Malaysia’s Construction Sector Expands 16.6% in Q1 2025, Totals RM42.9 Billion

KUALA LUMPUR: Malaysia’s construction sector saw a 16.6% year-on-year increase in the value of work completed during the first quarter of 2025, reaching RM42.9 billion, according to the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the sector maintained positive growth, although at a slower pace compared to the 23.1% growth recorded in the previous quarter.

“The improvement was primarily driven by robust activity in special trade works and residential buildings, which surged by 35.5% and 27.0% respectively,” he said in a statement today.

The non-residential buildings segment recorded a 21.0% rise, while civil engineering remained in positive territory with a more modest 3.7% increase.

Of the total RM42.9 billion in construction work, civil engineering accounted for RM15.7 billion, with road and railway projects contributing RM7.9 billion and utility developments RM6.0 billion.

Non-residential and residential building works amounted to RM12.3 billion (28.8%) and RM9.9 billion (23.0%), respectively. Special trade activities contributed RM5.0 billion (11.6%), mainly from site preparation (RM1.3 billion), electrical installation (RM1.2 billion), and plumbing, heating, and air-conditioning works (RM1.1 billion).

The private sector remained the primary growth driver, posting a 23.7% increase and contributing RM27.0 billion or 62.9% of total construction value. This was largely supported by strong performances in special trade activities (40.9%) and residential buildings (26.5%).

In comparison, the public sector contributed RM15.9 billion or 37.1%, with a more subdued 6.3% growth rate, down from 8.8% in the previous quarter. Public sector growth was supported by residential buildings (34.8%) and special trade activities (24.5%), contributing RM0.7 billion and RM1.5 billion, respectively.

Geographically, construction activity was largely concentrated in Selangor, Johor, the Federal Territories, and Sarawak. Selangor led with RM11.1 billion (25.9%), followed by Johor (RM7.7 billion, 18.0%), the Federal Territories (RM4.5 billion, 10.6%), and Sarawak (RM3.9 billion, 9.0%).

— BERNAMA

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