How companies will benefit from the new Singapore-Malaysia transport links

It'll be complete by 2020.

According to CIMB, to further improve transport links between Singapore and Malaysia, two proposals have been made. The first is a Singapore-Kuala Lumpur high-speed train targeted for completion by 2020.

Given that a large part of the track will be in Malaysia, the biggest beneficiaries are likely to be Malaysian construction companies.

In Singapore, companies such as Pan United, Yongnam and Kori may have a chance of getting involved.

Here's more from CIMB:

Pan United is capable of providing a whole range of concrete mix and is already the largest cement and ready-mixed concrete in Singapore.

In Singapore, Pan United supplied some 85% of the concrete requirement for the Downtown Line. How much it can benefit will also depend on the route of the high-speed rail.

Yongnam is a structural steel contractor and provides civil engineering solutions. Again, its involvement in Singapore’s Downtown Line puts it in good stead to get a piece of the action.

Kori provides structural steelwork and tunnelling services in Singapore as well as overseas in Dubai and Malaysia.

Other than Singapore’s MRT projects, Kori is involved in the Putrajaya MRT in Malaysia and Dubai Metro Line in the Middle East.

Any near-term business opportunity for these listed firms is likely to come from the proposed MRT into Johor as the high-speed rail is farther out.