Message from the President 2014-2016
Warmest greetings! On behalf of BMDAM I would like to wish you well and trust 2015 has started off well for you and your business.
The outlook for this year as far as construction GDP is concerned, is expected to be moderate, revealing an underlying strain of resilience reflective of an economy that is able to ride out the twists and turns in the months ahead.
The Malaysian construction sector outlook for 2015 promises to remain energetic and enthusiastic and is expected to benefit from several mega projects recently announced by the government although some factors may impede growth due to tight fiscal measures, the initial impact of GST and possible interest rate hike. Nonetheless we are confident that the government’s GDP forecast of 10.7% for this sector in 2015 can be realized and if so, it will be the fourth consecutive double-digit growth due to the flurry of construction activities involving major rail lines, roads and highways. Demand for affordable housing will support the industry while the non-residential sub-sector is expected to remain stable.
The start of several oil and gas related projects will help drive the construction sector’s growth rate to 10.7% supported by oil & gas related projects such as the Refinery and Petrochemical Integrated Development (RAPID) and other on-going transport-related infrastructure projects.
Likewise, 2015 is an ASEAN’s era, the Asean Economic Community (in short called AEC) is no longer a slogan but a reality that the region’s government, businesses and people need to get its prepared in 2015. If we refer to the AEC Blueprint, the AEC will “establish ASEAN as single market and production base with the goal of making ASEAN more dynamic and competitive” and the Four Pillars of AEC which further defined. All the agreements on trade, services and investment are changing the economic landscape and allowing the free flow of goods, services and people across the region. This is making ASEAN a more competitive region.
ASEAN, with a market size of over 600 million consumers has a combined GDP for nearly USD 3 trillion. In fact, AEC will be the foundation of establishment of ASEAN in prosperity and stability in future.
We need to be more innovative in order to capitalize on AEC’s potential benefits or run the risk of losing out to foreign competition. Our local industrial players would need to be more unified by agreeing to produce different products, rather than all producing the same thing and end up in fierce competition in pricing.
In closing I wish to thank you for your continuous support for BMDAM and would always welcome any feedbacks and suggestions to make our association even better for the months to come.
Yang Kian Lock