“โข The Malaysian government aims to construct affordable housing in a bid to reduce the housing deficit. As part of its 2015 budget, the government announced a target of constructing 80,000 housing units under the 1Malaysia People housing program (PR1MA) for an investment of MYR1.3 billion (US$373.9 million). A population increase and urbanization are expected to raise demand for housing. Public and private sector investments are further expected to support residential construction market growth over the forecast period. KAJ Development Sdn Bhd is planning to construct a mixed-use complex on 246ha land in Malacca City. The project is expected to be complete by 2025. Sunway Bhd is undertaking the Sunway Iskandar Integrated Township project in Nusajaya, Johor. The project involves the construction of a mixed-use community on a 728ha of land and is expected to be complete by 2020.
โข In its 2014 budget, the Malaysian government launched a new national education blueprint for 2013โ2025, with the aim of making Malaysia the worldโs third-largest country by 2025 in terms of its education system. The education blueprint includes the development of two education cities โ Kuala Lumpur Education City (KLEC) and EduCity at Iskandar. KLEC includes the construction of primary and secondary schools, and international and local universities on a 2,023,428m2 KLEC Academic Park, which will provide education to 30,000 people. EduCity will be built on a 1,214,057m2 campus and include the establishment of universities, an Olympic-sized swimming pool and a 14,000-seat stadium. This is expected to support construction activity in the institutional construction market over the forecast period.
โข The government allocated MYR2.7 billion (US$859.1 million) in its 2014 budget towards research and development (R&D). As part of this, the government announced measures such as providing incentives to cover operating costs during 2014โ2018 for human capital development, and a center for excellence for R&D. Import duty will be exempt from any company bringing in R&D equipment for pre-commercialization purposes. These initiatives are expected to drive investment in the research facilities category and will support the institutional construction marketโs growth over the forecast period.
โข Eco World Development Group Bhd is planning to enhance recreational facilities by constructing a new eco marina project at Bandar Cassia in Batu Kawan. The project is expected to be complete by 2018. UEM Land Holdings Bhd and two subsidiaries of Khazanah Nasional Bhd (Khazanah), Destination Resorts and Hotels and Themed Attractions And Resorts Sdn. Bhd., are jointly undertaking the construction of Desaru Resort Development project in Johor. The project is expected to be complete by 2025.
โข To become a high-income nation by 2020, the government has prioritized education as one of its key economic areas. The government aims to increase the number of international schools and encourage investors by providing a five-year tax exemption of 70% for new international schools. This is expected to increase investments in the school buildings category over the forecast period. As an example of this, under the PPP model, for an investment of MYR622.4 million (US$179.0 million) SEG International Bhd (SEGi) and Oakfine Development Sdn Bhd (Oakfine) are constructing the Segi Enclave University Campus project in Ipoh. The project is expected to be completed by 2016.”