Construction activity in Malaysia has increased for the fifth consecutive quarter, although the growth rate has slowed in the second quarter of 2023.
- According to data from the Department of Statistics Malaysia (DOSM), the value of work done in the construction sector rose 8.1% year-on-year to MYR 32.4 billion (USD 7.05 billion) from April to June 2023.
- The growth in construction output was primarily driven by increased work in the residential sector, which rebounded and expanded by 6.9% year-on-year. Additionally, special trade activities experienced a faster rise of 9.8% year-on-year.
- However, civil engineering, the largest proportion of the sector’s output, grew at a slower rate of 10.4% year-on-year.
- The growth was the slowest in four quarters, mainly because of the higher base due to the value of work done being more or less the same, hovering around MYR 12.1 billion (USD 2.59 billion) in the three quarters to Q2-2023.
- By project owners, private sector output, which accounted for 63.1% of total output, rose faster by 17.3% (Q1 2023: +10.6%), while the progress of construction project developments under the government recorded zero growth (1Q 2023: +6.1%) or unchanged from Q1 of 2023.
Source: Mordor Intelligence
