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Focus Malaysia
2 days ago
- Business
- Focus Malaysia
Construction sector maintains growth amid cost dynamics
THE average prices of steel bars in Malaysia heightened for the second consecutive month as of Jul-25, following a brief softening of prices from Mar-May-25. Average prices rose +5.26% month-on-month (mom) in Jul-25 to RM2,200.00 per metric tonne, the first consecutive month price incline since Jan-24. 'This was largely attributable to Malaysia's imposition of provisional anti‑dumping duties, effective from 7 July 2025, on selected galvanized iron and steel imports from China, South Korea and Vietnam, ranging from 3.86% to 57.90%, which has begun to limit cheap inflows, tighten local supply and lift procurement costs,' said MBSB Research. Rising input prices for coking coal and scrap, together with construction-related inflation and labour tightness in Malaysia, have also contributed to recent upward momentum. As of Jul-25, the monthly average price for the binding substance has remained unchanged for the 24th consecutive month since Jul-23, holding steady at RM380 per metric tonne. This prolonged price stability was attributed to a balanced supply-demand dynamic in the market and consistent raw material costs leading to easing cost pressures that help to sustain price. Prices have remained consistent across all regions, including the northern, central, and eastern Peninsula, as well as Sabah and Sarawak. The continued stability in cement pricing is mainly supported by relatively flat input costs, particularly for coal, petcoke, and clinker, which have remained relatively flat since late calendar year 2023 (CY23), reducing the pressure on producers to revise pricing. Local producers have also benefited from optimised production scheduling and reduced reliance on spot imports, allowing for better margin control without needing to adjust selling prices. We expect the price of bulk cement to remain relatively stable moving forward, backed by the consistent demand from key projects such as the reinstatement of five LRT stations, the MRT3, the Penang International Airport expansion, along with the sustained demand for industrial projects and property development. Data from the Department of Statistics Malaysia showed that for the thirteenth consecutive quarter, the construction sector remained on a positive trajectory, albeit growing at a slower pace compared to the first quarter. Out of RM43.9 bil value of work done, 37.1% or equivalent to RM16.3 bil was in civil engineering, primarily in the construction of utility projects (RM8.1 bil) and construction of roads and railways (RM6.0 bil) activities. We maintain our positive stance on the construction sector, backed by a combination of easing cost pressures, resilient private sector demand, and stronger public project execution. Steel bar prices have continued to ease on a year-to-date (‑9.91%) and year-on-year (‑19.5%) basis despite recent monthly fluctuations, while cement prices remain stable due to disciplined domestic production and raw material cost control, ensuring a favourable cost environment for contractors. These cost dynamics, paired with gradual easing of labour constraints and the ability to pass through SST and tariff-related costs, continue to support profitability in ongoing projects. Momentum is also improving on the demand side. —Aug 15, 2025 Main image: National Action Plan On Business And Human Rights
Daily Express
5 days ago
- Business
- Daily Express
Construction done valued at RM43.9 billion
Published on: Tuesday, August 12, 2025 Published on: Tue, Aug 12, 2025 By: Bernama Text Size: The Construction value in Selangor amounted to RM9.7 billion or 22.2 per cent, contributed by the non-residential buildings of RM3.2 billion, followed by residential buildings (RM2.9 billion) and civil engineering (RM2.4 billion) sub-sectors. Kuala Lumpur: Malaysia's construction sector maintained steady growth of 12.9 per cent, with the value of work done reaching RM43.9 billion in the second quarter of 2025 (2Q 2025), following a 16.6 per cent increase in the previous quarter, according to the Department of Statistics Malaysia (DOSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was driven by continued expansion in the special trade activities and non-residential buildings sub-sectors, which posted substantial double-digit growth of 22.2 per cent and 16.2 per cent respectively. Advertisement 'The residential buildings sub-sector also contributed significantly, expanding by 13.9 per cent, while the civil engineering sub-sector maintained a positive trend with a growth of 7.5 per cent,' he said in DOSM Quarterly Construction Statistics today. Mohd Uzir said that of RM43.9 billion of work done value, a total of RM16.3 billion or 37.1 per cent was attributed to the civil engineering sub-sector, primarily in the activity of construction of utility projects of RM8.1 billion and roads and railways (RM6.5 billion). 'The value of work done for non-residential buildings and residential buildings sub-sectors accounted for RM12.4 billion (28.2 per cent) and RM10 billion (22.8 per cent) respectively. 'Additionally, the special trade activities sub-sector accounted for RM5.2 billion (11.9 per cent), largely in site preparation (RM1.5 billion); electrical installation (RM1.2 billion); and plumbing, heat and air-conditioning installation (RM1.1 billion) activities,' he said. He also noted that the private sector remained the primary driver of growth in the sector, contributing RM28.2 billion or 64.2 per cent of the total value. According to him, the private sector sustained its double-digit growth momentum at 19.3 per cent growth from 23.7 per cent in 1Q 2025, propelled by strong performance in the non-residential buildings (23.7 per cent) and the special trade activities (22.8 per cent) sub-sectors. 'Apart from that, the value of work done by the public sector increased by 3.1 per cent (1Q 2025: 6.3 per cent) to RM15.7 billion (share: 35.8 per cent), fuelled by the special trade activities sub-sector at 20.8 per cent growth,' he noted. On the states' performance, he said nearly 61.1 per cent of the total work done value was concentrated in Selangor, Johor, Sarawak and Federal Territories (Kuala Lumpur, Putrajaya and Labuan). The Construction value in Selangor amounted to RM9.7 billion or 22.2 per cent, contributed by the non-residential buildings of RM3.2 billion, followed by residential buildings (RM2.9 billion) and civil engineering (RM2.4 billion) sub-sectors. Meanwhile, Johor ranked second with a value of RM7.7 billion or 17.5 per cent, primarily from the non-residential buildings (RM3.4 billion) sub-sector. In the meantime, the value of work done in Sarawak was RM5.2 billion (11.9 per cent), while Federal Territories recorded RM4.2 billion (9.5 per cent). 'In the first half of 2025, the sector posted a value of RM86.8 billion, reflecting a 14.7 per cent increase compared to the same period in 2024, driven by positive performance across all sub-sectors, particularly in special trade activities of 28.3 per cent and residential buildings (20 per cent),' he added.
