Market Research Reports - Ken Research Malaysia Infrastructure Market Research Report

Foreign Investments: A Boon for Malaysian Infrastructure Sector: Ken Research
Malaysia is open to foreign-investment environment in the infrastructure sector. The country
lacks a state-owned dominant construction company. Majority of the many infrastructure
projects are government-led, domestic and foreign private firms that opened opportunities to
participate. The competitive landscape of Malaysia's construction and infrastructure industries
is the most favourable in Southeast Asia, with numerous open foreign-investment laws along
with strong competition between private local and foreign companies. The construction,
equipment supply and design/consultant roles are predominantly open to private companies.
Infrastructure sectors such as railways remain in the hands of government agencies or project-
specific state-owned firms. It was observed that Chinese construction companies in Malaysia
occupy a major share in the infrastructure insights market that reflects both the country's open
foreign investment laws and its strategic location along China's Belt & Road initiative.
According to the report, “Infrastructure Insight: Malaysia”, Malaysia is expected to witness the
fastest infrastructure output growth rates in the world in the coming years while a continuation
of trends has been seen in the first half of the decade. Malaysia’s large-scale transport projects
planned include Klang Valley Mass Rapid Transit System, the Pan Borneo Highway Upgrade and
the East Coast Rail Link. An analysis of the administrative, economic and political context for
infrastructure in Malaysia is sure to help in the growth of the infrastructure insights market. The
current continuing infrastructures in Malaysia are roads, railways, electricity and power, water
and sewerage, communications, airports and ports.
Political and financial institutions are involved in the infrastructure market along with the
competitive and regulatory environment. The IIC is currently tracking 86 large-scale
infrastructure construction projects in Malaysia, at all stages of development from
announcement to execution. Malaysia anticipates joining the alliance of developed countries by
2020 by undertaking vast infrastructure and public works projects. Malaysia invested heavily in
transforming its public transport, roads, railways, ports, power plants, bridges, schools,
hospitals and industrial zones. With the growing population the infrastructure needs are
fulfilled by the Malaysian government.
Malaysia’s budget has allocated huge funds for improving public transport through expanding
the light rail transit, mass rapid transit and bus rapid transit systems. Other outstanding
projects in Malaysia include the Refinery and Petrochemicals Integrated Development (RAPID),
Pengerang Integrated Petroleum Complex (PIPC), the Tun Razak Exchange (TRX) and Merdeka
PNB118. Old power plants are replaces with new ones to satisfy increasing peak demand for
power. The infrastructures insight also involves offices, retail space, conference and exhibition
space, hotels, healthcare and wellness facilities.