Malaysia’s economic growth in the second half of 2024 is expected to receive a significant boost from the rollout of various construction projects, according to a recent report by MIDF Amanah Investment Bank Berhad. These projects are key drivers in sustaining the country’s economic momentum amidst a broader uptrend in the semiconductor industry and a rebound in exports.
The construction sector, which has been identified as a vital component of Malaysia’s economic strategy, is anticipated to contribute significantly to the nation’s GDP growth in the latter half of 2024. This growth is projected to build on the strong performance recorded in the second quarter (Q2) of 2024, where Malaysia’s GDP accelerated to 5.9% year-on-year (y-o-y). This marked the fastest expansion in six quarters, mainly driven by domestic demand, improved manufacturing activities, and a recovery in external trade.
MIDF highlighted that the expected continuation of robust construction activities would be crucial in underpinning Malaysia’s economic resilience. The focus on infrastructure and development projects is seen as sustaining economic growth and a critical element in supporting the wider economic recovery.
Moreover, the report suggests that these construction initiatives are part of a broader strategy to enhance Malaysia’s infrastructure capabilities, thereby ensuring long-term economic stability and growth. The construction sector’s sustained activity is crucial in maintaining the momentum necessary to achieve the year’s projected 5.0% GDP growth.
While the outlook remains optimistic, MIDF cautioned that external factors such as geopolitical tensions, potential supply chain disruptions, and inflationary pressures could pose risks to this positive trajectory. Nevertheless, the continued emphasis on construction and infrastructure development will provide a solid foundation for Malaysia’s economic growth in the months ahead.
