Construction Industry in Malaysia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Malaysia's Construction Industry Report is Segmented by Sector (commercial, Residential, Industrial), Infrastructure (transportation Construction), Energy and Utility Construction), and Construction Type (adding, Demolition, and New Construction). The Report Offers Market Size and Forecasts for the Malaysian Construction Market in Value (USD) for all the Above Segments.

Malaysia Construction Market Size

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Malaysia Construction Market Summary
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Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 38.55 Billion
Market Size (2029) USD 58.10 Billion
CAGR (2024 - 2029) 8.55 %
Market Concentration Low

Major Players

Malaysia Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Malaysia Construction Market Analysis

The Malaysia Construction Market size is estimated at USD 38.55 billion in 2024, and is expected to reach USD 58.10 billion by 2029, growing at a CAGR of 8.55% during the forecast period (2024-2029).

  • During COVID-19, the construction industry in Malaysia was severely affected. Most construction work, except those classified as critical or essential services, was halted throughout the Movement Control Order (MCO). Even after the MCO was lifted, contractors continued to encounter disruption, such as having to incorporate stringent standard operating procedures on health and safety measures ("SOPs") for construction sites. Such disruption has prevented them from carrying out their work as initially and normally envisaged.
  • The construction market has developed tremendously and now contributes significantly to the nation's overall economic growth by generating income, building capital, and creating jobs, all of which support Malaysia's socioeconomic development and gross domestic product (GDP). The main factor impeding Malaysia's building industry's expansion is financial aid. Due to their high financial requirements, construction projects deter private investors from making investments. The Government's strategy of reducing spending on significant infrastructure projects in order to reduce the nation's debt is mostly to blame for the challenges the construction industry is currently facing.
  • The construction industry is expected to register growth driven by investment in large-scale transport and energy projects. In September 2021, the Government announced its plan to establish the Public Private Partnership (PPP) 3.0 model, a specialized mechanism to fund infrastructure projects in the 12th Malaysia (12MP) plan between 2021 and 2025.
  • Due to the rising expansion of infrastructure facilities and green construction, the Malaysian construction market is anticipated to expand in the coming years. Many transportation, telecommunications, and energy projects would result in significant demand for construction equipment. As opposed to the conventional technique of creating structures, green construction conserves natural resources, produces less waste, and gives occupants healthy settings.
  • In December 2021, the Malaysian parliament passed the Government's budget for 2022, approving an expenditure of MYR 332.1 billion (USD 81.8 billion). The budget includes an allocation of MYR 75.6 billion (USD 18.6 billion) for development expenditure, along with several incentives to improve employment rates and support businesses.

Malaysia Construction Market Trends

Investments in Infrastructure Sector to Boost Construction Activity

The Malaysian construction sector has experienced a significant boost due to the revival of several large-scale infrastructure projects. This has led to a 20.74% year-to-date increase in the construction stocks index on Bursa Malaysia, reaching a two-year high as of November 27, 2023.

The construction index on the exchange rose to 184.19 from 152.51 in January 2023, marking the highest level since April 14, 2021.

The government's acceleration of mega projects, particularly in rail and road network infrastructure, has been the driving force behind this growth, enhancing mobility and stimulating economic activities.

Key infrastructure projects in the country include the 5G rollout, East Coast Highway 3, flood-mitigation projects, West Coast Expressway, East Coast Rail Link, Central Spine Road, Mass Rapid Transit 3 (MRT3), Bayan Lepas Light Rapid Transit (BLLRT) in Penang, the remaining Pan Borneo Highway, and the Johor-Singapore Rapid Transit System.

Malaysia Construction Market - Value of civil engineering work , in billion USD, In Malaysia, 2017-2022

Increase in Residential Constructions To Drive the Construction Market

Construction activity in Malaysia has increased for the fifth consecutive quarter, although the growth rate has slowed in the second quarter of 2023.

According to data from the Department of Statistics Malaysia (DOSM), the value of work done in the construction sector rose by 8.1 percent year-on-year to MYR 32.4 billion (USD 7.05 billion) from April to June 2023.

The growth in construction output was primarily driven by increased work in the residential sector, which saw a rebound and a 6.9 percent year-on-year expansion. Additionally, special trade activities experienced a faster rise of 9.8 percent year-on-year.

However, civil engineering, which makes up the largest proportion of the sector's output, grew at a slower rate of 10.4 percent year-on-year.

The growth was the slowest in four quarters mainly because of the higher base due to the value of work done was more or less the same, hovering around MYR 12.1 billion (USD 2.59 billion) in the three quarters to Q2-2023.

By project owners, private sector output, which accounted for 63.1% of total output, rose faster by 17.3 percent y-o-y (Q1 2023: +10.6 percent yoy), while the progress of construction project developments under the government recorded zero yoy growth (1Q2023: +6.1 percent y-o-y) or unchanged from Q1 of 2023.

