Latest news with #MRT3CircleLine
Focus Malaysia
16 hours ago
- Business
- Focus Malaysia
Final railway scheme for MRT3 approved, paving way for next phase
MALAYSIA Rapid Transit Corporation Sdn Bhd (MRT Corp) announced yesterday that the Final Railway Scheme for the MRT3 Circle Line has been formally approved by Transport Minister Anthony Loke. 'This came about eight months after the three-month public inspection exercise ended on 2nd December 2024. Over 45,000 of written feedback were received, with 93.3% expressing support for the mega rail project,' said MBSB. Among the main changes following the exercise was a -31.8% reduction in the number of lands lots required for acquisition, down from 1,012 to 690. This is slightly behind the initial schedule, where the Final Railway Scheme was expected to be approved by quarter four of calendar year 2024 (4QCY24), nevertheless, it is still a positive as this marks a step forward for the mega rail project. MRT Corp expects the land acquisition process to be completed by end-CY26, which will then pave way for construction to begin. We also do not discount the possibility that the land acquisition process may take slightly longer than expected. Notices for landowners to vacate the acquired lands should be issued starting 1QCY26, where they will be given up to six months to vacate. Recall that MRT Corp had previously sought for four extensions for the tender validity of MRT3. No extensions were sought after the fourth extension ended in Mar-24, which would mean that the tenders have naturally lapsed. We believe there would also be some changes to the original alignment of the project and the placement of stations, considering the reduction in plots of land for acquisition. We expect a re-tender exercise to be called by mid-CY26, and contracts to be awarded towards the end of the land acquisition exercise, which will likely be by end-CY26 to mid-CY27. The MRT3 Circle Line is a 51km orbital alignment that will serve the perimeter of Kuala Lumpur. It is designed for full integration with the existing MRT, LRT, KTM, and Monorail lines and will feature 10 interchange stations. The alignment is expected to be 39km elevated and 12km underground, with 22 elevated stations, seven underground stations, and three future stations. Back in 2023, the Government sought for a 10% reduction in the price tag for MRT3. When Prime Minister Datuk Seri Anwar Ibrahim retabled Budget 2023 in Feb-23, he expressed the Government's confident in cutting the MRT cost to under RM45b from RM50b previously. Construction cost will make up the bulk of the amount, expected to be around RM31.0 bil. Land acquisition cost may come up to RM6.0 to RM7.0 bil, with the remainder for project management and financing costs. The initial funding mechanism for MRT3 was planned to be a hybrid financing model where successful bidders of the contracts fund the initial two years of construction works worth at least 10% of the contract value and a minimum moratorium period of two years and will be reimbursed by the Government through deferred payments. Following that, news reports have also surfaced that the funding model would revert to debt issuances by DanaInfra Nasional in order to reduce the Government's financing cost. We are positive on the latest developments, which now provides more clarity that the MRT3 mega project is starting to take a step forward. This strengthens our optimism for the Construction sector; hence we maintain our positive recommendation. Construction of MRT3 may begin in CY27, which will keep contractors busy possibly up to 2033. This will be a timely continuation of projects following the expected completion of the Johor-Singapore Rapid Transit System (RTS) and the East Coast Rail Link (ECRL) by end-CY26. —July 18, 2025 Main image:
New Straits Times
a day ago
- Business
- New Straits Times
MRT3 gets final scheme approval, land acquisition to be completed next year
KUALA LUMPUR: The land acquisition process for the MRT3 Circle Line can now begin, following formal approval of the Final Railway Scheme by Transport Minister Anthony Loke. Malaysia Rapid Transit Corporation Sdn Bhd (MRT Corp), formerly known as Mass Rapid Transit Corporation Sdn Bhd, said the approval marks a significant milestone for the project. MRT Corp chief executive officer Datuk Mohd Zarif Hashim said the approval follows a Public Inspection exercise held from Sept 2 to Dec 2, 2024, during which MRT Corp received over 45,000 written feedback submissions. "An overwhelming 93.3 per cent of the feedback expressed support for the project, reflecting strong public and stakeholder endorsement. "We would like to extend our sincere appreciation to members of parliament, Selangor assemblymen, residents' associations, and business groups for their cooperation and consultation that led to such strong public support," he said in a statement. He said MRT Corp has made several improvements to the placement of stations and viaducts along the project's alignment, as well as the design of the MRT3 Circle Line's rail system based on the feedback received. Importantly, the number of land lots required for acquisition has been reduced from 1,012 to 690, significantly minimising the impact on affected communities. With the scheme now approved, the land acquisition process is set to begin and is expected to be completed by the end of 2026. MRT Corp will be engaging affected communities to update them on the improvements made in their respective areas. The MRT3 Circle Line is a 51km orbital route that will serve the perimeter of Kuala Lumpur. It is designed for full integration with existing MRT, LRT, KTM and Monorail lines, and will feature 10 strategically located interchange stations to enable seamless travel in both directions across the Klang Valley.
