The analyst expects the Malaysian construction industry to grow by 6.5% in real terms in 2026, supported by public and private sector investments in transport infrastructure, coupled with government allocations as part of the 2026 Budget. According to the Department of Statistics Malaysia (DOSM), the total value of construction work done grew by 8.5% year on year (YoY) in Q1 2026, preceded by YoY growth of 10.3% in Q4 and 10.6% in Q3 2025. According to the DOSM, the value-add of the construction industry rose by 7.7% YoY in Q1 2026, preceded by YoY growth of 10.9% in Q4 and 11.7% in Q3 2025.
Over the remainder of the forecast period, the construction industry is expected to record annual average growth of 3.5% between 2027 and 2030, supported by investments in the industrial, transport, and energy sectors, coupled with investments under the government’s New Industrial Master Plan 2030 (NIMP 2030).The government aims to increase the manufacturing sector’s GDP from the 2022 baseline of MYR364.9 billion ($82.2 billion) to MYR587.5 billion ($132.4 billion) by 2030. As part of NIMP 2030, the government plans to upgrade 3,000 factories into smart factories, with an estimated investment of MYR5 billion ($1.1 billion).
Over the remainder of the forecast period, the construction industry is expected to record annual average growth of 3.5% between 2027 and 2030, supported by investments in the industrial, transport, and energy sectors, coupled with investments under the government’s New Industrial Master Plan 2030 (NIMP 2030).The government aims to increase the manufacturing sector’s GDP from the 2022 baseline of MYR364.9 billion ($82.2 billion) to MYR587.5 billion ($132.4 billion) by 2030. As part of NIMP 2030, the government plans to upgrade 3,000 factories into smart factories, with an estimated investment of MYR5 billion ($1.1 billion).
The Construction in Malaysia - Key Trends and Opportunities to 2030 (Q2 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.
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
