• Value of construction work done contracted 6.1% in 1Q22

• Volume index of distributive trade eased 0.7% in 1Q22

• Revenue for services sector grew in 1Q22

• Economy likely to pick up pace in 1Q22

Value of construction work done contracted 6.1% in 1Q22

The value of construction work done in 1Q22 contracted by 6.1% yoy (4Q21: -12.9%; 3Q21: -21.0%; 2Q21: +42.6%) amounting to RM29.5bn (4Q21: RM27.6bn; 3Q21: RM24.8bn: 2Q21: RM28.2bn). Compared to 4Q21, the value of construction work done increased by 6.6% qoq (4Q21: +11.5%; 3Q21: -12.2%; 2Q21: -10.1%).

The two sub-sector, namely special trades activities sub-sector rose at 24.1% (4Q21: +22.5%; 3Q21: +21.0%; 2Q21: +75.0%; 1Q21: +38.0%) in 1Q22, while non-residential buildings sub-sector rebounded by 4.2% (4Q21: -7.1%; 3Q21: -10.4%; 2Q21: +37.0%; 1Q21: -5.3%). On contrary, civil engineering sub-sector contracted by 15.5% (4Q21: -20.3%; 3Q21: -29.7%; 2Q21: +59.5%; 1Q21: -22.3%) and residential buildings subsector (1Q22: -11.9%; 4Q21: -18.2%; 3Q21: -24.9%; 2Q21: +18.0%; 1Q21: -4.2%).

The civil engineering sub-sector remained dominant in the value of construction work done for 26 consecutive quarters since the fourth quarter of 2015 with a 35.1% share. This followed by non-residential buildings (30.4%), residential buildings (24.2%), and special trades activities (10.2%).

The private sector continued to propel the construction activity in 1Q22 with a 60.7% share of the value of construction work done (RM17.9bn) as compared to the public sector with a 39.3% share of the value of construction work done (RM11.6bn). The value of construction work done in residential and non-residential buildings sub-sector remained significant in the project owned by the private sector which contributed 37.7% and 38.0%, respectively. Meanwhile, the project owned by the public sector was underpinned by the civil engineering sub-sector with a 68.6% share.

In 1Q22, Selangor recorded the highest value of construction work done with RM6.9bn or 23.5% share. This was followed by the Wilayah Persekutuan and Sarawak respectively by 19.6% and 11.1%

Source: BIMB Securities Research - 13 May 2022