Posted on 14 Aug 2026
Malaysia’s construction sector grew 8.8% in the second quarter from a year earlier, with the value of work done reaching MYR 47.8 billion ($11.68 billion), as strong private-sector activity continued to support growth, Kallanish notes from the Department of Statistics Malaysia (DOSM).
The expansion was driven by double-digit growth in special trade activities and non-residential buildings, which rose 17.6% and 13.3%, respectively. Residential buildings grew 8.7%, while civil engineering expanded 2.7%.
Civil engineering remained the largest contributor, accounting for MYR 16.7 billion, or 35% of total work done. This was driven by utility projects which contributed MYR 8.1 billion, and roads and railways that contributed MYR 6.9 billion.
The value of work done for the non-residential buildings and residential buildings sub-sectors recorded MYR 14 billion (29.3%) and MYR 10.9 billion (22.8%), respectively. The Special trade activities sub-sector contributed MYR 6.2 billion (12.9%), supported by sites preparation (MYR 1.5 billion), plumbing, heat and air-conditioning installation (MYR 1.3 billion) and electrical installation (MYR 1.3 billion).
The private sector contributed MYR 31.4 billion, or 65.8% of total activity, and grew 11.4%, led by special trade activities and non-residential buildings.
Public-sector construction rose 4.1% to MYR 16.4 billion, accounting for 34.2% of total work done.
For the first half of 2026, construction activity rose 8.7% to MYR 94.3 billion from a year earlier, although growth moderated from 14.7% in the same period in 2025.
Special trade activities led first-half growth at 21%, followed by non-residential buildings at 13%.
Source:Kallanish
