The Malaysia Construction Market Report is Segmented by Sector (Residential, Commercial, and Infrastructure), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site and More), by Investment Source (Public and Private), and by Geography (Selangor, Johor, Wilayah Persekutuan, and Others). The Market Forecasts are Provided in Terms of Value (USD).

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.

Malaysia Data Center Construction Market Report Segments the Industry Into Infrastructure (By Electrical Infrastructure, by Mechanical Infrastructure, General Construction), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

The Malaysian construction industry, currently valued at RM 38.55 billion (assuming "Million" refers to Malaysian Ringgit, and the provided value represents the 2025 market size), exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) of 8.55% from 2025 to 2033. This growth is fueled by several key drivers. Firstly, sustained government investment in infrastructure development, particularly in transportation projects like highways and railways, is a significant contributor. Secondly, the ongoing urbanization and rising population necessitate increased residential and commercial construction activity. Thirdly, growing industrial activity, especially in manufacturing and logistics, demands more industrial facilities and related infrastructure. However, challenges remain. Fluctuations in global commodity prices, particularly steel and cement, pose a significant constraint, impacting project costs and profitability. Furthermore, potential labor shortages and skill gaps within the industry could limit growth potential. The industry is segmented by sector (Commercial, Residential, Industrial, Infrastructure, Energy & Utilities) and construction type (Additions, Demolition, New Construction). Major players like YTL Corporation Berhad, IJM Corporation Berhad, and Gamuda Berhad dominate the market, though many smaller firms also contribute significantly. The industry's geographic distribution is diverse, with projects spanning across the country, reflecting uneven development across different regions. The forecast for 2026 onwards suggests a continued upward trajectory, reflecting the ongoing government initiatives and private sector investment. While external factors like global economic uncertainty could introduce some volatility, the strong fundamentals of the Malaysian economy and continued demand for construction services underpin a positive outlook for the long term. Strategic diversification across sectors and a focus on sustainable construction practices will be crucial for companies to maximize growth and navigate potential challenges effectively. The market segmentation reveals opportunities for specialized contractors and suppliers to target specific niches, fostering competition and innovation. Recent developments include: October 2023: Gamuda Bhd entered into a joint-venture agreement with Sabah Energy Corp Sdn Bhd (SEC) and Kerjaya Kagum Hitech JV Sdn Bhd (KKHJV) to undertake a private finance initiative for the development of the MYR 4 billion (USD 0.86 billion) 187.5 MW hydroelectric power plant in Tenom, Sabah., July 2023: IJM formed a partnership with FMM Elmina Sdn Bhd to develop two logistics hubs on a 22-acre site in the City of Elmina, Shah Alam, marking its maiden industrial property development in the Klang Valley.. Key drivers for this market are: 4., Rise in Demand for Residential Property4.; Increase in Infrastructure Projects. Potential restraints include: 4., Rise in Demand for Residential Property4.; Increase in Infrastructure Projects. Notable trends are: Residential Construction Driving the Market.

Discover the booming Malaysian construction industry! This analysis reveals a market size of RM 38.55 billion in 2025, projected to grow at an 8.55% CAGR until 2033, driven by infrastructure development, urbanization, and sustainable building trends. Learn about key players, market segments, and future outlook. Recent developments include: October 2023: Gamuda Bhd entered into a joint-venture agreement with Sabah Energy Corp Sdn Bhd (SEC) and Kerjaya Kagum Hitech JV Sdn Bhd (KKHJV) to undertake a private finance initiative for the development of the MYR 4 billion (USD 0.86 billion) 187.5 MW hydroelectric power plant in Tenom, Sabah., July 2023: IJM formed a partnership with FMM Elmina Sdn Bhd to develop two logistics hubs on a 22-acre site in the City of Elmina, Shah Alam, marking its maiden industrial property development in the Klang Valley.. Key drivers for this market are: 4., Rise in Demand for Residential Property4.; Increase in Infrastructure Projects. Potential restraints include: 4., Increase in Cost of Raw Materials. Notable trends are: Residential Construction Driving the Market.

The global Malaysia Construction Market size is anticipated to grow significantly, reaching USD 114.37 billion by 2034, up from USD 47 billion. This growth represents a CAGR of over 9.3%. Key companies in the industry include YTL Berhad, IJM Berhad, Gamuda Berhad, UEM Group Berhad, Malaysian Resources Berhad, WCT Holdings Berhad, WCE Holdings Berhad, Hock Seng Lee Berhad, Mudajaya Group Berhad, Muhibbah Engineering Bhd.

