Construction sector records first double-digit growth since 2014, says Anwar

KUALA LUMPUR: The construction sector recorded an impressive 17.3% gross domestic product (GDP) growth as of September end, marking the first double-digit growth since 2014, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Finance Minister, said that the remarkable growth has far-reaching benefits for the economy.

“The surge in construction activity will lead to more job creation, bolster domestic and foreign investment, and drive infrastructure development across the country, propelling Malaysia as the leader in the region’s construction industry,” he said at the opening ceremony of the International Construction Week (IWC) and BuildXpo 2024 here at Mitec Kuala Lumpur on Wednesday (Oct 23).

Anwar’s speech text was read by Works Minister Datuk Seri Alexander Nanta Linggi.

Also present at the event were Deputy Works Minister Datuk Seri Ahmad Maslan, Star Media Group (SMG) group chief executive officer Chan Seng Fatt, SMG chief content officer Datin Paduka Esther Ng and SMG chief business officer Lydia Wang.

Future Cities Summit 2024, which runs from Oct 22 to 23, is being held at Mitec Kuala Lumpur.

The summit is an avenue for urban planners and developers, government officials and sustainability experts to gather and engage in insightful discussions about the development of sustainable and technologically advanced cities in Malaysia.

With the theme “Creating Livable Spaces”, the summit is organised by Star Media Group with strategic partner CIDB Malaysia. Attendees will gain valuable perspectives by experts and policy-makers on many topics, such as, among them, sustainable urban development, the role of emerging technologies, smart infrastructure and the integration of green spaces and biodiversity for a sustainable future.

Anwar said the construction industry was growing in tandem with the evolution of digital technology including big data and artificial intelligence (AI) which exponentially increased demand for data centres.

“Our nation’s rise in the Data Centre Cost Index – surpassing Oslo, Berlin, and Sydney, demonstrates our growing leadership in this sector.

“Industry giants like Microsoft, Amazon Web Services (AWS), and Google have chosen Malaysia for their data centre expansions due to our strategic location, robust infrastructure, and supportive government policies,” said Anwar.

The Prime Minister also noted that with tender prices expected to rise, the Madani government had taken proactive steps to ensure the construction industry remains competitive and sustainable.

“By enhancing public private partnerships (PPPs), we are driving major infrastructure projects, such as the Sarawak-Sabah Link Road

Phase 2, the Pan-Borneo Highway upgrades, and data centre developments in Johor.

“These initiatives ensure that our sector stays resilient amid rising costs.

“The government is also committed to continue investing heavily in green building practices and low-carbon infrastructure development, further aligning with our commitment to the Sustainable Development Goals (SDGs),” he said.