Malaysia's construction sector to keep growing

AS the fairly strong momentum of project awards has been sustained in the last few years, the construction sector remained the fastest-growing economic sector in 2015. The sector’s GDP growth clocked in at 8.2% year-on-year (y-o-y), marginally lower than RAM’s forecast of 8.4%. Notably, the 10th Malaysia Plan drew to a close in 2015, with the construction sector charting a solid compound annual growth rate (CAGR) of 11% in the five-year period.

Moving forward, the RM260bil of development expenditure under the 11th Malaysia Plan (2016-2020) represents a 16% increase from the previous plan, which bodes well for the growth trajectory of the construction industry.