Malaysia's Construction Sector Grows By Over 20 Pct In 2Q 2024

KUALA LUMPUR, Aug 12 (Bernama) -- The construction sector recorded a 20.2 per cent surge in work done value to RM38.9 billion in the second quarter (2Q) of 2024, spearheaded by the buoyant performance of the civil engineering and residential buildings sub-sectors.

The Department of Statistics Malaysia (DoSM) said the civil engineering and residential buildings sub-sectors posted substantial double-digit growth of 25.2 per cent and 19.7 per cent, respectively.

“Additionally, the growth of this sector was further bolstered by a robust 44.9 per cent (1Q 2024: 11.8 per cent) expansion in the special trade activities sub-sector.

“The sub-sector of non-residential buildings also gained momentum, expanding by 7.2 per cent,” chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement on the latest quarterly construction statistics today.

The 20.2 per cent growth in work done value marked an acceleration from the 14.2 per cent year-on-year (y-o-y) growth recorded in the preceding quarter.

Mohd Uzir said that of RM38.9 billion work done value recorded in 2Q 2024, a total of RM15.2 billion or 39 per cent was attributed to the civil engineering sub-sector, primarily in the construction of roads and railways (RM7.5 billion) and utility projects (RM5.6 billion).

“The value of work done for non-residential buildings and residential buildings accounted for RM10.6 billion (27.4 per cent) and RM8.8 billion (22.6 per cent), respectively.

“Additionally, the special trade activities accounted for RM4.3 billion (11 per cent), largely in the electrical installation as well as plumbing, heat and air-conditioning installation activities, both at RM1.1 billion,” he added.

According to the statement, the private sector remained the primary driver for the construction sector growth, contributing RM23.6 billion or 60.8 per cent of the total value.

It said the private sector sustained its double-digit momentum with a 15.8 per cent growth (1Q 2024: 10.1 per cent), propelled by strong performance in the residential buildings (19.9 per cent) and special trade activities (46 per cent) sub-sectors.

Likewise, the value of work done owned by the public sector posted a strong increase of 27.8 per cent (1Q 2024: 20.6 per cent) to RM15.3 billion, supported by the civil engineering sub-sector with a 23.8 per cent growth.

On the performance of the construction sector by state, Mohd Uzir said nearly 59 per cent of the work done value was concentrated in Selangor, Johor, Sarawak and the Federal Territories (Kuala Lumpur, Putrajaya and Labuan).

For the first half (1H) of 2024, the sector posted a value of RM75.7 billion, up 17.2 per cent y-o-y (1H 2023: 8.7 per cent).

Expansion was seen across all sub-sectors, led by civil engineering (25 per cent) and residential buildings (15.7 per cent).

-- BERNAMA