page_title: Economy of Malaysia
section_title: Construction
hierarchical_section_title: Economy of Malaysia / Industry sector / Construction
caption_attribution_description: English: The Penang Bridge in Malisia Français&#160;: Le Pont de Penang en Malaisie
context_page_description: The economy of Malaysia is the third largest in Southeast Asia, after Indonesia, Thailand, and is the 35th largest economy in the world. Labour productivity in Malaysia is significantly higher than in neighbouring Thailand, Indonesia, Philippines or Vietnam due to a high density of knowledge-based industries and adoption of cutting-edge technology for manufacturing and digital economy. According to the Global Competitiveness Report 2019, the Malaysian economy is the 27th most competitive country in the world.
  Malaysian citizens enjoy affluent lifestyle compared to almost all other ASEAN countries, in which only Singapore and Brunei managed to rival over. Their standard of living are closer to the Western Europe countries such as Portugal and Spain, and closely resembled the developed part of Eastern Europe such as Poland, Latvia, and Czech Republic. This is due to a fast growing export oriented economy, a relatively low national income tax, highly affordable local food, and transport fuel, as well as a fully subsidized single payer public-healthcare. Moreover, social welfare benefit with direct cash benefit transfer called Cost of Living Assistance is also in place since 2011.
context_section_description: Malaysia has a large construction industry of over RM102.2 billion (US$32 billion). The highest percentage share was contributed by construction of non-residential buildings which recorded 34.6 per cent. This was followed by civil engineering sub-sector (30.6%), residential buildings (29.7%), and special trades (5.1%).
  Selangor recorded the highest value of construction work done at 24.5% among the states, followed by Johor at 16.5%, Kuala Lumpur at 15.8%, Sarawak at 8.6% and Penang at 6.4%. The contribution of these five states accounted for 71.8% of the total value of construction work in Malaysia.
  The expansion of the construction industry has been catalysed by major capital expenditure projects, and a key factor has been the government's Economic Transformation Programme (ETP) and public-private partnership (PPP) mega-projects like Tun Razak Exchange, KVMRT and Iskandar Malaysia.
caption: Penang Bridge
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