Data centre boom puts construction sector on track for record contracts
KUALA LUMPUR: Malaysia’s construction sector is on track for record contract awards, driven by RM10 billion in data centre projects secured in the third quarter, according to Hong Leong Investment Bank Bhd (HLIB Research).
Malaysia's construction sector is poised for record contract awards, fueled by a RM10 billion data centre pipeline secured in Q3, according to Hong Leong Investment Bank Bhd (HLIB Research). Analyst Brian Chin reported that domestic contract awards surged 75% year-on-year to RM18.7 billion between July and September, bringing the nine-month total to RM46.4 billion, up 17% year-on-year.
He anticipates the sector could surpass its 2016 annual record of RM56 billion, thanks to a robust data centre project pipeline expected to convert into contracts in Q4. Notable domestic wins in Q3 included three hyperscale data centre packages in Port Dickson by Gamuda Bhd (RM5.3 billion combined), Penang LRT systems package by MRCB-Theta Edge (RM3 billion), and Kerjaya Prospek Group Bhd's first data centre contract worth RM858 million.
Overseas projects also bolstered order books, such as Kelington Group Bhd's RM1.8 billion semiconductor wafer fabrication facility contract in India and Gamuda's RM2.3 billion first stage of the Mortlake Energy Hub in Australia. Chin predicts another strong year-end finish with potential awards like the Northern Perak water project and the second CMC2 package for Penang LRT, plus future green power contract flows from the upcoming Corporate Renewable Energy Supply Scheme (CRESS).
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