Malaysia’s construction sector continues positive growth, up 22.9% to RM41.1bil in 3Q

The construction sector sustains its momentum with positive growth of 22.9 per cent, reaching RM41.1 billion in the third quarter of 2024 (3Q 2024) compared to a 20.2 per cent increase, amounting to RM38.9 billion in the 2Q 2024.

The Department of Statistics Malaysia (DOSM) chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth momentum was primarily driven by a 42.6 per cent expansion in the special trade activities subsector, which continues to demonstrate accelerated growth.

“Additionally, the residential buildings and non-residential buildings sub-sectors gained momentum by expanding 27.8 per cent and 27.7 per cent, respectively.

“Meanwhile, the civil engineering sub-sector also expanded at a more moderate pace, still contributed positively with a 12.0 per cent growth rate,” he said in a statement on the latest quarterly construction statistics today.

Mohd Uzir said that of the RM41.1 billion in work done value recorded in 3Q 2024, RM15.2 billion, or 36.9 per cent, was attributed to the civil engineering subsector, primarily in the construction of roads and railways (RM6.8 billion) and utility projects (RM6.2 billion).

“Meanwhile, the value of work done for non-residential buildings and residential buildings was RM11.8 billion (28.6 per cent) and RM9.4 billion (22.8 per cent), respectively.

“The special trade activities made up to RM4.8 billion (11.6 per cent), largely in sites preparation (RM1.3 billion), electrical installation (RM1.2 billion), and plumbing, heat and air-conditioning installation (RM1.0 billion) activities,” he added.

The private sector remained the main impetus for growth in 3Q 2024, contributing RM26.1 billion, or 63.5 per cent of the total value, while the public sector, with a 36.5 per cent share valued at RM15.0 billion, recorded more moderate growth of 8.1 per cent.

Elaborating the performance of the construction sector by state in 3Q 2024, Mohd Uzir said that nearly 61.4 per cent of the work done value was concentrated in Selangor, Johor, Wilayah Persekutuan (Kuala Lumpur, Putrajaya and Labuan) and Sarawak.

He said the value of construction work done value in Selangor amounted to RM9.3 billion, or 22.7 per cent, Johor (RM6.9 billion, or 16.9 per cent), Wilayah Persekutuan (RM4.6 billion, or 11.3 per cent), and Sarawak (RM4.3 billion, or 10.5 per cent).

“Summarising the performance of construction work done for the first three quarters of 2024, the sector registered a total value of RM116.8 billion, reflecting a 19.1 per cent increase compared to the same period in 2023 (1Q-3Q 2023: 9.0 per cent).

“The positive growth was largely driven by a strong contribution from civil engineering activities, which expanded by 20.3 per cent,” he added.

Source: The Star