Forecast: Construction Industry Contribution to GDP in Malaysia

The construction industry in Malaysia showed consistent growth from 2013 to 2016, followed by a period of stabilization and slight decline until 2021. However, it rebounded in 2022 and is forecasted to continue growing up to 2028, reaching 5% of GDP. Notably, in 2023 the industry contributed 4.8% to GDP. Comparing 2023 to 2022, the industry shows a minimal year-on-year increase of 0.1%. The 5-year CAGR forecast for the period from 2024 to 2028 is 0.4%, indicating stable growth. The overall forecasted growth rate over five years is 2.04%.

Future trends to watch for include:

• Increased urbanization driving demand for construction projects.
• Technological advancements enhancing construction efficiency.
• Government infrastructure initiatives and public-private partnerships boosting industry growth.
• Environmental sustainability influencing construction practices and materials.