The size of the Malaysian construction Market is estimated at USD 41.85 billion in 2025 and is expected to reach USD 63.07 billion by 2030, at a CAGR of 8.55% during the forecast period (2025-2030).
- The construction industry in Malaysia continued to grow in 2023, with the total value of projects realised amounting to MYR 54.71 billion (USD 11.47 billion) between January and October.
- The private sector spearheaded the recovery from COVID-19 lockdowns and became the main driver of construction growth. Some key private sector projects that contributed to this recovery were high-rise residential projects with mixed-use ideas, supply chain optimisation-driven fast-track industrial projects, and data centre developments.
- While the civil sector accounted for most government-initiated projects, it slowed down over time, mainly due to government control and prudent spending. However, the government has made significant strides toward improving the region’s public transportation and economic development through various national infrastructure projects.
- The projects include the rollout of the 5G network, which will cater to the growing demand for data centres across the Asia-Pacific region, and the MRT extension, which is projected to create thousands of jobs during the construction phase. Public transportation projects have sparked a wave of transit-oriented projects in Klang Valley and along the intercity railway links, catalysing real estate revitalisation in the surrounding areas.
- The New Industrial Master Plan (NIMP) 2030, launched by the Government of Malaysia, aims to transform Malaysia’s manufacturing industry into a high-value, technology-based, and globally competitive sector by 2030. The NIMP calls for establishing new industrial parks and constructing and modernising infrastructure to facilitate this development.
Source: Mordor Intelligence
