Hi just wondering what do you all think about the construction sector outlook, in the foreseable future?
6 months, 9 months, 1 year?

With the recent commodity price drop, steel and oil, that's a good thing for them. But at the same time, the financial crisis burned through the paper too.

There'll probably be more cutback in the peninsular economic corridor development, so that'll be a negative too.

A lot of the construction stocks are trading at their 36 months low at the moment. Good to keep for a year?
What do you all think?

Things are bad for business for now I think. I think even Malaysian banks are reducing their loans for property developments. I've heard of plenty of projects being suspended while people wait for the money to come back in.

Construction would definitely be scaled down since the DPM already announced a review of all major projects/ corridors in the country.

Beware of the projects which related to Pak Lah. Might be all scrapped.

Actually, I don't understand why are infrastructure projects being cut now.....

It's generally regarded as a positive step to INCREASE infrastructure spending during bearish times like this, so that when the bull comes back in a year or two's time. Our country will have much better infrastructure in place to make us a much more attractive investment place!

I think the northen economic corridor will take a hit
a) Png and Perak are opposition countries.
b) SCORE and Sarawak Sabah projects will not be touched. Umno needs their support at this time.
c) Johor MCA stronghold, iskandaria, umno pet project will not be effected much too.

Not all projects are scrapped in Pg like the widening of the existing Pg Bridge from 4 lane to 6 lane is a good thing and hopefully they can speed things up faster to reduce the friday jams.
http://www.penang-vacations.com/penang-bridge-projects.html

However some projects like the Penang Bridge 2 is better off scrapped, it is darn wasteful to build a second bridge when the funds could be better off to do something else. http://anilnetto.com/2008/04/27/mega-setba...en-opportunity/

Also good to gone is the PGCC project,

http://anilnetto.com/development-issues/pe...t-packed-forum/

The list of the NCER project list. See how many is going to end-up as Pak Lah legacy.
http://malaxi.com/penang/ncer/index.html

This post has been edited by georgechang79: Oct 26 2008, 02:53 AM

hm, political promises nowadays, no risk anticipation, but excuses, we'd better believe in ourselves when making investment

Abolishing the 5% import duties on fertilisers, cement and steel;

Some good news here for the construction sector from Najib.

The good news that Najib announced was the removal of the Foreign Investment Committee approval for the sale of commercial property costing RM500,000 and above.

http://biz.thestar.com.my/news/story.asp?f...00&sec=business

However, it may hurt our cement and steel industry in the long run.

http://biz.thestar.com.my/news/story.asp?f...81&sec=business