As the coronavirus outbreak hits the economy and private sector, government jobs will remain the only hope for construction business, says SET-listed contractor Christiani & Nielsen Thai Plc (CNT).
Surasak Osathanugraha, assistant to the managing director at CNT, said the number of new construction jobs this year will be lower because of the pandemic, with those in the private sector seeing the largest drop.
"Jobs from the public sector can support the construction industry this year and next year," he said. "But it will largely depend on how fast the government can push projects to commence, as the state budget will now have to be geared towards people hit by the virus."
From January to April, CNT was awarded just one job worth 100 million baht, compared with 3.1 billion baht from January to May 2019.
The company is currently following up bidding results worth a combined 20 billion baht. Half are government jobs and the rest are construction of factories for overseas investors.
These two categories will be the main focus of the company this year, Mr Surasak said.
New construction contracts awarded in 2020 will decline from last year, when CNT recorded 6.73 billion baht, down from 11.34 billion baht in 2018.
A subsidiary, Christiani & Nielsen Cambodia Co, will build two branches for cash-and-carry chain Makro in Cambodia after building two stores in Phnom Penh in 2017 and Siem Reap in 2019.
"The Thai property sector has slowed significantly this year," Mr Surasak said. "If the outbreak is stable like today, the construction sector will likely improve in the second half, but gradually."
He said the direct impact from the virus on the company was minimal, though it faced delays on imports of certain items from China. Most customers understood the situation and agreed to contract extensions.
By the end of the year, the contractor expects to have 8 billion baht in revenue, up 10% from 7.34 billion baht last year.
The firm posted revenue of 1.9 billion baht in the first quarter, up from 1.6 billion baht a year earlier.