Malaysia Construction Market to Expand by 6% in 2025

Strategic Insights -

The Malaysian construction industry is poised for growth in 2025, driven by investments in industrial and transport infrastructure projects. According to the Department of Statistics Malaysia, the total value of construction work done grew by 16.6% year-over-year (YoY) in Q1 2025, with residential construction work done increasing by 27% and non-residential buildings and civil engineering works growing by 21.1% and 3.7%, respectively.

The government has 1,049 projects in the pipeline, worth a total of MYR58.8 billion ($13.3 billion), with the services sector dominating the pipeline with 995 projects, worth MYR31.8 billion ($7.2 billion), while the manufacturing sector accounts for 54 projects worth MYR27.0 billion ($6.1 billion). The construction industry is expected to register an annual average growth rate of 4.4% between 2026 and 2029, supported by investments in manufacturing and mixed-use projects, coupled with support from the New Industrial Master Plan 2030 (NIMP 2030), announced in 2023.

Key Takeaways:

  • The Malaysian construction industry is expected to expand by 6% in real terms in 2025, supported by investments in industrial and transport infrastructure projects.
  • The total value of construction work done grew by 16.6% YoY in Q1 2025, with residential construction work done increasing by 27% and non-residential buildings and civil engineering works growing by 21.1% and 3.7%, respectively.
  • The government has 1,049 projects in the pipeline, worth a total of MYR58.8 billion ($13.3 billion), with the services sector dominating the pipeline with 995 projects, worth MYR31.8 billion ($7.2 billion).
  • The construction industry is expected to register an annual average growth rate of 4.4% between 2026 and 2029, supported by investments in manufacturing and mixed-use projects, coupled with support from the New Industrial Master Plan 2030 (NIMP 2030).
  • The Malaysian investment development authority (MIDA) has identified 1,049 projects in the pipeline, with a total value of MYR58.8 billion ($13.3 billion), including 995 projects from the services sector worth MYR31.8 billion ($7.2 billion).
  • The Ministry of Education has been allocated MYR64.1 billion ($14.4 billion) in the 2025 Budget, the Ministry of Health has been allocated MYR45.3 billion ($10.2 billion), the Ministry of Housing has been allocated MYR10 billion ($2.3 billion), and the Ministry of Energy has been allocated MYR16 billion ($3.6 billion).

Statistics:

  • The Malaysian construction industry is expected to expand by 6% in real terms in 2025.
  • The total value of construction work done grew by 16.6% YoY in Q1 2025.
  • Residential construction work done increased by 27% in Q1 2025.
  • Non-residential buildings and civil engineering works grew by 21.1% and 3.7%, respectively, in Q1 2025.
  • The government has 1,049 projects in the pipeline, worth a total of MYR58.8 billion ($13.3 billion).
  • The services sector dominates the pipeline with 995 projects, worth MYR31.8 billion ($7.2 billion).
  • The manufacturing sector accounts for 54 projects worth MYR27.0 billion ($6.1 billion).
  • The construction industry is expected to register an annual average growth rate of 4.4% between 2026 and 2029.

Sources:

  • Department of Statistics Malaysia
  • Malaysian Investment Development Authority (MIDA)
  • 2025 Budget
  • New Industrial Master Plan 2030 (NIMP 2030)
  • ResearchAndMarkets.com
  • Maybank