Malaysia's construction sector showed continued robust growth in the third quarter of 2024 (3Q24), expanding by 22.9% to RM41.1 billion, surpassing the 20.2% growth seen in the second quarter. This positive growth is primarily attributed to a 42.6% surge in specialised trade activities, which has been a key driver of the sector's momentum.
Additionally, the residential and non-residential buildings sub-sectors also experienced significant expansion, growing by 27.8% and 27.7% year-on-year, respectively.
The civil engineering sub-sector, which remains the largest contributor to the sector's total work value, saw a more modest growth of 12.0%, down from 25.2% in the previous quarter. The private sector led the growth, accounting for 63.5% of the total work done and recording a strong increase of 33.3%, while the public sector rose more moderately by 8.1%.
According to MIDF Amanah Investment Bank Bhd, this strong performance signals an improved economic outlook, particularly in the private sector. The sector's positive momentum is expected to contribute significantly to Malaysia's GDP growth in 3Q24, with construction activities forecast to account for 13.5% of GDP growth, up from 10.6% in the previous quarter.
This sustained expansion in construction is expected to have broad positive effects, stimulating further growth across other sectors of the economy.
