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Market Research Report

Construction in Malaysia - Key Trends and Opportunities to 2023

Published by GlobalData Product code 273386
Published Content info 49 Pages
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Construction in Malaysia - Key Trends and Opportunities to 2023
Published: January 11, 2019 Content info: 49 Pages
Description

The Malaysian construction industry's output grew at a compound annual growth rate (CAGR) of 6.69% during the review period (2014-2018). The industry's output value, measured at constant 2017 US dollar exchange rates, increased from US$25.9 billion in 2014 to US$33.6 billion in 2018. Although output growth slowed in 2018, the general upward trend can be attributed to public and private sector investment in infrastructure, residential and energy construction projects.

However, the construction industry is expected to face some challenges, mainly stemming from the new government's policy to reduce the country's debt by cutting investment on major infrastructure projects. In October 2018, the Mahathir government announced plans to cut 15.0% of the total development expenditure annually, in order to reduce the country's debt. Accordingly, in October 2018, after reviewing MP2016-2020 program, the government announced a plan to reduce its program budget from MYR260.0 billion (US$52.6 billion) to MYR220.0 billion (US$55.1 billion).

Over the forecast period (2019-2023), the government's efforts to enhance transport and residential infrastructure will support the growth of the industry. The industry's output value in real terms is expected to post a forecast-period CAGR of 5.53%. Consequently, the industry's output value is expected to rise from a value of US$33.6 billion in 2018 to US$43.9 billion in 2023, measured at constant 2017 US dollar exchange rates. In addition, the government's aim to improve local energy resources is expected to support investments in energy infrastructure projects, which will in turn fuel growth in the industry. The industry growth will also be driven by the 11th Malaysia Plan (11MP) 2016-2020, under which the government plans to develop the transport infrastructure, manufacturing, mining and agriculture sectors with an aim to achieve the status of a developed economy by 2020.

Residential construction was the largest market in the industry during the review period, accounting for 29.1% of its total value in 2018. Market expansion over the forecast period is expected to be supported by affordable housing programs being implemented by the government. Infrastructure construction was the second-largest market in the Malaysian construction industry during the review period, accounting for 24.4% of its total value in 2018. The market is expected to retain its position over the forecast period, accounting for 26.8% of the industry's total value in 2023.

GlobalData's "Construction in Malaysia - Key Trends and Opportunities to 2023", report provides detailed market analysis, information and insights into the Malaysian construction industry, including -

  • The Malaysian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Malaysian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope:

This report provides a comprehensive analysis of the construction industry in Malaysia. It provides -

  • Historical (2014-2018) and forecast (2019-2023) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Table of Contents
Product Code: GDCN0451MR

Table of Contents

  • 1. EXECUTIVE SUMMARY 2
  • 2. CONSTRUCTION OUTLOOK: AT-A-GLANCE 3
  • 3. LATEST NEWS AND INDICATORS 9
  • 4. KEY DRIVERS AND RISKS 11
  • 4.1. Economic Performance 11
  • 4.2. Political Environment 11
  • 4.3. Demographics 12
  • 4.4. Risk Profile 13
  • 5. CONSTRUCTION OUTLOOK 14
  • 5.1. All Construction 14
  • 5.1.1. Outlook 14
  • 5.1.2. Project analytics 17
  • 5.2. Commercial Construction 20
  • 5.2.1. Outlook 20
  • 5.2.2. Project analytics 22
  • 5.3. Industrial Construction 24
  • 5.3.1. Outlook 24
  • 5.3.2. Project analytics 25
  • 5.4. Infrastructure Construction 27
  • 5.4.1. Outlook 27
  • 5.4.2. Project analytics 28
  • 5.5. Energy and Utilities Construction 30
  • 5.5.1. Outlook 30
  • 5.5.2. Project analytics 31
  • 5.6. Institutional Construction 33
  • 5.6.1. Outlook 33
  • 5.6.2. Project analytics 34
  • 5.7. Residential Construction 36
  • 5.7.1. Outlook 36
  • 5.7.2. Project analytics 37
  • 6. KEY INDUSTRY PARTICIPANTS 39
  • 6.1. Contractors 39
  • 6.2. Consultants 41
  • 7. APPENDIX 43
  • 7.1. What is this Report About? 43
  • 7.2. Definitions 43
  • 8. ABOUT GLOBALDATA 47
  • 8.1. GlobalData at a Glance 47
  • 8.2. GlobalData Construction 48
  • 8.3. Disclaimer 49
  • 8.4. Contact Us 49

