The construction industry in Malaysia is expected to grow in real terms by 8.3% in 2025, supported by private investments in industrial and data center projects, coupled with the government’s investment in transport infrastructure projects. Furthermore, the Malaysian Investment Development Authority’s (MIDA) approved 3,011 projects valued at MYR190.3 billion ($42.9 billion) from January-June 2025, reflecting an 18.7% rise compared to the same period of 2024, supporting construction industry’s output during 2025. Of the total approved projects, the country attracted MYR68.4 billion ($15.4 billion) worth investments in the manufacturing sector with 518 projects. Furthermore, the government has designated MYR550 million ($123.9 million) in its 2025 Budget to enhance the tourism sector and improve infrastructure, supporting the government’s aim to attract 31.3 million international tourists and generate MYR125.5 billion ($28.3 billion) in tourism revenue by 2025, compared to 25 million arrivals and MYR102.3 billion ($23.1 billion) revenue in 2024.
The construction industry is expected to record an annual average growth of 4% between 2026 and 2029, supported by investments in industrial, transport and energy sector, coupled with investments under the government’s initiative such as New Industrial Master Plan 2030 (NIMP 2030), National Energy Transition Roadmap (NETR), the National Semiconductor Strategy (NSS) and the 13th Malaysia Plan (13MP). Under the NIMP 2030, the government aims 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 and is planning to upgrade 3,000 factories into smart factories by 2030 with an estimated investment of MYR5 billion ($1.1 billion).
The construction industry is expected to record an annual average growth of 4% between 2026 and 2029, supported by investments in industrial, transport and energy sector, coupled with investments under the government’s initiative such as New Industrial Master Plan 2030 (NIMP 2030), National Energy Transition Roadmap (NETR), the National Semiconductor Strategy (NSS) and the 13th Malaysia Plan (13MP). Under the NIMP 2030, the government aims 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 and is planning to upgrade 3,000 factories into smart factories by 2030 with an estimated investment of MYR5 billion ($1.1 billion).
The Construction in Malaysia - Key Trends and Opportunities to 2029 (Q3 2025) 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 (2020-2024) and forecast (2025-2029) 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
