Malaysia Construction Market - Growth, Trends, and Forecast (2020 - 2025)

Malaysia Construction Market - Segmented by (Commercial Constructions, Residential Constructions, Industrial Constructions, Infrastructure (Transportation Constructions)), and Energy and Utility Constructions.

Market Snapshot

Study Period:

2015-2024

Base Year:

2019

Major Players:

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Market Overview

The Malaysian construction market is expected to register a CAGR of 4.7% over the forecast period, 2019 – 2024. The Malaysian construction industry registered an average annual growth rate of 7.9%, during 2010–2016. This growth was supported by the 10th Malaysian Plan 2011–2015, under which the government invested heavily in infrastructure, industrial parks, and residential buildings. In 2010, policies for public-private partnerships (PPPs) eased by the government to attract more investments for the country's infrastructural development. Between 2016 and 2017, the average growth rate was 7.1% per year.

The construction industry contributed 5.9 % to the GDP in 2017, while total industry growth for the year stood at 6.7 %. The new ruling Pakatan Harapan administration has initiated reviews of several mega projects and the Prime Minister, Tun Dr. Mahathir Mohamad, had stated that budget 2019 would see a cut in the development expenditure.

The Government’s vision 2020 project will also boost the subsector construction projects in the next few years supported by the government’s plan to improve the country’s transport network and tourism infrastructure and increase the volume of renewable projects. Moreover, government efforts to address the country’s housing shortage will help the industry to grow over the next five years.

Scope of the Report

The Malaysian construction market covers the growing construction projects in different sectors, like commercial construction, residential construction, industrial construction, infrastructure (transportation construction), and energy and utility construction, along with the construction details of every project like construction stage, new addition buildings, demolition, and new construction. 

BY SECTOR
Commercial Construction
Residential Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utilities Construction
BY CONSTRUCTION TYPE
Additions
Demolition and New Construction
New Constructions

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Key Market Trends

Transport and Logistics Infrastructure

The Malaysian government has made considerable progress to expand and modernized its infrastructures throughout the country. This effort is evident by the five-year centralized economic development plan known as the Malaysia Plan, whereby public sector infrastructure development consistently holds the largest funding portion. Under the Eleventh Malaysia Plan for 2016-2020, sizeable investment on infrastructure in Malaysia is allocated for the transport and logistics sector to boost regional development.

Based on the Malaysia Trade Performance 2017 Report, Malaysia’s total trade increased by 19.4% of RM1.774 trillion compared to RM1.486 trillion in 2016. An increase in trade is expected to further raise the demand for the logistics  industry and socio-economic need. Amongst the transport and logistics sector, the road is the main mode of domestic transport in Malaysia, accounting for well over nine-tenths of all transport in the country. In keeping abreast of the demand, the Ministry of Works has established the Highway Network Development Plan (HNDP) to be the main blueprint of road infrastructure planning across Malaysia.

Strategic public and private sector collaborations in implementation and financing will also further facilitate the Malaysia’s capital-intensive construction industry.

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Residential Constructions

The previous government had announced a total 300,000 housing units through its various housing programs, such as 1Malaysia Civil Servants Housing project (PPA1M) which aimed to build 175,000 affordable housing units across the country, First House Deposit Financing, Program Rumah Mesra Rakyat, People's Housing Program (PPR), and Syarikat Perumahan Negara Berhad. These projects boost residential construction markets during the forecast period.

Several giant contractors were awarded many residential construction projects, such as Premier Mirach, a subsidiary of Mirach Energy, which was awarded a RM 20.5 million (USD 6.6 million) contract for a construction and development project in West Malaysia. The project comprises 213 units of single-storey terrace houses. Work had started on Nov 13, 2017, and aimed to be completed 30 months later.

Another construction project worth MYR 450.9 million (USD 105.1 million) from UOB Properties (KL) for the construction of the UOB Tower 2 office building in Kuala Lumpur, Malaysia. The UOB Tower 2 project also includes 27 levels of office space including a green lounge reception, a sky lounge and mechanical floors.

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Competitive Landscape

The Malaysian construction market is less competitive due to the presence of major international players holding a large share of the total market. Furthermore, the residential and transpot construction sectors have a huge potential for growth in the forecasted period which stimulates opportunities for other market players. The Malaysian construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the Malaysian construction market has observable level of consolidation.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Market

    2. 1.2 Market Definition

    3. 1.3 Executive Summary

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Study Deliverables

    2. 2.2 Study Assumptions

    3. 2.3 Analysis Methodology

    4. 2.4 Research Phases

  3. 3. MARKET INSIGHTS

    1. 3.1 Current Economic and Construction Market Scenario

    2. 3.2 Technological Innovations in the Construction Sector

    3. 3.3 Impact of Government Regulations and Initiatives on the Industry

    4. 3.4 Review and Commentary on the Extent of Malaysi'a Vision 2020

    5. 3.5 Comparison of Key Industry Metrics of MALAYSIA with Other ASEAN Countries (Analyst View)

    6. 3.6 Comparision of Construction Cost Metrics of MALAYSIA with Other ASEAN Countries (Analyst View)

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

    2. 4.2 Restraints

    3. 4.3 Opportunities

    4. 4.4 Porter's Five Forces Analysis

    5. 4.5 Industry Value Chain Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 BY SECTOR

      1. 5.1.1 Commercial Construction

      2. 5.1.2 Residential Construction

      3. 5.1.3 Industrial Construction

      4. 5.1.4 Infrastructure (Transportation) Construction

      5. 5.1.5 Energy and Utilities Construction

    2. 5.2 BY CONSTRUCTION TYPE

      1. 5.2.1 Additions

      2. 5.2.2 Demolition and New Construction

      3. 5.2.3 New Constructions

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Strategies Adopted by Major Players

  7. 7. COMPANY PROFILES

    1. 7.1 Bauer AG

    2. 7.2 China Communications Construction Group Ltd.

    3. 7.3 JGC Corp.

    4. 7.4 Gamuda Berhad

    5. 7.5 Eversendai

    6. 7.6 IJM Corporation Berhad

    7. 7.7 Muhibbah Engineering (M) Bhd

    8. 7.8 WCT Holdings Berhad

    9. 7.9 UEM Group Berhad*

  8. *List Not Exhaustive
  9. 8. INVESTMENT ANALYSIS

  10. 9. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, CONTRACTORS)

    1. 9.1 Existing Infrastructure

    2. 9.2 On-going Projects

    3. 9.3 Upcoming Projects

  11. 10. FUTURE OF CONSTRUCTION SECTOR IN MALAYSIA

  12. 11. APPENDIX

  13. 12. DISCLAIMER

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