RM12bil-RM14bil infrastructure contracts set for second half awards
KUALA LUMPUR: Public infrastructure projects worth an estimated RM12 billion-RM14 billion are expected to be awarded in the second half of 2026, giving construction companies a fresh pipeline of work, according to MBSB Research.
Malaysia is set to award infrastructure projects valued at RM12 billion to RM14 billion in the second half of 2026, according to MBSB Research. The pipeline will primarily consist of civil main contracts, water engineering projects, and data centre developments, which are driving private-sector growth. The Penang LRT Mutiara Line's Civil Main Contract 2 and Langat 2 Phase 2 are among the top projects expected to be awarded.
The Kerian Water EPCC project, with a value of RM4 billion to RM5 billion, is also nearing implementation following a 40-year bulk water supply agreement. The construction sector is on a healthy growth path, expanding 6.6% year-on-year in Q2 2026, despite some moderation. Data centre construction awards have reached a record RM9.72 billion in the first eight months of 2026, up from RM9.26 billion in 2025.
This growth is expected to continue in the second half of 2026, with the rollout of major infrastructure projects under the 13th Malaysia Plan gaining momentum. Key beneficiaries include Gamuda Bhd, IJM Corp Bhd, Malaysian Resources Corp Bhd, and WCT Holdings Bhd, as the government allocates RM93.9 billion to infrastructure projects in Sabah and Sarawak.
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