COMMENTS ON CONSTRUCTION INDUSTRY SECOND QUARTER GROWTH FOR 2010

In the first quarter of 2010, the Malaysian construction sector grew by 8.5% while in the second quarter of 2010 it moderated to 4.1%. This is a cause for concern as the total value of new construction projects awarded has been declining in the last 4 quarters. With the transition period from 9th Malaysia Plan (9MP) to 10th Malaysia Plan (10MP) which will only be launched in October of this year, we expect these new projects to only start contributing to the economy maybe one year later. This added to the slow implementation of Public Private Partnership (PPP) projects may result in a further reduction in construction GDP next year.