Malaysia’s construction activity rose 8.5% year-on-year in Q1 2026, easing from a 10.3% increase in the previous quarter and marking the slowest growth since Q4 2023. The moderation was mainly due to softer civil engineering activity, which expanded 1.5% after a 3.6% rise in Q4, while remaining the largest contributor to the sector with a 34.2% share. Growth in non-residential buildings also slowed sharply (12.7% vs 18.6%), accounting for 29.9% of total output. Meanwhile, residential building activity accelerated (6.1% vs 5.9%), representing 22.5% of the total. Special trade activities continued to post strong growth (24.6% vs 21.1%), with a 13.3% share of overall activity. 2025, In 2025, construction output increased 12.5%, slowing from a sharp 20.2% increase in the prior year.