Malaysia's Construction Market Size was valued at USD 38.2 Billion in 2022. The Construction industry is projected to grow from USD 41.63 Billion in 2023 to USD 82.96 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.00% during the forecast period (2024 - 2032).Rising investment in the infrastructure sector due to the revival of different large-scale infrastructure projects and the acceleration of mega projects by the government are the main market drivers anticipated to propel the construction market in Malaysia.
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
The market CAGR of the construction market of Malaysia is driven by increased construction activity with the implementation of large-scale infrastructure projects and improved domestic and foreign investment in the country. The market is anticipated to continue its growth rate by accounting for an annual growth of 4.4% in 2024. The robust growth of population, urbanization, and rising disposable income have boosted the demand for housing, therefore increasing the number of residential construction projects. The primary developers are investing in this demand by undertaking large-scale residential developments, including apartments, condominiums, and landed properties, in order to offer broad housing needs. This growth in construction activity fuels the demand for cement, steel, and bricks and also helps industries like engineering, architecture, and interior design. Furthermore, construction creates employment opportunities, helping create jobs and income. The increase in investment in residential projects serves as a cornerstone of the construction industry in Malaysia, thus fueling market growth.
Furthermore, the initiatives of the government, like the construction of highways, bridges, airports, railways, and ports, and also the expansion and reconstruction of existing infrastructure, with the aim to transform Malaysia into a high-income nation and regional economic powerhouse, is fueling the market growth. Additionally, the enhanced infrastructure is essential for supporting industrial development, attracting investment, and improving the overall competitiveness of Malaysia's economy. Therefore, the government's continued investment in infrastructure development serves as a crucial driver for the construction market, complementing the growth driven by rising residential construction and thus driving the construction market revenue.
The Malaysia Construction market segmentation, based on sector, includes Infrastructure Construction, Residential Construction, Energy and Utilities Construction, Commercial Construction, And Industrial Construction. The infrastructure construction category dominates the market because of the government-led initiatives focused on modernizing transportation networks and improving connectivity. Huge projects include the construction of bridges, highways, railways, ports, and airports and the reconstruction of the existing ones. This also attracts investments, helps in industrial development, and contributes to the country's economic competitiveness.
The Malaysia Construction market segmentation, based on type, includes Additions, Demolition and Reconstruction, and New Construction. The new construction category dominates the market due to the growing industry standards and regulatory requirements. These methods often focus on sustainability, efficiency, and cost-effectiveness as per the goals of economic development and environmental conservation. Further, technological advancements have allowed the adoption of innovative construction techniques like prefabrication and modular construction, offering faster project completion times and minimizing labor costs.
Figure 1: Malaysia Construction Market, by Type, 2023 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The construction industry in Malaysia is an important segment that boosts economic growth and development due to a broad range of projects, such as commercial, residential, industrial, and infrastructure segments. With a fast-urbanizing population and continuing urban renewable initiatives, its construction market remains growing, attracting investment and fostering innovation in construction techniques and materials. Further, the government has implemented different initiatives and rules for promoting eco-friendly construction, including mandatory compliance with green building standards for certain types of developments. The government has invested in infrastructure projects in order to improve transportation networks, connectivity, and public amenities. Malaysia's construction industry is adopting digital technologies and Building Information Modeling (BIM) systems to streamline project management, optimize construction processes, and enhance collaboration among stakeholders.
Leading market players are investing heavily in the research and development in order to spread their product lines, which will help the Construction market grow even more. Market players are also undertaking various strategic activities to extend their footprint, with important market developments including mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To expand and sustain itself in a more competitive and rising market climate, the construction industry must offer cost-effective items.
Major players in the Construction market are trying to increase the market demand by investing in research and development operations, including YTL Corporation Berhad, IJM Corporation Berhad, Gamuda Berhad, UEM Group Berhad, Malaysian Resources Corporation Berhad, WCT Holdings Berhad, WCE Holdings Berhad, Hock Seng Lee Berhad, Mudajaya Group Berhad, Muhibbah Engineering (M) Bhd.
Gamuda Berhad
UEM Group Berhad
Malaysian Resources Corporation Berhad
WCT Holdings Berhad
WCE Holdings Berhad
Hock Seng Lee Berhad
Mudajaya Group Berhad
Muhibbah Engineering (M) Bhd
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.
Infrastructure Construction
Residential Construction
Energy and Utilities Construction
Commercial Construction
Industrial Construction
Additions
Demolition and Reconstruction
New Construction
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 38.2 Billion |
| Market Size 2023 | USD 41.63 Billion |
| Market Size 2032 | USD 82.96 Billion |
| Compound Annual Growth Rate (CAGR) | 9.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Sector, Type, and Region |
| Countries Covered | Malaysia |
| Key Companies Profiled | YTL Corporation Berhad, IJM Corporation Berhad, Gamuda Berhad, UEM Group Berhad, Malaysian Resources Corporation Berhad, WCT Holdings Berhad, WCE Holdings Berhad, Hock Seng Lee Berhad, Mudajaya Group Berhad, Muhibbah Engineering (M) Bhd |
| Key Market Opportunities | Growing development of smart cities and sustainable urban infrastructure |
| Key Market Dynamics | Increased investment by the government of the country. Focus on sustainable construction practices in Malaysia. |
Frequently Asked Questions (FAQ) :
The Malaysia Construction market size was valued at USD 41.63 Billion in 2023.
The market is projected to grow at a CAGR of 9.00% during the forecast period, 2024-2032.
The key players in the market are YTL Corporation Berhad, IJM Corporation Berhad, Gamuda Berhad, UEM Group Berhad, Malaysian Resources Corporation Berhad, WCT Holdings Berhad, WCE Holdings Berhad, Hock Seng Lee Berhad, Mudajaya Group Berhad, Muhibbah Engineering (M) Bhd.
The infrastructure construction category dominated the market in 2023.
The new construction category had the largest share of the market.
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