Kimlun Corporation Berhad Annual Report 2019

23 Singapore Construction Sector The total construction demand in 2020 is projected to range between S$28 billion to S$33 billion, with sustained public sector construction demand. Public construction demand is expected to reach between S$17.5 billion and S$20.5 billion in 2020, spurred by major infrastructure projects such as the Integrated Waste Management Facility, infrastructure works for Changi Airport Terminal 5, Jurong Region MRT Line and Cross Island MRT Line. The private sector’s construction demand is projected to be between S$10.5 billion and S$12.5 billion in 2020, supported by projects such as the redevelopment of en-bloc sales sites, recreation development at Mandai Park, Changi Airport new taxiway and berth facilities at Jurong Port and Tanjong Pagar Terminal. The construction demand is expected to hold steady over the medium term. Demand is projected to reach between S$27 billion and S$34 billion per year for 2021 and 2022 and between S$28 billion and S$35 billion per year for 2023 and 2024. The public sector is expected to contribute S$16 billion to S$20 billion per year from 2021 to 2024 with building projects and civil engineering works each taking up about half of the demand. Besides public residential developments, public sector construction demand over the medium term will continue to be supported by various mega infrastructure projects. (Source: Media release of Building and Construction Authority of Singapore on 8 January 2020) The Ministry of Trade and Industry of Singapore has downgraded the Singapore GDP growth forecast for 2020 to “-7.0 to -4.0 per cent” to account for heightened uncertainties in the global economy, given the unprecedented nature of the Covid-19 outbreak. (Source: Media release of The Ministry of Trade and Industry of Singapore on 26 May 2020) SPC supplies TLS to Singapore MRT projects since 2006. It secured approximately 40% of the total TLS orders of the Downtown Line 2, Downtown Line 3 and Thomson Line. Further, SPC has been a frequent supplier of jacking pipes and IBS components to various projects in Singapore. With its strong track record in Singapore, SPC is well positioned to compete for further potential sales orders from future MRT and sewerage projects. Property Development Ventures Our Property Development division will continue its effort to market the unsold stocks of the completed Hyve SOHO development and Taman Puteri residential development in Pekan Nenas, Johor. There is no other on-going development carried out by the Group on its existing land bank totalling 214 acres. The Group plan to launch the newly refurbished bungalow in Seksyen U10, Shah Alam in year 2020. We have entered into agreement to acquire the following property (“New Land”) to increase our land bank to ensure the availability of land for future development: MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) Annual Report 2019 Kimlun Corporation Berhad