{
  "id": 1382650,
  "title": "Construction gears up for a stronger second half",
  "url": "https://urgent.news/2026/08/17/construction-gears-up-for-a-stronger-second-half",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-17T00:00:48.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/08/1512687/construction-gears-stronger-second-half"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Malaysia's construction sector is poised for a robust second half of 2026, with a surge in infrastructure and data centre projects projected to keep contractors' orders flowing, according to research from MBSB Research and Hong Leong Investment Bank Bhd. Public infrastructure awards are expected to reach RM12 billion to RM14 billion, while domestic contract awards are on track to match or exceed the RM49 billion secured in 2025. The momentum is evident, with contractors already securing RM27.7 billion in domestic awards in H1 2026, with Q2 alone accounting for RM16.9 billion. The sector's growth is fueled by infrastructure spending and data centre development, with data centre awards already surpassing RM9.26 billion in the first eight months of 2026. The next major milestone is the Penang LRT Mutiara Line's Civil Main Contract 2, with a project value of RM4 billion-RM5 billion, set for November 2026. Other significant projects include Langat 2 Phase 2, Sungai Rasau Phase 2, and Kerian Water EPCC, with the latter expected to receive a 40-year bulk water supply agreement in July, benefiting Gamuda Bhd. Malaysia's construction sector expanded 6.6% year-on-year in Q2, with an average data centre award size rising to RM972 million, indicating larger hyperscale developments. Beyond 2026, projects such as the second phase of the Pan Borneo Highway and the second phase of the Sarawak-Sabah Link Road could provide substantial work flows, with Sabah and Sarawak expected to remain a key focus due to RM93.9 billion allocated to six less-developed states under the 13MP. Faster execution should favor key contractors like Gamuda Bhd, IJM Corp Bhd, Malaysian Resources Corp Bhd, and WCT Holdings Bhd, along with East Malaysia-focused contractors as infrastructure rollout accelerates.",
  "summary": "KUALA LUMPUR: Malaysia’s construction sector is heading into a potentially busier second half (H2) of 2026, with a fresh pipeline of infrastructure and data centre projects set to keep contractors’ order books flowing.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}