Construction sector grows by over 20% to RM39bil in Q2

Construction sector grows by over 20% to RM39bil in Q2

The civil engineering and residential buildings sub-sectors were the main contributors to the sector's growth.

CONSTRUCTION
The private sector has remained the primary driver for the construction sector’s growth in Q2 2024.
PETALING JAYA:
The construction sector recorded a 20.2% surge in work done value to RM38.9 billion in the second quarter of 2024 (Q2 2024), spearheaded by the buoyant performance of the civil engineering and residential buildings sub-sectors.

The statistics department said the civil engineering and residential buildings sub-sectors posted substantial double-digit growths of 25.2% and 19.7%, respectively.

“Additionally, the growth of this sector was further bolstered by a robust 44.9% (Q1 2024: 11.8%) expansion in the special trade activities sub-sector.

“The sub-sector of non-residential buildings also gained momentum, expanding by 7.2%,” said Chief Statistician Uzir Mahidin in a statement on the latest quarterly construction statistics report.

The 20.2% growth in work done value marked an acceleration from the 14.2% year-on-year (y-o-y) growth recorded in the preceding quarter.

Uzir said of the RM38.9 billion work done value recorded in Q2 2024, a total of RM15.2 billion or 39% was attributed to the civil engineering sub-sector, primarily in the construction of roads and railways (RM7.5 billion) and utility projects (RM5.6 billion).

“The value of work done for non-residential buildings and residential buildings accounted for RM10.6 billion (27.4%) and RM8.8 billion (22.6%), respectively.

“Additionally, the special trade activities accounted for RM4.3 billion (11%), largely in the electrical installation as well as plumbing, heat and air-conditioning installation activities, both at RM1.1 billion,” he added.

According to the statement, the private sector remained the primary driver for the construction sector’s growth, contributing RM23.6 billion or 60.8% of the total value.

It said the private sector sustained its double-digit momentum with a 15.8% growth (Q1 2024: 10.1%), propelled by strong performance in the residential buildings (19.9%) and special trade activities (46%) sub-sectors.

Likewise, the value of work done owned by the public sector posted a strong increase of 27.8% (Q1 2024: 20.6%) to RM15.3 billion, supported by the civil engineering sub-sector with a 23.8% growth.

On the performance of the construction sector by state, Uzir said nearly 59% of the work done value was concentrated in Selangor, Johor, Sarawak and the federal territories (Kuala Lumpur, Putrajaya and Labuan).

For the first half of 2024 (H1 2024), the sector posted a value of RM75.7 billion, up 17.2% y-o-y (H1 2023: 8.7%).

Expansion was seen across all sub-sectors, led by civil engineering (25%) and residential buildings (15.7%).

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