KUALA LUMPUR: The construction sector is expected to continue its positive momentum in the second half of 2024, with projected double-digit growth of 13.7 per cent following a significant growth of 14.6 per cent in the first half.
The acceleration of public infrastructure projects towards the final year of the 12th Malaysia Plan 2021-2025 will further support the civil engineering subsector.
In addition, the construction of data centres mainly in Johor and Selangor as well as industrial buildings is anticipated to further strengthen the non-residential buildings subsector.
The residential buildings subsector is projected to grow, supported by increasing demand for affordable houses in line with the government's initiatives under 2024 Budget.
This encompases, among others, the implementation of 36 Program Perumahan Rakyat, including 15 existing projects, which will benefit 5,100 residents, 14 Program Rumah Mesra Rakyat to construct 3,500 housing units and new housing Madani projects.
Furthermore, private sector led projects continue to provide additional support to the residential buildings subsector.
Overall, the sector is anticipated to grow further by 14.1 per cent in 2024.
Meanwhile, the mining sector is projected to grow by 2.2 percent, driven mainly by strong performance in the natural gas subsector.
Steady output from existing fields, coupled with commencement of production from new gas blocks in the Kasawari, Jerun and Gansar gas developments as well as the Kayu Manis South East gas development, are expected to contribute significantly to the growth of the subsector.
Furthermore, higher demand from major trading partners, in particular Japan and China, as well as increased domestic consumption, primarily from industrial and power sector players, are anticipated to contribute positively to the growth.
In contrast, the crude oil and condensate subsector is expected to decline due to reduction in crude oil production, particularly in Sabah.
In terms of prices, the Brent crude oil price is expected to remain stable between US$80 and US$85 per barrel, amid uncertainties in the global environment and the Organization of Petroleum Exporting Countries' (OPEC) decision on the production levels.