In 2024, the construction industry in Malaysia had an estimated **** percent share of the country's gross domestic product (GDP), an increase from the year before. This sector has been experiencing a decline since 2019, when it had a *** percent share to the GDP.

Malaysia Construction Market size was valued at USD 49.47 Billion in 2024 and is projected to reach USD 83.07 Billion by 2032, growing at a CAGR of 8.5% from 2026 to 2032.

Malaysia Construction Market Drivers

Government Initiatives and Infrastructure Investment: The Malaysian government plays a pivotal role in the construction industry by funding major infrastructure projects. Programs such as the 12th Malaysia Plan (2021-2025) focus on large-scale public infrastructure improvements, targeting transportation networks, healthcare facilities, and affordable housing. The government’s investments in projects like the Mass Rapid Transit (MRT) and the Pan Borneo Highway reflect a strong commitment to modernizing the country's infrastructure. Moreover, these projects aim to enhance connectivity, reduce urban congestion, and create job opportunities, leading to sustained construction growth.

Urbanization and Population Growth: Malaysia’s urbanization rate is increasing steadily, with more people moving to urban areas for employment and better living conditions. This demographic shift necessitates extensive infrastructure development, including residential buildings, commercial spaces, transportation networks, and utilities. The urbanization trend, coupled with a growing middle-class population, drives demand for high-rise buildings, housing developments, and recreational facilities, creating a favorable environment for construction activities across the country.

Foreign Direct Investment (FDI) and International Partnerships: Malaysia's strategic location in Southeast Asia, along with its stable political climate, attracts significant foreign investment, especially in the construction and real estate sectors. Initiatives under the Belt and Road Initiative (BRI) have seen Chinese firms collaborate on large projects, bringing in capital and expertise. Additionally, policies promoting foreign ownership in certain property sectors have increased FDI, further energizing the construction industry. The presence of international players contributes to Malaysia’s economic development and facilitates the adoption of modern construction techniques and technologies.

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Wall Putty Market Forecast 2024-2028

The wall putty market size is forecast to increase by USD 1.70 billion, at a CAGR of 6.34% between 2023 and 2028.

The growth rate of the market depends on several factors, including the growing demand from emerging economies, the rising disposable income, and the increase in residential and commercial construction. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.

What will be the Market Size During the Forecast Period?

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Market Definition

Wall putty is a powder made of polymers and other minerals that make the wall look smoother. It is primarily used to fill in cracks and holes in walls and prepare an even wall surface prior to applying paint.

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Market Key Drivers, Trends, and Challenges

Key Market Growth Analysis Driver

One of the key factors driving the market growth is the rising disposable income. The amount that is the availability of inexpensive substitutes to a household is referred to as their disposable income and it constitutes income from financial investments (less any tax payments, social insurance contributions, and interest on financial liabilities), earnings and salaries, revenue from self-employment and unincorporated businesses, income from pensions, and other social benefits. In addition, disposable income is a measure that can be used to estimate a nation's economy and demand.

Moreover, economic developments in India, Vietnam, Malaysia, China, and Qatar have led to an increase in the disposable incomes of consumers and rapid urbanization. This rise in income allows people to allocate more towards goods and services, including painting tools and accessories. Higher disposable incomes translate into increased purchasing power, thereby boosting expenditure on residential and commercial infrastructures. Consequently, the demand for painting tools and accessories is expected to grow significantly during the forecast period. This trend underscores a positive outlook for the market, driven by the expanding consumer base with enhanced affordability for such products. As urbanization accelerates and disposable incomes continue to rise across these regions, the market for painting tools and accessories is poised to capitalize on these economic shifts, fostering further growth opportunities in the sector.

Significant Market Trends and Analysis

A key factor shaping the market growth is the increasing product innovation by companies. The industry's commitment to quality and ongoing development has strengthened major market players position as a reliable brand in the market throughout the world. In addition, manufacturers have been able to continuously introduce new and improved products that satisfy the ever-evolving wants of consumers because of their strong focus on innovation.

Moreover, manufacturers guarantee that consumers can obtain a variety of products customized to meet their needs through their diverse product offerings. In addition, innovative formulations addressing key growth drivers in the market contribute significantly. Furthermore, in the US commercial construction market, where quality and durability are paramount, wall putty plays a crucial role by providing a strong and smooth foundation for paint adhesion, thus extending the life of paints applied. These factors, coupled with increasing investments in commercial construction projects across the US, are expected to drive market growth during the forecast period. The demand for high-performance construction materials like wall putty underscores a trend towards enhancing building aesthetics and durability, aligning with the stringent quality standards prevalent in the commercial construction sector.

Major Challenge

Increasing labor costs are one of the key challenges hindering the market growth. They relies on several factors, including labor costs. In addition, the application needs manpower that is skilled or semi-skilled. Furthermore, when there is a shortage of such a skill, labor costs may increase to hire the few individuals who are qualified for the position.

Moreover, when businesses engage unskilled labor, they must train them to prepare them for the position, which drives up labor expenses. In addition, some of the other reasons behind increasing labor costs include supply-demand imbalance and government regulations. Furthermore, it could take the shape of a rise in their base salary or other employee perks and benefits, such as health insurance and other things. Hence, such factors are hindering the market growth during the forecast period.

Segmentation by End-user, Type, and Geography

The report offers extensive research analysis on the market, with a categorization based on End-user, including residential and comme