Nanta Linggi: Construction industry rebounded in 4Q2024 with project values doubling to RM42b from two years ago

• “This rebound bodes well as it aligns with the 13th Malaysia Plan (13MP) and the National Construction Policy 2030 targets… The 13th Malaysia Plan and the National Construction Policy 2030 sets decisive targets to raise worker productivity, reduce foreign-worker dependence to 15%, [as well as] push for low-carbon infrastructure and smart construction.”

KUALA LUMPUR (Aug 28): Malaysia’s construction industry has staged a strong rebound, with project values in 4Q2024 having doubled to RM42.05 billion compared with two years ago, said Works Minister Datuk Seri Alexander Nanta Linggi.

In his keynote address at the official launch of Master Builders Association Malaysia’s (MBAM) OneBuild 2025 and OneWare 2025 exhibitions at the Kuala Lumpur Convention Centre on Thursday, Nanta said after five years of post-pandemic recovery, the construction industry has regained momentum, with project values having risen from RM21.79 billion in 4Q2022 to RM42.05 billion in 4Q2024.

“This rebound bodes well as it aligns with the 13th Malaysia Plan (13MP) and the National Construction Policy 2030 targets… The 13th Malaysia Plan and the National Construction Policy 2030 sets decisive targets to raise worker productivity, reduce foreign-worker dependence to 15%, [as well as] push for low-carbon infrastructure and smart construction,” he said said. 

Nanta added that the construction sector has contributed 4.5% to the country’s gross domestic product (GDP) in 2024. The ministry also maintained its projection of the sector to contribute 4.5%-5% to the GDP under 13MP.

The minister also highlighted the current global trade developments in light of the US tariff, and their impact on Malaysia’s construction industry.

“Even if Malaysia is not the primary target [of the tariff hike], higher global commodity prices and supply-chain protectionism feed into domestic construction costs and disrupt the supply of steel and aluminium. This increases the cost base for Malaysian projects that depend on imports,” he said.

Nonetheless, he believes that regional agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which Malaysia is part of, could help cushion this pressure, as it provides wider market access and regulatory convergence, benefitting construction materials and engineering components providers, and related services.

“CPTPP can partially offset this by allowing preferential sourcing from partners not subject to reciprocal tariffs, or by making use of lower tariffs on non-US imports.”

Meanwhile, MBAM president Oliver Wee said that the exhibition, which runs from Aug 27 to 29, serves as a platform for the construction industry to explore new opportunities.

“This exhibition serves as a catalyst, sparking new ideas and partnerships that will drive a future where construction not only meets the demands of today, but also addresses the challenges of tomorrow, including climate change, urbanisation, and resource management,” Wee noted. 

He highlighted that the exhibitions serve as a platform that allows the industry’s best minds to come together to set the stage for the next wave of sustainable growth.

“With the rise of smart cities and intelligent infrastructure, the technologies we explore today will be the foundation for tomorrow’s built environment. From smart materials and energy-efficient buildings to digital twin technology and robotic construction methods, these innovations will define the spaces we live and work in for generations to come,” he shared. 

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.