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Malaysia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q2 2026)

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    Report

  • 67 Pages
  • June 2026
  • Region: Malaysia
  • GlobalData
  • ID: 5767963
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).

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

Table of Contents

1 Executive Summary2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
List of Tables
Table 1: Construction Industry Key Data
Table 2: Israel, Key Economic Indicators
Table 3: Israel, Commercial Construction Output by Project Type (Real % Change), 2021-30
Table 4: Israel, Top Commercial Construction Projects by Value
Table 5: Israel, Industrial Construction Output by Project Type (Real % Change), 2021-30
Table 6: Israel, Top Industrial Construction Projects by Value
Table 7: Israel, Infrastructure Construction Output by Project Type (Real % Change), 2021-30
Table 8: Israel, Top Infrastructure Construction Projects by Value
Table 9: Israel, Energy and Utilities Construction Output by Project Type (Real % Change), 2021-30
Table 10: Israel, Top Energy and Utilities Construction Projects by Value
Table 11: Israel, Institutional Construction Output by Project Type (Real % Change), 2021-30
Table 12: Israel, Top Institutional Construction Projects by Value
Table 13: Israel, Residential Construction Output by Project Type (Real % Change), 2021-30
Table 14: Israel, Top Residential Construction Projects by Value
Table 15: Israel, Key Contractors
Table 16: Israel, Key Consultants
Table 17: Israel Construction Output Value (Real, $ Million)
Table 18: Israel Construction Output Value (Nominal, ILS Million)
Table 19: the analyst Construction Market Definitions
Table 20: the analyst Construction Market Definitions
Table 21: Ratings, Scores and Definitions
Figure 23: Israel, Total Area Authorized for Manufacturing and Storage Premises (Thousands m2)
Figure 24: Israel, Total Area Authorized for Manufacturing and Storage Premises on which construction started (Thousands m2)
Figure 25: Israel, Total Export Value (ILS, Million)
Figure 26: Israel, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 27: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Israel, Road and Bridging Construction Inputs Prices Index (2011=100)
Figure 29: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 30: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: Israel, Information and Communication Value-Add (ILS Million, 2020 Chained Prices)
Figure 32: Israel, Gross Fixed Capital Formation of water, energy, and communication, ILS Million, at 2020 Chained Prices)
Figure 33: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 34: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: Israel, Total Area Authorized for education and healthcare buildings (In Thousands m2)
Figure 36: Israel, Total Area Authorized for education and healthcare buildings on which construction started (In Thousands m2)
Figure 37: Israel, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 38: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Israel, Total Authorized Residential Area (Thousand m2)
Figure 40: Israel, Total Authorized Area on which Construction Works of New Residential Buildings have Started (Thousand m2)
Figure 41: Israel, Housing Construction Inputs Prices Index (VII/2025=100)
Figure 42: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 43: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)
Table 1: Construction Industry Key Data
Table 2: Israel, Key Economic Indicators
Table 3: Israel, Commercial Construction Output by Project Type (Real % Change), 2021-30
Table 4: Israel, Top Commercial Construction Projects by Value
Table 5: Israel, Industrial Construction Output by Project Type (Real % Change), 2021-30
Table 6: Israel, Top Industrial Construction Projects by Value
Table 7: Israel, Infrastructure Construction Output by Project Type (Real % Change), 2021-30
Table 8: Israel, Top Infrastructure Construction Projects by Value
Table 9: Israel, Energy and Utilities Construction Output by Project Type (Real % Change), 2021-30
Table 10: Israel, Top Energy and Utilities Construction Projects by Value
Table 11: Israel, Institutional Construction Output by Project Type (Real % Change), 2021-30
Table 12: Israel, Top Institutional Construction Projects by Value
Table 13: Israel, Residential Construction Output by Project Type (Real % Change), 2021-30
Table 14: Israel, Top Residential Construction Projects by Value
Table 15: Israel, Key Contractors
Table 16: Israel, Key Consultants
Table 17: Israel Construction Output Value (Real, $ Million)
Table 18: Israel Construction Output Value (Nominal, ILS Million)
Table 19: the analyst Construction Market Definitions
Table 20: the analyst Construction Market Definitions
Table 21: Ratings, Scores and Definitions
Figure 23: Israel, Total Area Authorized for Manufacturing and Storage Premises (Thousands m2)
