Construction in Malaysia – Key Trends and Opportunities to 2025 (Q2 2021)

In 2019, growth in the Malaysian construction industry had slowed considerably, owing to delays in several mega construction projects and an increase in unsold housing stock. Weakness in the preceding year was further exacerbated, as construction activity was brought to a standstill across many parts of the country due to the impact of Coronavirus (COVID-19) containment measures. As a result, construction value-add, measured at 2015 constant prices, declined by a provisional 19.4% in real terms, according to the Department of Statistics Malaysia (DOSM).

The industry is expected to rebound sharply in 2021, supported by investments in transportation and energy projects. GlobalData now expects the industry to grow by 14.6% in 2021 and register annual growth of 6.5% between 2022 and 2025. In mid-December 2020, the government approved a 2021 budget worth MYR322.5 billion (US$75.8 billion), which is the largest in the country's history, and is 2.4% higher than 2019’s budget of MYR314.7 billion (US$74 billion). Of the total budget, 73.3% is allocated towards operational expenditure, 21.4% towards development expenditure and the remaining 5.3% towards dealing with the COVID-19 pandemic.

The industry's growth over the forecast period will be supported by an expected recovery in economic conditions, coupled with investments in transport infrastructure, renewable energy, residential, telecommunications and water infrastructure projects. As part of the 2021 budget, the government allocated MYR9.6 billion (US$2.3 billion) to the state governments of Sabah and Sarawak to upgrade road, power, and water infrastructure projects, as well as to improve health and education facilities. Forecast-period growth will also be driven by the government's target to produce 20% of its energy from renewable energy sources by 2025, and construct one million housing units for low-income residents by the end of 2029.

This report provides detailed market analysis, information, and insights into the Malaysian construction industry, including –

– The Malaysian construction industry's growth prospects by market, project type and construction activity

– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Malaysian construction industry

– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Malaysia. It provides –

– Historical (2016-2020) and forecast (2021-2025) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

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 COVID-19 Status

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

7.1 What is this Report About?

7.2 Definitions

7.3 GlobalData Construction

Contact Us

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: Malaysia, Key Economic Indicators

Table 3: Malaysia, Commercial Construction Output by Project Type (Real % Change), 2016-2025

Table 4: Malaysia, Top Commercial Construction Projects by Value

Table 5: Malaysia, Industrial Construction Output by Project Type (Real % Change), 2016-2025

Table 6: Malaysia, Top Industrial Construction Projects by Value

Table 7: Malaysia, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025

Table 8: Malaysia, Top Infrastructure Construction Projects by Value

Table 9: Malaysia, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025

Table 10: Malaysia, Top Energy and Utilities Construction Projects by Value

Table 11: Malaysia, Institutional Construction Output by Project Type (Real % Change), 2016-2025

Table 12: Malaysia, Top Institutional Construction Projects by Value

Table 13: Malaysia, Residential Construction Output by Project Type (Real % Change), 2016-2025

Table 14: Malaysia, Top Residential Construction Projects by Value

Table 15: Malaysia, Key Contractors

Table 16: Malaysia, Key Consultants

Table 17: Malaysia, Construction Output Value (Real, US$ Million)

Table 18: Malaysia, Construction Output Value (Nominal, MYR Million)

Table 19: GlobalData Construction Market Definitions

List of Figures

List of Figures

Figure 1: South and South-East Asia, Construction Output (Real % Change), 2020 and 2021

Figure 2: Malaysia, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: Malaysia, COVID-19 Confirmed Cases

Figure 4: Malaysia, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025

Figure 5: Malaysia, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 6: Malaysia, Construction Value-Add, 2015 Constant Prices, in MYR Million, % Change YoY

Figure 7: Malaysia, Value of Construction Work Done, % Change YoY

Figure 8: Malaysia, Gross Fixed Capital Formation, 2015 Constant Prices, in MYR Billion, % Change YoY

Figure 9: Malaysia, Loans Disbursed for the Construction Sector, in MYR Million, % Change YoY

Figure 10: Malaysia, Construction Projects Momentum Index

Figure 11: Malaysia, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 12: Malaysia, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 13: Malaysia, Tourist Arrivals, in Thousands

Figure 14: Malaysia, Wholesale and Retail Sales, % Change YoY

Figure 10: Malaysia, Loans Disbursed for Wholesale and Retail Trade, and Restaurants and Hotels, in MYR Million

Figure 16: Malaysia, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 17: Malaysia, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 18: Malaysia, Industrial and Manufacturing Production Indices, 2015=100, % Change YoY

Figure 19: Malaysia, Industrial and Manufacturing Production Indices, 2015=100, % Change YoY

Figure 20: Malaysia, Total Exports, in MYR Million, % Change YoY

Figure 21: Malaysia, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 22: Malaysia, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 23: Malaysia, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 24: Malaysia, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 25: Malaysia, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 26: Malaysia, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 27: Malaysia, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 28: Malaysia, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 29: Malaysia, Real Estate Value-Add, 2015 Constant Prices, in MYR Million, % Change YoY

Figure 30: Malaysia, Value of Residential Construction Work Done, in MYR Billion, % Change YoY

Figure 31: Malaysia, Total Value of Loans Disbursed for Purchase of Residential Property (MYR, Million)

Figure 32: Malaysia, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 33: Malaysia, Headquarters of Key Consultants (% of Total Project Pipeline)

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