Government Drives Sustainable Growth in Malaysia’s Construction Sector with Major Projects and Green Initiatives
In a bid to strengthen Malaysia’s construction industry amid rising costs, Prime Minister Datuk Seri Anwar Ibrahim announced new initiatives to bolster the sector, with a focus on sustainability and digital integration. By prioritizing major projects and public-private partnerships, the government is ensuring the industry remains competitive and resilient.
Key Infrastructure Projects to Bolster Industry Resilience
In a speech read by Works Minister Datuk Seri Alexander Nanta Linggi at the International Construction Week (ICW) and BuildXpo 2024, Anwar outlined several high-impact infrastructure projects:
- Sarawak-Sabah Link Road Phase 2
- Pan-Borneo Highway upgrades
- Data centre developments in Johor
These projects are designed to keep the construction sector robust, creating a foundation for sustainable growth amid expected tender price increases.
“These initiatives ensure that the sector stays resilient amid rising costs,” Anwar said.
Digital and Sustainable Practices at the Forefront
Malaysia’s construction industry is evolving with digital advancements like big data and artificial intelligence, driving demand for data centre developments. The country now ranks highly in the global data centre cost index, ahead of cities like Oslo, Berlin, and Sydney, attracting major players like Microsoft, Amazon Web Services, and Google.
“The integration of green technologies and smart energy management in data centre construction aligns with our commitment to the Sustainable Development Goals (SDGs) and a low-carbon economy by 2050,” he noted.
Pioneering Green Construction for a Sustainable Future
To support sustainable development, the government plans substantial investments in green building practices and low-carbon infrastructure, aligning with the SDGs. By promoting these initiatives, Malaysia aims to be a regional and global leader in sustainable construction.
The Construction Sector’s Strong Recovery and Future Outlook
Despite the Covid-19 pandemic‘s disruptions, the construction sector rebounded, showing double-digit growth of 17.3% for three consecutive quarters in 2024. Anwar highlighted that this growth represents the industry’s resilience and the efficacy of recovery measures, including:
- A return to positive growth in 2022 (5.0%) and 2023 (6.1%)
- Double-digit growth in 2024, the highest since 2014
Anwar emphasized that the construction boom will lead to job creation, boost investments, and solidify Malaysia’s position as a regional construction powerhouse. He encouraged industry players to continue embracing digitalisation, sustainability, and collaboration, envisioning a future where Malaysia sets new global standards in construction excellence.
“Together, we can ensure that Malaysia not only remains a regional leader but emerges as a global powerhouse in construction,” Anwar said.
