Largest Record Budget for Development in Sarawak History Announced
Sarawakian firms, Cahya Mata Sarawak Bhd (CMW) and KKB Engineering Bhd (KKB) are expected to be the leading firms for upcoming infrastructure projects in Sarawak.
In a construction sector research update by MIDF Amanah Investment Bank Bhd (MIDF Research), a record budget of RM9.1 billion for development has been announced by the state government.
“Accordingly, the amount will be utilised to fund major infra projects including the Coastal Road, Second Trunk Road and the Water Grid Project,” it said in a note on Monday.
“Approximately 67% of the RM9.1 billion allocation for development expenditure will go to the development of rural areas.”
The update also noted that the budget is the biggest budget ever allocated in the history of Sarawak. Previous budgets for 2017 and 2018 allocated only RM2.982 billion and RM3.062 billion respectively.
“From the RM6.049 billion for rural development, RM1.535 billion will go to Projek Rakyat, RM500 million for Rural Transformation Projects (RTP), RM243 million for Minor Rural Projects, and RM72 million for ‘Program Penambahbaikan Rumah Miskin Sarawak’ (PPRMS), which will repair houses for the poor.”
MIDF Research added that RM1.1 billion will be allocated for the implementation of various projects because additional various projects in Sarawak are being invested in such as roads, bridges and jetties to improve connectivity.
“Following our optimistic view on Sarawak, we would recommend investors to consider CMS and KKB, which we opine to be the front-runner for the pending roll-out of the infrastructure projects aforementioned.”