Property firms to benefit from RM27bil transport masterplan

The RM27 billion Penang Transport Master Plan (PTMP) is set to benefit major construction and property players in Penang.

AmResearch noted that PTMP will also improve accessibility as well as spur further gains in Penang’s vibrant property market.

“Indeed, the spotlight will turn to the balance RM20 billion of major infrastructure works being lined up within Penang over the next 25 years.”

Last October, the government awarded the first component, which is the RM6.3 billion Penang undersea tunnel project, to the Zening-BUCG consortium.

Considering the huge technical and financial requirements, AmResearch expects bidders to form consortioums, including tie-ups with international contractors of repute, in order to strengthen their chances.

The research house believes that Gamuda Bhd has an edge over its rivals since it possess the necessary track record in handling mass rapid transit (MRT) projects.

“It is the PDP and tunnelling contractor for the Klang Valley MRT Line 1, and was recently appointed as the PDP for the MRT Line 2 as well.”

AmResearch also pointed to Malaysian Resource Corp Bhd as another beneficiary.

“Its proposed Penang Sentral development (approved by the state government in September) is set to be the main transport hub for Penang and the northern region of Peninsular Malaysia.”

Although the project is not directly under PTMP, Penang Sentral complements the government’s transport improvement agenda, it said.

“This suggests more upside to the entire project’s initial GDV estimate of RM2 billion.”

The masterplan’s imminent roll-out also offers a timely boost to IJM Land Bhd’s “The Lights” in Jelutong, while the opening of the Second Penang Bridge in March will also benefit Mah Sing Bhd’s remaining phases of Southbay City project.