With new skyscrapers and several mega projects lined up, the construction industry in Malaysia is showing signs of revival after it stagnated during the two-year COVID-19 pandemic. Moreover, as business activities, including construction projects, have resumed as usual since 2022, the value of Malaysia’s construction work increased by more than ten billion Malaysian ringgit in 2023.
Infrastructure projects at the forefront
Although the construction of residential and commercial buildings is important, the Malaysian government has set its eyes on further development of infrastructure in major cities in the country. Large construction projects are slated to have their project tenders finalized sometime in 2024. These include Penang Light Rail Transit (LRT), Klang Valley Mass Rapid Transit 3 (MRT 3), and Johor Bahru LRT.As of 2023, the value of civil engineering work in Malaysia reached more than 52 billion Malaysian ringgit and is expected to increase further once these mega projects commence. In addition to expanding transportation infrastructure, the government has also planned flood mitigation projects in several flood-prone areas.
Challenges in construction
Despite a positive outlook in 2024, the construction industry will still face some challenges, mainly due to the rising cost of construction materials. The price of ordinary cement, for example, increased by more than 3.30 Malaysian ringgit per 50-kilogram bag within the span of 12 months. This will inadvertently drive construction expenses up.Malaysia also relies on overseas workers in the construction industry. In 2022, there were around 200,000 non-Malaysians employed in construction. This marked a decrease of more than 80,000 people compared to the number of overseas workers before the COVID-19 pandemic. Thus, Malaysia would need to attract more workers from its neighboring countries to support its ambitious projects.
