Sarawak will benefit from an increased government spending on infrastructure projects this year, especially for the Renewable Energy Corridor (SCORE).
According to MIDF Amanah Investment Bank Bhd in a research note on Saturday, the development of SCORE, would specifically require basic infrastructure such as roads, dam, bridges and rail to support heavy industries as well as new hydropower energy.
“We expect more construction jobs to be awarded to local construction companies. Sarawak-based contractors such as Hock Seng Lee Bhd and Naim Holdings Bhd, will be the main beneficiaries, from an increased government development spending,” it said.
MIDF Amanah also said a positive inflow of foreign direct investments (FDIs) into the state, will provide a multiplier effect and long-term positive impact on Sarawak state-owned companies, particularly those involved in the construction sector.
Over the past month, Sarawak has received huge FDIs from China, including the US$1 billion joint venture smelter project in Similajau Industrial Park.