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EMS faces more downside risks despite better outlook

The electronics manufacturing services (EMS) sector has been an important component of the Malaysian economy. Recent developments unfolding on the international landscape have enhanced the sector’s attractiveness.

Among these events, the continuous on and off trade war between two economic superpowers - United States and China, has turned into a blessing for the EMS sector in Malaysia. Malaysian companies involved in the EMS sector have been beneficiaries from the spat between these countries. These companies have benefitted from increased orders due to diversion in the supply chain from the geopolitical tensions.

Last Friday (19 August 2022), news started making the rounds in news outlets and social media that GDB Holdings Berhad, a Bursa Malaysia-listed construction firm had suspended its work on the 8 Conlay project site at Jalan Conlay, Kuala Lumpur. 

With a contract value of approximately RM1.25 billion, the 8 Conlay development is the single-largest project ever undertaken by GDB.

When GDB was awarded the project in November 2020, it was appointed as the main contractor of the project to complete the remaining main building works for 8 Conlay. The contract was to last for 32 months and was slated to be completed by 22 September 2023.