+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Malaysia Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

  • PDF Icon


  • 120 Pages
  • February 2024
  • Region: Malaysia
  • Mordor Intelligence
  • ID: 5332846
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).

Key Highlights

  • During COVID-19, the construction industry in Malaysia was severely affected. Most construction work, except those classified as critical or essential services, was halted throughout the Movement Control Order (MCO). Even after the MCO was lifted, contractors continued to encounter disruption, such as having to incorporate stringent standard operating procedures on health and safety measures ("SOPs") for construction sites. Such disruption has prevented them from carrying out their work as initially and normally envisaged.
  • The construction market has developed tremendously and now contributes significantly to the nation's overall economic growth by generating income, building capital, and creating jobs, all of which support Malaysia's socioeconomic development and gross domestic product (GDP). The main factor impeding Malaysia's building industry's expansion is financial aid. Due to their high financial requirements, construction projects deter private investors from making investments. The government's strategy of reducing spending on significant infrastructure projects in order to reduce the nation's debt is mostly to blame for the challenges the construction industry is currently facing.
  • The construction industry is expected to register growth driven by investment in large-scale transport 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 in the 12th Malaysia (12MP) plan between 2021 and 2025.
  • Due to the rising expansion of infrastructure facilities and green construction, the Malaysian construction market is anticipated to expand in the coming years. Many transportation, telecommunications, and energy projects would result in significant demand for construction equipment. As opposed to the conventional technique of creating structures, green construction conserves natural resources, produces less waste, and gives occupants healthy settings.
  • In December 2021, the Malaysian parliament passed the government's budget for 2022, approving an expenditure of MYR 332.1 billion (USD 81.8 billion). The budget includes an allocation of MYR 75.6 billion (USD 18.6 billion) for development expenditure, along with several incentives to improve employment rates and support businesses.

Malaysia Construction Market Trends

Investments in Infrastructure Sector to Boost Construction Activity

The Malaysian Government has made considerable progress in expanding and modernizing its infrastructures throughout the country. This effort is evident in the five-year centralized economic development plan known as the Malaysia Plan. In these plans, the public sector infrastructure development consistently holds the most significant funding portion.

Among the revived mega infrastructure projects is the 640 km-long East Coast Rail Link project, which resumed work on July 25, 2020, after a year-long suspension. In July 2022, The bulk of domestic demand for Malaysian steelmakers will likely come from the construction of the 20 stations planned for the rail project, as there is no rail maker in Malaysia. In addition to ECRL, other projects such as the Light Rail Transit 3, Mass Rail Transit 2, Electrified Double Track Gemas-Johor Bahru, Klang Valley Double Track Phase 2, Central Spine Road, Pan Borneo Highway, and Coastal Highway in Sarawak are expected to boost Malaysia's construction segment.

As of October 2021, the ECRL project is on track for completion by the end of 2027. The construction industry expanded in 2021 as major infrastructure, and affordable housing projects were revived and accelerated to meet deadlines. Most of the growth is expected to be fuelled by domestic investments. State investments and developments in Penang, Johor, and Negeri Sembilan also contributes to boost the construction industry in 2022.

Increase in Residential Constructions To Drive the Construction Market

In 2021, construction work in Malaysia was valued at approximately MYR 111.98 billion(USD 24.85 Billion), indicating a decrease from prior years due to the pandemic. In 2021, residential building construction by the public sector in Malaysia was valued at approximately MYR 1.02 billion(USD 22.64 Million). However, Malaysia's public residential building construction market has been observing strong growth until 2019, when it was valued at MYR 1.9 billion(USD 42.17 Billion), rising from MYR 1.46 billion(32.40 Million). In 2021, the value of residential building construction by the private sector in Malaysia was valued at approximately MYR 25.22 billion(USD 5.59 Billion), down from MYR 27.26 billion(USD 6.05 Billion) in 2020.

The previous government had announced a total of 300,000 housing units through its various housing programs, such as the Malaysia Civil Servants Housing project (PPA1M), which aimed to build 175,000 affordable housing units across the country, First House Deposit Financing, Program Rumah Mesra Rakyat, People's Housing Program (PPR), and Syarikat Perumahan Negara Berhad. These projects boost residential construction markets during the forecast period.

Malaysia Construction Industry Overview

The Malaysian construction market is less competitive due to major international players holding a large share of the total market. Furthermore, the residential and transport construction sectors have a huge potential for growth in the forecasted period which stimulates opportunities for other market players. Some of the major players in Malaysia Construction Market are YTL Corporation Berhad, IJM Corporation Berhad, Gamuda Berhad, UEM Group Berhad and Malaysian Resources Corporation Berhad.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Market
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the Construction Sector
4.3 Impact of Government Regulations and Initiatives on the Industry
4.4 Review and Commentary on the Extent of Malaysi'a Vision 2020
4.5 Comparison of Key Industry Metrics of Malaysia with Other ASEAN Countries
4.6 Comparison of Construction Cost Metrics of Malaysia with Other ASEAN Countries
4.7 Impact of COVID-19 on the Market
4.8 Market Dynamics
4.8.1 Market Drivers
4.8.2 Market Restraints
4.8.3 Market Oppurtunities
4.9 Value Chain / Supply Chain Analysis
4.10 Industry Attractiveness - Porter's Five Forces Analysis
4.10.1 Threat of New Entrants
4.10.2 Bargaining Power of Buyers/Consumers
4.10.3 Bargaining Power of Suppliers
4.10.4 Threat of Substitute Products
4.10.5 Intensity of Competitive Rivalry
5.1 By Sector
5.1.1 Commercial Construction
5.1.2 Residential Construction
5.1.3 Industrial Construction
5.1.4 Infrastructure (Transportation) Construction
5.1.5 Energy and Utilities Construction
5.2 By Construction Type
5.2.1 Additions
5.2.2 Demolition and New Construction
6.1 Market Overview
6.2 Company Profiles
6.2.1 YTL Corporation Berhad
6.2.2 IJM Corporation Berhad
6.2.3 Gamuda Berhad
6.2.4 UEM Group Berhad
6.2.5 Malaysian Resources Corporation Berhad
6.2.6 WCT Holdings Berhad
6.2.7 WCE Holdings Berhad
6.2.8 Hock Seng Lee Berhad
6.2.9 Mudajaya Group Berhad
6.2.10 Muhibbah Engineering (M) Bhd*

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • YTL Corporation Berhad
  • IJM Corporation Berhad
  • Gamuda Berhad
  • UEM Group Berhad
  • Malaysian Resources Corporation Berhad
  • WCT Holdings Berhad
  • WCE Holdings Berhad
  • Hock Seng Lee Berhad
  • Mudajaya Group Berhad
  • Muhibbah Engineering (M) Bhd*