Construction in Malaysia, Key Trends and Opportunities to 2020

Published: Jan, 2017 | Pages: 86 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)

Synopsis

Timetric's Construction in Malaysia, Key Trends and Opportunities to 2020 report provides detailed market analysis, information and insights into the Malaysian construction industry, including:

• The Malaysian construction industry's growth prospects by market, project type and type of construction activity

• Analysis of equipment, material and service costs across each project type within Malaysia

• Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Malaysian construction industry

• Profiles of the leading operators in the Malaysian construction industry.

• Data highlights of the largest construction projects in Malaysia.

Summary

In real terms, the Malaysian construction industry registered an average annual growth rate of 10.7% during the review period (2011-2015). This growth was supported by the 10th Malaysia Plan 2011-2015, under which the government invested heavily in infrastructure, industrial parks and residential buildings. In 2010, the government relaxed policies for public-private partnerships (PPPs) with an aim to develop the country's infrastructure. Consequently, total private investment in infrastructure projects increased from 52.0% of the total infrastructure spending in 2010 to 64.0% in 2014.

According to the Department of Statistics Malaysia (DOSM), the total construction value of civil engineering increased by 11.9% from MYR32.7 billion (US$10.0 billion) in 2014 to MYR36.6 billion (US$9.4 billion) in 2015. This was preceded by annual growth rates of 1.2%, 14.5%, 54.1% and 16.3% in 2014, 2013, 2012 and 2011 respectively.

Over the forecast period (2016-2020), the Malaysian construction industry is expected to continue to expand in real terms, supported by the government's plan to improve the country's transport network and tourism infrastructure, and increase the volume of renewable projects.

Moreover, government efforts to address the country's housing shortage will help the industry to grow over the next five years. However, low oil prices are expected to impact the government's capability to invest in major infrastructure projects. According to the Malaysian government, every US$1.0 drop in crude oil prices reduces the country's total annual revenue by MYR300.0 million (US$76.8 million).

The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 6.98% over the forecast period, down from 12.11% during the review period.

Scope

This report provides a comprehensive analysis of the construction industry in Malaysia. It provides:

• Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in Malaysia using construction output and value-add methods

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

• Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

• Analysis of key construction industry issues, including regulation, cost management, funding and pricing

• Detailed profiles of the leading construction companies in Malaysia

Key Highlights

•With an aim to become a developed nation by 2020, the government is focusing on improving transport infrastructure. Under the Highway National Development Plan (HNDP), the government aims to upgrade roads in urban areas and develop alternative routes in busy areas. In 2015, the government awarded a contract worth MYR4.2 billion (US$1.1 billion) for the construction of the Sungai Besi-Ulu Kelang Elevated Expressway, Damansara-Shah Alam Highway and West Coast Expressway (WCE).

•The infrastructure construction market is expected to benefit from the government's plan to expand the airport network under the Runway to Success 2020 (RtS2020) plan. Under this plan, the Malaysia Airports Holdings Bhd (MAHB), the state owned airport operator, plans to invest MYR7.0 billion (US$1.8 billion) to develop airport cities by 2020.

•The government's various housing programs, such as People's Housing Program (PPR), First House Deposit Financing, Program Rumah Mesra Rakyat, 1Malaysia Civil Servants Housing project (PPA1M) and Syarikat Perumahan Negara Berhad are expected to drive forecast-period growth. In the 2016 budget, under the PPA1M, PPR and Program Rumah Mesra Rakyat, the government announced plans to build 300,000 low-cost housing units across the country.

•The government's focus on providing affordable houses via social housing programs is expected to drive the growth of the residential construction market over the forecast period. In the 2016 budget, the government announced plans to build 175,000 affordable housing units under the 1Malaysia Housing Program (PR1MA), with an investment of MYR1.6 billion (US$389.0 million) by 2020.

•The government aims to reduce greenhouse gas emission by 40.0% by 2020. Consequently, it plans to increase the share of renewable energy in the country's total energy mix from 2.0% in 2015 to 11.0% by 2020. For this, the government plans to build a 1,250MW solar power plant and a 1,250MW biomass plant by 2020 under the PPP model.

Reasons To Buy

• Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.

• Assess market growth potential at a micro-level with over 600 time-series data forecasts.

• Understand the latest industry and market trends.

• Formulate and validate strategy using Timetric's critical and actionable insight.

• Assess business risks, including cost, regulatory and competitive pressures.

• Evaluate competitive risk and success factors.