BusinessToday
11-07-2025
- Business
- BusinessToday
Malaysia's Construction Sector Remains Resilient Amid Trade Tensions And Cost Shifts
Southeast Asia's construction sector is demonstrating robust resilience and adaptability despite prevailing global economic headwinds and geopolitical uncertainties, according to the latest Global Construction Market Intelligence (GCMI) report 2025 released by Turner & Townsend, a global professional services company. The report, which provides an in-depth analysis of construction costs across 99 markets worldwide, highlights Southeast Asia's increasing competitiveness added that while construction costs are rising in certain areas, the region is experiencing a significant surge in demand for critical infrastructure, particularly data centres, alongside a strong shift towards sustainable building practices. These combined factors are positioning Southeast Asia as an increasingly attractive destination for global investment in the built environment. Brian Shuptrine, Asia Managing Director at Turner & Townsend, commented on the findings: 'We are seeing dynamic trends across Southeast Asia, where markets are not merely navigating global economic headwinds but actively seizing opportunities for growth through recalibration of costs and demand. The region's commitment to digital transformation and sustainability, and the strategic advantages of nearshoring, are fundamentally reshaping the construction landscape. This translates into significant opportunities for clients investing in future-proof assets, particularly within the rapidly expanding data centre developments and advanced manufacturing sectors.' The report stated that the Malaysian construction sector is poised for continued growth, propelled by public infrastructure projects like the MRT3 Circle Line and Penang LRT, as well as robust private sector demand for digital infrastructure, notably data centres. While Kuala Lumpur maintains relatively low costs at US$1,354 per m², the recent expansion of the Sales and Service Tax (SST) to cover most construction work services (excluding residential buildings) introduces new cost pressures. The industry is responding by embracing digital solutions and collaborative models to protect profitability and increase competitiveness, with a gradual shift towards greener building practices like reducing embodied carbon. As for Singapore, the sector remains one of Southeast Asia's most expensive markets, with average construction costs at US$3,104 per m². Despite anticipated inflation of 3.0% in 2025 and 5.0% in 2026, construction activity remains strong, with contract awards in the first four months of 2025 up approximately 60% compared to the same period in 2024. Challenges persist with tight contractor capacity, skilled labour shortages (especially in MEP trades), and rising waste management costs, driving interest in collaborative contracting models. Meanwhile, Jakarta offers one of the region's most cost-competitive construction markets in Indonesia at US$943 per m², with a steady escalation of 3.0%. The market is gaining gradual momentum, primarily driven by strong activity in the data centre sector as Indonesia's digital economy expands. Local developers are increasingly securing large-scale data centre projects, showcasing growing in-country capabilities. However, reliance on high-quality imported materials for major projects can strain budgets. Regional Challenges and Opportunities: A significant concern across Southeast Asia is the persistent shortage of skilled labour, particularly in Mechanical, Electrical, and Plumbing (MEP) trades, affecting 90.9% of Asian markets, including Singapore, Malaysia, Indonesia, and Vietnam. This underscores the urgent need for investment in training and local workforce development to meet surging demand for green-collar professionals. Sumit Mukherjee, Managing Director of Southeast Asia and Head of Real Estate of Asia at Turner & Townsend, emphasized that while cost remains critical, the focus is increasingly shifting towards value, efficiency, and supply chain resilience. 'The abundance of materials, especially from China, offers opportunities for faster and more cost-effective project delivery in some markets,' Mukherjee stated. The report further indicates that data centers have overtaken industrial, manufacturing, and distribution as the top-performing construction sector in Southeast Asia, reflecting the soaring demand for digital infrastructure. Corporate occupier activity has also rebounded, with a modest uptick in hospitality, sports, and leisure developments as tourism recovers. Looking ahead, nearshoring trends and the escalating demand for advanced manufacturing facilities are key drivers of heightened construction activity. Markets like Vietnam and Malaysia could benefit from a potential redirection of surplus Chinese material supplies if reciprocal tariffs with the U.S. persist, which could accelerate delivery, manage costs, and boost local manufacturing capacity. However, Malaysia's recent trade policy changes, including anti-dumping duties, introduce some uncertainty regarding future costs and supply chain decisions. Turner & Townsend advises clients to prioritise upskilling domestic workforces and strengthening local supply chains to mitigate risks, improve cost control, and ensure successful project delivery in the region's dynamic and growing construction landscape. Related
