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Construction in Malaysia slated for growth as govt. spending increases

Press release August 19, 2014 Malaysia construction industry, construction industry malaysia, malaysia construction market

Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in Malaysian construction industry.

The Malaysian construction industry increased in value at a CAGR of 10.93% during the review period (2009-2013). Growth was mainly supported by the country’s economic development and an increase in investment opportunities in public infrastructure projects. Industry growth is expected to remain strong over the forecast period (2013-2018), driven by the governments increasing expenditure on public infrastructure and its rising interest in the construction of residential units to meet housing demand.

This report, Construction in Malaysia - Key Trends and Opportunities to 2018, provides a detailed analysis of the market and focuses on the growth trends, major players, recent developments and key drivers of the construction industry in Malaysia.

Market overview

The Malaysia construction industrygrew at a rate of 26% in 2012, after suffering a downturn in 2008 and registering respective growth rates of 2.9%, 1.3% and 5.7% in 2009, 2010 and 2011. The industry again entered decline in 2013, after recovering from the financial crisis. It is now expected to grow at a CAGR of 9%in the forecast period.

Key drivers

According to the Construction Industry Development Board (CIDB) Malaysia, the industry − driven by government and private sector investments in low-cost housing and infrastructure projects, particularly the Economic Transformation Programme (ETP) − posted rapid growth during 2011-2012. During 2011-2013, the country secured a total of 195 projects worth USD 70 billion and is expected to secure projects worth USD 36.6 billion in 2014. In the first-three quarters of 2013, construction work for 4,253 projects worth USD 21.3 billion began, of which 76.0% involve private sector participation. According to CIDB Malaysia, private sector participation in projects is slated to increase from 30.0% in 2013 to 50.0%, by the end of 2015. The current trend will, therefore, support the growth of the Malaysian construction industry over the forecast period. Over the forecast period, residential construction activities are expected to improve faster than non-residential activities. Public sector investments in energy, residential and transport infrastructure are expected to be the key drivers for industry growth over the forecast period.

Budget support

In October 2013, the Malaysian government announced its 2014 budget. Under this plan 21% of the total budget was allocated towards education. The government set aside USD 168.6 million for preschool programs, USD 66.5 million to enhance teacher training and language proficiency, USD 53.5 million to increase internet access in rural areas, and USD 264.4 million to build new schools and modernize existing ones. This will further help support the growth of the educational buildings category over the forecast period.

Key players

The key players in this industry include IJM Corporation Bhd, Gamuda Bhd, Muhibbah Engineering (M) Bhd, SP Setia Bhd and WCT Holdings Bhd.

For further insights,

Visit: Construction in Malaysia slated for growth as govt. spending increases

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SOURCE: Researchonmalaysia.com

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Malaysia construction industry, construction industry malaysia, malaysia construction market


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