 Table of Contents

1 Executive Summary

2 Industry Outlook
2.1 Commercial Construction
2.2 Industrial Construction
2.3 Infrastructure Construction
2.4 Energy and Utilities Construction
2.5 Institutional Construction
2.6 Residential Construction

3 Key Issues and Developments

4 Market Data Analysis
4.1 Construction Output and Value Add
4.1.1 Construction output by project type
4.1.2 Construction output by cost type
4.1.3 Construction output by activity type
4.1.4 Construction value add by project type
4.2 Commercial Construction
4.2.1 Commercial construction output by project type
4.2.2 Commercial construction output by cost type
4.2.3 Commercial construction output by activity type
4.2.4 Commercial construction value add by project type
4.3 Industrial Construction
4.3.1 Industrial construction output by project type
4.3.2 Industrial construction output by cost type
4.3.3 Industrial construction output by activity type
4.3.4 Industrial construction value add by project type
4.4 Infrastructure Construction
4.4.1 Infrastructure construction output by project type
4.4.2 Infrastructure construction output by cost type
4.4.3 Infrastructure construction output by activity type
4.4.4 Infrastructure construction value add by project type
4.5 Energy and Utilities Construction
4.5.1 Energy and utilities construction output by project type
4.5.2 Energy and utilities construction output by cost type
4.5.3 Energy and utilities construction output by activity type
4.5.4 Energy and utilities construction value add by project type
4.6 Institutional Construction
4.6.1 Institutional construction output by project type
4.6.2 Institutional construction output by cost type
4.6.3 Institutional construction output by activity type
4.6.4 Institutional construction value add by project type
4.7 Residential Construction
4.7.1 Residential construction output by project type
4.7.2 Residential construction output by cost type
4.7.3 Residential construction output by activity type
4.7.4 Residential construction value add by project type

5 Company Profile: IJM Corporation Berhad
5.1 IJM Corporation Berhad - Company Overview
5.2 IJM Corporation Berhad - Business Description
5.3 IJM Corporation Berhad - Main Products and Services
5.4 IJM Corporation Berhad - History
5.5 IJM Corporation Berhad - Company Information
5.5.1 IJM Corporation Berhad - key competitors
5.5.2 IJM Corporation Berhad - key employees

6 Company Profile: S P Setia Berhad
6.1 S P Setia Berhad - Company Overview
6.2 S P Setia Berhad - Business Description
6.3 S P Setia Berhad - Main Products and Services
6.4 S P Setia Berhad - History
6.5 S P Setia Berhad - Company Information
6.5.1 S P Setia Berhad - key competitors
6.5.2 S P Setia Berhad - key employees

7 Company Profile: Gamuda Berhad
7.1 Gamuda Berhad - Company Overview
7.2 Gamuda Berhad - Business Description
7.3 Gamuda Berhad - Main Services
7.4 Gamuda Berhad - History
7.5 Gamuda Berhad - Company Information
7.5.1 Gamuda Berhad - key competitors
7.5.2 Gamuda Berhad - key employees

8 Company Profile: IOI Properties Group Berhad
8.1 IOI Properties Group Berhad - Company Overview
8.2 IOI Properties Group Berhad - Business Description
8.3 IOI Properties Group Berhad - Main Services
8.4 IOI Properties Group Berhad - History
8.5 IOI Properties Group Berhad - Company Information
8.5.1 IOI Properties Group Berhad - key competitors
8.5.2 IOI Properties Group Berhad - key employees

9 Company Profile: Muhibbah Engineering (M) Bhd
9.1 Muhibbah Engineering (M) Bhd - Company Overview
9.2 Muhibbah Engineering (M) Bhd - Business Description
9.3 Muhibbah Engineering (M) Bhd - Main Services
9.4 Muhibbah Engineering (M) Bhd - History
9.5 Muhibbah Engineering (M) Bhd - Company Information
9.5.1 Muhibbah Engineering (M) Bhd - key competitors
9.5.2 Muhibbah Engineering (M) Bhd - key employees

10 Appendix
10.1 What is this Report About?
10.2 Definitions
10.3 Methodology
10.4 Contact Timetric
10.5 About Timetric
10.6 Timetric's Services
10.7 Disclaimer

