Revised public display of MRT3 seen as another step forward, indicating govt commitment to project

• Public viewing of the latest changes to the MRT3 project is expected to run for three months until Dec 2. Also known as the Circle Line, the MRT3 is expected to close the public rail loop in the Klang Valley, linking up with the existing MRT services, LRT, KTM as well as Monorail lines at 10 key interchanges.

KUALA LUMPUR (Sept 6): A revised public display of the third phase of the Mass Rapid Transit (MRT3) indicates the government’s commitment and another step forward for the project, CIMB Securities said.

The actual timeline to kickstart the MRT3 remains unknown despite the scheduled public viewing, CIMB Securities said, noting that project owner Mass Rapid Transit Corporation Sdn Bhd had asked for bidders to extend the validity of their tenders for the work packages until March 2024.

“We believe that more clarity could emerge after the upcoming national budget in October 2024, especially on the exact funding mechanism [for the MRT3],” the house said. For now, the house remains neutral on the project.

Public viewing of the latest changes to the MRT3 project is expected to run for three months until Dec 2. Also known as the Circle Line, the MRT3 is expected to close the public rail loop in the Klang Valley, linking up with the existing MRT services, LRT, KTM as well as Monorail lines at 10 key interchanges.

Altogether, the project will have above-ground tracks of 39km, and 12km underground, with 32 stops. The project is expected to cost RM45 billion, according to estimates in February last year during the presentation of the revised Budget 2023.

For now, CIMB Securities reiterated that construction spending for the sector as a whole is set to re-accelerate by the fourth quarter of 2024, supported by a mix of private as well as government-funded infrastructure projects.

The house also retained its ‘overweight’ stance on the construction sector, highlighting Gamuda Bhd (KL:GAMUDA) as its top large-cap pick, alongside key picks IJM Corporation Bhd (KL:IJM) and Malaysian Resources Corporation Bhd (KL:MRCB).

The government has already started dishing out infrastructure-related contracts. On Wednesday, Central Global Bhd (KL:CGB) received a RM616 million contract for the upgrading of the road from the Lahad Datu bypass to Kampung Sandau under Phase 1B of the Sabah Pan Borneo Highway project.

On Aug 30, a joint venture between Pansar Bhd (KL:PANSAR) and China Road and Bridge Corp was awarded a contract worth RM805 million for Package 2 of the Kuching Urban Transportation System’s Blue Line that covers the stretch from Stutong to Hikmah Exchange.

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