Overview

Malaysia’s Construction sector grows 12.5 per cent, hits RM178.6 billion in 2025

Malaysia’s Construction sector expanded by 12.5 per cent in 2025 to reach RM178.6 billion in work done value, while maintaining positive momentum in the fourth quarter with a 10.3 per cent increase. The expansion was largely driven by the strong performance of the Special trade activities and Non-residential buildings sub-sectors, which surged by 21.1 per cent and 18.6 per cent, respectively. In contrast, the Residential buildings sub-sector experienced a more moderate growth of 5.9 per cent (Q3 2025: 11.6%), while the Civil engineering sub-sector continued to expand at a slower pace of 3.6 per cent (Q3 2025: 8.9%).

Of the RM46.4 billion in work done value recorded in the fourth quarter of 2025, RM16.2 billion or 34.9 per cent was attributed to the Civil engineering sub-sector, primarily in the Construction of utility projects (RM8.8 billion) and roads and railways (RM5.8 billion). Meanwhile, the value of work done for Non-residential buildings and Residential buildings sub-sectors was RM14.0 billion (30.1%) and RM10.5 billion (22.6%), respectively. The Special trade activities sub-sector contributed RM5.7 billion (12.4%), largely in Sites preparation (RM1.5 billion); Plumbing, heat and air-conditioning installation (RM1.2 billion); and Electrical installation (RM1.1 billion) activities.

The private sector remained the main driver of growth in this quarter, contributing RM29.3 billion or 63.2 per cent of the total value of work done. The private sector recorded positive momentum of 8.6 per cent, supported mainly by the Special trade activities sub-sector, which rose 23.8 per cent, and the Non-residential buildings sub-sector, which rose 10.5 per cent. Meanwhile, the value of work done by the public sector, contributing RM17.1 billion or 36.8 per cent of the total, recorded a double-digit growth of 13.4 per cent (Q3 2025: 6.1%). The growth was driven mainly by the Non-residential buildings sub-sector, which increased 56.7 per cent, rebounding from a contraction in the previous quarter (Q3 2025: -6.5%).

Nearly 62.9 per cent of the work done value was concentrated in Selangor, Johor, Sarawak and Wilayah Persekutuan (Kuala Lumpur, Putrajaya and Labuan). Selangor remained the largest contributor with a value of RM11.0 billion or 23.8 per cent, driven mainly by the Non-residential buildings sub-sector, amounting to RM4.6 billion, followed by Residential buildings at RM3.0 billion. Meanwhile, Johor ranked second with a value of RM8.3 billion or 17.9 per cent, primarily supported by the Non-residential buildings sub-sector valued at RM2.8 billion. In the meantime, Sarawak recorded RM5.0 billion or 10.8 per cent, while Wilayah Persekutuan amounted to RM4.8 billion (10.4%).

Summarising the performance of the Construction work done in 2025, the sector recorded a value of RM178.6 billion, registering a growth of 12.5 per cent as compared to 20.2 per cent in the preceding year. The growth was driven by increases in Special trade activities (22.8%), Non-residential buildings (16.3%) and Residential buildings (13.9%) sub-sectors. Meanwhile, the Civil engineering sub-sector posted a more moderate growth of 5.9 per cent (2024: 17.3%). Overall, Malaysia’s Construction sector in 2025 continued to expand, supported by positive performance across all sub-sectors, albeit at a more measured pace compared to 2024.

The full publication of the Construction Statistics Fourth Quarter 2025 can be downloaded through eStatistik portal.

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

11 February 2026

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