Summary
The Malaysian construction industry has been severely affected due to the disruption caused by the Coronavirus (COVID-19) pandemic. GlobalData estimates that the industry's output shrank by 17.2% in 2020, as construction activity was brought to a standstill across many parts of the country, owing to the impact of COVID-19 containment measures. According to the Department of Statistics Malaysia (DOSM), the country's value-add at 2015 constant prices fell by 21.3% year on year (YoY) in the first three quarters of 2020. During this period, civil engineering works were the most affected, followed by non-residential and residential activities.
The industry is expected to post a sharp recovery in 2021, assuming that there is no repeat of the containment measures that were in place in 2020, with growth supported by investments in transportation and energy projects. The industry is expected to grow by 9.8% in 2021 and register annual growth in the range of 6.0-6.6% between 2022 and 2025. In mid-December 2020, the government approved a 2021 budget worth MYR322.5 billion (US$73.3 billion), which is the largest in the country's history, and is 2.4% higher than last year's budget of MYR314.7 billion (US$76 billion). Of the total budget, 73.3% is allocated towards operational expenditure, 21.4% towards development expenditure and the remaining 5.3% towards dealing with COVID-19.
The industry's growth over the forecast period will be supported by a recovery in economic conditions, coupled with investments in infrastructure, renewable energy, and residential, telecommunications and water infrastructure projects. As a part of the 2021 budget, the government allocated a total of MYR9.6 billion (US$2.2 billion) to the state governments of Sabah and Sarawak to upgrade road, power, and water infrastructure projects, as well as to improve health and education facilities. Forecast-period growth will also be driven by the government's target to produce 20% of its energy from renewable energy sources by 2025, and its target of building one million housing units for low-income earners by the end of 2029.
This report provides detailed market analysis, information, and insights into the Malaysian construction industry, including -
- The Malaysian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Malaysian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Malaysia. It provides -
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Malaysia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
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Table of Contents
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 GlobalData Construction
List of Tables
Table 1: Construction Industry Key Data
Table 2: Malaysia, Key Economic Indicators
Table 3: Malaysia, Commercial Construction Output by Project Type (real % change), 2016-2025
Table 4: Malaysia, Top Commercial Construction Projects by Value
Table 5: Malaysia, Industrial Construction Output by Project Type (real % change), 2016-2025
Table 6: Malaysia, Top Industrial Construction Projects by Value
Table 7: Malaysia, Infrastructure Construction Output by Project Type (real % change), 2016-2025
Table 8: Malaysia, Top Infrastructure Construction Projects by Value
Table 9: Malaysia, Energy and Utilities Construction Output by Project Type (real % change), 2016-2025
Table 10: Malaysia, Top Energy and Utilities Construction Projects by Value
Table 11: Malaysia, Institutional Construction Output by Project Type (real % change), 2016-2025
Table 12: Malaysia, Top Institutional Construction Projects by Value
Table 13: Malaysia, Residential Construction Output by Project Type (real % change), 2016-2025
Table 14: Malaysia, Top Residential Construction Projects by Value
Table 15: Malaysia, Key Contractors
Table 16: Malaysia, Key Consultants
Table 17: Malaysia, Construction Output Value (Real, US$ Million)
Table 18: Malaysia, Construction Output Value (Nominal, MYR Million)
Table 19: GlobalData Construction Market Definitions
List of Figures
Figure 1: South and South-East Asia, Construction Output (real % change), 2020 and 2021
Figure 2: Malaysia, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Malaysia, COVID-19 Confirmed Cases
Figure 4: Malaysia, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2016-2025
Figure 5: Malaysia, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 6: Malaysia, Construction value-add, 2015 constant prices, in MYR Million, % change YoY
Figure 7: Malaysia, Value of construction work done, % change YoY
Figure 8: Malaysia, Gross Fixed Capital Formation, 2015 constant prices, in MYR Billion, % change YoY
Figure 9: Malaysia, Loans disbursed for the construction sector, in MYR Million, % change YoY
Figure 10: Malaysia, Construction Projects Momentum Index
Figure 11: Malaysia, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 12: Malaysia, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 13: Malaysia, Tourist Arrivals, in thousands
Figure 14: Malaysia, Wholesale and retail sales, % change YoY
Figure 15: Malaysia, Loans disbursed for wholesale & retail trade, and restaurants & hotels, in MYR Million
Figure 16: Malaysia, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 17: Malaysia, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 18: Malaysia, Industrial and manufacturing production indices, 2015=100, % change YoY
Figure 19: Malaysia, Industrial and manufacturing production indices, 2015=100, % change YoY
Figure 20: Malaysia, Total Exports, in MYR million, % change YoY
Figure 21: Malaysia, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 22: Malaysia, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 23: Malaysia, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 24: Malaysia, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 25: Malaysia, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 26: Malaysia, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 27: Malaysia, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 28: Malaysia, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Malaysia, Real estate value-add, 2015 constant prices, in MYR Million, % change YoY
Figure 30: Malaysia, Value of residential construction work done, in MYR Billion, % change YoY
Figure 31: Malaysia, House Price Index (2000=100), % change YoY
Figure 32: Malaysia, Total value of loans disbursed for purchase of residential property (MYR, Million)
Figure 33: Malaysia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 34: Malaysia, Headquarters of Key Consultants (% of Total Project Pipeline)
