KUALA LUMPUR: Alliance DBS Research expects the government to increase infrastructure spending in the Budget 2021 proposals in November and this move will benefit Gamuda, IJM Corp and Sunway Construction.
In its construction sector report issued on Wednesday, it thinks the recent 2Q GDP contraction of 17% (worst decline since 4Q9 1998) would be a precursor to a more aggressive allocation for infrastructure spending in the coming Budget.
“With the record-low interest rates now, we expect global economies including Malaysia to whip out the 2008 play book and roll out high-multiplier infrastructure projects, ” it said.
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