Malaysia’s construction activity grew 8.8% year-on-year in Q2 2026, quickening from an 8.5% increase in the previous quarter, which marked the sector’s slowest growth since Q4 2023. The solid result was mainly driven by faster civil engineering activity (2.7% vs 1.5% in Q1), which remained the largest contributor to the sector, accounting for 35.0% of total output. Growth in non-residential buildings also strengthened (13.3% vs 12.7%), representing 29.3% of overall activity. Meanwhile, residential building activity accelerated further (8.7% vs 6.1%), contributing 22.8% of total output. In contrast, special trade activities moderated sharply (17.6% vs 24.6%), although they still accounted for 12.9% of total construction activity.