COMMENTARY ECONOMICS FORECAST

Malaysia Construction Year in Review & Forecast 2022

In the first half of 2023, the Malaysia construction market is expected to gain MYR66 billion value of projects.

 The Building sector is projected to surge as there is an increasing demand in the construction of new semiconductor plants and data centres, as multinational corporations (MNCs) are diversifying their investments away from China.

 The Civil sector is also forecasted to grow as a long-term flood mitigation plan is expected to be implemented from the period 2023-2030. More work packages are expected to be introduced from the Mass Rapid Transit 3 (MRT3) and major ongoing projects, i.e., Pan Borneo Highway, Central Spine Road and East Coast Rail Link.

 With the proposed re-tabling of Budget 2023, we expect the policymakers to be more prudent in spending, which may lead to termination or delay in project execution due to the reviews of plans. The construction outlook for 2023 remains positive with an increasing trend of awarding main contracts in the fourth quarter of 2022.

Sources: BCI Central Research and Economics. All information is accurate as of Dec 2022.

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