Malaysia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Malaysia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Summary

Malaysia's construction industry is expected to grow by 5.1% in real terms in 2023, supported by an improvement in the tourism and hospitality sectors, and a rise in foreign direct investment. According to the Malaysian Investment Development Authority (MIDA), the government approved MYR71.4 billion ($16.3 billion) worth of foreign investment in the first quarter of 2023, a year-on-year (YoY) growth of 60%. Of the total foreign investment approved in Q1 2023, 75.1%, equivalent to MYR53.6 billion ($12.2 billion), was in the services sector, while 21.8% - equivalent to MYR15.6 billion ($3.6 billion) - was in the manufacturing sector, and 3.1% - equivalent to MYR2.2 billion ($501.8 million) - was in the primary sector. The government is also focusing on enhancing the ease of doing business in Malaysia and attracting more investment into the country. In July 2023, the Minister of Trade reported that the government is working towards streamlining the roles of its investment promotion agencies, to expedite business approvals and provide investors with a smoother process.

GlobalData expects the Malaysian construction industry to register an annual average growth rate of 5.9% between 2024 and 2027, supported by investment in transport, renewable energy, industrial, green hydrogen, and telecommunication infrastructure projects. In early September 2023, the government rolled out the new Industrial Master Plan (NIMP), which is expected to transform the industrial sector by 2030 with estimated investment of MYR95 billion ($21.7 billion), mostly by the private sector. As part of the NIMP 2030, the government aims to increase the manufacturing sector's value-add from MYR364.1 billion ($83 billion) in 2022 to MYR587.5 billion ($134 billion) by 2030. The plan is expected to create 3.3 million jobs by the end of this decade.

The report provides detailed market analysis, information and insights into 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.