PETALING JAYA: As the Construction Index of Bursa Malaysia rallied to the highest level in four-and-a-half years, the value of work done in Malaysia’s construction sector also surged to RM34.1bil in the fourth quarter of 2023 (4Q23).
The Statistics Department reported yesterday that the value of construction work done rose by 6.8% year-on-year (y-o-y) in 4Q23.
In the latest Quarterly Construction Statistics, the department noted that the work value has remained on a positive trajectory for seven consecutive quarters.
Chief statistician Datuk Seri Mohd Uzir Mahidin said the growth for the quarter under review was reinforced by a stronger expansion in the civil engineering sub-sector, which increased 18%, primarily in the construction of roads and railways (RM7.5bil) and construction of utility projects (RM5.2bil).
He said nearly 60.3% of the work done value in 4Q23 was concentrated in Selangor, Kuala Lumpur, Putrajaya, Labuan, Sarawak and Johor.
“The construction value in Selangor amounted to RM8.6bil, or 25.1%, attributed to civil engineering (RM3.5bil), followed by residential buildings and non-residential buildings with both at RM2.1bil,” he said.
The report said the Federal Territories ranked second with a value of RM4bil, or 11.8%, mainly in non-residential building (RM1.5bil) and residential building (RM1.4bil) activities, while both Sarawak and Johor recorded a work value of RM4bil.
Overall, the value of work for non-residential buildings and residential buildings amounted to RM9.5bil (27.7%) and RM7.1bil (20.9%), respectively.
The residential buildings and special trade activities expanded at a slower pace of 2.3% (3Q23: 7.9%) and 0.3% (3Q23: 16.2%) respectively.
Special trade activities contributed RM3.3bil (9.6%), mainly in electrical installation (RM1.1bil); plumbing, heat and air-conditioning installation (RM0.7bil); and site preparation (RM0.7bil).
Meanwhile, Mohd Uzir said the private sector continued to be the main contributor for the fourth quarter with the value of work done of RM20.3bil or encompassing 59.5% of the overall value in this quarter.
He said, however, the growth moderated to 1.4% as compared to 8.6% recorded in the previous quarter.
“On the other hand, the public sector, with a 40.5% share, or equivalent to RM13.8bil, maintained a steady double-digit growth of 15.9% after registering 10.9% in 3Q23, supported by a substantial 26.6% growth in civil engineering activities,” he said.
The total construction work done in 2023 hit RM132.2bil, which demonstrated a positive momentum at 8.4% after turning around in 2022 with a 8.8% growth.
In 2023, all sub-sectors experienced an upturn, with civil engineering activities making a notable double-digit increase of 15.7%, followed by special trade activities (8.5%).
In the meantime, residential buildings and non-residential buildings posted an increase of 3.7% and 3.1%, respectively.
At market closing, the Bursa Malaysia Construction Index closed at 217 points, a 35.2% increase from a year ago. Currently, the index is at the highest level since August 2019.