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Construction Sector Grows 16.6% In Q1 To Reach RM42.9 Billion

Business Today ·  May 9 12:54

Pic: AFP

Malaysia's construction sector continued its expansion in the first quarter of 2025, demonstrating resilience with a 16.6 per cent increase in the value of work done. This follows a stronger growth of 23.1 per cent in the previous quarter.

According to the Department of Statistics, which released the report today, the sector's performance was largely supported by significant growth in specific sub-sectors. Special trade activities led the way with a robust 35.5 per cent increase, while Residential buildings also saw substantial expansion at 27.0 per cent. Non-residential buildings contributed to the overall positive trend with a 21.0 per cent rise. In contrast, the Civil engineering sub-sector experienced more moderate growth, increasing by 3.7 per cent.

The total value of construction work done in the first quarter of 2025 reached RM42.9 billion. Civil engineering projects accounted for the largest share at RM15.7 billion (36.6%), primarily driven by the construction of roads, railways (RM7.9 billion), and utility projects (RM6.0 billion). Residential and Non-residential buildings contributed RM9.9 billion (23.0%) and RM12.3 billion (28.8%) respectively. Special trade activities added RM5.0 billion to the total (11.6%).

DOSM noted that the private sector was a key driver of growth, recording a 23.7 per cent increase and contributing RM27.0 billion (62.9%) to the total value. The public sector also showed growth, albeit at a slower pace, with a 6.3 per cent increase and a contribution of RM15.9 billion (37.1%).

Geographically, construction activity was concentrated in several key states. Selangor led with RM11.1 billion (25.9%), followed by Johor at RM7.7 billion (18.0%), Wilayah Persekutuan (Kuala Lumpur, Putrajaya and Labuan) at RM4.5 billion (10.6%), and Sarawak at RM3.9 billion (9.0%).

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