Malaysia's construction sector is expected to see a more favorable outlook in 2H as geopolitical risks ease, improving the sector's risk and reward profile, says Hong Leong IB analyst Brian Chin in a note. He expects job flows to accelerate in 2H, driven by the expected award of several major data center projects by U.S. multinationals and greater clarity on the rollout of large infrastructure projects under Budget 2027 ahead of the next general election. He also expects a pickup in building project awards as developers resume residential launches following the slowdown in 2Q. Hong Leong maintains an overweight rating on Malaysia's construction sector, and pegs Sunway Construction and IJM Corp. as top picks. (yingxian.wong@wsj.com)
Malaysia's Construction Sector Outlook Likely More Favorable in 2H — Market Talk
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