New Straits Times
6 days ago
- Business
- New Straits Times
Malaysia's construction sector growth at 12.9pct with work done worth RM43.9bil in 2Q 2025
KUALA LUMPUR: Malaysia's construction sector maintained steady growth of 12.9 per cent, with the value of work done reaching RM43.9 billion in the second quarter of 2025 (2Q 2025), following a 16.6 per cent increase in the previous quarter, according to the Department of Statistics Malaysia (DOSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was driven by continued expansion in the special trade activities and non-residential buildings sub-sectors, which posted substantial double-digit growth of 22.2 per cent and 16.2 per cent respectively. "The residential buildings sub-sector also contributed significantly, expanding by 13.9 per cent, while the civil engineering sub-sector maintained a positive trend with a growth of 7.5 per cent," he said in DOSM Quarterly Construction Statistics today. Mohd Uzir said that of RM43.9 billion of work done value, a total of RM16.3 billion or 37.1 per cent was attributed to the civil engineering sub-sector, primarily in the activity of construction of utility projects of RM8.1 billion and roads and railways (RM6.5 billion). "The value of work done for non-residential buildings and residential buildings sub-sectors accounted for RM12.4 billion (28.2 per cent) and RM10 billion (22.8 per cent) respectively. "Additionally, the special trade activities sub-sector accounted for RM5.2 billion (11.9 per cent), largely in site preparation (RM1.5 billion); electrical installation (RM1.2 billion); and plumbing, heat and air-conditioning installation (RM1.1 billion) activities," he said. He also noted that the private sector remained the primary driver of growth in the sector, contributing RM28.2 billion or 64.2 per cent of the total value. According to him, the private sector sustained its double-digit growth momentum at 19.3 per cent growth from 23.7 per cent in 1Q 2025, propelled by strong performance in the non-residential buildings (23.7 per cent) and the special trade activities (22.8 per cent) sub-sectors. "Apart from that, the value of work done by the public sector increased by 3.1 per cent (1Q 2025: 6.3 per cent) to RM15.7 billion (share: 35.8 per cent), fuelled by the special trade activities sub-sector at 20.8 per cent growth," he noted. On the states' performance, he said nearly 61.1 per cent of the total work done value was concentrated in Selangor, Johor, Sarawak and Federal Territories (Kuala Lumpur, Putrajaya and Labuan). The Construction value in Selangor amounted to RM9.7 billion or 22.2 per cent, contributed by the non-residential buildings of RM3.2 billion, followed by residential buildings (RM2.9 billion) and civil engineering (RM2.4 billion) sub-sectors. Meanwhile, Johor ranked second with a value of RM7.7 billion or 17.5 per cent, primarily from the non-residential buildings (RM3.4 billion) sub-sector. In the meantime, the value of work done in Sarawak was RM5.2 billion (11.9 per cent), while Federal Territories recorded RM4.2 billion (9.5 per cent). "In the first half of 2025, the sector posted a value of RM86.8 billion, reflecting a 14.7 per cent increase compared to the same period in 2024, driven by positive performance across all sub-sectors, particularly in special trade activities of 28.3 per cent and residential buildings (20 per cent)," he added.
