PETALING JAYA: Engtex Group Bhd
is set to leverage on the revival of water projects backed by the better finances of water operators following the recent tariff hikes.
In a note, Kenanga Research said the projects would include non-revenue water reduction initiatives and the construction or upgrading of water treatment plants.
“The tariff hikes will strengthen the finances of water operators, allowing them to upgrade and replace old water infrastructure.
“We expect a pick-up in the award of pipe replacement projects from the second half of 2024 as Pengurusan Aset Air Bhd finalises the tenders that typically take six months to conclude,” the research house noted.
Kenanga Research added water operators are currently identifying old pipes to be replaced and working out the cost to be submitted to the Ministry of Finance (MoF) for approval.
Besides that, the Malaysian Water Association has noted water operators have submitted proposals to MoF for water projects worth RM4bil, as water tariffs are expected to be raised within the next two years.