List of Tables

Table 1: Malaysian Construction Output by Project Type (MYR Million), 2011-2015
Table 2: Malaysian Construction Output by Project Type (MYR Million), 2015-2020
Table 3: Malaysian Construction Output by Cost Type (MYR Million), 2011-2015
Table 4: Malaysian Construction Output by Cost Type (MYR Million), 2015-2020
Table 5: Malaysian Construction Output by Activity Type (MYR Million), 2011-2015
Table 6: Malaysian Construction Output by Activity Type (MYR Million), 2015-2020
Table 7: Malaysian Construction Value Add by Project Type (MYR Million), 2011-2015
Table 8: Malaysian Construction Value Add by Project Type (MYR Million), 2015-2020
Table 9: Malaysian Commercial Construction Output by Project Type (MYR Million), 2011-2015
Table 10: Malaysian Commercial Construction Output by Project Type (MYR Million), 2015-   2020
Table 11: Malaysian Commercial Construction Output by Cost Type (MYR Million), 2011-   2015
Table 12: Malaysian Commercial Construction Output by Cost Type (MYR Million), 2015-2020
Table 13: Malaysian Commercial Construction Output by Activity Type (MYR Million), 2011-   2015
Table 14: Malaysian Commercial Construction Output by Activity Type (MYR Million), 2015-2020
Table 15: Malaysian Commercial Construction Value Add by Project Type (MYR Million),    2011-2015
Table 16: Malaysian Commercial Construction Value Add by Project Type (MYR Million), 2015-2020
Table 17: Malaysian Industrial Construction Output by Project Type (MYR Million), 2011-   2015
Table 18: Malaysian Industrial Construction Output by Project Type (MYR Million), 2015-   2020
Table 19: Malaysian Industrial Construction Output by Cost Type (MYR Million), 2011-2015
Table 20: Malaysian Industrial Construction Output by Cost Type (MYR Million), 2015-2020
Table 21: Malaysian Industrial Construction Output by Activity Type (MYR Million), 2011-   2015
Table 22: Malaysian Industrial Construction Output by Activity Type (MYR Million), 2015-   2020
Table 23: Malaysian Industrial Construction Value Add by Project Type (MYR Million), 2011-   2015
Table 24: Malaysian Industrial Construction Value Add by Project Type (MYR Million), 2015-   2020
Table 25: Malaysian Infrastructure Construction Output by Project Type (MYR Million), 2011-   2015
Table 26: Malaysian Infrastructure Construction Output by Project Type (MYR Million),   2015-2020
Table 27: Malaysian Infrastructure Construction Output by Cost Type (MYR Million), 2011-   2015
Table 28: Malaysian Infrastructure Construction Output by Cost Type (MYR Million), 2015-   2020
Table 29: Malaysian Infrastructure Construction Output by Activity Type (MYR Million),    2011-2015
Table 30: Malaysian Infrastructure Construction Output by Activity Type (MYR Million), 2015-2020
Table 31: Malaysian Infrastructure Construction Value Add by Project Type (MYR Million),   2011-2015
Table 32: Malaysian Infrastructure Construction Value Add by Project Type (MYR Million),    2015-2020
Table 33: Malaysian Energy and Utilities Construction Output by Project Type (MYR Million),    2011-2015
Table 34: Malaysian Energy and Utilities Construction Output by Project Type (MYR Million),    2015-2020
Table 35: Malaysian Energy and Utilities Construction Output by Cost Type (MYR Million),    2011-2015
Table 36: Malaysian Energy and Utilities Construction Output by Cost Type (MYR Million),    2015-2020
Table 37: Malaysian Energy and Utilities Construction Output by Activity Type (MYR Million),    2011-2015
Table 38: Malaysian Energy and Utilities Construction Output by Activity Type (MYR Million),    2015-2020
Table 39: Malaysian Energy and Utilities Construction Value Add by Project Type (MYR    Million), 2011-2015
Table 40: Malaysian Energy and Utilities Construction Value Add by Project Type (MYR    Million), 2015-2020
Table 41: Malaysian Institutional Construction Output by Project Type (MYR Million), 2011-   2015
Table 42: Malaysian Institutional Construction Output by Project Type (MYR Million), 2015-   2020
Table 43: Malaysian Institutional Construction Output by Cost Type (MYR Million), 2011-   2015
Table 44: Malaysian Institutional Construction Output by Cost Type (MYR Million), 2015-2020
Table 45: Malaysian Institutional Construction Output by Activity Type (MYR Million), 2011-   2015
Table 46: Malaysian Institutional Construction Output by Activity Type (MYR Million), 2015-   2020
Table 47: Malaysian Institutional Construction Value Add by Project Type (MYR Million),    2011-2015
Table 48: Malaysian Institutional Construction Value Add by Project Type (MYR Million),    2015-2020
Table 49: Malaysian Residential Construction Output by Project Type (MYR Million), 2011-   2015
Table 50: Malaysian Residential Construction Output by Project Type (MYR Million), 2015-   2020
Table 51: Malaysian Residential Construction Output by Cost Type (MYR Million), 2011-2015
Table 52: Malaysian Residential Construction Output by Cost Type (MYR Million), 2015-2020
Table 53: Malaysian Residential Construction Output by Activity Type (MYR Million), 2011-   2015
Table 54: Malaysian Residential Construction Output by Activity Type (MYR Million), 2015-   2020
Table 55: Malaysian Residential Construction Value Add by Project Type (MYR Million),    2011-2015
Table 56: Malaysian Residential Construction Value Add by Project Type (MYR Million),    2015-2020
Table 57: IJM Corporation Berhad, Key Facts
Table 58: IJM Corporation Berhad, Main Products and Services
Table 59: IJM Corporation Berhad, History
Table 60: IJM Corporation Berhad, Key Employees
Table 61: S P Setia Berhad, Key Facts
Table 62: S P Setia Berhad, Main Products and Services
Table 63: S P Setia Berhad, History
Table 64: S P Setia Berhad, Key Employees
Table 65: Gamuda Berhad, Key Facts
Table 66: Gamuda Berhad, Main Services
Table 67: Gamuda Berhad, History
Table 68: Gamuda Berhad, Key Employees
Table 69: IOI Properties Group Berhad, Key Facts
Table 70: IOI Properties Group Berhad, Main Services
Table 71: IOI Properties Group Berhad, History
Table 72: IOI Properties Group Berhad, Key Employees
Table 73: Muhibbah Engineering (M) Bhd, Key Facts
Table 74: Muhibbah Engineering (M) Bhd, Main Services
Table 75: Muhibbah Engineering (M) Bhd, History
Table 76: Muhibbah Engineering (M) Bhd, Key Employees
Table 77: Timetric Construction Market Definitions