Malaysia’s Construction Sector Grows 10.6% in 3Q2025, Work Value Climbs to RM45.4 Billion

KUALA LUMPUR (Nov 12) — Malaysia’s construction sector continued its upward trajectory in the third quarter of 2025, expanding 10.6% year-on-year with total work value rising to RM45.4 billion, according to newly released data from the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said growth was broad-based across key subsectors, reflecting strong project rollout in both private and public development segments.

Special Trade, Residential and Commercial Works Lead the Expansion

The strongest expansion came from:

• Special trade activities: +15.3%

• Residential buildings: +11.6%

• Non-residential buildings: +10.0%

• Civil engineering: +8.9%

Civil engineering — which includes infrastructure, highways and utilities — held the largest share of total work at RM16.5 billion (36.4%), while non-residential projects such as commercial buildings, logistics hubs and industrial facilities accounted for RM12.9 billion (28.5%).

The residential segment contributed RM10.5 billion (23%), underpinned by steady demand for new landed and high-rise housing, including expanding townships near high-growth corridors such as Bukit Jalil, the Subang area, and Puchong, where demand continues to support related investments in office space, industrial property, and factory facilities.

Special trade activities — which include mechanical, electrical and specialist construction works — delivered RM5.5 billion (12.1%), reflecting busy activity within commercial hubs such as central KL, where demand for modern commercial property in KL remains stable.

Private Sector Drives Growth With RM29.5 Billion in Work Done

The private sector remained the main engine of growth, delivering:

• RM29.5 billion, or 65% of total construction value

• Growth of 13.1% year-on-year

Public-sector projects also picked up pace, recording 6.1% growth with a work value of RM15.9 billion, driven by infrastructure upgrades, roadworks, and public development programmes.

This strong private-sector momentum mirrors rising interest in strategically located land assets, including industrial land in Selangor and high-demand parcels suitable for logistics, warehousing and manufacturing purposes.

Selangor and Johor Remain Top Contributors

Four regions — Selangor, Johor, Sarawak and the Federal Territories — collectively accounted for 62.1% of nationwide construction activity.

The top contributors were:

• Selangor: RM10.5 billion

• Johor: RM8.2 billion

Selangor’s dominance aligns with its booming industrial corridor, where demand for industrial land in Selangor, industrial property in the Subang area, and factory space in Puchong continues to attract domestic and foreign investors.

Johor’s robust performance reflects sustained activity from large-scale industrial parks, data centre developments and cross-border spillover from Singapore.

RM132.2 Billion Worth of Construction Completed in First Nine Months

For the first three quarters of 2025, Malaysia’s construction sector recorded a cumulative RM132.2 billion in work value — a 13.3% increase compared with the same period last year.

The largest contributors to year-to-date growth were:

• Special trade activities: +23.5%

• Residential buildings: +17.0%

The strong trajectory indicates ongoing investment confidence, particularly in regions tied to expanding economic zones, new transit infrastructure, and maturing population centres.