DOSM: Malaysia’s construction sector continues positive growth in 3Q2024, up 22.9% to RM41.1b

• “Additionally, the residential buildings and non-residential buildings sub-sectors gained momentum by expanding 27.8% and 27.7%, respectively."

KUALA LUMPUR (Nov 11): The construction sector sustains its momentum with positive growth of 22.9%, reaching RM41.1 billion in the third quarter of 2024 (3Q2024); compared to a 20.2% increase, amounting to RM38.9 billion in the 2Q2024.

The Department of Statistics Malaysia (DOSM) chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth momentum was primarily driven by a 42.6% expansion in the special trade activities sub-sector, which continues to demonstrate accelerated growth.

“Additionally, the residential buildings and non-residential buildings sub-sectors gained momentum by expanding 27.8% and 27.7%, respectively.

“Meanwhile, the civil engineering sub-sector also expanded at a more moderate pace, [having] still contributed positively with a 12.0% growth rate,” he said in a statement on the latest quarterly construction statistics on Monday.

Mohd Uzir said that of the RM41.1 billion in work-done value recorded in 3Q2024, RM15.2 billion or 36.9% was attributed to the civil engineering sub-sector, primarily in the construction of roads and railways (RM6.8 billion) and utility projects (RM6.2 billion).

“Meanwhile, the value of work done for non-residential buildings and residential buildings was RM11.8 billion (28.6%) and RM9.4 billion (22.8%), respectively.

“The special trade activities made up to RM4.8 billion (11.6%), largely in sites preparation (RM1.3 billion), electrical installation (RM1.2 billion); and plumbing, heat and air-conditioning installation (RM1.0 billion) activities,” he added. 

The private sector remained the main impetus for growth in 3Q2024, contributing RM26.1 billion, or 63.5% of the total value, while the public sector, with a 36.5% share valued at RM15.0 billion, recorded more moderate growth of 8.1%.

Elaborating the performance of the construction sector by state in 3Q2024, Mohd Uzir said nearly 61.4% of the work-done value was concentrated in Selangor, Johor, Wilayah Persekutuan (Kuala Lumpur, Putrajaya and Labuan), and Sarawak.

He said the value of construction work-done value in Selangor amounted to RM9.3 billion, or 22.7%; Johor (RM6.9 billion, or 16.9%), Wilayah Persekutuan (RM4.6 billion, or 11.3%), and Sarawak (RM4.3 billion, or 10.5%). 

“Summarising the performance of construction work done for the first three quarters of 2024, the sector registered a total value of RM116.8 billion, reflecting a 19.1% increase compared to the same period in 2023 (1Q2023-3Q2023: 9.0%).

“The positive growth was largely driven by a strong contribution from civil engineering activities, which expanded by 20.3%,” he added.

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