Budget 2018: What’s in for construction industry

KUALA LUMPUR – A total of RM280.25 billion allocated in the Budget 2018 focuses on expanding an inclusive economy while looking forward to the ‘Transformasi Nasional 2050’ (TN50) goals and making Malaysia a top 20 country.

While Prime Minister Najib Tun Razak made no mention of initiatives or tax reliefs for the construction industry in the coming year, the series of measures to strengthen the economy, build new infrastructure and increase home ownership, among others, will enliven the industry in the coming years.
Encapsulated are some interesting measures the broad spectrum of the construction industry can take notice of and play a central role in.

Trade and Industries
RM1 billion allocated for five main corridors, while the government develops the South Perak Region and Bukit Kayu Hitam Duty Free Zone, construction of port and industrial park in Tok Bali, Kelantan and access
road to Baleh Dam, Sarawak.

RM500 million to improve irrigation infrastructure and upgradeplantation roads.

RM110 million to provide an alternative road to Port Klang to smoothen and complement the transportation network.
RM32 billion for the construction of MRT2 Line fro Sungai Buloh-Serdang- Putrajaya project, spanning 52 km, covering 37 stations.
MRT3 or Circle Line to be expedited and completed by 2025, earlier than the initial target in 2027.
Construction of LRT3 project that connects Bandar Utama to Johan Setia, Klang to be completed by February 2021.
High Speed Rail project connection Kuala Lumpur and Singapore with a distance of 350 km in 90 minutes to be operating by 2026.
RM5 billion for the construction of West Coast Highway from Banting, Selangor to Taiping, Perak.
RM230 million to continue the construction work, among others, a road from Raub to Bentong and Gua Musang, Kelantan to Kampung Relong, Pahang.

RM95 million to upgrade and construct jetties as well as dredge river estuaries.
Upgrade Pulau Pinang International Airport and Langkawi International Airport.
Construction of a new airport in Mukah as well as expansion of airports in Kota Bharu and Sandakan.
Possible development of a new airport in Pulau Tioman and a bridge connection Labuan with mainland Sabah.

RM112 million to build 14 new sports complexes nationwide.
RM20 million to upgrade its facilities as the premier sports school.

RM2.5 billion for a period of two years is allocated for repair works through Industrial Building System (IBS), of which RM500 million to schools in Peninsular Malaysia, RM1 billion in Sabah and RM1 billion in
RM654 million for the construction of four pre-schools, nine PERMATA centres, including two new centres for autistic children, 48 primary schools, secondary schools and vocational colleges as well as one matriculation centre.
RM550 million to school upgrading and maintenance.

Inclusive development
RM1.1 billion for rakyat-centric projects in Sarawak that includes building and upgrading of bridges, musolla, small bridges and markets.
RM1 billion to develop communication infrastructures and broadband facilities in Sabah and Sarawak.
RM934 million for the construction of rural roads with almost RM500 million for Sabah and Sarawak.
RM672 million for electricity supply in rural areas, including RM620 million for Sabah and Sarawak.
RM420 million, including almost RM300 million for Sabah and Sarawak, to provide clean water supply.
RM500 million for Public Infrastructure Maintenance Programme and Basic Infrastructure Project.
FELDA Settlers
RM164 million to build 5,000 Second Generation FELDA Homes in collaboration with SPNB.
Nearly RM200 million for FELDA to supply water and upgrade roads and streetlights.

Security and Public Order
Part of RM720 million to build 11 headquarters and six police stations.
Construction of 10,000 units of houses under 1Malaysia Civil Servants Housing-PDRM at affordable price according to police salary scheme.
Plan to build 40,000 units on phases by 2030 under the Armed Forces Family Housing (RKAT). In 2018, almost 6,000 units will be built.
RM40 million to upgrade five hospitals, build four polyclinics and hospital for ATM veterans.

RM2.2 billion is allocated to build:
17,300 units of People’s Housing Programme
3,000 units of People’s Friendly Home under SPNB
210,000 units under PRIMA with prices RM250,000 and below (RM1.5 billion allocated for a period two years)
25,000 units of 1Malaysia Civil Servants Housing Programme to be completed in 2018 while another 128,000 units at various stages of construction
600 units of MyBeautiful New Homes scheme for B40 households in Terengganu, Pahang, Melaka, Johor, Sabah, Sarawak and Orang Asli settlements
– A step-up financing scheme introduced by PRIMA will be extended to private housing developers, subject to certain criteria, as to encourage the construction of more affordable homes.

– With regard to abandoned housing projects, stamp duty exemption for loan agreements and letter of consent to transfer are given to rescuing contractors and original owners of abandoned homes.

Part of RM1.4 billion used for construction of operation hall using a
modular approach in three hospitals in Muar, Banting and Balik Pulau.
RM100 million to upgrade hospitals and clinics, including wiring systems.
RM1 billion to build two blocks o women and children wards at Tengku Ampuan Afzan Hospital and Putrajaya Hospital with a capacity of 300 beds each,
RM500 million to build a cancer centre in Sungai Petani with a capacity of 200 beds
RM500 million to construct a block dedicated for a specialist clinic and a new ward at Pulau Pinang Hospital with a capacity of 300 beds.
RM380 million for construction of international forensic medical service centre at Kuala Lumpur Hospital.
Sustainable Development
RM5 billion under the Green Technology Financing Scheme to promote investment in green technology industry (the construction industry can play a big role in)
RM1.3 billion to construct the Off-River Storage as an alternative water resource.
RM517 million for flood mitigation programmes.

Digital Free Trade Zone
RM83.5 million to construct infrastructure for the first phase of DFTZ in Aeropolis, KLIA.

[October 28, 2017]