PETALING JAYA, The recent approval of the Mass Rapid Transit 3 (MRT3) Circle Line has boosted confidence in the construction industry, offering greater clarity on the project’s progress, according to analysts.
RHB Research highlighted that the main winners from MRT3 are likely to be major contractors and their subcontractors. Based on past MRT1 and MRT2 involvement, companies such as Gamuda Bhd, Sunway Construction Group Bhd, IJM Corp Bhd, MRCB, WCT Holdings Bhd, Gadang Holdings Bhd, and Mudajaya Corp are seen as likely lead contractors. Meanwhile, firms like Econpile Holdings Bhd, Gabungan AQRS Bhd, Kimlun Corp Bhd, and TRC Synergy Bhd are expected to secure subcontracting roles.
Transport Minister Anthony Loke
Transport Minister Anthony Loke recently approved the MRT3 project, following a public review conducted from September to December last year. MRT Corp received over 45,000 written submissions, with 93.3% of the feedback in support of the project.
As a result of public input, adjustments were made to the placement of stations and viaducts, and the overall land acquisition footprint was reduced from 1,012 to 690 lots. The final plan includes 32 stations—22 elevated, seven underground, and three provisional—spanning 51km (39km elevated and 12km underground).
RHB Research expects more details to emerge during either the tabling of the 13th Malaysia Plan on July 31 or Budget 2026 on October 10, including updates on project funding, revised costs, and possible re-tendering.
In Budget 2023, the government signaled intentions to reduce MRT3’s cost below RM45 billion, compared to the earlier RM68 billion estimate in 2018.
Top stock picks from RHB in light of the project include Gamuda (TP: RM5.86), Sunway Construction (TP: RM6.80), and Binastra Corp Bhd (TP: RM2.64).
MBSB Research anticipates a re-tender exercise by mid-2026, with contracts expected to be awarded between late 2026 and mid-2027. MRT Corp’s earlier tenders have lapsed, suggesting new alignment adjustments and land acquisition changes will be incorporated in the new tender process.
While the final railway scheme approval came slightly later than expected (initially targeted for 4QFY24), MBSB sees it as a significant step forward.
MRT Corp aims to complete land acquisition by end-2026, enabling construction to commence soon after. Landowners may start receiving eviction notices by Q1 2026, with a six-month window to vacate.
MBSB Research remains positive on the construction outlook, identifying Gamuda and MMC Corp Bhd as leading contenders for the largest MRT3 package due to their extensive MRT experience.
Other likely bidders include YTL Corp (TP: RM2.84), IJM Corp (TP: RM3.74), MRCB (TP: RM0.56), and Sunway Construction (TP: RM6.44). Malayan Cement Bhd (TP: RM7.49) is also expected to benefit directly from the project.
