PUBLISHER: GlobalData | PRODUCT CODE: 1089691
PUBLISHER: GlobalData | PRODUCT CODE: 1089691
The Malaysian construction industry registered a contraction of 5.3% in real terms in 2021, due to the impact of the restrictions imposed amid a severe outbreak of the Delta variant of coronavirus (COVID-19) in Q3 2021. This year, with most restrictions lifted, activity in the construction industry is expected to improve from its 2021 levels, although the industry is not expected to surpass its pre-pandemic levels until 2026. According to the Department of Statistics Malaysia (DOSM), the construction value add fell by 6.2% year on year (YoY) in Q1 2022 (the latest data available at the time of writing), following Y-o-Y declines of 12.3% in Q4 and 20.6% in Q3 2021. Although downside risks have risen on the global front, including global supply chain disruptions and the Russia-Ukraine war, the Bank of Malaysia (Bank Negara Malaysia) projected no risk of any recession in Malaysia this year.
The construction industry is expected to register an annual average growth rate of 6.3% between 2023 and 2026, supported by investment in transportation 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 under the 12th Malaysia (12MP) plan between 2021 and 2025. In June 2021, the government unveiled its energy transition plans until 2040, aiming to increase the proportion of renewable energy in the total energy mix from 2% in 2019 to 31% by 2025 and 40% by 2035. As part of the 12MP, the government announced its goal of developing 120 cities to achieve sustainable city status by 2025, by providing additional support to private sector projects implementing strategic development programs. The government also intends to construct 500,000 affordable houses by 2025.
The report provides detailed market analysis, information, and insights into the Malaysian construction industry, including -
This report provides a comprehensive analysis of the construction industry in Malaysia. It provides -