Construction

Overview

Economic Census 2023 revealed 71,062 establishments in Construction sector generating RM205.1 billion of gross output in 2022 


There were 71,062 establishments operating in 2022, with an annual growth rate of 8.3 per cent compared to the previous census conducted in 2016 for the reference year 2015 (40,558 establishments). A total of  25,886 establishments or 36.4 per cent share was concentrated in the Special trade activities sub-sector; followed by the Civil engineering sub-sector (15,976 establishments; 22.5%) and the Non-residential buildings sub-sector (14,967 establishments; 21.1%). Meanwhile, the Residential buildings sub-sectors accounted for 14,233 establishments (Share: 20.0%).

The value of gross output for the Construction sector amounted to  RM205.1 billion in 2022, improved by 2.0 per cent annually. The rise was predominantly attributable to the strong growth in the Special trade activities sub-sector by 4.7 per cent, registering RM52.5 billion (2015: RM38.1 billion). Before the pandemic COVID-19, the gross output in this sector was predominantly contributed by the Civil engineering sub-sector encompassing the development of infrastructure such as roads, railways, bridges and utility projects. However, post-pandemic period showed the Special trade activities sub-sector has grown strongly and became a major contributor to the Construction sector in 2022.

The intermediate input for the overall Construction sector rose by 2.8 per cent annually to RM139.3 billion as compared to 2015. The increase was largely due to the rise in cost of major construction materials, such as cement and iron steel as indicated in the Building Construction Index (BCI) from 2020 to 2022 across Peninsular Malaysia.

The total value added increased by 0.6 per cent to RM65.7 billion in 2022 (2015: RM63.2 billion). Although the Civil engineering sub-sector ranked second in terms of gross output produced, this sub-sector was the major contributor of the value added with a share of 27.1 per cent or equivalent to RM17.8 billion. This was followed by the Non-residential buildings sub-sector with a contribution of 26.5 per cent (RM17.4 billion) and the Residential buildings sub-sector (20.2%; RM13.3 billion). Meanwhile, the Special trade activities sub-sector recorded a contribution of 26.2 per cent or RM17.3 billion.

The number of persons engaged in the Construction sector decreased by 0.5 per cent annually, accounting for 1.24 million persons in 2022 (2015: 1.29 million persons). Only the Civil engineering sub-sector recorded a positive growth of 1.2 per cent to 354.3 thousand persons engaged (2015: 325.7 thousand persons). The semi-skilled workers were the highest contributor (78.7%), followed by skilled workers (14.9%) and low-skilled workers (6.4%).

The total salaries and wages paid increased by 1.5 per cent annually, amounting to RM36.4 billion in 2022 compared to RM32.9 billion in 2015. This resulted in an average salary and wages in the Construction sector raising to RM2,536 per month compared to RM2,162 per month in 2015. Employees in the Civil engineering sub-sector received the highest average salary and wages with a value of RM2,825 per month. Skilled workers earned the highest average salary and wages of RM5,594 per month, followed by semi-skilled workers (RM2,078) and low-skilled workers (RM1,431).

A total of 3,869 establishments with a contribution of 5.4 per cent of the overall Construction establishments in 2022 were owned by women largely in the Civil engineering sub-sector (32.8%) of establishments. Women-owned establishments in the Construction sector generated a gross output value of RM4.7 billion and employed 35,077 persons. Nearly 70 per cent of  women-owned establishments were individual proprietorships (2,667 establishments). This is followed by private limited company and limited liabilities partnership that accounted for 17.9 per cent or 691 establishments.

More than 50 per cent of the gross output in the Construction sector in 2022 was contributed by three states, namely Selangor (share: 31.3%); W. P. Kuala Lumpur (share: 16.2%); and Johor (share: 11.6%). In terms of annual growth rate, nine states recorded higher growth than the national, namely Kedah (10.3%); Sarawak (5.4%); Selangor (4.6%); Sabah (4.4%); Pulau Pinang (3.8%); Kelantan (3.5%); W.P. Kuala Lumpur (2.9%); Terengganu (2.6%); and Negeri Sembilan (2.2%).

The full publication of the Economic Census 2023 Construction can be downloaded through eStatistik portal.


Released by:

DEPARTMENT OF STATISTICS MALAYSIA

29 July 2024



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