The construction sector with its strong linkages was further boosted, following the announcement of several infrastructure projects under the 9MP. As of 30 June 2007, 26.0% of the RM44.5 billion allocation was spent with 29,913 projects in various stages of implementation. These include the Rawang-Ipoh Double Tracking Project, Integrated Transport Terminal in Bandar Tasik Selatan, widening of Penang Bridge and projects under the economic corridors. In addition, the sector was aided by more than 34,000 projects for building and maintenance of public infrastructure and small development projects in rural areas. Several Government initiatives enhanced the sector further. These include the exemption on Real Property Gains Tax, waiver of FIC guidelines on foreign ownership of properties above RM250, 000, incentives for build-then-sell concept as well as the establishment of OSCs for building and development planning approvals. Given these initiatives, the construction sector is expected to expand by 5.2% in 2007.
Source: Economic Management and Outlook, Economic Report 2007/2008.