Malaysia Construction Market- Value of Public Residential Building Construction, in Million USD, in Malaysia, 2017 - 2022

Malaysia Construction Industry Overview

The Malaysian construction market is less competitive due to major international players holding a large share of the total market. Furthermore, the residential and transport construction sectors have a huge potential for growth in the forecasted period, which stimulates opportunities for other market players. Some of the major players in Malaysia's Construction Market are YTL Corporation Berhad, IJM Corporation Berhad, Gamuda Berhad, UEM Group Berhad, and Malaysian Resources Corporation Berhad.

Malaysia Construction Market Leaders

  1. YTL Corporation Berhad

  2. IJM Corporation Berhad

  3. Gamuda Berhad

  4. UEM Group Berhad

  5. Malaysian Resources Corporation Berhad

*Disclaimer: Major Players sorted in no particular order

Malaysia Construction Market Concentration
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Malaysia Construction Market News

  • October 2023: Gamuda Bhd entered into a joint-venture agreement (JVA) with Sabah Energy Corp Sdn Bhd (SEC) and Kerjaya Kagum Hitech JV Sdn Bhd (KKHJV) to undertake a private finance initiative for the development of the MYR 4 billion (USD 0.86 billion) 187.5MW hydroelectric power plant in Tenom, Sabah.
  • July 2023: IJM formed a partnership with FMM Elmina Sdn. Bhd. to develop two logistics hubs on a 22-acre site in the City of Elmina, Shah Alam, marking its maiden industrial property development in the Klang Valley.

Malaysia Construction Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Market

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Economic and Construction Market Scenario

    2. 4.2 Technological Innovations in the Construction Sector

    3. 4.3 Impact of Government Regulations and Initiatives on the Industry

    4. 4.4 Review and Commentary on the Extent of Malaysia Vision 2020

    5. 4.5 Comparison of Key Industry Metrics of Malaysia with Other ASEAN Countries

    6. 4.6 Comparison of Construction Cost Metrics of Malaysia with Other ASEAN Countries

    7. 4.7 Impact of COVID-19 on the Market

    8. 4.8 Market Dynamics

      1. 4.8.1 Market Drivers

        1. 4.8.1.1 Rise in Demand of Residential Property

        2. 4.8.1.2 Increase in Infrastructure Projects

      2. 4.8.2 Market Restraints

        1. 4.8.2.1 Increase in Cost of Raw Materials

      3. 4.8.3 Market Oppurtunities

    9. 4.9 Value Chain / Supply Chain Analysis

    10. 4.10 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.10.1 Bargaining Power of Suppliers

      2. 4.10.2 Bargaining Power of Buyers/Consumers

      3. 4.10.3 Threat of New Entrants

      4. 4.10.4 Threat of Substitute Products

      5. 4.10.5 Intensity of Competitive Rivalry

  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

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Overview

    2. 6.2 Company Profiles

      1. 6.2.1 YTL Corporation Berhad

      2. 6.2.2 IJM Corporation Berhad

      3. 6.2.3 Gamuda Berhad

      4. 6.2.4 UEM Group Berhad

      5. 6.2.5 Malaysian Resources Corporation Berhad

      6. 6.2.6 WCT Holdings Berhad

      7. 6.2.7 WCE Holdings Berhad

      8. 6.2.8 Hock Seng Lee Berhad

      9. 6.2.9 Mudajaya Group Berhad

      10. 6.2.10 Muhibbah Engineering (M) Bhd*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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Malaysia Construction Industry Segmentation

In its most widely used context, construction covers the processes involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their lives. It typically starts with planning, financing, and designing and continues until the asset is built and ready for use. Construction also covers repairs and maintenance work and works to expand, extend, and improve the asset, as well as its eventual demolition, dismantling, or decommissioning.

Malaysia's construction market is segmented by sector (commercial, residential, industrial, infrastructure (transportation construction), energy, and utility construction) and by construction type (adding, demolition, and new construction).

The report offers market size and forecasts for the Malaysian construction market in terms of value (USD) for all the above segments.

By Sector
Commercial Construction
Residential Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utilities Construction
By Construction Type
Additions
Demolition and New Construction
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Malaysia Construction Market Research FAQs

The Malaysia Construction Market size is expected to reach USD 38.55 billion in 2024 and grow at a CAGR of 8.55% to reach USD 58.10 billion by 2029.

In 2024, the Malaysia Construction Market size is expected to reach USD 38.55 billion.

YTL Corporation Berhad, IJM Corporation Berhad, Gamuda Berhad, UEM Group Berhad and Malaysian Resources Corporation Berhad are the major companies operating in the Malaysia Construction Market.

In 2023, the Malaysia Construction Market size was estimated at USD 35.25 billion. The report covers the Malaysia Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Malaysia Construction Industry Report

Statistics for the 2024 Malaysia Construction market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. Malaysia Construction analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Construction Industry in Malaysia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)