Value of construction work done in 3Q down by 21 pct

KUALA LUMPUR: The value of construction work done in the third quarter of 2021 (3Q) recorded a reduction of 21.0 per cent year-on-year, amounting to RM24.8 billion, said the Department of Statistics Malaysia (DOSM).

In a statement yesterday, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said among the factors contributing to the decline were the enforcement of the Enhanced Movement Control Order as well as phase one and phase two of the National Recovery Plan, which imposed strict conditions to resume construction activities.

“The decline in the value of construction work done was also in line with the reduced production and imports of construction materials.

“A quarter-on-quarter comparison also showed the value of construction work done contracted by -12.2 per cent from the previous quarter,” he said.

The three major construction subsectors, namely civil engineering, residential buildings, and non-residential each contracted by -29.7 per cent, -24.9 per cent, and -10.4 per cent, respectively, compared with the same quarter last year.

However, the special trades activities subsector bucked the trend, growing at 21.0 per cent in the third quarter of 2021 as compared to the same quarter last year, DOSM said.

In the third quarter of 2021, Kelantan, Pahang, Penang, Sabah, and Terengganu were the five states that recorded positive growth in the value of construction work done driven by public infrastructure and non-residential projects.

On the other hand, despite the value of construction work done growing negatively, Selangor recorded the highest value of construction work done with RM5.5 billion or a share of 19.4 per cent, followed by the Federal Territory and Sarawak with 16.7 per cent and 12.8 per cent, respectively.

DOSM also reported that the value of construction work done was dominated by the civil engineering sub-sector since the fourth quarter of 2015, with a share of 40.7 per cent.

This was followed by nonresidential buildings (27.2 per cent), residential buildings (23.3 per cent), and special trades activities (8.8 per cent), it added.

DOSM said the private sector continued to drive construction activities with a share of 55.2 per cent or RM13.7 billion of the total value of construction work done, as compared to the public sector with 44.8 per cent share (RM11.1 billion).