Speedbrick ’s Post

Money Leakages: Contractors Do Not Have Visibility on How Much Money Leaks One of the biggest challenges in the construction industry is the lack of visibility into financial leakages. Despite meticulous planning and stringent controls, many contractors struggle to identify where their money is leaking and how much is being lost. Without clear visibility, it's nearly impossible to take effective action to stop these leaks. This often leads to the frustrating realization of seeing profits on paper but not in the bank. What strategies have you found effective in identifying and plugging financial leaks in your projects? Lets explore this in our upcoming event: Date: 19 June (Wed) Time: 9am Venue: Function Room 5, Setia Spice Arena Opening remarks by Dato' Goh Teng Whoo, President of Penang Master Builder Representing contractors: Dato CL ANG Director of Pilot Construction Sdn Bhd Felix Loh Project Management Office Lead of Propel Berhad and you - come help contractors voice out their concerns. Representing tech partners: Pui Mun Teoh Founder of Speedbrick Ts. Sam Tan Regional Customer Success Manager of Glodon Malaysia Kek Hean Hooi Founder of Antbuildz.com Bruce Wells Managing Director of dBilt Representing academician: Dr Nurul Sakina Mokhtar Azizi of Universiti Sains Malaysia Event moderator Desmond Loi Event Organiser Penang Master Builders Speedbrick Admission is free. Register here: https://lnkd.in/gcc-y6aK Penang Buildex #Construction #Contractors #Technology #CashFlow #Profitability #Contech

Penang LRT Boon for Construction Sector Overall #Impact: The rollout of the Penang LRT is a positive development for the Malaysian construction sector, creating a strong job pipeline across civil and private sectors, according to MIDF Research. This mega project is expected to benefit various industry players over the next few years. Project #Scope: The project is divided into three contracts. Segment 1 (Silicon Island to Komtar) awarded to SRS Consortium (majority owned by Gamuda Bhd) Segment 2 (Komtar to Penang Sentral) and Turnkey Systems & Rolling Stock (open for tenders) #Beneficiaries: Construction companies like Gamuda, Sunway Construction, IJM Corporation, and Malaysian Resources Corporation (for potential Segment 2 contract and subcontract). Building material suppliers like Malayan Cement (cement) and steel companies (steel bars, rails, noise barriers) #Commentary: - Gamuda has a head start: Securing Segment 1 ensures a significant workload and potentially bolsters their order book. - Opportunities for other players: Segment 2 and Turnkey Systems contracts present opportunities for other construction companies. - HLIB Research highlights Sunway Construction, IJM Corporation, and Malaysian Resources Corporation as potential contenders. - Subcontracting potential: Companies like TRC Synergy, Gadang Holdings, Kimlun Corporation, and others could benefit from subcontracting work in Segments 1 and 2. - Material suppliers to gain: Increased construction activity will drive demand for building materials like cement and steel, benefiting companies like Malayan Cement and steel producers. #Overall, the Penang LRT project presents a significant growth opportunity for the Malaysian construction sector. Companies with strong track records and relevant expertise are well-positioned to benefit.

Deeper Dive: JOHOR LRT PROJECT The Johor LRT (Light Rail Transit) is a proposed RM20 billion project envisioned as a critical component of Johor Bahru's public transportation network. Here's a breakdown of its potential development: #Importance: • Traffic dispersal system: The primary purpose of the Johor LRT is to manage the anticipated surge in traffic from the upcoming Johor Bahru-Singapore RTS Link. This rail link, expected to be operational by 2027, will connect passengers between the two cities efficiently. The LRT will act as a secondary network, distributing passengers within Johor Bahru itself, easing congestion on main roads. • Economic benefits: The project is expected to spur economic growth in Johor Bahru by: - Improved connectivity: Efficient public transport encourages people to live, work, and shop in different areas of the city, boosting overall economic activity. - Development opportunities: The construction phase will create jobs and stimulate related industries like steel and construction materials. - Increased property value: Areas with better public transport access often experience property value appreciation. Project #Details (as of April 2024): • Current Stage: Proposal stage. While details are still emerging, discussions are ongoing between project proponents and the federal government. • Estimated Cost: RM20 billion. There might be variations depending on final plans and construction costs. • Possible Features: - Three lines: Tebrau, Skudai, and Iskandar Puteri, with a total length of around 30km. - Up to 50 stations catering to different parts of Johor Bahru. - Potential for Transit Oriented Development (TOD) projects along the LRT lines, creating mixed-use spaces with residences, commercial areas, and public amenities near stations. #Challenges and #Considerations: • Funding: Securing the substantial budget for construction is a major hurdle. Public-private partnerships or alternative financing models might be explored. • Land acquisition: Obtaining land for the LRT network and potential TODs could be a complex process. • Project timeline: The exact timeline for approval, construction, and completion is yet to be determined. The JOHOR LRT project holds significant potential to transform Johor Bahru's public transport landscape and economic development. However, navigating the challenges of funding, land acquisition, and project execution will be crucial for its success.

