MIDF Research has projected that the second quarter of 2023 will see moderate growth in the construction and services sectors, along with a slightly weaker industrial product index. This trend is expected to lead to more measured growth in the overall economy during the same period.
In a recent economic brief, MIDF Research highlighted that Malaysia’s construction activity maintained its upward trajectory in the second quarter of 2023, marking the fifth consecutive quarter of expansion since the second quarter of 2022. The sector reported a noteworthy 8.1% year-on-year increase in the value of work done, amounting to RM32.4 billion. This data is based on statistics provided by the Department of Statistics Malaysia.
The report indicated that the growth of the construction industry is likely to persist in the coming months, fueled by a revival of government-driven projects and the sustained expansion of private sector output.
While the economy faces certain fluctuations and challenges, the construction sector’s continued growth signifies its resilience and capacity to contribute positively to the broader economic landscape. Despite the slightly moderated pace compared to previous quarters, the sector’s consistent growth indicates its importance in Malaysia’s overall development trajectory.
MIDF Research’s analysis underscores the pivotal role played by the construction industry in driving economic activity and generating employment opportunities. As government projects gain momentum and the private sector continues its expansion, the construction sector’s contributions are poised to remain robust.
