BGMC still sees silver lining over cloudy climate
Lim Cian Yai | 08 Jun 2018 00:30
The past three weeks were quite nervous for Bursa Malaysia, which reacted negatively to the various announcement of various mega project cancellations by the new Pakatan Harapan government.
So far, the government has scrapped the Kuala Lumpur-Singapore High Speed Rail (HSR) and Mass Rapid Transit 3 (MRT 3) rail project, citing high cost requirements. The cancellations impacted the local construction sector negatively.
As a result, investors and various affected parties are said to be waiting for greater clarity and certainty regarding the construction sector.
Despite the headwinds, Hong Kong-listed construction company BGMC International Ltd prefers to remain optimistic.
“We believe the long-term prospects remain intact. Sooner or later the government will have to kickstart its development programme for the sake of nationbuilding.
“For the time being we will concentrate on what we have in hand, pending greater clarity from the government after its review,” says Datuk Michael Teh Kok Lee, CEO of BGMC.
Teh reckons that the near term outlook for construction companies is challenging, but he hopes things will be back on track once the government reignites key development projects.
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