The government is taking proactive steps to ensure the construction industry remains competitive and sustainable amid expectations of rising tender prices, Prime Minister Datuk Seri Anwar Ibrahim said.

He said the government is driving major infrastructure projects to ensure the construction sector remains resilient by enhancing public-private partnerships (PPPs).

The projects include the Sarawak-Sabah Link Road Phase 2, the Pan-Borneo Highway upgrades and the data centre developments in Johor.

"These initiatives ensure that the sector stays resilient amid rising costs," he said at the launch of the International Construction Week and BuildXpo 2024.

Anwar's text speech was read by Works Minister Datuk Seri Alexander Nanta Linggi.

Anwar said the construction industry is growing in tandem with the evolution of digital technology including big data and artificial intelligence, which exponentially increases demand for data centres.

"Our nation's rise in the Data Centre Cost Index — surpassing Oslo, Berlin and Sydney — demonstrates our growing leadership in this sector.

"Industry giants like Microsoft Corp, Amazon Web Services and Google LLC have chosen Malaysia for their data centre expansions due to our strategic location, robust infrastructure, and supportive government policies," he said, adding that this symbiotic relationship between construction technology and data centres will be pivotal in driving Malaysia's leadership in both industries.

"But as this growth accelerates, so does the need for energy and water, with data centres requiring vast amounts of both to function efficiently.

"Therefore, integrating green technologies and smart energy management into data centre construction will be critical in ensuring the growth aligns with Malaysia's commitment to the Sustainable Development Goals (SDGs) and our transition towards a low-carbon economy by 2050," he noted.

Anwar added that the government will also invest heavily in green building practices and low-carbon infrastructure development, further aligning the nation's commitments to the SDGs.

Some data on the construction sector's stellar performance, which recorded a 17.3% growth for the three quarters of 2024, were also shared.

This marked the first double-digit growth the country has achieved since 2014, reflecting the industry's capacity to overcome adversity and emerge stronger, he noted.

Anwar believes that the surge in construction activity will lead to more job creation, bolster domestic and foreign investment, and drive infrastructure development across the country, propelling Malaysia as the leader in the region's construction industry.