KUALA LUMPUR: The construction sector recorded a 17.3 per cent growth in the third quarter of the year.
Prime Minister Datuk Seri Anwar Ibrahim, in a speech read out by Works Minister Datuk Seri Alexander Nanta Linggi, said this marked the first double-digit growth the country had achieved since 2014, reflecting the industry's capacity to overcome adversity and emerge stronger.
"Undoubtedly, this remarkable growth has far-reaching benefits for Malaysia's economy," Anwar said in the opening ceremony of the International Construction Week (ICW) and Malaysia International Building and Construction Industry Showcase (BuildXpo) 2024 here today.
Anwar, who is also finance minister, said the surge in construction projects would lead to job creation, bolster domestic and foreign investment, and drive infrastructure development across the country.
He said the industry had faced significant challenges during the Covid-19 pandemic from stalled projects and disrupted supply chains. As a result, the sector contracted by 19.3 per cent in 2020 and 5.1 per cent in 2021.
"However, through determination of all industry players and strategic recovery efforts, we witnessed positive growth of 5.0 per cent in 2022 and 6.1 per cent in 2023."
He said the construction industry was growing in tandem with the evolution of digital technology, including big data and artificial intelligence which exponentially increased demand for data centres.
"Our nation's rise in the Data Centre Cost Index – surpassing Oslo, Berlin and Sydney – demonstrates our growing leadership in this sector.
"Industry giants like Microsoft, Amazon Web Services (AWS) and Google have chosen Malaysia for their data centre expansions due to our strategic location, robust infrastructure and supportive government policies."
Anwar said the symbiotic relationship between construction technology and data centres would drive Malaysia's leadership in both industries.
As the sector's growth accelerates, the demand for energy and water also rises, with data centres requiring vast amounts of both to function efficiently.
"Therefore, integrating green technologies and smart energy management into data centre construction will be critical in ensuring growth aligns with Malaysia's commitment to the Sustainable Development Goals (SDGs) and our transition towards a low-carbon economy by 2050."
He said the government was also committed to addressing the shortage of skilled labour through robust training programmes and upskilling initiatives.
Up to last month, more than 1.12 million workers and stakeholders had registered with the Construction Industry Development Board (CIDB), a testament to the government's dedication to professionalising the workforce.
He said the government was expanding technical and vocational education and training (TVET) education to ensure that the workforce was equipped to handle advanced technologies, such as artificial intelligence and robotics.
Meanwhile, the Madani government was taking proactive steps to ensure the country's construction industry remained competitive and sustainable, following the anticipated rise in tender prices.
"By enhancing public-private partnerships (PPPs), we are driving major infrastructure projects, such as the Sarawak-Sabah Link Road Phase 2, the Pan-Borneo Highway upgrades, and data centre developments in Johor.
"The government is committed to continue investing heavily in green building practices and low-carbon infrastructure development, further aligning with our commitment to the SDGs," Anwar said.