The size of the Malaysia Construction Market was valued at USD 16 Billion in 2023 and is projected to reach USD 23.43 Billion by 2032, with an expected CAGR of 5.6% during the forecast period. Recent developments include: April 2021: The Tetley Harris Food Group, a division of Tata Consumers Product, has announced that the US-based Harris Tea Company has bought all of its shares. The organization wants to offer integrated end-to-end services to its clients., January 2021: Habib Bakshi, CEO of SkyDiamond Elite, purchased the Construction shop, which sold kits for making homemade brews. Additionally, the company uses a special combination of materials to prepare the product. With consumers' increasing health consciousness, the company plans to expand its business via digital marketing and assist customers in making cost-effective lifestyle changes.. Notable trends are: Growing residential construction is driving the market growth.

The size of the Malaysia Data Center Construction Market market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 16.64% during the forecast period. Recent developments include: October 2022: Zenlayer entered into a joint venture with Megaport to strengthen and expand its presence globally. The partnership is aimed at providing enhanced services such as improved network connectivity, real time provisioning, and on demand private connectivity for its clients around the globe., September 2022: NTT Ltd announced the commencement of the construction of its sixth data centre in Cyberjaya. NTT plans to initially invest over USD 50 million in the sixth data centre, which is also known as Cyberjaya 6 (CBJ6). Further, CBJ6 and CBJ5 will have a total facility load of 22 MW, spanning a combined space of 200,000 sq.ft. capacity.. Key drivers for this market are: Rising Partnerhsips, Growing Industry 4.0 Technologies Are Factors To Boost The Data Centers In The Country, Established 'Mobile-First' Landscape Since the Recent Past. Potential restraints include: Shortage of Skilled Professionals Presenting a Challenge for Several Contractors. Notable trends are: IT and Telcom Segment is Expected to Gain Significant Market Share.

The Malaysia Construction market report offers a thorough competitive analysis, mapping key players’ strategies, market share, and business models. It provides insights into competitor dynamics, helping companies align their strategies with the current market landscape and future trends.

Malaysia Construction Market growth is driven by increasing infrastructure investments, urbanization, and technological advancements in construction methods.

Construction output in Malaysia increased 10.60 percent in September of 2025 over the same month in the previous year. This dataset provides - Malaysia Construction Output- actual values, historical data, forecast, chart, statistics, economic calendar and news.

This dataset shows the Value added of construction sector by state, 2005-2020 at constant prices Notes: Supra State covers production activities that beyond the centre of predominant economic interest for any state = Not applicable For base year 2005, the values for year 2012 are estimate and the values for year 2013 are preliminary For base year 2010, the values for year 2016 are estimate and the values for year 2017 are preliminary For base year 2015, the values for year 2019 are estimate and the values for year 2020 are preliminary DEPARTMENT OF STATISTICS MALAYSIA No. of Views : 153

In real terms, the Malaysian construction industry’s output grew at a compound annual growth rate (CAGR) of 6.69% during the review period (2014-2018). Although output growth slowed in 2018, the general upward trend can be attributed to public and private sector investment in infrastructure, residential and energy construction projects. Read More

In 2024, the gross domestic product (GDP) from construction in Malaysia amounted to around ***** billion Malaysian ringgit, an increase from ***** billion Malaysian ringgit in the previous year. The GDP from construction experienced a decrease from 2020 to 2021, likely due to the restrictions during the COVID-19 pandemic.

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.

Market Size, Trends, Segmentation, and Future Outlook Across Key Sectors Base Year : 2024

The Malaysia Construction Chemicals Market Report is Segmented by Product (Adhesives, Anchors and Grouts, Concrete Admixtures, Concrete Protective Coatings, Flooring Resins, Repair and Rehabilitation Chemicals, Sealants, Surface-Treatment Chemicals, and Waterproofing Solutions) and End-Use Sector (Commercial, Industrial and Institutional, Infrastructure, Residential). The Market Forecasts are Provided in Terms of Value (USD).

In 2024, approximately *** million people were employed in the construction industry in Malaysia, a slight increase compared to the previous year. The number of employees in the construction industry was at its highest in 2015, when *** million people were employed.

Malaysia Construction Software Market is projected to grow around USD 2.85 billion in 2025 to USD 6.72 billion by 2031, exhibiting a CAGR of 15.3% during the forecast period.

Forecast: Construction Industry Contribution to GDP in Malaysia 2022 - 2026 Discover more data with ReportLinker!