Malaysia Association: Crane Demand Fallen By 30%
[2009-01-21]
The Malaysia Mobile Crane Owners Association, a group of 300 companies that makes up about 70% of Malaysian crane owners, has temporarily cut its crane rental guide rates by 5%, MMCOA president Lai Keng Guan told Cranes Today.
Keng Guan said that the cut was in response to a government request to help mitigate the effects of the current economic slowdown.
"Crane rental business is depends on public and private sector projects. Currently, some of the projects have been completed, thereby the demand for crane rental has decreased by 20% to 30%," Keng Guan said. "We believe that the rental rate adjustment will be helpful to boost the current economy."
The association lists guide rates for five groups divided by capacity in tonnes (15/16, 20, 25, 35, 45). The decision reduces the cost of a daily rental of a 45t capacity mobile crane to MYR 1,710 (USD 479). A 15t or 16t capacity truck crane now rents for a recommended MYR 522.
Even after the discount, recommended rates for some crane classes have risen sharply over the past three years. 15/16t and 25t crane rates were 16% higher in January 2009 compared to March 2006. On the other hand, the recommended rate for 35t cranes has only grown by 3% in the same period. MMCOA guideline rates are subject to adjustment by individual members depending on customer requirements and job site locations.
MMCOA made the decision in a committee meeting on 21 December 2008. The motion received unanimous support, Keng Guan said.
Keng Guan said that the cut was in response to a government request to help mitigate the effects of the current economic slowdown.
"Crane rental business is depends on public and private sector projects. Currently, some of the projects have been completed, thereby the demand for crane rental has decreased by 20% to 30%," Keng Guan said. "We believe that the rental rate adjustment will be helpful to boost the current economy."
The association lists guide rates for five groups divided by capacity in tonnes (15/16, 20, 25, 35, 45). The decision reduces the cost of a daily rental of a 45t capacity mobile crane to MYR 1,710 (USD 479). A 15t or 16t capacity truck crane now rents for a recommended MYR 522.
Even after the discount, recommended rates for some crane classes have risen sharply over the past three years. 15/16t and 25t crane rates were 16% higher in January 2009 compared to March 2006. On the other hand, the recommended rate for 35t cranes has only grown by 3% in the same period. MMCOA guideline rates are subject to adjustment by individual members depending on customer requirements and job site locations.
MMCOA made the decision in a committee meeting on 21 December 2008. The motion received unanimous support, Keng Guan said.
Source: Cranes Today Magazine
Keywords:Crane
Related Articles:
