A few analysts and market watchers are lukewarm on giant construction projects such as the multi-billion Mass Rapid Transit (MRT) phases two and three, as well as the RM30 billion KL Singapore High Speed Rail (HSR) - saying that the actual award of the jobs could be delayed and determined by the political landscape more than anything else.

Hong Leong Investment Bank (HLIB) construction analyst Jarrod Soon explained, “Any contractors at this point of time need to have the support of both sides (government and opposition) in order to be safe.”

NONE He explained that in the event of any change - either from within the incumbent Barisan Nasional or be it the Pakatan Rakyat winning - there would surely be reviews of the projects which have been mooted and awarded.

“They would not want a dislocated economy (so) they would definitely review the projects…So in other words delays can be expected,” Soon said.

Soon of HLIB added that officials from Gamuda Bhd for instance, had sought approvals from politicians from both sides of the divide in many of their endeavours for the MRT project, which was commendable as it reduced risks.

“Despite politicians giving their thumbs up for several projects, many of them - the HSR for instance - are still a long way from being feasible,” a market watcher said.

On the HSR he added, “It’s not like it’s a new project, it’s been mooted for very long,” he said.

The HSR link was first proposed before the 1997 crisis, but has yet to kick off.

The Bangkok Post put it aptly when it said, “The talk of a high speed rail link between Singapore and Malaysia has been in the air for years and it seems like a courtship; when the mood is good it is on, when the mood changes it is off.”

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