Malaysia Construction Market Size (2024 - 2029)

The construction industry in Malaysia is experiencing significant growth, driven primarily by the private sector's recovery efforts post-COVID-19. This growth is characterized by a surge in high-rise residential, industrial, and data center projects. While government-initiated civil projects have slowed due to fiscal prudence, substantial progress in public transportation and infrastructure has been made, enhancing economic development and job creation. The government's New Industrial Master Plan aims to elevate the manufacturing sector, necessitating the construction of new industrial parks and infrastructure modernization.

Market Size of Malaysia Construction Industry

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Malaysia Construction Market Summary
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).

  • 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.

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 Size Summary

The construction industry in Malaysia is experiencing robust growth, driven primarily by private sector initiatives that have led the recovery from the impacts of COVID-19. This resurgence is characterized by a surge in high-rise residential projects, fast-track industrial developments, and data center constructions. While the civil sector, predominantly government-initiated projects, has seen a slowdown due to cautious spending and control, significant advancements in public transportation and infrastructure have been made. Notable projects include the expansion of the MRT and the rollout of a 5G network, which are expected to stimulate job creation and real estate development in key areas. The government's New Industrial Master Plan 2030 further aims to enhance the manufacturing sector's competitiveness through the establishment of new industrial parks and infrastructure modernization.

The Malaysian construction market is marked by a substantial number of projects, with a significant portion driven by private investments. Local contractors dominate the sector, showcasing their capability in infrastructure development. Major projects such as the Penang LRT and the Sabah and Sarawak Link Road are set to receive considerable government investment, reflecting the government's commitment to development. Additionally, large-scale projects like the Penang Technology Park Lithium Battery Separator Plant and the Sedenak JH1 Data Center Campus highlight the region's growing demand for advanced infrastructure. Despite the presence of major international players, the market offers substantial growth potential, particularly in residential and transport construction sectors, providing opportunities for key players like YTL Corporation Berhad, IJM Corporation Berhad, and Gamuda Berhad to expand their influence.

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Malaysia Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic and Construction Market Scenario

    2. 1.2 Technological Innovations in the Construction Sector

    3. 1.3 Impact of Government Regulations and Initiatives on the Industry

    4. 1.4 Review and Commentary on the Extent of Malaysia Vision 2020

    5. 1.5 Comparison of Key Industry Metrics of Malaysia with Other ASEAN Countries

    6. 1.6 Comparison of Construction Cost Metrics of Malaysia with Other ASEAN Countries

    7. 1.7 Impact of COVID-19 on the Market

    8. 1.8 Market Dynamics

      1. 1.8.1 Market Drivers

        1. 1.8.1.1 Rise in Demand for Residential Property

        2. 1.8.1.2 Increase in Infrastructure Projects

      2. 1.8.2 Market Restraints

        1. 1.8.2.1 Increase in Cost of Raw Materials

      3. 1.8.3 Market Oppurtunities

    9. 1.9 Value Chain/Supply Chain Analysis

    10. 1.10 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.10.1 Bargaining Power of Suppliers

      2. 1.10.2 Bargaining Power of Buyers/Consumers

      3. 1.10.3 Threat of New Entrants

      4. 1.10.4 Threat of Substitute Products

      5. 1.10.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Commercial Construction

      2. 2.1.2 Residential Construction

      3. 2.1.3 Industrial Construction

      4. 2.1.4 Infrastructure (Transportation) Construction

      5. 2.1.5 Energy and Utilities Construction

    2. 2.2 By Construction Type

      1. 2.2.1 Additions

      2. 2.2.2 Demolition and New Construction

Malaysia Construction Market Size 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.

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