Construction to gain from 2015 rise in development spending

Kuala Lumpur

MALAYSIA's contractors are expected to be the key beneficiaries of an additional 20 per cent in development expenditure next year, the budgeted RM50.5 billion (S$19.7 billion) earmarked for the implementation of key infrastructure projects including the extension of two main rail networks in the Klang Valley.

Given the extra funding would help boost consumption growth - private consumption is expected to moderate amid rising prices - Affin Investment Bank said it was the right move.

Notwithstanding income tax cuts and higher cash handouts to lowerincome households, consumption growth is forecast to moderate owing to inflationary pressures arising from a 10 per cent fuel hike in October and the implementation of a 6 per cent Goods & Services Tax in Apri…