KUALA LUMPUR: Maybank Investment Bank Research sees the potential crystallisation of a few long anticipated major construction projects in Sarawak could generate massive construction works.
It said on Tuesday these include the RM15bil Pan Borneo Sarawak Highway that finally kicked off officially recently.
The RM9bil Baleh hydroelectric power project could also take-off soon, for new energy supply is vital to attract new investments into Sarawak.
As for the long delayed Kuching Centralised Wastewater Management System Package 2 with an estimated cost of RM700mil to RM800mil should also be awarded soon, since works on the first package have completed.
“Thus, there would be a strong pipeline of jobs in Sarawak. Based on the major projects’ construction timeline, we expect awards to start accelerating in 2H15 and into 2016 especially ahead of the Sarawak state election which must be held by mid-2016,” it said.
Maybank Research said that positive sentiment would gain momentum as the state election looms and it could be held earlier in September or October 2015.
“Historically, share prices of Sarawak construction stocks have mainly displayed positive trends before the previous