Malaysia’s construction sector expanded by 8.8% year-on-year in Q2 2026, accelerating from an 8.5% increase in the previous quarter, when the industry recorded its slowest growth since Q4 2023. The stronger outturn was largely driven by faster civil engineering activity (2.7% vs 1.5% in Q1), which remained the sector’s biggest segment, accounting for 35.0% of total output.
Growth in non-residential building construction also picked up (13.3% vs 12.7%), making up 29.3% of overall activity. At the same time, residential building work accelerated further (8.7% vs 6.1%), contributing 22.8% of total output.
By contrast, growth in special trade activities slowed markedly (17.6% vs 24.6%), although this segment still represented 12.9% of total construction activity.