Penang LRT Project Gets Moving 1) Government offered contracts to SRS Consortium: This company, partly owned by Gamuda, is being considered for the first stage of the project (Silicon Island to Komtar). Negotiations are expected to be finalized within 6 months. 2) Project under MRT Corp: The federal government's Mass Rapid Transit Corporation will own and develop the Penang LRT. 3) First of a 29km line: This initial section connects key areas in Penang and provides future connection to mainland train networks. 4) Budget and Timeline: • RM10 billion allocated by federal government (Budget 2024). • Construction expected to start by Q4 2024, with completion targeted for 2030. • Specific budget for the first segment not yet disclosed. 5) Additional Revenue Stream: A joint venture between MRT Corp and the state government will develop an operations depot with integrated development to generate revenue for future maintenance. 6) This project is a significant step forward for Penang's public transport infrastructure. It's based on the Penang Transport Master Plan, originally proposed in 2012.

> Original Plan: A high-capacity system similar to the Kelana Jaya LRT Line in Kuala Lumpur, which can handle 15,000 to 30,000 passengers per hour. > New Consideration: A "low- to medium-capacity" system that is more scalable and cost-effective for Penang's ridership projections. This would allow them to start with smaller trains and add more cars as needed in the future. > Factors for Choosing the System: Passenger ridership, development and operation costs, and the state's financial ability. The final decision on the specific LRT system type will be made by the Ministry of Transport's procurement board. Additionally, the other aspects of the Penang Mutiara Line project: • Construction Start: Expected in September or October 2024. • Project Length: Approximately 29 kilometers. • Number of Stations: 20 stations, including interchange stations at Komtar and Penang Sentral. • Modular Construction: Being considered to optimize infrastructure development costs. • Power Supply: Each station will be connected to a Traction Power Substation (TPSS). The project is still on track to begin construction in September or October 2024. The final details on the specific type of LRT system will likely be determined by the Ministry of Transport based on passenger projections and the state's needs. Overall, it appears this project is moving forward with a planned start date later this year. They're focusing on a system designed to meet Penang's specific needs and be cost-effective.

Malaysia's property and construction sectors are poised for a promising outlook, with stable House Price Index (HPI), reduced residential overhang, and infrastructure projects like the Johor Bahru-Singapore Rapid Transit System, Penang Light Rail Transit, MRT3, Pan Borneo Sabah Phase 1, among others, boosting sentiment. Despite potential marginally higher property prices due to rising construction costs and inflation, the property sector remains buoyed by strong demand, as evidenced by a noteworthy increase in loan applications in the first two months of 2024. Additionally, Malaysia's economic growth trajectory is bolstered by an upgraded GDP growth forecast of 4.4% for 2024 by the International Monetary Fund (IMF), along with expectations of sustained growth in subsequent years. Collaborative efforts and strategic initiatives, such as those outlined by the Malaysian Investment Development Authority (Mida) and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, further position Malaysia as an attractive investment destination, emphasizing high-value investments aligned with the New Industrial Master Plan 2030 (NIMP 2030). This robust economic landscape is complemented by ongoing infrastructure development and digitalization efforts in the construction sector, which anticipate solid performance and substantial growth post-COVID-19. In a recent announcement, the Ministry of Finance confirmed a proposed highway linking Tanjung Malim to Lumut, aimed at enhancing export logistics through the Lumut Maritime Industrial City once the High Technology Automotive Valley (AHTV) project in Tanjung Malim commences operations, addressing the need to empower Lumut Port and mitigate congestion at Port Klang. Conversely, the Petaling Jaya Dispersal Link (PJD Link) Expressway project has been discontinued due to the developer's failure to meet conditions outlined in the concession agreement, as announced by government spokesman Fahmi Fadzil, with further details to be provided by the Works Ministry. Other updates include IGB Real Estate Investment Trust reported a 4.79% increase in first-quarter net property income driven by higher rental income and anticipating further growth despite concerns about rising living costs. Kumpulan Kitacon Bhd secures a RM134.8 million construction contract for double-storey houses in Ijok, Selangor. For further details on this week’s corporate announcements, please visit https://lnkd.in/gRTRsZN4 #zerinproperties #corporaterealestate #realestate #realtor #realty #realestateagent #home #property #luxuryrealestate #homesweethome #luxuryhomes #realestatelife #business #investmalaysia #realestateinvesting #residentialsector #retailsector #industrialsector #propertydevelopment #township #infrastructure #malaysiapropertymarket #newlaunches #infrastructure #greaterkl #iskandarmalaysia #penang

