Malaysian PM resignation signals concern for infrastructure projects

• 28 April 2020
• Construction Focus
• 2121 Views

The shock resignation of recently-elected Malaysian Prime Minister Mahathir Mohamed has raised concerns over-scheduled though controversial major infrastructure projects. Among his first actions on becoming prime minister in 2018 was to cancel the Chinese-funded high-speed Singapore-Kuala Lumpur rail line and the MRT 3 Circle Line projects among concerns about the levels of debt incurred, estimated to be around US$47 billion.

However, with Mahathir’s resignation coming off the back of the collapse of his party coalition, the fate of the high-cost projects is once again in the balance.

Industry analysts Fitch Solutions issued a warning at the end of February over investor confidence following the collapse of the government and key policymakers, though retained its overall confidence in the construction sector to grow by 3.5% in 2020.

 

• Policy and Strategy