Optimism Prevails On Construction Sector’s Expansion Of 14.2% To RM36.8b In 1Q: MIDF Research

Recently The Department of Statistics Malaysia cited that the construction sector work done value soared by 14.2% year-on-year (y-o-y), amounting to RM36.8 billion in the first quarter of 2024 (1Q2024).

MIDF Research said today (May 14) that Malaysia’s construction sector, measured in the value of work done soared by +14.2%yoy in 1QCY24, the highest in 5-quarter.

MIDF Research foresees the civil engineering segment particularly under the public corporations to continue growing strongly amid key infrastructure projects such as Penang LRT, ECRL and potential projects like HSR and MRT3.

Apart from that, MIDF Research remain optimistic on the construction sector in 2024, underpinned by the more than RM90b DEVEX and private sector projects.

Against the previous quarter, the value of construction works advanced by +7.7%qoq.

By type of work, civil engineering output which accounted for over 40% of total output jumped by +24.7%yoy, 7-consecutive quarters of double-digit expansion and the fastest since 2QCY21.

Residential works expanded by +11.5%yoy, the steepest in 6-quarter while non-residential construction rebounded by +3.8%yoy after 2-straight quarters recorded contractions.

Output for special trade activities increased by +11.8%yoy (4QCY23: +0.3%yoy).

By project owner, the private sector which covers almost 60.0% of total construction work expanded by +10.1%yoy, the highest in 3-quarter.

Government projects increased by +5.0%yoy, and public corporations output surged by +41.0%yoy, the biggest gain since 2QCY21. The main driver for public corporations’ work was civil engineering which rose by more than +60%yoy.

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