Malaysian Construction Industry Growth Rate

For eight years from 1989 1996 year the construction industry has recorded double digit growth rates.

Malaysian construction industry growth rate. The construction sector growth rate is expected to dip in 2018 before recovering slightly in 2019 according to the economic report 2019 by the ministry of finance mof. The industry grows with the rate of 4 74. Gdp from construction in malaysia averaged 12129 98 myr million from 2010 until 2020 reaching an all time high of 17204 myr million in the third quarter of 2018 and a record low of 6464 myr million in the first quarter of 2010. Malaysia s construction sector falls steeply 44 9 per cent in the second quarter of 2020.

The development of the construction industry is directly proportional to the national economy. In the long term the malaysia gdp annual growth rate is projected to trend around 6 50 percent in 2021 and 4 50 percent in 2022 according to our econometric models. All sectors posted positive growth with the exception of mining quarrying. In momentum point of view agriculture and mining quarrying posted a better growth while other sectors registered slower performance than the previous year.

The slowdown is due to. Gdp from construction in malaysia decreased to 8916 myr million in the second quarter of 2020 from 15350 myr million in the first quarter of 2020. The results exhibit that there is a strong correlation between construction sector and economic growth of malaysia. Looking forward we estimate gdp annual growth rate in malaysia to stand at 4 50 in 12 months time.

According to the latest figures released by the government nominal growth of the malaysian construction sector hit 1 1 in 2019 but in real terms a flatline growth rate of 0 04 y o y was reported reflecting tepid construction activity throughout the year which we had called for in our previous analysis. Malaysian construction industry sector covers the aspects of the planning. The construction sector is expected to improve in 2020 with growth rate of 3 7 year on year y o y on account of acceleration and revival of mega projects as well as the building of affordable homes according to the ministry of finance s mof economic report 2019 20 titled microeconomic outlook. In 2019 the malaysia economy grew at a moderate rate of 4 3 per cent as compared to 4 8 per cent in the previous year.

The construction sector has. Slow but steady the government estimated the sector growth to drop from 6 7 per cent in 2017 to 4 5 per cent in 2018.