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MIDF sees Malaysia’s construction activity slowing in 2Q2023

KUALA LUMPUR (Aug 10): MIDF Research said that given the moderate growth in the construction and services sectors as well as weaker industrial product index, this will translate into more moderate growth in the second quarter of 2023 (2Q2023).
In an economic brief on Thursday (Aug 10), the research house said Malaysia’s construction activity in the second quarter of 2023 expanded for the fifth straight quarter since 2Q2022, reporting an increase of 8.1% year-on-year in value of work done to RM32.4 billion, citing data from the Department of Statistics Malaysia.
“Going forward, we foresee the construction industry will continue to report positive growth backed by [a] pick-up in government projects and continued expansion in private sector output,” it said.
MIDF said Malaysia’s construction output based on the value of work done recorded the fifth straight quarter of growth in the 2Q2023, albeit moderating to 8.1% year-on-year (y-o-y), from 9.4% y-o-y in 1Q2023.
It said that by type, the growth was mainly attributable to the increase in work done in the residential sector, which rebounded and expanded at 6.9% y-o-y (1Q2023: -2.2% y-o-y), and faster rise in special trade activities (2Q2023: 9.8% y-o-y; 1Q2023: 9.0% y-o-y).
However, it said civil engineering, which accounted for the largest proportion of the sector’s output at 37.4%, grew slower at 10.4% y-o-y (1Q2023: 17.2% y-o-y).
“The growth was the slowest in four quarters mainly because of the higher base because the value of work done was more or less the same, hovering around RM12.1 billion in the three quarters to 2Q2023,” it said.
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Source: EdgeProp.my

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