MIDF AMANAH MAINTAINS 'POSITIVE' STANCE ON CONSTRUCTION SECTOR • Strong project pipeline: The government's budget allocation of RM90 billion for development expenditure (DE) is expected to translate into a significant number of construction projects in the second half of 2024 (2H 2024). As of April 2024, RM54.22 billion worth of projects have already been awarded, exceeding the previous year's figures. • Government commitment: Deputy Works Minister Datuk Seri Ahmad Maslan anticipates a surge in civil jobs starting mid-2024. This indicates continued government support for infrastructure development. • Private sector growth: Rising demand for industrial buildings like data centers, warehouses, and semiconductor foundries is expected to fuel private sector construction activity. • Specific projects: Several upcoming projects that will contribute to the sector's growth, including: - Kuala Lumpur Sentral redevelopment (estimated cost: over RM1 billion) - Penang's Mutiara Light Rapid Transit Line (budget allocation: RM10 billion, expected start: Q4 2024, completion by 2030) - Sabah-Sarawak Link Road (Phase 2) (budget allocation: RM7.4 billion) - Mass Rapid Transit 3 Circle Line (tender award likely by end-2024) • Overall, MIDF Amanah Investment Bank maintains a "positive" stance on the construction sector, citing the factors mentioned above. They recommend investing in companies like Gamuda, IJM Corp, and Malayan Cement which are positioned to benefit from this growth.

Latest news reinforces the positive outlook for Malaysia's construction sector we discussed earlier. Here's #why: Stronger Evidence: • DOSM Confirmation: The data from the Department of Statistics Malaysia (DOSM) confirms the exceptional growth in the construction sector, particularly in civil engineering (24.7% YoY). This aligns with MIDF Amanah's focus on this sub-sector. • Public Sector Investment: The significant increase in public corporations' output (41.0% YoY) highlights the government's commitment to infrastructure projects, supporting the expected project pipeline. Specific Projects: LRT, ECRL, HSR, MRT3: MIDF mentions specific key infrastructure projects like the Penang Light Rapid Transit (LRT), East Coast Rail Link (ECRL), and the potential High-Speed Rail (HSR) and Mass Rapid Transit Line 3 (MRT3). These projects will directly contribute to construction activity. Overall Impact: This news strengthens the case for the construction sector's continued growth in 2024. The robust public sector investment, particularly in civil engineering, coupled with potential private sector projects exceeding RM90 billion, paints a very optimistic picture. Companies positioned to benefit from this growth, like those mentioned by MIDF Amanah (Gamuda, IJM Corp, and Malayan Cement), become even more attractive investment options.

"How can I see real-time cost incurred in my construction project" "10 projects making money, but if 1 project lose money, it will cost me my company" Statements I heard alot from Penang contractors in the past few days. Contractors are now slowing down on signing of new contracts due to material price uncertainty. Many are worrying about margin. "Why construct if we are not making profit" is a general mentality in the northern region. They take cost control seriously here. #penangcontractors #CostControl #realtime #datadrivenprocurement #reportsautomstion

Johor's Construction & Material Sector 1) JB-SG Rapid Transit System (RTS) — Construction progress — #Update 70.5% completed (Mar-24), exceeding target 2) Southern Economic Zone (SEZ) Project — #Update Imminent 3) Data Centers (DC) Project — Committed Supply — #Update 600MW (Dec-23), 1,000MW (Apr-24) 4) Autonomous Rail Rapid Transit (ART) Project — #Update Urgency highlighted by IRDA 5) Companies Update: • Suncon - Precast plants at full capacity, strong execution record in Johor • Kimlun - Precast plants at full capacity • IJM & Suncon - Role in RTS project 6) IRDA's Initiatives: - Investment Target: Achieve RM636 billion by 2030F - Data Center Guidelines: More comprehensive guidelines to manage increasing water & electricity needs - New Dam & Water Catchment Areas: Planned to support data center growth - Energy-Efficient DC Design: Encouraged by IRDA Analyst #Notes > Suncon - Best proxy for Johor contracts due to first-mover advantage in data centers and strong local presence > Contractors to Watch - Gamuda, Econpile (for strong execution records) > ART Potential Benefits - Cost advantage, shorter construction time, integration with KL-SG HSR & Senai Airport Extra #Notes: • Government's commitment to project timelines • High data center demand driving property interest • ART urgency for SEZ success • Potential integration of ART with KL-SG HSR & Senai Airport