Malaysia Construction Industry Report 2025: Output to Grow by 4.3% in 2026 After 11.4% in 2025, Supported by Investments in Manufacturing, Data Center, and Transport Infrastructure - Forecast to 2029

Key opportunities in Malaysia's construction industry include investments in manufacturing, data centers, and transport infrastructure, supported by government plans like NIMP 2030 and the 13th Malaysia Plan. Growth is bolstered by sectors like transport, energy, and industrial construction, with smart factory upgrades and rural road development enhancing prospects.


Dublin, Feb. 23, 2026 (GLOBE NEWSWIRE) -- The "Malaysia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)" report has been added to ResearchAndMarkets.com's offering.

Malaysian construction industry to grow in real terms by 11.4% in 2025 and 4.3% in 2026, supported by increasing investments in manufacturing, data center, and transport infrastructure projects.

According to the Department of Statistics Malaysia (DOSM), the total value of residential construction work done grew by 11.6% year-on-year (YoY) in Q3 2025, while that for non-residential buildings and civil engineering works grew by 10% and 8.9%, respectively, during the same period. Among other major developments, the Malaysian Investment Development Authority (MIDA) approved 4,874 projects valued at MYR285.2 billion ($64.3 billion) between January-September 2025; this marks an increase of 13.2%, compared to the same period in 2024.

The construction industry is expected to record an annual average growth of 4% between 2027 and 2029, supported by investments in the industrial, transport and energy sector. Growth over the forecast period will be mainly supported by investments under the government's New Industrial Master Plan 2030 (NIMP 2030), under which, the government aims to increase the manufacturing sector's GDP from the 2022's baseline of MYR364.9 billion ($82.2 billion) to MYR587.5 billion ($132.4 billion) by 2030; it also includes a plan to upgrade 3,000 factories into smart factories by 2030, with an estimated investment of MYR5 billion ($1.1 billion).

The government also aims to construct and upgrade 2,800km of rural roads in the country from 2026 to 2030, under the 13th Malaysia Plan (13MP). To support the tourism sector, the government plans to develop Special Tourism Investment Zones (STIZ) by 2030 in Johor, Melaka, Negeri Sembilan, and Sarawak, under the 13MP Plan.

Report Scope

  • Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Malaysia, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts
  • Understand the latest industry and market trends
  • Formulate and validate business strategies using the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook
4.1 All Construction

  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index

4.2 Commercial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.3 Industrial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.4 Infrastructure Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.5 Energy and Utilities Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.6 Institutional Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.7 Residential Construction

  • Outlook
  • Project analytics
  • Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/ednru

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