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Focus Malaysia

RM430 bil in development spending from MP13 to boost infrastructure growth

THE 13th Malaysia Plan (13MP) was tabled yesterday in Parliament with MYR430 bil (annual average of MYR86 bil) worth of gross development expenditure (DE) targeted for the 2026-2030 period vs the MYR415 bil. 'Therefore, we believe the 13MP DE should continue to facilitate infrastructure growth in the country,' said RHB. The total MYR430 bil gross DE is earmarked for the economic sector, including infrastructure, info-structure, public transport, flood mitigation, affordable housing, and capacity-building projects, amongst others. Public-private partnership (PPP) projects continue to be implemented via the Public-Private Partnership Master Plan 2030 (PIKAS 2030), with the Government projecting MYR61 bil worth of private sector funding under the 13MP. PIKAS 2030 has outlined a list under the 'Strategic Thrust 3: Expanding PPP models to diversify projects' of the plan, which includes the West Ipoh Span Expressway, Putrajaya-Bangi Expressway, Ipoh Sentral Transit Oriented Development, and East Coast Expressway Phase 3. During the 13MP period (2026-2030), the government targets to complete 55 flood mitigation projects in 2030 from 17 in 2024. Efforts to mitigate floods will continue with 43 high priority flood mitigation projects worth MYR12 bil that started last year. Investable names in the flood mitigation space include Malaysian Resources Corp, GAM, and Varia. While no details were disclosed under Budget 2025 with regards to the MTFWL, we base our hypothetical earnings impact on multi-tiered levy rates proposed for 2021 from the Institute of Labour Market Information and Analysis. Our preliminary estimates find that the earnings of contractors like SCGB will be reduced by less than 1%. Key downside risks to our sector call are unexpected slowdowns in job rollouts, labour shortages, and scale downs of data centre investments into Malaysia. —Aug 1, 2025 Main image: MTTC College