IJM Corporation Berhad, one of Malaysia’s leading construction firms, has been awarded a contract to undertake extension works on the Geohan Highway, according to industry sources. The project, valued at an estimated RM1.2 billion, will involve expanding the existing highway by approximately 45km to improve connectivity between industrial zones in the central region.
The Geohan Highway serves as a critical transport artery linking major manufacturing hubs to Port Klang, handling over 120,000 vehicle trips daily. Analysts note this extension aligns with the government’s 12th Malaysia Plan infrastructure priorities, which earmarked RM15 billion for road network upgrades.
‘This award solidifies IJM’s position as a key player in national infrastructure development,’ said a construction sector analyst at Maybank Investment Bank who requested anonymity as they weren’t authorized to speak publicly. ‘Their experience delivering the West Coast Expressway gives them unique technical capabilities for this terrain.’
Project timelines suggest construction will commence in Q3 2024, with completion targeted for late 2027. The works are expected to create 2,000 direct jobs and alleviate chronic congestion that costs the logistics sector an estimated RM800 million annually in delays.
However, environmental groups have raised concerns about the highway’s path through the Ayer Hitam forest reserve. The Malaysian Nature Society has called for revised environmental impact assessments, arguing current plans threaten critical wildlife corridors.
Economists suggest the project could boost GDP growth in the region by 0.3-0.5% annually during construction, while improved transport efficiency may enhance Malaysia’s competitiveness in export manufacturing. The Works Ministry is expected to make an official announcement next week following final approvals.