Malaysia’s construction sector maintained its growth momentum in the first quarter of 2026, with the value of work done rising 8.5% year-on-year to RM46.5 billion, according to the latest data released by the Department of Statistics Malaysia (DOSM).
The expansion was supported mainly by strong performances in the special trade activities and non-residential buildings sub-sectors, which recorded double-digit growth of 24.6% and 12.7% respectively.
DOSM said the residential buildings sub-sector also registered positive growth of 6.1%, while the civil engineering segment expanded at a more moderate pace of 1.5%.
Civil engineering remained the largest contributor to total construction activity, accounting for RM15.9 billion or 34.2% of total work done during the quarter.
The sub-sector was mainly driven by utility projects valued at RM8.3 billion and roads and railways construction activities worth RM6.1 billion.
Meanwhile, non-residential buildings contributed RM13.9 billion or 29.9% of the total value of work done, followed by residential buildings at RM10.5 billion or 22.5%.
Special trade activities contributed RM6.2 billion, representing 13.3% of total construction activity, supported largely by site preparation works, plumbing and air-conditioning installations, as well as electrical installation activities.
The private sector continued to be the key growth driver, with the value of work done increasing 13.2% in the first quarter compared with 8.6% growth in the preceding quarter.
Private sector projects amounted to RM30.5 billion, accounting for 65.6% of total construction activity.
According to DOSM, the expansion was mainly fuelled by stronger performances in special trade activities and non-residential buildings, which grew 28.8% and 13.1% respectively.
In contrast, public sector construction activity recorded marginal growth of 0.5%, slowing significantly from the 13.4% growth registered in the fourth quarter of 2025.
Public sector work done totalled RM16 billion, or 34.4% of total construction activity, supported mainly by special trade activities and non-residential building projects.
By state, more than half of Malaysia’s construction activity during the quarter was concentrated in Selangor, Johor and the Wilayah Persekutuan.
Selangor remained the largest contributor with RM10.9 billion worth of construction work, representing 23.4% of the national total. The state’s activity was driven mainly by non-residential building and civil engineering projects.
Johor ranked second with RM9.5 billion or 20.4% of total construction work, supported largely by non-residential building developments.
Meanwhile, the Federal Territories, comprising Kuala Lumpur, Putrajaya and Labuan, recorded RM4.8 billion worth of construction activity, contributing 10.3% to the national total.
