Table of Contents

Secondary Sector

Construction

Building Dreams into reality: An outlook on construction in Malaysia

MALAYSIAN CONSTRUCTION INDUSTRY
The market size is projected at around USD $58 Billion by 2029.

Despite being severely affected during the COVID-19 pandemic outbreak, the construction industry of Malaysia has been on an upward trend since the country’s recovery of its large-scale infrastructure projects such as the 5G rollout, East Coast Highway 3, Mass Rapid Transit 3 (MRT3), and flood-mitigation projects. Based on the findings of Mordor Intelligence (2024), the Malaysian construction market size is projected at around USD 38.55 billion in 2024 and is expected to reach USD 58.10 billion by 2029 with a CAGR of 8.55%. The GDP generated from the sector in 2022 is reported at around MYR 53.44 billion (Statista, 2023). In September 2023, the Malaysia government has announced its initiative to expand on the country’s industrial sector and support the growth of its export sector through the New Industrial Master Plan (NIMP) which is expected to last till 2030 (GlobalData, 2024). Owing to the Malaysia government’s expansionary fiscal spending and further progress in private and public sector projects, the Malaysian construction industry is expected to carry on its growth momentum for the coming years (The Stars, 2023).

Manufacturing

Beyond Putting Parts Together: An outlook on manufacturing in Malaysia

MALAYSIAN MANUFACTURING INDUSYTRY
The output of the manufacturing market in Malaysia is also estimated to reach USD $729 Billion in 2024 with a CAGR of 23.68%

The manufacturing market includes the creation of products from raw materials or semi-finished goods such as assembly lines, repairs of industrial machinery, and the processing of food and beverages. Among the 803 approved projects in Malaysia 2022, 78.3% are derived from foreign investments which add up to MYR 66 billion in value (MIDA, 2024). The industry’s contribution to the country’s GDP is recorded at MYR 95,264 million in December 2023 (Trading Economics, 2024). According to Statista (2024), the value added in the manufacturing market is projected to reach USD 118.50 billion in 2024 with a CAGR of 6.05%. The output of the manufacturing market in Malaysia is also estimated to reach USD 729.60 billion in 2024 with a CAGR of 23.68%. Along with the recent rise of smart factories, the manufacturing market in Malaysia is looking optimistic with opportunities available in the myriad of industries in the market.  

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