Malaysian Reserve
6 days ago
- Business
- Malaysian Reserve
Malaysia's construction sector growth at 12.9% with work done worth RM43.9b in 2Q 2025
KUALA LUMPUR — Malaysia's construction sector maintained steady growth of 12.9 per cent, with the value of work done reaching RM43.9 billion in the second quarter of 2025 (2Q 2025), following a 16.6 per cent increase in the previous quarter, according to the Department of Statistics Malaysia (DOSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was driven by continued expansion in the special trade activities and non-residential buildings sub-sectors, which posted substantial double-digit growth of 22.2 per cent and 16.2 per cent respectively. 'The residential buildings sub-sector also contributed significantly, expanding by 13.9 per cent, while the civil engineering sub-sector maintained a positive trend with a growth of 7.5 per cent,' he said in DOSM Quarterly Construction Statistics today. Mohd Uzir said that of RM43.9 billion of work done value, a total of RM16.3 billion or 37.1 per cent was attributed to the civil engineering sub-sector, primarily in the activity of construction of utility projects of RM8.1 billion and roads and railways (RM6.5 billion). 'The value of work done for non-residential buildings and residential buildings sub-sectors accounted for RM12.4 billion (28.2 per cent) and RM10 billion (22.8 per cent) respectively. 'Additionally, the special trade activities sub-sector accounted for RM5.2 billion (11.9 per cent), largely in site preparation (RM1.5 billion); electrical installation (RM1.2 billion); and plumbing, heat and air-conditioning installation (RM1.1 billion) activities,' he said. He also noted that the private sector remained the primary driver of growth in the sector, contributing RM28.2 billion or 64.2 per cent of the total value. According to him, the private sector sustained its double-digit growth momentum at 19.3 per cent growth from 23.7 per cent in 1Q 2025, propelled by strong performance in the non-residential buildings (23.7 per cent) and the special trade activities (22.8 per cent) sub-sectors. 'Apart from that, the value of work done by the public sector increased by 3.1 per cent (1Q 2025: 6.3 per cent) to RM15.7 billion (share: 35.8 per cent), fuelled by the special trade activities sub-sector at 20.8 per cent growth,' he noted. On the states' performance, he said nearly 61.1 per cent of the total work done value was concentrated in Selangor, Johor, Sarawak and Federal Territories (Kuala Lumpur, Putrajaya and Labuan). The Construction value in Selangor amounted to RM9.7 billion or 22.2 per cent, contributed by the non-residential buildings of RM3.2 billion, followed by residential buildings (RM2.9 billion) and civil engineering (RM2.4 billion) sub-sectors. Meanwhile, Johor ranked second with a value of RM7.7 billion or 17.5 per cent, primarily from the non-residential buildings (RM3.4 billion) sub-sector. In the meantime, the value of work done in Sarawak was RM5.2 billion (11.9 per cent), while Federal Territories recorded RM4.2 billion (9.5 per cent). 'In the first half of 2025, the sector posted a value of RM86.8 billion, reflecting a 14.7 per cent increase compared to the same period in 2024, driven by positive performance across all sub-sectors, particularly in special trade activities of 28.3 per cent and residential buildings (20 per cent),' he added. — BERNAMA
The Sun
6 days ago
- Business
- The Sun
Malaysia's construction sector grows 12.9% with RM43.9 billion work done in Q2 2025
KUALA LUMPUR: Malaysia's construction sector recorded steady growth of 12.9 per cent in the second quarter of 2025. The value of work done reached RM43.9 billion, following a 16.6 per cent increase in the previous quarter, according to the Department of Statistics Malaysia (DOSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the growth to strong performance in special trade activities and non-residential buildings. These sub-sectors posted substantial double-digit growth of 22.2 per cent and 16.2 per cent respectively. The residential buildings sub-sector also expanded significantly by 13.9 per cent. Meanwhile, the civil engineering sub-sector maintained a positive trend with 7.5 per cent growth. Of the RM43.9 billion work done value, RM16.3 billion or 37.1 per cent came from the civil engineering sub-sector. This was primarily driven by utility projects (RM8.1 billion) and roads and railways (RM6.5 billion). Non-residential buildings contributed RM12.4 billion (28.2 per cent) to the total value. Residential buildings accounted for RM10 billion (22.8 per cent). Special trade activities made up RM5.2 billion (11.9 per cent), led by site preparation (RM1.5 billion). Electrical installation (RM1.2 billion) and plumbing, heat, and air-conditioning installation (RM1.1 billion) also contributed significantly. The private sector remained the primary growth driver, contributing RM28.2 billion or 64.2 per cent of the total value. Private sector growth sustained at 19.3 per cent, down from 23.7 per cent in Q1 2025. Non-residential buildings (23.7 per cent) and special trade activities (22.8 per cent) were key contributors. Public sector work done value increased by 3.1 per cent to RM15.7 billion (35.8 per cent share). Special trade activities in the public sector grew by 20.8 per cent. Nearly 61.1 per cent of total work done value was concentrated in Selangor, Johor, Sarawak, and Federal Territories. Selangor led with RM9.7 billion (22.2 per cent), driven by non-residential buildings (RM3.2 billion). Johor ranked second with RM7.7 billion (17.5 per cent), primarily from non-residential buildings (RM3.4 billion). Sarawak recorded RM5.2 billion (11.9 per cent), while Federal Territories contributed RM4.2 billion (9.5 per cent). In the first half of 2025, the sector posted RM86.8 billion in work value, a 14.7 per cent increase year-on-year. Special trade activities (28.3 per cent) and residential buildings (20 per cent) were the main growth drivers. - Bernama
