Malaysia’s construction sector grows 16.6 pct in 1Q 2025, hits RM42.9b

KUALA LUMPUR: Malaysia’s construction sector recorded a 16.6 per cent year-on-year (y-o-y) increase in the value of work done to RM42.9 billion in the first quarter of 2025 (1Q 2025), according to the Department of Statistics Malaysia (DOSM).

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the sector maintained its upward momentum, albeit at a more moderate pace compared to the 23.1 per cent growth registered in the previous quarter.

“The performance was mainly driven by continued expansion in the special trade activities and residential buildings sub-sectors, which posted double-digit growth of 35.5 per cent and 27.0 per cent, respectively.

“The non-residential buildings sub-sector showed an increase of 21.0 per cent, while the civil engineering sub-sector remained positive with marginal growth of 3.7 per cent,” he said.

Mohd Uzir further explained that of the RM42.9 billion in work done, RM15.7 billion came from the civil engineering sub-sector, mainly driven by roads and railways (RM7.9 billion) and utility projects (RM6.0 billion).

Meanwhile, the value of work done for non-residential buildings and residential buildings stood at RM12.3 billion (28.8 per cent) and RM9.9 billion (23.0 per cent), respectively.

“Special trade activities contributed RM5.0 billion (11.6 per cent), with major contributions from site preparation (RM1.3 billion), electrical installation (RM1.2 billion), and plumbing, heating, and air-conditioning installation (RM1.1 billion),” he said.

Elaborating on the construction sector, Mohd Uzir said the private sector remained the main driver of growth this quarter, with an increase of 23.7 per cent, supported by special trade activities (40.9 per cent) and residential buildings (26.5 per cent).

“The value of work done by the private sector amounted to RM27.0 billion, or 62.9 per cent of the total construction work done value, he noted.

In contrast, Mohd Uzir said the public sector contributed RM15.9 billion, or 37.1 per cent of the total work done, with a growth of 6.3 per cent (compared to 8.8 per cent in Q4 2024).

“The growth was driven by the residential buildings (34.8 per cent) and special trade activities (24.5 per cent) sub-sectors, contributing RM0.7 billion and RM1.5 billion, respectively,” he said.

On a state-by-state basis, he added that nearly two-thirds of construction activity was concentrated in Selangor, Johor, Wilayah Persekutuan (Kuala Lumpur, Putrajaya, and Labuan), and Sarawak.

Selangor topped the list with RM11.1 billion (25.9 per cent) in construction work, followed by Johor with RM7.7 billion (18.0 per cent), Wilayah Persekutuan at RM4.5 billion (10.6 per cent), and Sarawak with RM3.9 billion (9.0 per cent).

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