Malaysian consumption to remain subdued in 2H19

Malaysian cement consumption is expected to remain subdued in the second half of 2019, as the construction and property development markets remain weak, according to Khairul Azizi Kairudin, an analyst for Hong Leong Investment Bank Research (HLIB Research).

"Beyond 2019, we expect cement prices to recover gradually, as construction activities pick up (expected by 1H20). However, […] the expected pick-up next year will happen on a gradual basis as work contribution from mega project revivals may be partially offset by lower construction contract awards seen post GE14 and weak property sentiment," said Mr Kairudin.

Therefore, the 2H19 performance of local cement companies are expected to be affected by weak demand and prices, amid overcapacity issues, reports The Edge.