Posted on 15 Dec 2025
Malaysia’s building materials sector is set for a strong 2026, led by cement and steel demand on the back of 13th Malaysia Plan infrastructure projects, data centres and industrial developments, CIMB Securities said.
The industry is expected to see higher pricing led by an increase in transport costs, and this will benefit building materials players that offer competitive logistical solutions through strategic plant locations that better serve demand hotspots in Penang, Selangor, and Johor, the research house said.
The industry is expected to see higher pricing, led by an increase in transport costs, and this will affect building materials players that offer competitive logistical solutions through strategic plant locations that better serve demand hotspots in Penang, Selangor, and Johor, the research house said.
Haulage fees and quarry-product prices have surged 15%-40% since November 2025 following new overloading rules, the research house noted.
"We project Malaysia’s building materials sector’s core earnings growth to accelerate sharply to 68% in 2026, before moderating to 16% in 2027," it said. The growth is seen at 15% this year.
In the steel sector, CIMB Securities expects steel players to pass on incremental increases in logistics costs, given thin margins from soft global steel prices.
As carbon tax looms, steel companies that embrace green steel technology will be in a stronger position to capitalise on new demand channels and “green steel premiums” from low-emission steel products in Malaysia and Singapore, although significant upfront costs are required.
Source:The Edge
