26 January, 2007

Singapore Casino

Genting is awarded the 2nd liciense for casino Operator in Singapore.

Total Development cost is to be expected by S$ 5.2 billion. The Integrated Resort is required to complete and operating in the year of 2010.

let make a conversion here, to simplify the figure. S$5.2billion is equally to RM 11.44billion and it is divided into 3 years. Therefore, it is a about a huge development of about RM 4 billion per year job.

Can you imagine how big is the RM 4 billion p.a. job.? How boom will be the construction industry in Singapore? ok. let me illustrate in more detail, i believe everyone know about KL convention center. it is built in 3 years time and now crack your head and imagine there is about 8 similar size of development is going to construct in one year and friend, it is continuously for 3 years.

To astonish you, on top of the above mentioned development, the 1st liciense to Las Vegas Sand is also similar huge size of development. i just can't imagine how massive the construction industry in this coming years..

Let see how it goes ..

17 January, 2007

Demand of "A" class Office Block

Since many years back, the office block development has been slowing down and ilding for quite some years. Nowadays, getting more and more demand is growing up in the market. Those strong growth company like oil and gas companies, financial instituition, ICT companies, they are expecting to set up their businesses in the city center. of course, the asthetics building with "A" class facilities will definitely become the first choice of those companies.

Investors from middle east and other region are exploring their business in par with the strong growth of Malaysia current trend under 9th MP. Those old buildings are getting obsolete and new advanced office blocks are needed. In view of the demand, office development is going to resume or either the refurbishment of old office blocks at the ideal location will be taking in place.

As forecast, office development will be coming up in this coming years in city center. it can be foreseen from the curent demand of office unit and growth of rental in office block.

13 January, 2007

Construction Stock

Currently, Construction stocks are running up. Those big boys like IJM, Gamuda, WCT, UEM, etc are getting to explore more on oversea project, especially Middle East.

As announced in last November 2006, MMC got the city development of about US $30 billion over the 30 years. Friend, it is going to be RM 3.5 billion per year. it is going to be long term development.

WCT and Gamuda have already long step in to Middle East and started to expand their biz and growing up to be more establish at Middle East..

In view of the oversea project, when combine the kick off of mega project under 9th Malaysia plan. Those active construction companies will easily to have over billion ringgit of order book this year.

Double track is going to resume soon.. Extension of LRT, Second Penang Bridge, Iskandar development, etc.. this is the main reason pushing the construction stock to hike up to year high. Besides that, those raw construction material are growing up as well under the second wave of the boom. Cement price has gone up like CIMA, Lafarge, YTL cement, etc.. soon to be the steel bar will be going up again..

For the conclusion all development/ construction are pushing up the KLCI.. Well.. let see the wave can hike up to what extent.. this is what we have expecting ... hope we will get this wave go as high as it can..