CIC - Construction Intelligence Center

Downside Risk to Growth in Malaysia Amid Political Change

  • Published:Wednesday, May 23, 2018

The recent change in government in Malaysia has brought about concerns over the continued development of major infrastructure projects in the country, particularly those that are part of China’s “One Belt, One Road initiative”.

Construction output has been growing at a rapid pace in Malaysia in recent years. Although slowing from an annual average of 13.5% in 2012–2014 to 7.4% in 2015–2017, the rate of expansion is still among the fastest in South-East Asia. However, there is now a downside risk to the outlook for construction growth, given the potential for major projects backed by foreign entities, particularly those from China, to be delayed if the new government does proceed with extensive reviews.
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