Figure 24: Israel, Total Area Authorized for Manufacturing and Storage Premises on which construction started (Thousands m2)
Figure 25: Israel, Total Export Value (ILS, Million)
Figure 26: Israel, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 27: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Israel, Road and Bridging Construction Inputs Prices Index (2011=100)
Figure 29: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 30: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: Israel, Information and Communication Value-Add (ILS Million, 2020 Chained Prices)
Figure 32: Israel, Gross Fixed Capital Formation of water, energy, and communication, ILS Million, at 2020 Chained Prices)
Figure 33: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 34: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: Israel, Total Area Authorized for education and healthcare buildings (In Thousands m2)
Figure 36: Israel, Total Area Authorized for education and healthcare buildings on which construction started (In Thousands m2)
Figure 37: Israel, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 38: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Israel, Total Authorized Residential Area (Thousand m2)
Figure 40: Israel, Total Authorized Area on which Construction Works of New Residential Buildings have Started (Thousand m2)
Figure 41: Israel, Housing Construction Inputs Prices Index (VII/2025=100)
Figure 42: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 43: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)
List of Figures
Figure 1: Middle East and North Africa, Construction Output (Real % Change), 2024-30
Figure 2: Israel, Construction Output by Sector (Real % Change), 2024-26 and 2027-30
Figure 3: Israel, Risk Summary
Figure 4: Israel, Risk Regional Comparison
Figure 5: Israel, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021-30
Figure 6: Israel, Construction Output Value, by Sector (Real, $ Million), 2021-30
Figure 7: Israel, Construction Value-add (ILS Million, 2020 Chained Prices)
Figure 8: Israel, Unemployment (In thousands)
Figure 9: Israel, Employment in Construction Industry (In thousands)
Figure 10: Israel, Total Area Authorized for Residential and Non-Residential Buildings (Thousands m2)
Figure 11: Israel, Total Area Authorized for Residential and Non-Residential Buildings on Which Construction Were Started (Thousands m2)
Figure 12: Israel, Construction Projects Momentum Index
Figure 13: Middle East and North Africa, Construction Projects Momentum Index
Figure 14: Israel, Commercial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 15: Israel, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 16: Israel, Wholesale and Retail Trade, Accommodation and Food Services Value-Add (ILS Million, 2020 Chained Prices)
Figure 17: Israel, Total International Tourist Arrivals
Figure 18: Israel, Total Area Authorized for Office Buildings (In Thousands m2)
Figure 19: Israel, Total Area Authorized for Office Buildings on which construction started (In Thousands m2)
Figure 20: Israel, Industrial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 21: Israel, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 22: Israel, Manufacturing, Mining and Quarrying Value-Add (ILS Million, 2020 Chained Prices)
Figure 23: Israel, Total Area Authorized for Manufacturing and Storage Premises (Thousands m2)
Figure 24: Israel, Total Area Authorized for Manufacturing and Storage Premises on which construction started (Thousands m2)
Figure 25: Israel, Total Export Value (ILS, Million)
Figure 26: Israel, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 27: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Israel, Road and Bridging Construction Inputs Prices Index (2011=100)
Figure 29: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 30: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: Israel, Information and Communication Value-Add (ILS Million, 2020 Chained Prices)
Figure 32: Israel, Gross Fixed Capital Formation of water, energy, and communication, ILS Million, at 2020 Chained Prices)
Figure 33: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 34: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: Israel, Total Area Authorized for education and healthcare buildings (In Thousands m2)
Figure 36: Israel, Total Area Authorized for education and healthcare buildings on which construction started (In Thousands m2)
Figure 37: Israel, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 38: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Israel, Total Authorized Residential Area (Thousand m2)
Figure 40: Israel, Total Authorized Area on which Construction Works of New Residential Buildings have Started (Thousand m2)
Figure 41: Israel, Housing Construction Inputs Prices Index (VII/2025=100)
Figure 42: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 43: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)