Malaysia's Construction Sector Continues Strong Momentum in 2Q 2025

Malaysia's construction sector maintained its robust growth in the second quarter of 2025, driven by strong performances in special trade activities, non-residential buildings, and residential buildings. The value of work done during this period reached RM43.9 billion, a 12.9% year-on-year increase, according to the Department of Statistics Malaysia (DOSM). This growth is fueled by robust expansions in various subsectors, including special trade activities, which surged 22.2%, and non-residential buildings, which grew by 16.2%.

Key Takeaways:

The value of work done in the Malaysian construction sector increased by 12.9% year-on-year to RM43.9 billion in the second quarter of 2025.
The growth was driven by robust performances in special trade activities (22.2%), non-residential buildings (16.2%), and residential buildings (13.9%).
Civil engineering remained the largest contributor to the total value, accounting for 37.1% (RM16.3 billion), with utility projects and roads and railways construction being the major contributors.
The private sector led the growth, contributing RM28.2 billion (64.2% share) and sustaining double-digit expansion at 19.3%, with strong demand in non-residential buildings and special trade activities.
The public sector's value of work done rose 3.1% to RM15.7 billion, driven by a 20.8% jump in special trade activities.
Regions-wise, Selangor, Johor, Sarawak, and Wilayah Persekutuan accounted for nearly two-thirds (61.1%) of the country's total construction value, with Selangor topping the list at RM9.7 billion (22.2%).

Statistics:

Volume of work done in Q2 2025: RM43.9 billion
Year-on-year growth: 12.9%
Total value of work done in the first half of 2025: RM86.8 billion
Growth compared to the same period last year: 14.7%
Special trade activities growth: 22.2%
Non-residential buildings growth: 16.2%
Residential buildings growth: 13.9%
Civil engineering contribution: 37.1% (RM16.3 billion)
Private sector contribution: 64.2% (RM28.2 billion)
Public sector contribution: 35.8% (RM15.7 billion)
Total construction value from Selangor, Johor, Sarawak, and Wilayah Persekutuan: 61.1%

Sources:

Department of Statistics Malaysia (DOSM)