Malaysia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Malaysia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

Malaysia's construction industry is expected to grow by 3.5% in real terms in 2023, following an annual growth of 5% in 2022. Rising foreign and domestic investment, the execution of large infrastructure projects, and the country’s economic stability have seen a steady increase in the industry's output since Q2 2022. According to the Department of Statistics Malaysia (DOSM), construction industry’s value add rose by 7.4% year on year (YoY) in Q1 2023, preceded by Y-o-Y growth of 10.1% in Q4 and 15.3% in Q3 2022. Previously, Petronas, a state-owned energy group, announced its plans in December 2022 to drill 96 new wells under the Development, Appraisal, and Exploration drilling programme, 21 producing wells for workover activities, and 28 wells for planned Plug and Abandon (P&A) activity in 2023. However, industry activity is expected to be impacted by the weakness of the residential construction sector, with soft investor and consumer confidence caused by higher inflation and mortgage rates expected to weigh on new investment.

The construction industry is expected to register an annual average growth rate of 6.2% between 2024 and 2027, driven by investment in large-scale transport and energy projects. Construction industry growth will be further supported by the government’s aim of establishing the Public Private Partnership (PPP) 3.0 model, a specialized mechanism to fund infrastructure projects under the 12th Malaysia (12MP) plan between 2021 and 2025. In June 2021, the government unveiled its energy transition plans until 2040, aiming to increase the proportion of renewable energy in the total energy mix from 2% in 2019, to 31% by 2025 and 40% by 2035. Furthermore, in January 2023, as part of the Masyarakat Madani policy, the local Government Development Ministry (KPKT) is focusing on the construction of 500,000 housing units by the end of 2025

The report provides detailed market analysis, information and insights into the Malaysia’s construction industry, including -

• Malaysia’s 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 Malaysia’s 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 (2018-2022) and forecast (2023-2027) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.