19/06/2026

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BIZ & FINANCE FRIDAY | JUNE 19, 2026

Extreme weather, disasters top construction risks

CIMB Securities sees upside in IJM as The Linque progresses KUALA LUMPUR: IJM Corp Bhd and Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) proposed development of The Linque, a transit-oriented development (TOD) with a direct basement-to concourse connection to the Cochrane MRT station, is in line with IJM’s strategic pivot towards quick-turnaround projects that complement the group’s core strengths in township development. “At this juncture, we retain our earnings forecast for IJM Corp pending further details on the project. “We maintain a Buy call on the stock with a target price of RM2.95, representing a potential upside of 28.3%,“ CIMB Securities Sdn Bhd said in a note. To recap, IJM Corp’s wholly owned subsidiary IJM Land and MRT Corp will jointly develop The Linque, with an estimated GDV of RM600 million. The Linque offers 586 units of serviced apartments and a retail component. The project’s development order was submitted on June 10. More importantly, The Linque represents IJM Corp’s first collaboration with MRT Corp and serves as MRT Corp’s maiden Klang Valley TOD initiative. CIMB Securities said that among The Linque’s key features is the project’s direct connectivity to the Cochrane MRT station via a passenger lift that goes directly to the concourse level. “Located within the busy Jalan Cochrane neighbourhood, we believe that The Linque will emerge as one of the more compelling TOD initiatives, based on three factors namely, Cochrane station is strategically located, being just one stop away from the Maluri and TRX MRT stations. “Secondly, the station sits close to major commercial hubs such as The Exchange TRX, and is steps away from MyTown, Ikea, Sunway Velocity, and is near neighbouring healthcare facilities and educational institutions. “Thirdly, the station benefits from excellent connectivity via the Maluri MRT station, which serves as an interchange for the MRT Kajang Line and LRT Ampang Line,“ the research firm said. CIMB Securities noted that the indicative size and prices for The Linque’s serviced apartments have yet to be disclosed. “However, data from property portal Brickz show that median transacted prices for nearby projects such as One Cochrane Residences (developed by Boustead Properties) are around RM1,050 per sq ft.”

KUALA LUMPUR: Zurich Insurance Group has identified extreme weather and natural disasters as the most severe risks facing the construction sector over the next five years, assigning a score of 6.2 out of seven on its risk severity scale. In its report Beyond 2030: The Future of Construction, Zurich said financial market vulnerabilities and labour market dynamics ranked as the second- and third-largest risks, with scores of 5.7 and 5.6, respectively. The insurer said climate extremes, labour shortages, rising capital intensity and growing cyber threats are no longer isolated pressures but increasingly interconnected risks across the global construction industry. Zurich Malaysia chief underwriting officer Anthony Seeto said Malaysia’s construction sector is similarly exposed, with climate related disruptions, tightening labour markets and a sharp rise in cyber incidents reshaping project risks locally. “For project owners and contractors, understanding exposures, coverage conditions and risk controls early can make a real difference to project resilience. “Insurers and takaful operators have an important role to play in helping businesses identify risks before they materialise, ensuring resilience is built into decisions from the outset,” he said in a statement. Zurich said labour constraints underline the scale of the challenge, noting the US construction sector alone requires an estimated 349,000 additional workers this year to meet project demand. Southeast Asia faces a shortfall of about 1.5 million skilled workers, while Australia is expected to see a gap of more than 300,000 by 2027. The group also warned that digital risk is o Labour shortages, cyberattacks and financing pressures emerge as key challenges for project delivery worldwide

Industry players urged to strengthen resilience and improve risk management as operating conditions become increasingly challenging. – UNSPLASH PIX

The report said insurability is emerging as a leading indicator of project viability and, increasingly, a real-time signal of underlying resilience. It added that insurance terms often reflect delivery risks earlier than capital markets do, urging project owners and contractors to treat insurability as a key metric alongside cost, schedule, and safety, rather than an afterthought once construction is underway. “Beyond 2030: The Future of Construction” draws on structured insights from 31 experts across underwriting, claims, risk engineering and construction, based on interviews conducted between December 2025 and March 2026. The study integrates survey responses assessing the severity of 17 risks to the construction sector on a seven-point scale, as well as their interconnections. – Bernama

accelerating, with nearly four in five architecture, engineering and construction firms having experienced a cybersecurity threat in the past two years. It said firms are now facing an average of 226 incidents per company per year, a 41% year-on-year increase. “Only one % of global cyber losses are insured, leaving most of the financial impact to contractors and project owners,” it added. Zurich said large capital projects continue to run about 80% over budget and more than 50% behind schedule. It added that the average data centre project now carries a value of US$3 billion (RM12 billion), up from US$150 million five years ago, driven by rapid artificial intelligence expansion, highlighting a concentration of risk that is stretching both delivery models and insurance capacity.

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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