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Construction sector hits RM158.bil in 2024, may remain robust

By Capital Post Insider 0
Estimate Reading Time: 2 minutes

KUALA LUMPUR: Malaysia’s construction sector is expected to remain robust this year, fuelled by a pipeline of data centre and infrastructure projects, analysts said.

The sector grew 23.1 per cent year-on-year in the last quarter of 2024, valued at RM42 billion.

This was the 11th  consecutive quarter of expansion underpinned by broad-based growth across all sub-sectors, according to MIDF Research.

For the full year, the value of work done jumped 20.2 per cent (2023: up 8.4 per cent) to RM158.8 billion (2023: RM132.2 billion), marking the first double-digit expansion in three years.

MIDF Research said the 23.1 per cent was the fastest quiarterly growth since Q3 2022, driven by a notable double-digit surge in residential construction (up 38.9 per cent year-on-year) and special trade activities (up 44.9 per cent YoY).

Growth, however, slowed down in non-residential buildings (up 24.6 per cent YoY) and civil engineering (up 9.3 per cent YoY).

The private sector expanded at a slightly slower pace of 32.9 per cent YoY, whereas the expansion in the public sector grew faster at 8.8 per cent YoY.

By percentage share, the civil engineering sub-sector remained the largest contributor, accounting for 37 per cent of the overall share during the quarter. This was followed by non-residential buildings (28 per cent), residential buildings (24 per cent), and special trade activities (11 per cent).

By location, Selangor contributed the largest share at 22.5 per cent, followed by Johor (17.7 per cent), the Federal Territories (11 per cent) and Sarawak (11.3 per cent).  Together, these regions accounted for 62.3 per cent of the total construction value during the quarter.

“Overall, Malaysia’s construction sector recorded a solid performance for 2024. This is due to the post-pandemic recovery in the construction sector,” MIDF Research said.

“Looking ahead, we are positive about the construction sector outlook, supported by a robust pipeline of data centre and infrastructure projects,” it added.

Over to Bursa Malaysia, CIMB Securities said construction was the largest net sell sector for local institutional investors last week, with IJM Corp Bhd, Gamuda Bhd and Sunway Construction Group Bhd as local institutions’ top net buy stocks.

Local institutional investors recorded a net sell value of RM107.5 million, reversing their net buy position of the local construction stocks in the previous two weeks.

In terms of foreign dealings, the firm said last week was foreign investors’ largest net buy sector, with Gamuda, IJM and Sunway Construction being their top net buy stocks.

“Foreign investors posted a net buy value of RM106.2 million last week, reversing their net sell trend from the previous three weeks,” it added.
-NewStraitsTime

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