Malaysia's Construction Industry to Grow 9.6% YoY in 2025, Fueled by Energy and Utilities Investments

Strategic Insights -

Malaysia's construction industry is set to experience significant growth in 2025, driven by the building sector, according to BMI, a Fitch Solutions company. The industry is expected to expand 9.6% year-on-year (y-o-y) in 2025, with the building sector being the primary driver of this growth. Within the building sector, residential building construction is anticipated to expand 15.7% y-o-y, while non-residential building construction is forecast to grow 10.3% y-o-y. This growth is underpinned by ongoing private sector investment in luxury and large-scale projects, as well as sustained government initiatives targeting affordable housing.

The long-term infrastructure construction growth will be spurred by the energy and utilities investments, with regional integration driving the transport infrastructure development. BMI noted that the energy and utilities sub-sector is forecast to grow 6.5% in 2025, compared to the wider infrastructure industry growth forecast of 4.2%. The energy and utilities construction sector is expected to be driven by growth in the power plants and transmission grids.

Key Takeaways:

  • Malaysia's construction industry is expected to grow 9.6% year-on-year (y-o-y) in 2025, driven by the building sector.
  • Residential building construction is anticipated to expand 15.7% y-o-y in 2025, while non-residential building construction is forecast to grow 10.3% y-o-y.
  • The long-term infrastructure construction growth will be spurred by the energy and utilities investments.
  • The energy and utilities sub-sector is forecast to grow 6.5% in 2025, compared to the wider infrastructure industry growth forecast of 4.2%.
  • Power plants and transmission grids are expected to be the key driver of growth in the energy and utilities construction sector over the coming decade.

Statistics:

  • 9.6%: Malaysia's construction industry growth forecast for 2025.
  • 15.7%: Residential building construction growth forecast for 2025.
  • 10.3%: Non-residential building construction growth forecast for 2025.
  • 6.5%: Energy and utilities sub-sector growth forecast for 2025.
  • 4.2%: Wider infrastructure industry growth forecast for 2025.
  • $&**: The value of the energy and utilities construction sector in Malaysia.
  • 13th Malaysia Plan: The government's initiative to increase sustainability and accelerate green infrastructure development.

Sources:

  • BMI, a Fitch Solutions company.
  • "Malaysia's construction industry to grow 9.6% in 2025, driven by building sector" by Bernama.