Malaysia Infrastructure Report Q2 2009

Publication Date	April 2009
Publisher	Business Monitor
Product Type	Report
Pages	87
ISBN Number	not applicable
Product Code	BMI03743

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Summary

We predicted last quarter that the Malaysian construction sector will contract by 1.4% in real terms in 2009. We see no reason to adjust our forecasts again this quarter, despite Malaysia's government unveiling a fresh fiscal stimulus package (this time amounting to US$16.2bn over two years) in March 2009. Infrastructure is one of four key areas being targeted by this extra spending - the other areas being guaranteed funds, equity investments and tax incentives.

About US$1.4bn is being set aside for projects including a new budget airline terminal (see Airports), expanding the Penang tourist gateway and a new broadband internet network. However, as we underline above, recent experience has seen the authorities face difficulties in following through on planned spending programmes.

The country faces significant fiscal constraints and it may well find it difficult to fund its ambitious spending plans. More significantly, the private sector will remain a huge drag on the infrastructure sector in 2009, with even the government now acknowledging that a recession could well be on the cards this year. We continue to forecast a return to (very modest) real growth in Malaysia's construction sector in 2010, in the order of 2.1% y-o-y in real terms, thanks in part to our expectation that the global economy will receive support from the US economy moving back onto a positive growth path during the course of that year.

Tenaga Nasional Berhad will form a joint venture company to construct a US$2bn subsea electricity cable which will link peninsular Malaysia and Sarawak on Malaysian Borneo (January 2009). The cable will link the Bakun hydropower station to Malaysia's main grid, offering additional capacity to help meet a theoretical deficit which is forecast to emerge by the end of our forecast period, 2018. The cable will be constructed by a JV company which will be owned by TNB, Sarawak Energy and the Finance Ministry.

The subsea cable will stretch from the Bakun hydropower project on Malaysian Borneo to Yong Peng in Johur state on peninsular Malaysia. Once laid, the cables will stretch for 650km and will be one of the longest submarine cables in the world. The cables are expected to carry 1,600MW from the Bakun hydropower plant, which has a generation capacity of 2,400MW.

We take a fresh look at the impact of the global economic downturn on infrastructure majors Gamuda and WCT Berhad, with the former registering a diminished profit in Q1 FY2008/2009 and the latter clocking up a loss in Q4 2008. We analyse how well equipped these companies are to deal with a likely contraction in Malaysia's infrastructure sector during 2009, looking at variables including geographic diversification and order books.

Content

Executive Summary
Market Overview
Malaysia
Global Overview
Mega-Urban Regions: Opportunities And Challenges For Infrastructure
Mega-Urban Regions: Investment Opportunities And Risks
Industry Trend Analysis - Construction Inflation Continues To Rise
SWOT Analysis
Malaysia Political SWOT
Malaysia Economic SWOT
Malaysia Business Environment SWOT
Major Infrastructure Developments And Key Projects
Transport Infrastructure Overview
New And Ongoing Projects
Airports
Ports
Roads
Railways
Energy And Utilities Infrastructure Overview
Primary Energy Demand
New And Ongoing Projects
Power Plants and Transmission Grids
Oil and Gas Pipelines
Water
Construction Overview
New And Ongoing Projects
Major Projects
BMI Forecasts
Risks
Business Environment
Limits Of Potential Returns
Risk To The Realisation Of Potential Returns
Project Finance Ratings: Outlook For Asia Pacific
Foreign Direct Investment
Labour Force
Legal Framework
Tax Regime
Macroeconomic Outlook
Political Outlook
Domestic Politics
Company Monitor
Company Profiles
Gamuda
WCT Berhad
Country Snapshot: Malaysia Demographic Data
Section 1: Population
Section 2: Education And Healthcare
Section 3: Labour Market And Spending Power
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Construction Industry
Business Environment Ratings
Sources
Project Finance Ratings Methodology
Definition
Operating Risks - Commercial Construction
Operating Risks - Energy and Utilities
Definition
Operating Risks -Transport
List of Tables
- Table: The World's 30 Largest Urban Agglomerations
- Table: The World's Richest Cities In 2020 By GDP
- Table: The World's Fastest Growing Urban Areas
- Table: Malaysia Major Infrastructure Projects - Airports
- Table: Malaysia Major Infrastructure Projects - Roads
- Table: Malaysia Major Infrastructure Projects - Railways
- Table: Malaysia Major Infrastructure Projects - Ports
- Table: Malaysia Major Infrastructure Projects - Water
- Table: Malaysia Major Infrastructure Projects - Power plants & transmission
- Table: Malaysia Major Infrastructure Projects - Pipelines
- Table: Malaysia Major Infrastructure Projects - Industrial Construction
- Table: Malaysia Major Infrastructure Projects - Residential Construction
- Table: Malaysia Major Infrastructure Projects - Commercial Construction
- Table: Economic And Construction Data
- Table: Asia Pacific Infrastructure Business Environment Ratings
- Table: Design and Construction Rating
- Table: Commissioning and Operating Rating
- Table: Overall Project Finance Rating
- Table: Malaysia - Economic Activity
- Table: Malaysia Political Overview
- Table: Malaysia - Key Players
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Table: Education, 2000-2003
- Table: Vital Statistics, 2005-2030
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Manufacturing Wages, 2000-2012
- Table: Infrastructure Business Environment Indicators

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Product features / use

Level	General Industry Strategies
Data	Detailed Market Forecasts
Profiles	Profiles of Key Companies
Features	Contains SWOT Analysis
Extra Info	Consumer Trends Highlighted