 6, 00 Building Material Prices 4, 00 2, 00 MMM yy High 14, 00 Low 13, 25 USD 1. 00 = MYR 4. 00 MMM yy 14, 00 13, 25 MMM yy 14, 00 13, 25 High MMM yy 14, 00 13, 25 MMM yy 14, 50 13, 75 Low MMM yy 14, 50 13, 75 Month MMM yy 14, 50 13, 75 MMM yy 15, 25 14, 50 MMM yy 14, 50 13, 00 MMM yy 13, 00 12, 50 MMM yy 13, 65 13, 13
Construction Projects - New Update
Penang LRT gets conditional green light • 29. 9 kilometre Bayan Lepas light rail transit (LRT) i. iii. Reduce traffic congestion Spur the construction industry New development for Penang state • Approx. USD 2. 1 billion cost (RM 8. 4 billion). • Part of Penang Trans port Master. Plan. • Include monorail, cable cars and water taxi. • Phase 1 – 23. 5 kilometres with 20 stations. • Phase 2 – 6. 4 kilometres with 7 stations.
Progress to next phase • Second phase of the Pan Borneo Highway in Sabah & Sarawak. Sabah 2025 Sarawak 2023
Progress to next phase • Second phase of the East Coast Rail Link (ECRL).
Construction Projects - Ongoing
Major mixed-use development project @ Tun Razak Exchange 2020/2021 Estimated Completion 70 -acre Land area USD 4 bil Estimated GDV
Warisan Merdeka PNB 118 2021 Estimated Completion 3 million square feet Floor area USD 1. 25 bil Estimated construction cost
Deepwater Petroleum Terminal 2 at the Refinery and Petrochemical Integrated Development (RAPID) Complex in Pengerang, Johor Commissioned by 2019 80 km 2 Future Outlook Estimated area of Pengerang Integrated Petroleum Complex (PIPC) USD 1. 57 bil Estimated construction cost
Floating LNG 2 in Sabah 2020 Estimated Completion Future Outlook Deepwater in the Rotan field 240 km offshore Sabah
Central Processing Platform in Bokor, Sarawak 2020 Estimated Completion Located in Baram Delta, offshore Sarawak, in a water depth of 70 meters USD 244. 65 mil Future Outlook Estimated construction cost
Mass Rapid Transit (MRT) Sungai Buloh. Serdang-Putrajaya (SSP) Line 2022 Estimated Completion 52. 2 km Estimated length Future Outlook 38. 7 km of elevated tracks 13. 5 km of underground tunnels USD 7. 6 bil Estimated construction cost
Light Rail Transit Line 3 (LRT 3) in Klang Valley 2024 Estimated Completion 37 km Estimated length USD 4. 15 bil Future Outlook Estimated construction cost
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