Public projects to bolster construction growth
Data centre (DC) job flows are expected to pick up in the second half of financial year 2026, with finalisation of up to six large-scale DC facilities worth RM1bil to RM2bil each, says MBSB Research.
DC boom draws more contractors into race
Competition among contractors for Malaysia's lucrative data centre (DC) construction projects is putting some pressure on margins, but the strong project pipeline means established players should continue to maintain pricing power.
Improved earnings likely for building sector in 2H
The construction sector is set for stronger earnings and order book momentum in the second half of the year as major infrastructure projects gain traction and data centre investments continue to expand. Contractors with sizeable backlogs and strong execution capabilities are likely to remain best placed as progress billings accelerate and new jobs replenish order books.
IKN earmarks US$298mil for judicial buildings
The Nusantara Capital City (IKN) Authority plans to allocate 5.3 trillion rupiah (US$298mil) of its proposed 6.7 trillion rupiah budget for 2027 to continue the construction of legislative and judicial facilities in Indonesia's future capital, IKN Authority head Basuki Hadimuljono says.
Construction work value up 8.8% in 2Q26
The value of work done in the construction sector rose by 8.8% year-on-year to RM47.8bil in the second quarter of financial year 2026 (2Q26), maintaining a steady momentum following an 8.5% increase in 1Q26, according to the Statistics Department (DOSM).
Large contractors to lead data centre boom
Large contractors are expected to continue commanding a lead in securing data centre (DC) projects in the second half of financial year 2026 (2H26) while the pipeline of jobs for public infrastructure is re-emerging as projects under the 13th Malaysia Plan (13MP) gain traction, says MBSB Research.
DC jobs, Penang LRT boost construction outlook
Construction award momentum is seen to be supported in the second half of 2026 (2H26) by further data centre (DC)-related jobs, the materialisation of tenders for the Penang Light Rail Transit (LRT) Mutiara Line and a recovery in residential construction awards.
Optimistic outlook for building sector in 2H
The construction sector is expected to remain resilient through the second half of financial year 2026 (2H26), underpinned by a fresh wave of data centre (DC) investments even as delays to major public infrastructure projects continue to weigh on contract awards.
Builders chase RM40bil data centre boom
Malaysia's red-hot data centre space could unlock about RM40bil worth of contracts going forward, estimates Maybank Investment Bank Research (Maybank IB).
