KUALA LUMPUR: Malaysia’s construction sector grew 9.0 per cent year-on-year to RM49.5 billion in the third quarter of 2026, driven mainly by stronger activity in non-residential buildings and special trade activities.
The Statistics Department said the growth was slightly higher than the 8.8 per cent recorded in the preceding quarter.
On a quarter-on-quarter basis, the value of construction work done increased by 3.6 per cent, compared with 2.7 per cent in the second quarter.
“The performance was mainly driven by the non-residential buildings sub-sector, which grew by 21.1 per cent.
“The special trade activities sub-sector also sustained double-digit expansion at 13.2 per cent, while the residential buildings and civil engineering sub-sectors grew at a more moderate pace of 2.7 per cent and 2.2 per cent, respectively,” the department said.
Civil engineering remained the largest contributor to construction activity, accounting for RM16.9 billion or 34.1 per cent of the total value of work done.
This was supported by utility projects worth RM9.4 billion and road and railway construction valued at RM5.6 billion.
The non-residential buildings sub-sector contributed RM15.7 billion, with its share rising to 31.6 per cent from 28.5 per cent in the corresponding quarter last year.
Meanwhile, residential buildings recorded RM10.7 billion, accounting for 21.7 per cent of total construction work, while special trade activities contributed RM6.2 billion or 12.6 per cent.
It said the private sector remained the main driver of construction growth, contributing RM33.3 billion or 67.2 per cent of the total value of work done.
Private sector construction activity expanded by 12.7 per cent, compared with 11.4 per cent in the preceding quarter, supported by growth in non-residential buildings and special trade activities.
By state, Selangor remained the largest contributor with RM11.2 billion or 22.7 per cent of total construction activity, followed by Johor at RM10.1 billion or 20.5 per cent.
Sarawak contributed RM5.7 billion or 11.4 per cent, while the Federal Territories of Kuala Lumpur, Putrajaya and Labuan accounted for RM5.0 billion or 10.1 per cent.
Collectively, these four locations accounted for 64.7 per cent of total construction work done during the quarter.
For the first nine months of 2026, the construction sector recorded a total value of work done of RM143.9 billion, an increase of 8.8 per cent from the corresponding period last year.
However, the growth was slower than the 13.3 per cent registered in the first nine months of 2025.