Malaysia Construction Industry Report 2025 | Output to Expand by 6% in Real-terms This Year, Supported by Investments in Industrial and Transport Infrastructure Projects - Forecast to 2029 - ResearchAndMarkets.com

The "Malaysia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Malaysia is expected to expand by 6% in real terms in 2025, supported by investments in industrial and transport infrastructure projects.

According to the Department of Statistics Malaysia (DOSM), the total value of construction work done grew by 16.6% YoY in Q1 2025. By sector, the total value of residential construction work done grew by 27%, while that for non-residential buildings and civil engineering works grew by 21.1% and 3.7%, respectively, during Q1 2025.

Moreover, according to the Malaysian Investment Development Authority (MIDA), the government has 1,049 projects in the pipeline, worth a total of MYR58.8 billion ($13.3 billion). The services sector dominates the pipeline with 995 projects, worth MYR31.8 billion ($7.2 billion), while the manufacturing sector accounts for 54 projects worth MYR27.0 billion ($6.1 billion). Growth in 2025 will also be supported by allocations announced as part of the 2025 Budget, under which, MYR64.1 billion ($14.4 billion) is allocated for the Ministry of Education, MYR45.3 billion ($10.2 billion) for the Ministry of Health, MYR10 billion ($2.3 billion) for the Ministry of Housing, and MYR16 billion ($3.6 billion) for the Ministry of Energy.

The construction industry is expected to register an annual average growth rate of 4.4% between 2026 and 2029, supported by investments in manufacturing and mixed-use projects, coupled with support from the New Industrial Master Plan 2030 (NIMP 2030), announced in 2023; as part of the plan, the government will invest MYR5 billion ($1.1 billion) to develop 3,000 smart factories in the country by 2030. In March 2025, the Malaysian commercial banking company, Maybank, reported that the country's Johor state is poised to receive up to MYR2.4 billion ($540.8 million) in investments over the next three to ten years, focused on the Johor-Singapore Special Economic Zone (JS-SEZ).

Scope

• 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

Reasons to Buy

• 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 the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

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

For more information about this report visit https://www.researchandmarkets.com/r/2dz8dg

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