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Malaysia Construction Industry Databook Series – Market Size & Forecast (2016 – 2025) by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction – Q1 2021 Update

Malaysia Construction Industry Databook Series – Market Size & Forecast (2016 – 2025) by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction – Q1 2021 Update

Bonafide Trust 15-02-2021 170 Pages Figures : 225 Tables : 191
Region : Asia-Pacific Category : Manufacturing & Industry Construction & Building Materials

The coronavirus outbreak has left a lasting impact on the growth of the construction industry in Malaysia. Before the pandemic, the construction sector was expected to recover in 2020. However, it has recorded a significant contraction in 2020, representing one of the highest contractions, as compared to any other industry in the country. While the construction sector is expected to contract the most in Malaysia, it is also expected to post a strong recovery in 2021. According to the Ministry of Finance, the industry will rebound 13.9% in 2021. This recovery in the construction industry will be driven by the revival of major infrastructure projects and affordable housing projects. As of September 2020, 149 sites out of the 7,590 construction sites inspected by the Construction Industry Development Board were not operational. Thus, making the industry suffer a record decline. However, construction activities have been slowly gaining momentum in the country again since Q3 2020. According to the Department of Statistics Malaysia (DOSM), the value of construction advanced 56.3% in Q3 2020. This is equivalent to RM31.4 billion in Q3 and compared to RM19.8 billion in Q2. The contraction in the construction industry is also reflected in the growth of the Malaysian economy. According to the Ministry of Finance (MoF), the GDP of the country is expected to contract by 4.5% in 2020. However, the expected ongoing recovery in the construction sector will help the GDP rebound between 6.5% and 7.5% in 2021. To increase homeownership in Malaysia, the government announced several incentives in budget 2021. For instance, for first time home buyers, the government declared full stamp duty exemption until 2025. This waiver of stamp duty will benefit several Malaysians who are looking to own a house in the country. Additionally, the government has also extended the stamp duty exemption for buyers of abandoned housing projects in the country. The discount on stamp duty will push new developers to take on half-completed projects and potentially accelerate the completion of abandoned housing projects. Therefore, driving the growth of the residential construction sector in the country. To boost homeownership among Malaysians, the government has also announced the Rent-to-Own Scheme (RTO) for first-time homebuyers in the country which will enable home buyers to lock in the property based on the current selling price in Malaysia. The scheme which currently involves 5,000 PRIMA properties, will allow the buyers to rent the property from the developer with an option to buy out at the end of the contract period. Moreover, the government has also announced several measures for the lower-income group in its budget for 2021. For instance, the Malaysian government has allocated RM1.2 billion for building houses for low-income house buyers. The government has also allocated RM315 million for building 3,000 units of Rumah Mesra Rakyat. Under the People's Housing Program (PPR), the government has allocated RM500 million for constructing 14,000 housing units. For Program Perumahan Penjawat Awam Malaysia (housing program for civil servants), the Malaysian government has allocated RM310 million. All of these factors will keep supporting the recovery of the residential construction market in 2021. Construction activities have again started on the Rapid Transit System (RTS) Link project between Johor and Singapore. With an estimated cost of RM10 billion (US$2.44 billion), Malaysia will pay around RM3.716 billion (US$908 million) of the total cost. Whereas the remaining cost of the project will be covered by Singapore. Thus, the construction activities of the cross-border light rail transit (LRT) will support the recovery of the construction industry in Malaysia. Moreover, the acceleration and revival of several mega infrastructure projects are expected to support the construction sector in 2021. Some of these planned projects include Light Rail Transit Line 3, Klang Valley Mass Rapid Transit Line 2 (MRT2), East Coast Rail Link (ECRL), and Pan Borneo Highway (PBH). According to the publisher Global Construction Survey, construction industry in Malaysia is expected to grow by 26.7% to reach US$ 40988.0 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Malaysia remains intact. The construction industry in Malaysia is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 7.2% during 2021-2025. The construction output in the country is expected to reach US$ 54128.2 million by 2025. This report from the publisher provides data and trend analyses on construction industry in Malaysia, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors. It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

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