Malaysia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)
Description
Malaysia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)
Summary
GlobalData expects the Malaysian construction industry to grow in real terms by 11.4% in 2025 and 4.3% in 2026, supported by increasing investments in manufacturing, data center, and transport infrastructure projects. According to the Department of Statistics Malaysia (DOSM), the total value of residential construction work done grew by 11.6% year-on-year (YoY) in Q3 2025, while that for non-residential buildings and civil engineering works grew by 10% and 8.9%, respectively, during the same period. Among other major developments, the Malaysian Investment Development Authority (MIDA) approved 4,874 projects valued at MYR285.2 billion ($64.3 billion) between January-September 2025; this marks an increase of 13.2%, compared to the same period in 2024.
The construction industry is expected to record an annual average growth of 4% between 2027 and 2029, supported by investments in the industrial, transport and energy sector. Growth over the forecast period will be mainly supported by investments under the government’s New Industrial Master Plan 2030 (NIMP 2030), under which, the government aims to increase the manufacturing sector’s GDP from the 2022’s baseline of MYR364.9 billion ($82.2 billion) to MYR587.5 billion ($132.4 billion) by 2030; it also includes a plan to upgrade 3,000 factories into smart factories by 2030, with an estimated investment of MYR5 billion ($1.1 billion). The government also aims to construct and upgrade 2,800km of rural roads in the country from 2026 to 2030, under the 13th Malaysia Plan (13MP). To support the tourism sector, the government plans to develop Special Tourism Investment Zones (STIZ) by 2030 in Johor, Melaka, Negeri Sembilan, and Sarawak, under the 13MP Plan.
GlobalData’s Construction in Malaysia - Key Trends and Opportunities to 2029 (Q4 2025) report provides detailed market analysis, information, and insights into the Malaysian construction industry, including -
This report provides a comprehensive analysis of the construction industry in Malaysia. It provides -
Summary
GlobalData expects the Malaysian construction industry to grow in real terms by 11.4% in 2025 and 4.3% in 2026, supported by increasing investments in manufacturing, data center, and transport infrastructure projects. According to the Department of Statistics Malaysia (DOSM), the total value of residential construction work done grew by 11.6% year-on-year (YoY) in Q3 2025, while that for non-residential buildings and civil engineering works grew by 10% and 8.9%, respectively, during the same period. Among other major developments, the Malaysian Investment Development Authority (MIDA) approved 4,874 projects valued at MYR285.2 billion ($64.3 billion) between January-September 2025; this marks an increase of 13.2%, compared to the same period in 2024.
The construction industry is expected to record an annual average growth of 4% between 2027 and 2029, supported by investments in the industrial, transport and energy sector. Growth over the forecast period will be mainly supported by investments under the government’s New Industrial Master Plan 2030 (NIMP 2030), under which, the government aims to increase the manufacturing sector’s GDP from the 2022’s baseline of MYR364.9 billion ($82.2 billion) to MYR587.5 billion ($132.4 billion) by 2030; it also includes a plan to upgrade 3,000 factories into smart factories by 2030, with an estimated investment of MYR5 billion ($1.1 billion). The government also aims to construct and upgrade 2,800km of rural roads in the country from 2026 to 2030, under the 13th Malaysia Plan (13MP). To support the tourism sector, the government plans to develop Special Tourism Investment Zones (STIZ) by 2030 in Johor, Melaka, Negeri Sembilan, and Sarawak, under the 13MP Plan.
GlobalData’s Construction in Malaysia - Key Trends and Opportunities to 2029 (Q4 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.
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
- 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
51 Pages
- 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 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 Output Value (Current Prices, MYR Million)
- Figure 8: Malaysia, Construction Value-Add (2015 Constant Prices, MYR Million)
- Figure 9: Malaysia, Construction Value-Add across various sector (2015 Constant Prices, MYR Million)
- Figure 10: Malaysia, Loans Disbursed for the Construction Industry (MYR Million)
- Figure 11: Malaysia, Value of Construction Work Done, % Change YoY
- Figure 12: Malaysia, Producer Price Index (2010=100)
- Figure 13: Malaysia, Gross Fixed Capital Formation (2015 Constant Prices, MYR Million)
- Figure 14: Malaysia, Construction Projects Momentum Index
- Figure 15: South-East Asia, Construction Projects Momentum Index
- Figure 16: Malaysia, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 17: Malaysia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: Malaysia, Wholesale and Retail Sales, % Change YoY
- Figure 19: Malaysia, Construction Loans Disbursed for Wholesale and Retail Trade and Restaurants and Hotels (MYR Billion)
- Figure 20: Malaysia, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 21: Malaysia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: Malaysia, Manufacturing Value-Add (2015 Constant Prices, MYR Billion)
- Figure 23: Malaysia, Industrial and Manufacturing Production Indices (2015=100)
- Figure 24: Malaysia, Total exports (MYR Million)
- Figure 25: Malaysia, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 26: Malaysia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 27: Malaysia, Value of Construction Work Done of Civil Engineering (MYR Million)
- Figure 28: Malaysia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 29: Malaysia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 30: Malaysia, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 31: Malaysia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 32: Malaysia, Private Health Services Value-Add (2015 Constant Prices, MYR Million)
- Figure 33: Malaysia, Private Education Services Value-Add (2015 Constant Prices, MYR Million)
- Figure 34: Malaysia, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 35: Malaysia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 36: Malaysia, Real Estate Value-Add (2015 Constant Prices, MYR Million)
- Figure 37: Malaysia, Value of Residential Construction Work Done (MYR Billion)
- Figure 38: Malaysia, Loans disbursed for the purchase of residential property (MYR Million)
- Figure 39: Malaysia, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 40: Malaysia, Headquarters of Key Consultants (% of Total Project Pipeline)
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