The near-term outlook for the construction sector remains resilient, underpinned by the imminent ramp-up of progress billing, coupled with a gradual margin recovery.
PETALING JAYA: Analysts have reiterated their “positive” recommendation on the construction sector in view of what they call, “manageable” cost headwinds and the potential roll-out of infrastructure projects in Malaysia.
KUALA LUMPUR: Sunway Construction Bhd posted a net profit of RM30.2mil in the fourth quarter ended Dec 31, 2020, slightly lower than RM31.64mil in the previous corresponding quarter due to a provision made in the construction segment.
KUALA LUMPUR (Dec 31): Prasarana Malaysia Bhd is believed to have withheld payment of more than RM700 million that is owed to 17 contractors and consulting firms for the Light Rail Transit 3 (LRT3) project.
According to a jointly signed letter to Prime Minister Tan Sri Muhyiddin Yassin, Ministry of Finance (MoF) and Ministry of Transport (MoT) dated Dec 20, the 17 firms said Prasarana had not paid them since July.
As of October, the contractors were owed RM700 million, and after taking into account work done in December, this amount would exceed RM1 billion
The reason Prasarana delayed the payment to contractors is not known. However, the delay in payment has pulled many contracts and their subcontractors deeper into financial problems as a result of tight cash flow.