Latest news with #PIKAS2030
Focus Malaysia
7 days ago
- Business
- 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
New Straits Times
7 days ago
- Business
- New Straits Times
Construction sector poised for growth under 13MP with RM430bil boost
KUALA LUMPUR: RHB Investment Bank Bhd has maintained its "Overweight" rating on the construction sector, anticipating a stronger pipeline of development expenditure (DE) under the 13th Malaysia Plan (13MP), which was tabled in Parliament yesterday. In a research note, the firm said the 13MP allocates RM430 billion in gross DE for the 2026 to 2030 period. This is an increase from the RM415 billion allocated under the 12MP for 2021 to 2025, with an annual average of RM86 billion. "The increased allocation signals continued support for infrastructure development in areas such as info-structure, public transport, flood mitigation, and affordable housing," RHB said. Key projects highlighted under the 13MP include the Sarawak-Sabah Link Road, the Pan Borneo Highway, the Central Spine Road, and the Trans Borneo Highway. Other major developments are the Penang Light Rail Transit and the widening of the PLUS Highway in Johor. RHB Investment also emphasised that public-private partnership (PPP) projects will remain central to project delivery mechanisms in the coming years, anchored by the Public-Private Partnership Master Plan 2030 (PIKAS 2030). "Through PIKAS 2030, the government is projecting RM61 billion in private sector funding under the 13MP. PIKAS 2030 has identified a number of initiatives under its 'Strategic Thrust 3: Expanding PPP models to diversify projects' within the national plan. "New PPPs could involve the West Ipoh Span Expressway, the Putrajaya-Bangi Expressway, and the East Coast Expressway Phase 3," it said. Flood mitigation was also identified as a top development priority under the new plan. RHB Investment noted a sharp increase in the number of projects aimed at mitigating flood risks, with 55 projects targeted for completion by 2030, up from just 17 in the previous year. "Efforts to mitigate floods will continue with 43 high-priority flood mitigation projects worth RM12 billion that began last year. These projects are being carried out across flood-prone regions such as Johor, Muar, Pahang, Kedah, Sabah, and Perak," it said. The firm also highlighted that the government plans to implement a multi-tiered foreign worker levy (MTFWL) by 2026. "While no details were disclosed under Budget 2025 regarding the MTFWL, our preliminary estimates find that the earnings of contractors like Southern Cable Group Bhd will be reduced by one per cent," it said, indicating that the impact will likely be minimal on most construction firms. RHB Investment's top stock picks within the sector include Gamuda Bhd, with a target price of RM5.86, Sunway Construction Group Bhd at RM6.55, and Binastra Corp Bhd at RM2.64. "However, our sector call is exposed to unexpected slowdowns in job rollouts, labour shortages, and scale-downs of data centre investments into Malaysia," it added.
The Sun
31-07-2025
- Business
- The Sun
New project management mechanism under Malaysia's 13MP plan
KUALA LUMPUR: A new project management mechanism will be introduced under the 13th Malaysia Plan (13MP) to improve strategic planning and execution of development projects. The Ministry of Economy outlined key reforms, including specialised strategic planners in each ministry and enhanced training modules for civil servants. The plan emphasises tighter cost controls and expanded use of turnkey and design-and-build models. Multi-purpose infrastructure projects will be prioritised to optimise resources. The document states, 'The potential for designating part of large-scale high-rise housing areas as public facilities, such as schools and health clinics, will be explored to ensure integrated development.' Federal land banks will be better utilised through improved management, while land acquisition processes will be centralised under the Department of the Director General of Lands and Mines. Private developers will also be invited to participate in public interest projects to address idle land issues. Public-private partnerships (PPP) will be strengthened under the PIKAS 2030 framework, focusing on user-paid models. 'Approval of new PPP projects involving government financial commitments will be subject to the scope and allocation limits under 13MP,' the document adds. Governance reforms aim to reduce leakages and improve financial management, aligning with the MADANI Economy framework. These measures are expected to deliver better infrastructure, attract investors, and support economic growth. - Bernama
Barnama
31-07-2025
- Business
- Barnama
13MP: New Project Management Mechanism To Be Introduced
KUALA LUMPUR, July 31 (Bernama) -- A new and more comprehensive project management mechanism will be introduced to facilitate more strategic and effective planning and implementation of development projects. According to the 13th Malaysia Plan (13MP) document released by the Ministry of Economy today, a group of strategic planners with specialised skills will also be established in each ministry, while a strategic planning module will be developed to enhance the competency of civil servants in development project management. 'The turnkey and design-and-build project implementation models will also be improved and expanded, with tighter cost controls. In addition, multi-purpose infrastructure projects will be prioritised under 13MP to optimise resource utilisation. 'The potential for designating part of large-scale high-rise housing areas as public facilities, such as schools and health clinics, will be explored to ensure that housing development and facility provision are implemented simultaneously and in an integrated manner,' the document stated. The use of federal land banks will also be maximised for federal development projects through improved land management procedures, while land acquisition processes will be centralised under the Department of the Director General of Lands and Mines. 'In addition, the implementation of public interest projects such as schools and health clinics will be opened to private property developers to address the issue of idle and undeveloped land,' it said. The implementation of public-private partnership (PPP) projects will also be further strengthened based on the Public-Private Partnership Master Plan 2030 (PIKAS 2030), with a focus on user-paid models in the provision of infrastructure and services as options for the people. 'Approval of new PPP projects involving government financial commitments will be subject to the scope and allocation limits under 13MP, while PPP governance will be strengthened, including through the introduction of specific legislation related to PPPs,' it added. According to the document, governance reforms in the planning and implementation of government projects will enhance public financial management efficiency and reduce leakages, in line with the good governance thrust under the MADANI Economy framework.
