KUALA LUMPUR, Aug 15 — China’s financing of major infrastructure developments here has made Malaysia one of the “most attractive” construction markets globally, according to BMI Research.
In its latest Risk/Reward Index (RRI), Malaysia rose to 70.3 from 67.4 previously to become the fifth best construction destination out of 105 countries across the globe and second in Asia. The index runs from 0 to 100, with higher scores denoting greater attractiveness.
BMI said upcoming large-scale projects such as the High Speed Rail between Singapore and Kuala Lumpur as well as the East Coast Rail Link meant that the project pipeline in the country is “immense” relative to its size.
“Many infrastructure, residential and non-residential projects are supported by financing from China, with Malaysia being the focal point for Belt & Road related investments,” BMI said.
Malaysia also just launched the second phase of first Mass Rapid Transit line last month.
The country was rated average in infrastructure competitiveness, however due to financing and operating roles being dominated by the government and state-owned enterprises.
The country’s long-term political risk was adjudged to on par with others in the region.
Malaysia’s highest scores in RRI components were in construction timeliness and economic risk, while the lowest are in competitive landscape and GDP per capita growth.