1. Overview of industry/sector, its lifecycle, structure (i.e. oligopolistic, fragmented, etc.), level of regulation, and main industry risk factors
Industry/ Sector:
The Malaysian Construction Sector registered a strong growth of 5.8% in 2009, and subsequently 8.7% for the first quarter of 2010 as against the overall GDP growth of 10.1% during the first quarter of this year.
The 10th Malaysia Plan will set the stage for a major national structural transformation, towards that of a HighIncome Economy. The Plan which covers the period from 2011 to 2015 will potentially have high impact on the Malaysian Construction Sector where it is expected the Construction Sector to grow at 3.7% per annum as compared to 6% per annum GDP growth for the country. The 9th Malaysia Plan, awarded around 26,300 projects valued at RM380 billion
Structure: Oligopolistic. LMCB is the largest integrated cement player in Malaysia; the Group owns 4 cement plants and possesses almost half of the industry’s installed capacity. Meanwhile, the availability of physical infrastructure as well as access to a global distribution network provides LMCB with the flexibility to shift excess production to a larger market overseas (Source: RAM Ratings)
