WITH the recent tabling of Budget 2025, a clear focus has been placed on improving infrastructure in Sabah and Sarawak – two regions that have long been in need of significant developmental upgrades.
While the shift away from mega infrastructure projects might have taken some by surprise, the emphasis on rural development and regional growth presents a wealth of opportunities for companies operating in the construction and building materials sectors.
One such company is property and hospitality-centric Meta Bright Group Bhd (formerly Eastland Equity Bhd) which is set to benefit significantly from these new initiatives.
The RM421 bil allocation in Budget 2025 prioritises a broad spectrum of areas, including rural development, clean water supply, electricity and road infrastructure.
In particular, Sabah will see a massive RM6.7 bil allocation toward rural development. The focus on critical infrastructure such as roads, clean water and electricity will naturally increase the demand for essential construction materials.
“This is where Meta Bright through its subsidiary Expogaya Sdn Bhd stands as the largest ready-mix concrete supplier in Sabah, thus positioning the company as a key player in this regional infrastructure boom,” the group’s executive director (corporate and strategic planning) Derek Phang Kiew Lim told FocusM.
Among the highlights of Budget 2025 is the continuation of the Pan Borneo Highway which is crucial for enhancing connectivity across Sabah and Sarawak with RM9.7 bil earmarked for its next phase.
Inevitably, the highway’s expansion is expected to fuel the demand for construction materials like concrete, steel and cement.
As a dominant supplier of ready-mix concrete, Meta Bright is strategically positioned to meet this rising demand, further reinforcing its stronghold in the sector.
In addition to the Pan Borneo Highway, the RM7.4 bil Sabah-Sarawak Link Road (SSLR) Phase 2 and the RM253 mil allocated for the expansion of Tawau Airport are further infrastructure projects that will bolster Meta Bright’s prospects.
The airport expansion, in particular, is expected to improve accessibility to Sabah, benefiting tourism and trade which are two sectors that will in turn require significant construction input.
However, Phang is of the view that Meta Bright’s potential extends far beyond the building materials segment.
“Budget 2025 also highlighted the government’s commitment to renewable energy (RE) with allocation for facilities related to the National Energy Transition Roadmap (NETR) increasing to RM300 mil,” he observed.
“This is a clear signal for companies involved in green energy projects; Meta Bright’s focus on energy efficiency and solar initiatives aligns well with the national agenda.”
With the push for RE gaining momentum, Meta Bright is primed to tap into emerging opportunities within this sector.
At 2.56pm, Meta Bright was unchanged at 14 sen with 50,000 shares traded, this valuing the company at RM354 mil. – Oct 21, 2024
