Malaysia Construction Sector The Group expects some tender opportunities from the following public sector projects in 2024: ● Phase 2 of Pan Borneo Highway Sarawak; ● Flood mitigation projects; ● Road upgrading works in Johor; ● Klang Valley MRT Line 3; ● Kuching Urban Transportation System; and ● Affordable housing projects On the property sector landscape, Malaysia’s property transaction value hit RM196.83 billion in 2023, the highest ever recorded by the National Property Information Centre (Napic). Napic expects the property market’s performance to remain cautiously optimistic in 2024. There were marked increase in tender invitations and project awards to the Group since year 2023. The Group secured RM1.3 billion worth of construction projects in year 2023. In the home base of the Group, Johor, developers are upbeat with the improvement in the property market sentiment given the visibility of the Johor Bahru-Singapore RTS project as well as the announcements of the proposed JohorSingapore Special Economic Zone and Special Financial Zone. Other than projects from external parties, the Group’s construction arm will undertake construction works for in-house property developments projects as detailed in the ensuing section of this report. Singapore Construction Sector The Building and Construction Authority (BCA) projects the total construction demand, i.e. the value of construction contracts to be awarded, to range between S$32 billion and S$38 billion in nominal terms in 2024. The public sector is expected to drive total construction demand in 2024, reaching between S$18 billion and S$21 billion, mainly from public housing and infrastructure projects. Some of the major upcoming public sector projects scheduled to be awarded in 2024 include the Housing and Development Board’s new Built-To-Order developments, additional Cross Island MRT Line contracts (Phase 2), infrastructure works for the future Changi Airport Terminal 5 (T5) and Tuas Port developments and other major road enhancement and drainage improvement works. Private sector construction demand is projected to be between S$14 billion and S$17 billion in 2024. BCA anticipates that private sector construction demand in 2024 will come mainly from residential developments under the Government Land Sales, expansion of the two Integrated Resorts, redevelopment of commercial premises, as well as development of mixed-used properties and industrial facilities. BCA expects a steady improvement in construction demand over the medium term. It is projected to reach between S$31 billion and S$38 billion per year from 2025 to 2028. Our subsidiary, SPC Industries Sdn Bhd (“SPC”) has very strong track record in the supply of precast components including TLS, concrete rail sleepers and jacking pipes to large public sector infrastructure projects in Singapore including Singapore MRT projects, Deep Tunnel Sewerage System Phase 2 and Singapore Power’s underground cable tunnel. Further, SPC has been a frequent supplier of IBS components to various projects in Singapore. With its strong track record in Singapore, SPC is well positioned to compete for further potential sales orders from Singapore. MANAGEMENT DISCUSSION AND ANALYSIS Kimlun Corporation Berhad 024
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