Malaysia’s construction sector continued to expand in the second quarter of 2026, with the value of work done rising 8.8 per cent year-on-year (y-o-y) to RM47.8 billion, according to the Department of Statistics Malaysia (DOSM).
The growth was slightly faster than the 8.5 per cent recorded in the first quarter of 2026, supported mainly by continued double-digit expansion in special trade activities and non-residential buildings.
Special trade activities recorded the strongest growth at 17.6 per cent, while the non-residential buildings segment expanded 13.3 per cent. Residential buildings grew 8.7 per cent, while civil engineering registered a more moderate 2.7 per cent increase.
Civil engineering remained the largest contributor to the sector’s total value of work done, accounting for RM16.7 billion or 35.0 per cent of the total. This was driven by utility projects worth RM8.1 billion and road and railway construction valued at RM6.9 billion.
The non-residential buildings segment contributed RM14.0 billion, or 29.3 per cent, while residential buildings accounted for RM10.9 billion, representing 22.8 per cent.
Special trade activities contributed RM6.2 billion, or 12.9 per cent, with site preparation, plumbing, heat and air-conditioning installation, and electrical installation among the key contributors.
The private sector continued to drive the construction industry’s expansion, contributing RM31.4 billion or 65.8 per cent of the total value of work done during the quarter.
Private-sector construction activity grew 11.4 per cent y-o-y, although this was slower than the 13.2 per cent growth recorded in the first quarter.
The expansion was led by special trade activities, which grew 20.2 per cent, and non-residential buildings, which increased 18.2 per cent.
Meanwhile, public-sector construction activity rose 4.1 per cent to RM16.4 billion, accounting for the remaining 34.2 per cent of total work done. This marked a stronger performance compared with the 0.5 per cent growth recorded in the first quarter, supported mainly by an 11.0 per cent expansion in special trade activities.
At the state level, nearly two-thirds, or 65.8 per cent, of Malaysia’s construction work was concentrated in Selangor, Johor, the Federal Territories and Sarawak.
Selangor remained the largest contributor, with construction work valued at RM12.2 billion or 25.5 per cent of the national total. Non-residential buildings contributed RM4.8 billion, while residential buildings accounted for RM3.2 billion.
Johor followed with RM9.4 billion, equivalent to 19.6 per cent of the total, with non-residential buildings contributing RM3.5 billion.
The Federal Territories recorded RM5.2 billion or 10.8 per cent of total construction work, while Sarawak contributed RM4.7 billion or 9.9 per cent.
For the first half of 2026, Malaysia’s construction sector recorded RM94.3 billion in work done, representing an 8.7 per cent increase from the corresponding period in 2025.
Growth was supported by all major sub-sectors, with special trade activities registering the strongest expansion at 21.0 per cent, followed by non-residential buildings at 13.0 per cent.
However, the first-half growth rate was slower than the 14.7 per cent expansion recorded in the first half of 2025.
The latest figures point to continued resilience in Malaysia’s construction industry, underpinned by sustained private-sector activity and ongoing development in industrial, commercial, residential and infrastructure projects.
