KUALA LUMPUR: The construction sector is projected to turn around with a growth of 11.5 per cent in 2022 on account of better performance in all subsectors, said the Ministry of Finance (MoF).
In its Economic Outlook 2022 report released today, the ministry said the civil engineering subsector is anticipated to regain its positive growth, following the continuation and acceleration of major infrastructure projects, such as Light Rail Transit Line 3 (LRT3), Mass Rail Transit Line 3 (MRT3), Johor-Singapore Rapid Transit System (RTS), as well as the Pan Borneo highways in Sabah and Sarawak.
"Utility projects, including Baleh Hydroelectric, Sarawak Water Supply Grid Programme and Large-Scale Solar 3 plant are also projected to spur growth," it said in the report.
Similarly, the residential buildings subsector is expected to expand further in line with the government's measures to address the shortage of affordable houses.
"The measures, among others, are the continuation of the Rent-to-Own scheme and full stamp duty exemptions for first-home buyers as well as People-Friendly Housing scheme and People's Housing Project," it said.
The MoF said the construction sector is expected to record a marginal contraction of 0.8 per cent in 2021 compared with a double-digit decline in 2020.
Meanwhile, the construction sector registered a strong growth of 8.3 per cent in the first half of 2021, supported by improvement in specialised construction activities, non-residential buildings, and residential buildings subsectors.
The ministry said the better performance was also attributed to the low base effect following a significant drop in construction works during the corresponding period last year.
"However, the civil engineering subsector contracted due to the temporary suspension of infrastructure projects following stringent Covid-19 virus containment measures," it said.
In contrast, the sector is forecast to decline by 8.4 per cent in the second half of this year, weighed down by civil engineering, non-residential buildings and residential building subsectors, despite the resumption of construction activities.
Nevertheless, the decline is being cushioned by a rebound in the specialised construction activities subsector. - Bernama