Malaysian Construction Sector Hit Hard by Rising Costs, Associations Say

The construction sector in Malaysia is facing significant cost pressures that are not fully reflected in national-level statistics, according to two industry associations.

The Master Builders Association Malaysia (MBAM) and the Bumiputera Contractors Association (PKBM) have expressed concern that broad economic data does not capture the operational cost realities faced by contractors on the ground.

They pointed out that industrial diesel prices have risen 44% from RM2.95 to RM4.26 per litre between February and July, while bitumen prices have increased 42% from RM2,125 to RM3,025 per tonne over the same period.

The associations also highlighted a 15% to 40% increase in haulage costs following stricter enforcement on transport capacity since October 2025, as well as higher labour and operating costs arising from the RM1,700 minimum wage, EPF changes for foreign workers, and record copper prices.