Malayan Cement bullish on Malaysia's infrastructure growth due to rising urbanization

Malayan Cement expects Malaysia's accelerating urbanization and major infrastructure projects to serve as growth drivers for the company in the years ahead.

The company highlighted its strong positioning to benefit from the planned Johor-Singapore Special Economic Zone, which is projected to create up to 100,000 new jobs and add an estimated $26 billion annually to the Malaysian economy by 2030, according to Johor state officials.

Demand for residential and commercial properties around the JS-SEZ is expected to climb, driven by the influx of new workers and expanding business activities. The agreement formalizing the economic zone was signed by the Singapore and Malaysian governments earlier this year.

Beyond Johor, Malayan Cement also cited ongoing and upcoming infrastructure projects, such as the Penang Light Rail Transit expansion, airport upgrades and various public works under Budget 2025 and the 13th Malaysia Plan as key catalysts sustaining demand for cement and related products.

"These projects, together with the strong pipeline of civil and private developments including warehouses, data centres, and residential complexes, underpin a positive outlook for the sector," the company said in a statement.

The cement market in Malaysia is seeing an upward momentum partly due to these large-scale infrastructure rollouts, combined with tighter supply dynamics and operational efficiencies that have strengthened margins.

Malayan Cement's latest quarterly results showed core net profit surging nearly 23% year over year to MR166.2 million ($39.4 million), supported by increased exports and improved operational performance.

Despite global economic uncertainties, the company remains "cautiously optimistic" and plans to continue focusing on efficiency improvements in operations, logistics and distribution to further enhance competitiveness.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $38/mt on Aug. 28, unchanged week over week.