Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Malaysia’s construction sector enters 2027 with growth momentum, but the available figures do not establish an official 2027 growth rate. The Department of Statistics Malaysia (DOSM) recorded RM94.3 billion in construction work done in the first half of 2026, up 8.7% year on year. Meanwhile, the Thirteenth Malaysia Plan (RMK13) points to more disciplined project execution, including mandatory Building Information Modelling (BIM) for projects above RM10 million and wider use of the Industrialised Building System (IBS). Together, activity data and policy direction support an execution-led outlook—not a guarantee of faster growth.
What the latest figures say about construction activity
DOSM measured RM178.6 billion in construction work done in 2025, an increase of 12.5%. That was a strong expansion, but slower than 2024’s 20.2% growth. In the first half of 2026, work done reached RM94.3 billion, 8.7% above the same period a year earlier. Q2 alone contributed RM47.8 billion, up 8.8% year on year, following 8.5% growth in Q1. DOSM’s Q2 2026 release records continued expansion at a more moderate pace than the 2025 annual rate.
![Construction Project Management & Estimating for Beginners: [2 in 1] From Estimates to Execution - Mastering Project Bids, Estimating Techniques and Management Essentials for New Professionals](https://m.media-amazon.com/images/I/511FzD120CL._SL160_.jpg)
As an Amazon Associate I earn from qualifying purchases.
These figures describe the value of reported work done. They are not interchangeable with contract awards, project-pipeline totals, completed assets, construction GDP or contractor margins. They show the volume of activity carried out, not the profitability or eventual delivery of the work.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesWhich subsectors are growing—and which matter most by value?
Q2 2026 growth varied considerably by subsector. Special-trade activities and non-residential buildings grew fastest, while civil engineering remained the largest segment by work value. The distinction matters: a high growth rate does not necessarily mean a segment is the biggest contributor or the largest future opportunity.
#1 Best Overall
| Q2 2026 subsector | Year-on-year growth | Work done |
|---|---|---|
| Special-trade activities | 17.6% | Not stated in the DOSM Q2 2026 summary |
| Non-residential buildings | 13.3% | RM14.0 billion |
| Residential buildings | 8.7% | RM10.9 billion |
| Civil engineering | 2.7% | RM16.7 billion (35.0% of total work done) |
Within civil engineering, utility projects accounted for RM8.1 billion and roads and railways RM6.9 billion in Q2. The larger segment’s slower growth therefore should not be confused with a small contribution to activity.
The annual 2025 picture was also uneven. DOSM reported full-year growth of 22.8% in special-trade activities, 16.3% in non-residential buildings, 13.9% in residential buildings and 5.9% in civil engineering. Those full-year figures provide a consistent basis for comparing 2025 subsector growth. DOSM’s 2025 construction statistics report the annual result.
Where construction work is concentrated
Four areas accounted for 65.8% of Q2 2026 work done, according to DOSM. Selangor led, followed by Johor, the Federal Territories and Sarawak.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallCrashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minute| Area | Q2 2026 work done | Share of total |
|---|---|---|
| Selangor | RM12.2 billion | 25.5% |
| Johor | RM9.4 billion | 19.6% |
| Federal Territories | RM5.2 billion | 10.8% |
| Sarawak | RM4.7 billion | 9.9% |
This concentration describes where measured activity occurred in that quarter; it does not by itself establish where future project awards or investment will be greatest.
Private-sector activity is an important part of the current expansion
DOSM’s Q1 2026 ownership breakdown shows that private-sector work done was RM30.5 billion, or 65.6% of the total, and grew 13.2% year on year. Public-sector work was RM16.0 billion (34.4%), with growth of 0.5%. The private-sector increase was propelled by special trades and non-residential buildings. These are Q1 figures; DOSM’s Q2 summary does not provide a comparable public/private split. DOSM’s Q1 2026 construction release contains the ownership data.
What the 2026 forecast does—and does not—tell us about 2027
Bank Negara Malaysia (BNM) projected construction-sector growth of 9.1% for 2026 in its Economic and Monetary Review 2025. That is a forecast for 2026, not a measured result and not a forecast for 2027. BNM’s outlook linked civil engineering to government development expenditure and essential infrastructure upgrades; non-residential work to industrial-space demand, including a steady data-centre pipeline; residential activity to affordable housing launches; and special trades to early-stage and finishing work across those subsectors.
The figures available for 2025 and the first half of 2026 support the view that construction activity remained in growth territory, though at a slower pace than 2025’s annual rate. They do not establish a numerical 2027 growth forecast. A 2027 outlook should therefore be read through its policy and execution signals, rather than presented as a quantified official projection.
Why execution is central to the 2027 outlook
RMK13 covers 2026–2030 and places emphasis on improving project planning and implementation efficiency. It calls for BIM to be mandatory for projects above RM10 million and for IBS use to expand, particularly in public housing. These are policy directions intended to support better delivery; they are not evidence that adoption is complete or that productivity has already improved. The Ministry of Economy’s RMK13 materials set out those directions.
Best Value
For the sector, the practical test is whether better planning and more industrialised building methods translate into projects that are coordinated and delivered efficiently. The policy signals put implementation quality in focus, but do not quantify construction spending or activity growth in 2027.
Budget 2027 was still pending at the latest available date
The Ministry of Finance’s Pre-Budget Statement, dated 18 August 2026, described Budget 2027 as the fifth MADANI budget and the second under RMK13. It outlined priorities and consultation but did not provide a construction-sector growth forecast or announced sector allocations. At the time of the statement, Budget 2027 was scheduled to be presented on 9 October 2026. The Ministry of Finance statement should not be treated as a record of allocations already announced.
How to read the outlook as a contractor or project stakeholder
- Separate activity from pipeline: work-done data tracks reported construction activity, not future contract awards or the total value of projects in planning.
- Compare both growth and scale: special trades had the fastest Q2 growth, while civil engineering remained the largest subsector by work value.
- Watch project ownership carefully: the available public/private split is for Q1 2026, not Q2.
- Treat forecasts as forecasts: BNM’s 9.1% figure applies to 2026, while DOSM’s first-half figures measure activity already recorded.
- Track implementation, not only policy announcements: BIM and IBS are intended to improve planning or construction methods, but the cited policy does not report achieved productivity gains.
For contractors, suppliers and project owners, the evidence points to continued activity and a policy push toward more effective delivery. It does not settle how fast the sector will grow in 2027; that will depend on actual project execution and subsequent official data.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
