KUALA LUMPUR: The anticipation of a recovery in the construction sector for the second half of this year has been dragged down by phase one of the National Recovery Plan (NRP) as well as the delay in the rollout of new mega contracts including the Mass Rapid Transit 3 (MRT 3).
Following the issuance of a stop work order on all construction works in Selangor and Kuala Lumpur last week, contractors are expected to face immediate earnings risks from the negative impact on progress billings.
Last week, the ministry issued a stop work order on construction works during the phase one of the NRP with only critical maintenance and repair works allowed to proceed. It is important to note that most ongoing major civil works contracts are concentrated in Selangor and Kuala Lumpur including MRT2, Light Rail Transit 3 (LRT3), West Coast Expressway (WCE) and and Damansara- Shah Alam Elevated Highway (DASH).
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