Malaysia Construction Industry Report 2025: Output To Expand At An AAGR Of 4.5% During 2026-2029
Malaysian construction industry to expand by 6% in real terms in 2025, supported by investments in transport infrastructure and renewable energy projects.
According to the Department of Statistics Malaysia (DOSM), the value-add of the construction industry rose by 20.7% YoY in Q4 2024, following YoY growths of 19.9% in Q3 and 17.3% in Q2 2024. According to DOSM, gross fixed capital formation rose by 11.7% YoY in Q4 2024, following YoY growths of 15.3% in Q3 and 11.5% in Q2 2024.
According to the Malaysian Investment Development Authority (MIDA), the government received total investments of MYR378.5 billion ($83.4 billion) in 2024, an increase of 14.9% compared to 2023. Of the total, foreign investments (FI) accounted MYR170.4 billion ($37.5 billion), and domestic investments accounted to MYR208.1 billion ($8.1 billion), during the same period. The Malaysian Ministry of Energy and Natural Resources' (KeTSA) goal of increasing the renewable capacity from 13.3% in July 2024 to 31% by 2025, 40% by 2035, and 70% by 2050 will also help in boosting growth in the construction industry.
The construction industry is expected to register an annual average growth rate of 4.5% between 2026 and 2029, supported by an improvement in export activities, coupled with investments in manufacturing and housing infrastructure projects. The New Industrial Master Plan 2030 (NIMP 2030) announced in 2023, which intends to establish 3,000 smart factories in the country by 2030 via Industry 4.0 and digital technology adoption with an expected investment of MYR5 billion ($1.1 billion), will also contribute to the industry's growth over the forecasted period. In February 2025, Malaysia's MRT Corp and Sunway Group started the construction of a MYR2.6 billion ($572.8 million) mixed-use development in Johor Bahru, which is expected to be completed by early 2033
Scope
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Malaysia, featuring details of key growth drivers. Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline. Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies Assess market growth potential at a micro-level with over 600 time-series data forecasts Understand the latest industry and market trends Formulate and validate business strategies using the analyst's critical and actionable insight Assess business risks, including cost, regulatory and competitive pressures Evaluate competitive risk and success factors
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook Latest news and developments Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook Project analytics Latest news and developments
4.3 Industrial Construction
- Outlook Project analytics Latest news and developments
4.4 Infrastructure Construction
- Outlook Project analytics Latest news and developments
4.5 Energy and Utilities Construction
- Outlook Project analytics Latest news and developments
4.6 Institutional Construction
- Outlook Project analytics Latest news and developments
4.7 Residential Construction
- Outlook Project analytics Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
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