Please Wait.....
Report
Malaysia Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)
Market Report I 2025-04-28 I 150 Pages I Mordor Intelligence
The Malaysia Construction Market size is estimated at USD 41.85 billion in 2025, and is expected to reach USD 63.07 billion by 2030, at a CAGR of 8.55% during the forecast period (2025-2030).
Key Highlights
- The construction industry in Malaysia continued to grow in 2023, with the total value of projects realized amounting to MYR 54.71 billion (USD 11.47 billion) between January and October.
- The private sector spearheaded the recovery from COVID-19 lockdowns and became the main driver of construction growth. Some key private sector projects that contributed to this recovery were high-rise residential projects with mixed-use ideas, supply chain optimization-driven fast-track industrial projects, and data center developments.
- While the civil sector accounted for the majority of government-initiated projects, it slowed down over time, mainly due to government control and prudent spending. However, the government has made significant strides toward improving public transportation and economic development in the region through various national infrastructure projects.
- The projects include the 5G network roll-out, which will cater to the growing demand for data centers across the Asia-Pacific region, and the MRT extension, which is projected to create thousands of jobs during the construction phase. Public transportation projects have sparked a wave of transit-oriented projects in Klang Valley, as well as along the intercity railway links, catalyzing real estate revitalization in the surrounding areas.
- The New Industrial Master Plan (NIMP) 2030 launched by the Government of Malaysia aims to transform Malaysia's manufacturing industry into a high value, technology-based and globally competitive sector by 2030. The NIMP calls for the establishment of new industrial parks and the construction and modernisation of infrastructure to facilitate the development of the manufacturing sector.
Malaysia Construction Market Trends
Residential Construction Driving the Market
Construction activity in Malaysia has increased for the fifth consecutive quarter, although the growth rate has slowed in the second quarter of 2023.
- According to data from the Department of Statistics Malaysia (DOSM), the value of work done in the construction sector rose by 8.1% year-on-year to MYR 32.4 billion (USD 7.05 billion) from April to June 2023.
- The growth in construction output was primarily driven by increased work in the residential sector, which saw a rebound and a 6.9% year-on-year expansion. Additionally, special trade activities experienced a faster rise of 9.8% year-on-year.
- However, civil engineering, which makes up the largest proportion of the sector's output, grew at a slower rate of 10.4% year-on-year.
- The growth was the slowest in four quarters, mainly because of the higher base due to the value of work done being more or less the same, hovering around MYR 12.1 billion (USD 2.59 billion) in the three quarters to Q2-2023.
- By project owners, private sector output, which accounted for 63.1% of total output, rose faster by 17.3% (Q1 2023: +10.6%), while the progress of construction project developments under the government recorded zero growth (1Q 2023: +6.1%) or unchanged from Q1 of 2023.
Increase in Infrastructure Construction Activities Driving Growth
The construction sector in Malaysia has seen a dramatic expansion, with 9,144 projects launched as of September 2023. The projects represent MYR 63 billion (USD 13.21 billion) of private investment and MYR 84 billion (USD 17.61 billion) of government investment. 91% of the projects were handled by local contractors, demonstrating their expertise in developing Malaysia's infrastructure.
According to budget-2024 Malaysia, the government plans to implement several large-scale projects such as Penang LRT, Sabah and Sarawak Link Road, and the reinstatement of LRT 3. These projects are part of Malaysia's MYR 90 billion (USD 18.87 billion) development expenditure budget for 2024.
- The Penang Technology Park Lithium Battery Separator Plant project consists of the construction of a 4 billion square meter (4 billion sq. m) lithium battery separators plant in Penang. The plant will be located on 26.7 hectares of land and will have a production capacity of 4 billion square meters per annum of wet-process and coated separators. The construction of the plant began in the fourth quarter of 2023 and is planned to be completed in the third quarter of 2025. This project is intended to meet the increasing demand for polyimide batteries in the region. Once operational, the project will be one of the first in the region and will be the largest low-carbon separator plant in ASEAN.
- Sedenak JH1 Data Center Campus project consists of the development of a 150 MW data center campus located on a 12.5 ha plot of land in JB (Johor Bahru). The construction started in the 4th quarter of 2023 and will be finished in the 4th quarter of 2025. Once completed, the Data Center (DC) campus will become one of Southeast Asia's largest data center campuses to meet the infrastructure requirements of customers in the region.
- The China Communication Construction Company (CCCC) is spearheading Malaysia's largest infrastructure endeavor, the East Coast Rail Link. Leveraging cutting-edge Chinese technology, CCCC is setting a new pace, laying tracks at a rate three times faster than traditional methods.
Malaysia Construction Industry Overview
The Malaysian construction market is less competitive due to major international players holding a large share of the total market. Furthermore, the residential and transport construction sectors have a huge potential for growth during the forecasted period, which stimulates opportunities for other market players. Some of the major players in Malaysia's Construction Market are YTL Corporation Berhad, IJM Corporation Berhad, Gamuda Berhad, UEM Group Berhad, and Malaysian Resources Corporation Berhad.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Market
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the Construction Sector
4.3 Impact of Government Regulations and Initiatives on the Industry
4.4 Review and Commentary on the Extent of Malaysia Vision 2020
4.5 Comparison of Key Industry Metrics of Malaysia with Other ASEAN Countries
4.6 Comparison of Construction Cost Metrics of Malaysia with Other ASEAN Countries
4.7 Impact of COVID-19 on the Market
4.8 Market Dynamics
4.8.1 Market Drivers
4.8.1.1 Rise in Demand for Residential Property
4.8.1.2 Increase in Infrastructure Projects
4.8.2 Market Restraints
4.8.2.1 Increase in Cost of Raw Materials
4.8.3 Market Oppurtunities
4.9 Value Chain/Supply Chain Analysis
4.10 Industry Attractiveness - Porter's Five Forces Analysis
4.10.1 Bargaining Power of Suppliers
4.10.2 Bargaining Power of Buyers/Consumers
4.10.3 Threat of New Entrants
4.10.4 Threat of Substitute Products
4.10.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Sector
5.1.1 Commercial Construction
5.1.2 Residential Construction
5.1.3 Industrial Construction
5.1.4 Infrastructure (Transportation) Construction
5.1.5 Energy and Utilities Construction
5.2 By Construction Type
5.2.1 Additions
5.2.2 Demolition and New Construction
6 COMPETITIVE LANDSCAPE
6.1 Market Overview
6.2 Company Profiles
6.2.1 YTL Corporation Berhad
6.2.2 IJM Corporation Berhad
6.2.3 Gamuda Berhad
6.2.4 UEM Group Berhad
6.2.5 Malaysian Resources Corporation Berhad
6.2.6 WCT Holdings Berhad
6.2.7 WCE Holdings Berhad
6.2.8 Hock Seng Lee Berhad
6.2.9 Mudajaya Group Berhad
6.2.10 Muhibbah Engineering (M) Bhd*
7 FUTURE OF THE MARKET
8 APPENDIX
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security