Malaysia Construction Market Size (2024 - 2029)

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).

• The construction industry in Malaysia continued to grow in 2023, with the total value of projects realized amounting to MYR 54.71 billion (USD 11.47 billion) between January and October.
• The private sector spearheaded the recovery from COVID-19 lockdowns and became the main driver of construction growth. Some key private sector projects that contributed to this recovery were high-rise residential projects with mixed-use ideas, supply chain optimization-driven fast-track industrial projects, and data center developments.
• While the civil sector accounted for the majority of government-initiated projects, it slowed down over time, mainly due to government control and prudent spending. However, the government has made significant strides toward improving public transportation and economic development in the region through various national infrastructure projects.
• The projects include the 5G network roll-out, which will cater to the growing demand for data centers across the Asia-Pacific region, and the MRT extension, which is projected to create thousands of jobs during the construction phase. Public transportation projects have sparked a wave of transit-oriented projects in Klang Valley, as well as along the intercity railway links, catalyzing real estate revitalization in the surrounding areas.
• The New Industrial Master Plan (NIMP) 2030 launched by the Government of Malaysia aims to transform Malaysia’s manufacturing industry into a high value, technology-based and globally competitive sector by 2030. The NIMP calls for the establishment of new industrial parks and the construction and modernisation of infrastructure to facilitate the development of the manufacturing sector.

Malaysia Construction Industry Segmentation

Construction is 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.