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Malaysia Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)

Publisher GlobalData
Published Jun 18, 2025
SKU # GBDT20187083

Description

Malaysia Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)

Summary

The construction industry in Malaysia is expected to expand by 6% in real terms in 2025, supported by investments in industrial and transport infrastructure projects. According to the Department of Statistics Malaysia (DOSM), the total value of construction work done grew by 16.6% YoY in Q1 2025. By sector, the total value of residential construction work done grew by 27%, while that for non-residential buildings and civil engineering works grew by 21.1% and 3.7%, respectively, during Q1 2025. Moreover, according to the Malaysian Investment Development Authority (MIDA), the government has 1,049 projects in the pipeline, worth a total of MYR58.8 billion ($13.3 billion). The services sector dominates the pipeline with 995 projects, worth MYR31.8 billion ($7.2 billion), while the manufacturing sector accounts for 54 projects worth MYR27.0 billion ($6.1 billion). Growth in 2025 will also be supported by allocations announced as part of the 2025 Budget, under which, MYR64.1 billion ($14.4 billion) is allocated for the Ministry of Education, MYR45.3 billion ($10.2 billion) for the Ministry of Health, MYR10 billion ($2.3 billion) for the Ministry of Housing, and MYR16 billion ($3.6 billion) for the Ministry of Energy.

The construction industry is expected to register an annual average growth rate of 4.4% between 2026 and 2029, supported by investments in manufacturing and mixed-use projects, coupled with support from the New Industrial Master Plan 2030 (NIMP 2030), announced in 2023; as part of the plan, the government will invest MYR5 billion ($1.1 billion) to develop 3,000 smart factories in the country by 2030. In March 2025, the Malaysian commercial banking company, Maybank, reported that the country’s Johor state is poised to receive up to MYR2.4 billion ($540.8 million) in investments over the next three to ten years, focused on the Johor-Singapore Special Economic Zone (JS-SEZ).

GlobalData’s Construction in Malaysia – Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the Malaysian construction industry, including -
  • The Malaysian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Malaysian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
Scope

This report provides a comprehensive analysis of the construction industry in Malaysia. It provides -
  • 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 GlobalData's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Table of Contents

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
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
8 About GlobalData
9 Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: Malaysia, Key Economic Indicators
Table 3: Malaysia, Commercial Construction Output by Project Type (Real % Change), 2020–29
Table 4: Malaysia, Top Commercial Construction Projects by Value
Table 5: Malaysia, Industrial Construction Output by Project Type (Real % Change), 2020–29
Table 6: Malaysia, Top Industrial Construction Projects by Value
Table 7: Malaysia, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: Malaysia, Top Infrastructure Construction Projects by Value
Table 9: Malaysia, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: Malaysia, Top Energy and Utilities Construction Projects by Value
Table 11: Malaysia, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: Malaysia, Top Institutional Construction Projects by Value
Table 13: Malaysia, Residential Construction Output by Project Type (Real % Change), 2020-29
Table 14: Malaysia, Top Residential Construction Projects by Value
Table 15: Malaysia, Key Contractors
Table 16: Malaysia, Key Consultants
Table 17: Malaysia, Construction Output Value (Real, $ Million)
Table 18: Malaysia, Construction Output Value (Nominal, MYR Million)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: South-East Asia, Construction Output (Real % Change), 2023–29
Figure 2: Malaysia, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
Figure 3: Malaysia, Risk Summary
Figure 4: Malaysia, Risk Regional Comparison
Figure 5: Malaysia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
Figure 6: Malaysia, Construction Output Value, by Sector (Real, $ Million), 2020–29
Figure 7: Malaysia, Construction Value-Add (2015 Constant Prices, MYR Million)
Figure 8: Malaysia, Loans Disbursed for the Construction Industry (MYR Million)
Figure 9: Malaysia, Value of Construction Work Done, % Change YoY
Figure 10: Malaysia, Producer Price Index (2010=100)
Figure 11: Malaysia, Construction Projects Momentum Index
Figure 12: South-East Asia, Construction Projects Momentum Index
Figure 13: Malaysia, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 14: Malaysia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 15: Malaysia, Wholesale and Retail Sales, % Change YoY
Figure 16: Malaysia, Construction Loans Disbursed for Wholesale and Retail Trade and Restaurants and Hotels (MYR Billion)
Figure 17: Malaysia, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 18: Malaysia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 19: Malaysia, Manufacturing Value-Add (2015 Constant Prices, MYR Billion)
Figure 20: Malaysia, Industrial and Manufacturing Production Indices (2015=100)
Figure 21: Malaysia, Total exports (MYR Million)
Figure 22: Malaysia, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 23: Malaysia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 24: Malaysia, Value of Construction Work Done of Civil Engineering (MYR Million)
Figure 25: Malaysia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 26: Malaysia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 27: Malaysia, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 28: Malaysia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 29: Malaysia, Private Health Services Value-Add (2015 Constant Prices, MYR Million)
Figure 30: Malaysia, Private Education Services Value-Add (2015 Constant Prices, MYR Million)
Figure 31: Malaysia, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 32: Malaysia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 33: Malaysia, Real Estate Value-Add (2015 Constant Prices, MYR Million)
Figure 34: Malaysia, Value of Residential Construction Work Done (MYR Billion)
Figure 35: Malaysia, Loans disbursed for the purchase of residential property (MYR Million)
Figure 36: Malaysia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 37: Malaysia, Headquarters of Key Consultants (% of Total Project Pipeline)

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