The analyst expects the Malaysian construction industry to grow by 6.5%, in real terms in 2026, as the market is supported by increased investments in transport infrastructure, coupled with the latest government allocation as part of the 2026 Budget. The Malaysian budget, which was approved in October 2025, will record the largest ever total spending, projected at MYR470 billion ($105.9 billion), and includes Government-Linked Investment Companies (GLICs) investments. The largest share of operating spending goes to the social sector, which is allocated MYR127.3 billion ($28.7 billion). In addition, around MYR74.4 billion ($16.8 billion) has been allocated for education and MYR40.1 billion ($9 billion) is set for training and health services. These decisions demonstrate the government’s increased focus on improving education quality, healthcare access, and overall well-being. According to the Department of Statistics Malaysia (DOSM), the total value of construction work done in nominal terms grew by 10.3% year on year (YoY) in Q4 2025, which was preceded by YoY growth of 10.6% in Q3 and 12.9% in Q2 2025. By sector, residential construction works rose by 5.9% YoY in Q4 2025, while non-residential works grew by 18.6% YoY, and civil engineering construction works rose by 3.6% YoY.
The construction industry is expected to record an annual average growth of 3.5% between 2027 and 2030, supported by investments in the industrial, transport, and energy sectors. For example, the Southern Johor Renewable Energy Corridor (SJREC), announced in December 2025, will receive funding of MYR26.6 billion ($6 billion) from world bank for a 2,000km2 hybrid solar and battery energy storage system zone, connecting Southeast Asia. The initial sizing of the scheme is a battery energy storage system zone, totaling 4,046.9ha and is set for the initial phase of the project. This initial phase is expected to include up to 4GWp of solar capacity and 5.12GWh of energy storage capacity by 2030. Growth over the forecast period will also be supported by investments under the government’s New Industrial Master Plan 2030 (NIMP 2030), with the government aiming to increase the manufacturing sector’s GDP from the 2022’s baseline of MYR364.9 billion ($82.2 billion) to MYR587.5 billion ($132.4 billion) by 2030. As part of NIMP 2030, the program plans to upgrade 3,000 factories into smart factories with an estimated investment of MYR5 billion ($1.1 billion).
The Construction in the Malaysia - Key Trends and Opportunities to 2030 (Q1 2026) report provides detailed market analysis, information, and insights into the Malaysian construction industry, including:
The construction industry is expected to record an annual average growth of 3.5% between 2027 and 2030, supported by investments in the industrial, transport, and energy sectors. For example, the Southern Johor Renewable Energy Corridor (SJREC), announced in December 2025, will receive funding of MYR26.6 billion ($6 billion) from world bank for a 2,000km2 hybrid solar and battery energy storage system zone, connecting Southeast Asia. The initial sizing of the scheme is a battery energy storage system zone, totaling 4,046.9ha and is set for the initial phase of the project. This initial phase is expected to include up to 4GWp of solar capacity and 5.12GWh of energy storage capacity by 2030. Growth over the forecast period will also be supported by investments under the government’s New Industrial Master Plan 2030 (NIMP 2030), with the government aiming to increase the manufacturing sector’s GDP from the 2022’s baseline of MYR364.9 billion ($82.2 billion) to MYR587.5 billion ($132.4 billion) by 2030. As part of NIMP 2030, the program plans to upgrade 3,000 factories into smart factories with an estimated investment of MYR5 billion ($1.1 billion).
The Construction in the Malaysia - Key Trends and Opportunities to 2030 (Q1 2026) 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.
Report Scope
This report provides a comprehensive analysis of the construction industry in Malaysia. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
