Construction sector grew over 20% in 2Q, says DOSM

• The Department of Statistics Malaysia (DOSM) said substantial double-digit growth was posted by the civil engineering (25.2%) and residential buildings sub-sectors (19.7%).

KUALA LUMPUR (Aug 12): The construction sector recorded a 20.2% surge in work done value to RM38.9 billion in the second quarter of 2024 (2Q2024), spearheaded by the buoyant performance of the civil engineering and residential buildings sub-sectors.

The Department of Statistics Malaysia (DOSM) said substantial double-digit growth was posted by the civil engineering (25.2%) and residential buildings sub-sectors (19.7%).

“Additionally, the growth of this sector was further bolstered by a robust 44.9% expansion in the special trade activities sub-sector (1Q2024: 11.8%).

“The sub-sector of non-residential buildings also gained momentum, expanding by 7.2%,” chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement on the latest quarterly construction statistics on Monday.

The 20.2% growth in work done value marked an acceleration from the 14.2% year-on-year (y-o-y) growth recorded in the preceding quarter.

Mohd Uzir said that of RM38.9 billion work done value recorded in 2Q2024, a total of RM15.2 billion or 39% was attributed to the civil engineering sub-sector, primarily in the construction of roads and railways (RM7.5 billion) and utility projects (RM5.6 billion).

“The value of work done for non-residential buildings and residential buildings accounted for RM10.6 billion (27.4%) and RM8.8 billion (22.6%) respectively.

“Additionally, special trade activities accounted for RM4.3 billion (11%), largely in electrical installation as well as plumbing, heat and air-conditioning installation activities, both at RM1.1 billion,” he added.

According to the statement, the private sector remained the primary driver of construction sector growth, contributing RM23.6 billion or 60.8% of total value.

It said the private sector sustained its double-digit momentum with a 15.8% growth (1Q2024: 10.1%), propelled by strong performance of the residential buildings (19.9%) and special trade activities (46%) sub-sectors.

Likewise, the value of work done owned by the public sector posted a strong increase of 27.8% to RM15.3 billion (1Q2024: 20.6%), supported by the civil engineering sub-sector with a 23.8% growth.

On the performance of the construction sector by state, Mohd Uzir said nearly 59% of the work done value was concentrated in Selangor, Johor, Sarawak, and the Federal Territories (Kuala Lumpur, Putrajaya and Labuan).

For the first half of 2024 (1H2024), the sector posted a value of RM75.7 billion, up 17.2% y-o-y (1H2023: 8.7%).

Expansion was seen across all sub-sectors, led by civil engineering (25%) and residential buildings (15.7%).

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