KUALA LUMPUR: CGS-CIMB Securities (CGS-CIMB) is hoping for more clarity during the re-tabling of Budget 2023 on the status of large-value projects after the government suspended funds for flood mitigation projects pending a review of direct negotiation contracts.
The brokerage firm said contractors under its coverage did not have direct tender exposure to the construction packages under the Flood Mitigation Masterplan 2030, however, the news may raise concerns over the status of other larger-value projects mentioned in Budget 2023.
"Our immediate focus would be the status of the RM3.3 billion allocated for MRT3 (Circle Line, RM32 billion total value) under Budget 2023, which is likely to be tabled in the first quarter of next year,” it said in a research note today.
On Tuesday, the Finance Ministry (MoF) has been ordered by the newly appointed Prime Minister, Datuk Seri Anwar Ibrahim to pause the channelling of funds for RM7 billion-worth of flood mitigation projects.
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