Malaysia Q3 Construction Output Growth Accelerates

Malaysia’s construction activity grew 9.0% year-on-year in Q3 2026, quickening from an 8.8% expansion in the previous quarter and marking its strongest growth since Q4 2025. Non-residential building activity strengthened significantly (21.1% vs. 13.3% in Q2), representing 31.6% of total output. In contrast, residential construction growth slowed sharply (2.7% vs. 8.7%), contributing 21.7% of overall activity. Civil engineering, the sector’s largest contributor at 34.1%, also recorded slower growth (2.2% vs. 2.7%). Meanwhile, special trade activities expanded at a slower pace (13.2% vs. 17.6%), accounting for the remaining 12.6% of construction output.

Malaysia’s construction activity grew 8.8% year-on-year in Q2 2026, quickening from an 8.5% increase in the previous quarter, which marked the sector’s slowest growth since Q4 2023. The solid result was mainly driven by faster civil engineering activity (2.7% vs 1.5% in Q1), which remained the largest contributor to the sector, accounting for 35.0% of total output. Growth in non-residential buildings also strengthened (13.3% vs 12.7%), representing 29.3% of overall activity. Meanwhile, residential building activity accelerated further (8.7% vs 6.1%), contributing 22.8% of total output. In contrast, special trade activities moderated sharply (17.6% vs 24.6%), although they still accounted for 12.9% of total construction activity.

Malaysia’s construction activity rose 8.5% year-on-year in Q1 2026, easing from a 10.3% increase in the previous quarter and marking the slowest growth since Q4 2023. The moderation was mainly due to softer civil engineering activity, which expanded 1.5% after a 3.6% rise in Q4, while remaining the largest contributor to the sector with a 34.2% share. Growth in non-residential buildings also slowed sharply (12.7% vs 18.6%), accounting for 29.9% of total output. Meanwhile, residential building activity accelerated (6.1% vs 5.9%), representing 22.5% of the total. Special trade activities continued to post strong growth (24.6% vs 21.1%), with a 13.3% share of overall activity. 2025, In 2025, construction output increased 12.5%, slowing from a sharp 20.2% increase in the prior year.