Malaysia Construction Sector Achieve Remarkable Growth in 2024
KUALA LUMPUR, October 2024 – The Construction industry has achieved a remarkable growth in 2024 with an impressive 17.3% GDP growth as at end of September 2024, marking the first double digit growth the industry has achieved since 2014.
The Prime Minister, Yang Amat Berhormat Dato’ Seri Anwar Ibrahim announced this today in his speech during the opening ceremony of the International Construction Week (ICW) and the Malaysia International Building and Construction Industry Showcase (BuildXpo) 2024. The ICW & BuildXpo 2024 is held from the 22nd to the 24th of October at the Malaysia International Trade and Exhibition Centre (MITEC) here in Kuala Lumpur. The annual premier international event of the construction industry is hosted by the Ministry of Works, organised by Construction Industry Development Board (CIDB) Malaysia and managed by Qube Integrated Malaysia Sdn Bhd.
The Prime Minister said the impressive achievement “…reflects the industry’s capacity to overcome adversity and emerge stronger than ever.”
“In Malaysia, the construction sector stands as one of the cornerstones of our economy, contributing significantly to our GDP. The construction sector, once severely impacted by the COVID-19 pandemic, has now rebounded with remarkable resilience.”
“During the pandemic, the industry faced significant challenges, with construction activities grinding to a halt and supply chains being heavily disrupted. As a result, the sector contracted by -19.3% in 2020 and -5.1% in 2021. However, through determination of all industry players and strategic recovery efforts, we witnessed positive growth of 5.0% in 2022 and 6.1% in 2023,” he said.
According to CIDB Malaysia, the total value of construction projects awarded from 1st January to 30th September 2024 stands at RM150.2 billion with a total of 11,980 projects, compared to 10,990 projects worth RM115.3 billion for the whole of 2023. The private sector remains a driving force, contributing RM108.8 billion across 7,982 projects this year alone. The government, too, continues to play a vital role, with RM41.4 billion across 3,998 projects.
More than 70 percent or RM109.7 billion (9,440 projects) of the projects awarded are non-residential projects, followed by RM22.3 billion (1,390 projects) infrastructure projects, RM16.4 billion (850 projects) residential projects, while RM1.8 billion (300 projects) are social amenities projects.
Construction Boom: A Post-Pandemic Surge Fuelled by FDI and Mega Projects
The construction industry in Malaysia is experiencing a remarkable resurgence, driven by a confluence of factors, including post-pandemic recovery, increased foreign direct investment (FDI), and strategic infrastructure development.
The COVID-19 pandemic dealt a significant blow to the construction sector. However, as the nation emerges from the pandemic, there is a clear rebound in activity, likely fuelled by pent-up demand for new developments and a resumption of projects that were paused during the crisis.
The government’s efforts to improve economic policies and create a more conducive business environment have attracted substantial foreign investment, particularly in sectors such as infrastructure and industrial development. Multinational corporations are investing in new manufacturing facilities, logistics centres, commercial properties, and data centres to meet growing demand.
Furthermore, initiatives like China’s Belt and Road Initiative continue to support infrastructure development in Malaysia. Projects such as rail networks, ports, and industrial zones are bolstering connectivity and economic growth.
The most significant construction projects undertaken in 2024 include:
• Phase 2 of the Sarawak-Sabah Link Road (SSLR) in Sarawak
• Pan Borneo Highway in Sabah
• Road maintenance projects in Perak
• Port construction and reclamation projects in Selangor
• Manufacturing facilities in Selangor and Penang
• Power plant development in Sarawak
These large-scale projects are driving economic activity, creating jobs, and contributing to the overall development of the nation.
Yang Berhormat Dato Sri Alexander Nanta Linggi, Minister of Works, commended ICW and BuildXpo for their significant role in shaping the construction industry. In his welcoming remarks during the opening ceremony, the Minister highlighted the events’ contributions in addressing industry challenges, promoting innovation, and fostering sustainability.
“This year’s theme, Envisioning the Future of Construction, is especially fitting as we gather to explore how the industry will evolve in the face of new technologies, sustainability demands, and post-pandemic recovery. ICW and BuildXpo 2024 is set to be a platform for showcasing cutting-edge innovations that are poised to drive the future of construction,” he said.
BuildXpo 2024: A Showcase of Construction Innovation
BuildXpo 2024 will feature a wide range of products and services from leading industry players. The exhibition will showcase the latest advancements in construction technologies, machinery, software, Industrialised Building Systems (IBS), smart building solutions, and automation technologies.
The exhibition will occupy nearly 10,000 square meters of space, hosting 500 booths and 200 exhibitors. It is anticipated to attract over 15,000 trade visitors from across the industry.
ICW 2024: A Platform for Knowledge Sharing and Industry Advancement
In addition to the exhibition, ICW 2024 will host a series of conferences, including the Future Cities Summit and Conference on Conflict Avoidance and Dispute Resolution. These events will provide valuable insights into emerging urban trends, project management, and legal frameworks, helping attendees stay informed about the latest developments in the construction sector and mitigate risks. Furthermore, ICW will also host the Facilities Management Seminar to promote environmentally responsible practices and optimize building operations, ensuring that the industry remains at the forefront of innovation and sustainability.
Furthermore, ICW remains committed to fostering youth engagement and career development within the construction industry. Through initiatives such as the Youth Arena Program (in collaboration with the Chartered Institute of Buildings Malaysia), the Open Ideas Competition (in collaboration with the Malaysia Structural Steel Association), and the MyFutureJobs Career Launch Pad (in collaboration with SOCSO), ICW provides a platform for young professionals to showcase their talent and explore diverse career opportunities. These initiatives contribute to the modernization and innovation of the construction sector by nurturing the next generation of industry leaders.
Also present at the official opening ceremony is Deputy Minister of Works, Datuk Seri Ahmad Maslan; the Ministry of Works Secretary General, Datuk Seri Azman Ibrahim; CIDB Chairman, Ir. Yusuf Abd. Wahab, CIDB Chief Executive, Dato’ Sr. Mohd Zaid Zakaria, and Qube Integrated Malaysia Executive Chairman, Richard Teo.
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