List of Tables

  • Table 1: Construction Outlook 3
  • Table 2: Malaysia, Key Economic Indicators 11
  • Table 3: Malaysia, Construction Output Value (nominal, MYR Million) 18
  • Table 4: Malaysia, Construction Output Value (nominal, US$ Million) 19
  • Table 5: Malaysia, Top Commercial Construction Projects by Value 23
  • Table 6: Malaysia, Top Industrial Construction Projects by Value 26
  • Table 7: Malaysia, Top Infrastructure Construction Projects by Value 29
  • Table 8: Malaysia, Top Energy and Utilities Construction Projects by Value 32
  • Table 9: Malaysia, Top Institutional Construction Projects by Value 35
  • Table 10: Malaysia, Top Residential and Mixed-Use Construction Projects by Value 38
  • Table 11: Malaysia, Key Contractors 39
  • Table 12: Malaysia, Key Consultants 41
  • Table 13: GlobalData Construction Market Definitions 44
  • Table 14: Construction Risk Index Ratings and Scores 46

List of Figures

  • Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix 3
  • Figure 2: Malaysia, Construction Projects Pipeline by Sector (MYR Billion) 3
  • Figure 3: Malaysia, Value of Housing loan Issued (MYR, Million) 10
  • Figure 4: Malaysia, Risk Review 13
  • Figure 5: Malaysia, Risk Comparison 13
  • Figure 6: Malaysia, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate) 15
  • Figure 7: Malaysia, Construction Output Value, Growth Matrix 15
  • Figure 8: Malaysia, Construction Output Value, by Sector (MYR Million), 2014-2023 16
  • Figure 9: Malaysia, Construction Projects Pipeline, Projected Annual Spending by Stage (MYR Million), 2018-2023 17
  • Figure 10: Malaysia, Construction Projects Pipeline, Value by Stage (MYR Million) 17
  • Figure 11: Malaysia, Commercial Construction Output by Project Type (MYR Million), 2014-2023 21
  • Figure 12: Malaysia, Commercial Construction Projects Pipeline, Value by Stage (MYR Million) 22
  • Figure 13: Malaysia, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (MYR Million), 2018-2023 23
  • Figure 14: Malaysia, Industrial Construction Output by Project Type (MYR Million), 2014-2023 24
  • Figure 15: Malaysia, Industrial Construction Projects Pipeline, Value by Stage (MYR Million) 25
  • Figure 16: Malaysia, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (MYR Million), 2018-2023 26
  • Figure 17: Malaysia, Infrastructure Construction Output by Project Type (MYR Million), 2014-2023 27
  • Figure 18: Malaysia, Infrastructure Construction Projects Pipeline, Value by Stage (MYR Million) 28
  • Figure 19: Malaysia, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (MYR Million), 2018-2023 29
  • Figure 20: Malaysia, Energy and Utilities Construction Output by Project Type (MYR Million), 2014-2023 30
  • Figure 21: Malaysia, Energy and Utilities Construction Projects Pipeline, Value by Stage (MYR Million) 31
  • Figure 22: Malaysia, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (MYR Million), 2018-2023 32
  • Figure 23: Malaysia, Institutional Construction Output by Project Type (MYR Million), 2014-2023 33
  • Figure 24: Malaysia, Institutional Construction Projects Pipeline, Value by Stage (MYR Million) 34
  • Figure 25: Malaysia, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (MYR Million), 2018-2023 35
  • Figure 26: Malaysia, Residential Construction Output by Project Type (MYR Million), 2014-2023 36
  • Figure 27: Malaysia, Residential Construction Projects Pipeline, Value by Stage (MYR Million) 37
  • Figure 28: Malaysia, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (MYR Million), 2018-2023 38
  • Figure 29: Malaysia, Headquarters of Key Contractors (% of Total Project Pipeline) 40
  • Figure 30: Malaysia, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor) 40
  • Figure 31: Malaysia, Headquarters of Key Consultants (% of Total Project Pipeline) 42
  • Figure 32: Malaysia, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants) 42
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