KUALA LUMPUR: The local construction sector's civil engineering segment, particularly under the public corporations, is expected to continue growing strongly.
MIDF Research said this is amid key infrastructure projects such as Penang light rail transit and the East Coast Rail Link, and potential projects like high speed rail and Mass Rapid Transit Line 3.
The firm remains optimistic on the construction sector in 2024, underpinned by the more than RM90 billion development expenditure and private sector projects.
Malaysia's construction sector, measured in the value of work done, increased by 14.2 per cent year-on-year (YoY) in the first quarter of calendar year 2024 (1QCY24), the highest in five quarters.
MIDF Research noted that the value of construction works had risen 7.7 per cent quarter-on-quarter.
By type of work, civil engineering output which accounted for over 40 per cent of total output jumped by 24.7 per cent YoY, seven-consecutive quarters of double-digit expansion and the fastest since 2QCY21.
Residential works expanded by 11.5 per cent YoY, the steepest in six-quarter while non-residential construction rebounded by 3.8 per cent YoY after two-straight quarters recorded contractions.
Output for special trade activities increased by 11.8 per cent YoY compared to 0.3 per cent increase YoY in 4QCY23.
By project owner, the private sector which covers almost 60 per cent of total construction work expanded by 10.1 per cent YoY, the highest in three-quarter.
Government projects increased by five per cent YoY, and public corporations output surged by 41 per cent YoY the biggest gain since 2QCY21.
The main driver for public corporations' work was civil engineering which rose by more than 60 per cent YoY.