Malaysia’s construction activity incresed 12.9% year-on-year in Q2 2025, moderating from a 16.6% surge in Q1 and marking the slowest pace since Q4 2023. Growth slowed across most segments, including residential buildings (13.9% vs 27.0% in Q1), accounting for 22.8% of the total; non-residential buildings (16.2% vs 21.0%) %), with a 28.2% share; and special trade activities (22.2% vs 35.9%), making up 11.9% of the total. Meanwhile, civil engineering projects accelerated sharply (7.6% vs 3.7%), contributing the largest share at 37.1%.