23 October 2014

HSR underscores more prospects for rail jobs

  23 October 2014

THE Kuala Lumpur-Singapore high speed rail (HSR) project underscores more prospects for rail-related jobs following news that the MRT2 and LRT3 projects will likely commence next year as per 2015 Budget, said AmResearch Sdn Bhd.

This came after a news report said the seven proposed stops for the Kuala Lumpur-Singapore HSR project had been confirmed. They are Kuala Lumpur, Putrajaya, Seremban (Negri Sembilan), Ayer Keroh (Malacca) and Muar, Batu Pahat and Nusajaya in Johor.

AmResearch said the states, through which the line will pass have given their consent.

The Kuala Lumpur-Singapore HSR project is due to be completed by 2020 at a cost of RM40 billion. A joint ministerial and technical committee is being set up to facilitate the project.

A key objective of the HSR is to reduce travel time between Kuala Lumpur and Singapore to 90 minutes, besides opening new economic and development corridors along the HSR network.

“If the project takes on a private financing initiative mode, we believe Gamuda Bhd could be in the mix of things, given its proven niche in executing high-impact rail projects and a strong balance sheet,” AmResearch said.

It said previous press reports indicated that at least three bidders had shown interest in the project, namely UEM Sunrise Bhd, MMC-Gamuda Bhd and YTL Corp Bhd.

“Suppliers of building materials, for example Ann Joo Resources Bhd, Lion Industries Corp Bhd and Lafarge Malaysia Bhd, stand to benefit from this project,” it added.

The research house has maintained an “overweight” stance on the construction sector, citing Mah Sing Group Bhd, IJM Land Bhd, WCT Holdings Bhd (via WCT Land Bhd), Gamuda (via Gamuda Land), UEM Sunrise and Eastern & Oriental Bhd as key beneficiaries.

“Likewise, the project will be a long-term catalyst for Malaysian developers, particularly those with visible landbanks in both Kuala Lumpur and Johor,” it said.

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