Construction sector grows 23% to RM41bil in Q3

Construction sector grows 23% to RM41bil in Q3

The growth is driven by a 42.6% expansion in the special trade activities subsector.

CONSTRUCTION SITE
The construction sector has recorded RM116.8 billion for the first three quarters of 2024, reflecting a 19.1% increase from the same period in 2023.
PETALING JAYA:
The construction sector sustains its momentum with positive growth of 22.9%, reaching RM41.1 billion in the third quarter of 2024 (Q3 2024), compared to a 20.2% increase, which amounted to RM38.9 billion in Q2 2024.

The statistics department chief statistician Uzir Mahidin said the growth momentum was primarily driven by a 42.6% expansion in the special trade activities subsector, which continues to demonstrate accelerated growth.

“Additionally, the residential buildings and non-residential buildings sub-sectors gained momentum by expanding 27.8% and 27.7%, respectively.

“Meanwhile, the civil engineering sub-sector also expanded at a more moderate pace, still contributing positively with a 12% growth rate,” he said in a statement on the latest quarterly construction statistics today.

Uzir said that of the RM41.1 billion in work done value recorded in Q3 2024, RM15.2 billion, or 36.9%, was attributed to the civil engineering subsector, primarily in the construction of roads and railways (RM6.8 billion) and utility projects (RM6.2 billion).

“Meanwhile, the value of work done for non-residential buildings and residential buildings was RM11.8 billion (28.6%) and RM9.4 billion (22.8%), respectively.

“The special trade activities made up RM4.8 billion (11.6%), largely in sites preparation (RM1.3 billion), electrical installation (RM1.2 billion), and plumbing, heat and air-conditioning installation (RM1 billion) activities,” he added.

The private sector remained the main impetus for growth in Q3 2024, contributing RM26.1 billion, or 63.5% of the total value, while the public sector, with a 36.5% share valued at RM15 billion, recorded a more moderate growth of 8.1%.

Elaborating on the performance of the construction sector by state in Q3 2024, Uzir said that nearly 61.4% of the work done value was concentrated in Selangor, Johor, Wilayah Persekutuan (Kuala Lumpur, Putrajaya and Labuan) and Sarawak.

He said the value of construction work in Selangor amounted to RM9.3 billion, or 22.7%, Johor (RM6.9 billion, or 16.9%), Wilayah Persekutuan (RM4.6 billion, or 11.3%), and Sarawak (RM4.3 billion, or 10.5%).

“Summarising the performance of construction work done for the first three quarters of 2024, the sector registered a total value of RM116.8 billion, reflecting a 19.1% increase compared to the same period in 2023 (Q1-Q3 2023: 9%).

“The positive growth was largely driven by a strong contribution from civil engineering activities, which expanded by 20.3%,” he added.

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