Malaysia’s construction industry is poised to enter a new phase of high-value growth in 2026, driven by the completion of major infrastructure projects, expanding industrial activity, and rising life-cycle demands from an ageing building stock, according to Nippon Paint Malaysia. Recent data from the Department of Statistics Malaysia shows that the value of construction work done rose by 12.9% year-on-year in the second quarter of 2025, reflecting strong momentum across infrastructure, commercial, and residential segments. Looking ahead, the sector is projected to sustain growth of approximately 6.1% in 2026, supported by continued capital expenditure and strategic direction under the 13th Malaysia Plan (2026–2030), signalling a clear shift toward more specialized and high-value construction activities.
Nippon Paint Malaysia General Manager Tay Sze Tuck said the company expects steady industry growth next year as large-scale infrastructure projects reach critical milestones and industrial expansion gains pace. Mega developments such as the East Coast Rail Link (ECRL) and the Rapid Transit System (RTS) Link are progressing into advanced structural, finishing, and systems stages, where demand extends beyond basic civil works to specialized materials and integrated solutions. With Budget 2026 allocating RM81 billion for public development, there is increasing emphasis on materials that enhance durability, reduce long-term maintenance costs, and support Total Cost of Ownership (TCO) objectives, positioning infrastructure finishing as a key growth engine for the sector.
Industrial expansion is also emerging as a major driver, particularly in manufacturing, warehousing, and cold-chain logistics, as Malaysia strengthens its role in regional supply chains and advanced manufacturing. Nippon Paint highlighted growing demand for high-performance, compliant building materials, especially in industrial flooring systems where hygiene, safety, and operational continuity are critical. As industrial standards rise, developers and operators are prioritizing certified, durable, and compatible systems that can withstand heavy usage, chemical exposure, and stringent cleanliness requirements.
At the same time, refurbishment is set to become an increasingly important segment in 2026, as more than half of Malaysia’s commercial and residential buildings are now over 20 years old. Age-related issues such as water leakage, surface deterioration, corrosion, and structural defects are driving building owners to seek long-term, cost-effective solutions rather than short-term repairs. Nippon Paint’s Total Coating & Construction Solutions (TCCS) approach addresses this need by offering integrated refurbishment services, from diagnostics and surface preparation to compatible material systems and professional application, all supported by certified applicators and warranties.
Looking ahead, Nippon Paint Malaysia expects 2026 to be a year of balanced and sustainable progress for the construction industry, underpinned by infrastructure completion, industrial growth, and refurbishment demand. The company reaffirmed its commitment to supporting developers, contractors, and property owners with end-to-end, high-performance solutions that enhance safety, durability, sustainability, and long-term performance, while contributing to the development of more resilient, energy-efficient, and future-ready buildings and infrastructure across Malaysia.