DUBLIN–(BUSINESS WIRE)–The “Malaysia Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
The construction industry in Malaysia is expected to grow by 7.1% to reach MYR 181,599 million in 2022.
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 5.9% during 2022-2026. The construction output in the country is expected to reach MYR 228,680.8 million by 2026.
Construction industry in Malaysia is projected to rebound strongly in 2022 on the back of the revival of major infrastructure construction projects such as the Mass Rapid Transit 3 (MRT3). This, along with the uptick in the approval of residential projects is also expected to assist the industry growth in 2022.
While the construction sector is projected to recover and end on a high in 2022, supply chain issues and labor concerns have become pressing issues for construction firms in Malaysia. The rising material costs are also expected to eat into the profit margins of construction players in the country from a short-term perspective.
Overall, the publisher maintains a positive growth outlook for the construction sector in Malaysia, on the back of government spending on infrastructure projects, over the next three to four years.
Infrastructure projects are expected to drive the construction industry growth in Malaysia
In Malaysia, major construction projects, including the revival of MRT3 and others as part of China’s Belt and Road Initiative, are expected to boost investment and spending in the sector.
All of these major infrastructure construction projects are expected to keep driving the growth of the construction industry in Malaysia over the next three to four years.
Housing projects are expected to drive the growth in the residential construction sector in Malaysia
Alongside the revival of key infrastructure projects, the government is also looking to provide people with affordable housing under the 12th Malaysia Plan. Consequently, several new housing projects have received approval in the country. For instance,
The publisher expects the affordable housing program of the Malaysian government to keep assisting the growth of the residential construction sector in the country over the next three to four years.
Industry players in Malaysia ask the government to review industry regulations
The Master Builders Association of Perak, Melaka, and Johor, along with Penang Master Builders and Building Materials Dealers Association, have asked the Malaysian government to review the regulations of the construction industry. Notably, the industry is currently facing stiff challenges such as labor shortage, high costs, and stringent regulations.
The joint statement by the association in August 2022 stated that the government could allow private construction projects to enjoy the same variation of price treatment as the government projects. Moreover, to overcome the labor shortage issue, the association asked the government to simplify and ease the foreign workers’ application process for the construction industry, as domestic workers are not interested in working in the sector.
Currently, there is a shortage of 550,000 to 600,000 construction workers in the country. Notably, this has resulted in delays in the delivery of private and government projects, thereby causing the firms to pay the damages.
In addition to this, the Master Builders Association also urged the government to delay the implementation of the Employment Act 2022, slated to take effect on September 1, 2022. Notably, the association stated that the construction industry is not prepared for the additional cost the act will bring as they continue to deal with the liabilities resulting from the Covid-19 outbreak.
Scope
Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Malaysia.
KPIs covered include the following:
Malaysia Top Cities Construction Data
Malaysia Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Malaysia Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Malaysia Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Malaysia Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Malaysia Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
Malaysia Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Malaysia Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Malaysia Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
Malaysia Green Infrastructure Construction: 10- year market size & forecast in value terms
For more information about this report visit https://www.researchandmarkets.com/r/pb36wi.
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