12/08/2025

BIZ & FINANCE TUESDAY | AUG 12, 2025

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Construction sector’s value of work done hits RM43.9b in Q2

PETALING JAYA: DagangHalal.com, the world’s largest halal business-to business e-marketplace, will support Japanese halal-certified companies through an initiative with the Japan External Trade Organisation (Jetro) in Kuala Lumpur to boost the presence of Japanese halal-certified products in Southeast Asia, particularly in Malaysia. DagangHalal will host the Japan Pavilion on its dedicated platform, enabling Japanese halal-certified manufacturers to directly showcase their products to verified buyers across more than 90 countries. This initiative marks the first-ever national halal pavilion from Japan hosted on DagangHalal.com, high lighting the platform’s robust global reach and strategic role in facilitating international halal trade. “This project with Jetro reinforces DagangHalal’s commitment to con necting quality halal suppliers with global markets. “We are honoured to support Japanese businesses in expanding their footprint within the rapidly growing halal consumer segment. Through our digital platform, we aim to provide seamless access, targeted exposure, and meaningful business connections for Japanese halal certified products,” a company spokesperson said in a statement. Jetro’s initiatives focus strate gically on Malaysia’s halal market, recognising its significance as a gateway to Southeast Asia’s 280 million-strong Muslim consumer KUALA LUMPUR: Malaysia’s cons truction sector maintained steady growth of 12.9% in the second quarter of 2025 (Q2’25) with the value of work done reaching RM43.9 billion. following a 16.6% increase in the previous quarter, according to the Department of Statistics Malaysia (DOSM). Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the growth was driven by continued expansion in the special trade activities and non-residential build ings sub-sectors, which posted substantial double-digit growth of 22.2% and 16.2% respectively. “The residential buildings sub sector also contributed significantly, expanding by 13.9%, while the civil engineering sub-sector maintained a positive trend with a growth of 7.5%,” he said in DOSM Quarterly Cons truction Statistics yesterday. Mohd Uzir said that of RM43.9 billion of work done value, a total of RM16.3 billion or 37.1% was attributed to the civil engineering sub-sector, primarily in the activity of construction of utility projects of RM8.1 billion and roads and railways (RM6.5 billion). “The value of work done for non residential buildings and residential buildings sub-sectors accounted for RM12.4 billion (28.2%) and RM10 billion (22.8%) respectively. “Additionally, the special trade activities sub-sector accounted for RM5.2 billion (11.9%), largely in site preparation (RM1.5 billion); electrical installation (RM1.2 billion); and plumbing, heat and air-conditioning installation (RM1.1 billion) activities,” he said. Mohd Uzir said the private sector remained the primary driver of growth in the sector, contributing RM28.2 billion or 64.2%of the total value.

o Growth of 12.9% driven by continued expansion in special trade activities and non-residential buildings sub-sectors The private sector sustained its double-digit growth momentum at 19.3% growth from 23.7% in Q1’25, propelled by strong performance in the non-residential buildings (23.7%) and the special trade activities (22.8%) sub-sectors. “Apart from that, the value of work done by the public sector increased by 3.1% (Q1’25: 6.3%) to RM15.7 billion (share: 35.8%), fuelled by the special trade activities sub sector at 20.8% growth,” he noted. On the states’ performance, Mohd Uzir said nearly 61.1% of the total work done value was concentrated in Selangor, Johor, Sarawak and the Federal Territories (Kuala Lumpur, Putrajaya and Labuan). The construction value in Selangor amounted to RM9.7 billion or 22.2%, contributed by the non residential buildings of RM3.2 billion, followed by residential buildings RM2.9 billion and civil engineering base, which is projected to grow to about 310 million by 2050. Malaysia has around 21.6 million Muslims, making it an ideal market for halal-certified Japanese products. The dedicated Japan Halal Export Pavilion aligns seamlessly with DagangHalal’s mission to simplify international trade for halal-certified products through digital solutions and compliance management. DagangHalal’s Halal Internal Assurance System, a cutting-edge digital compliance platform, complements Jetro’s strategy by providing essential tools that streamline certification processes, enhance transparency, and facilitate swift market entry. In addition to the digital presence, DagangHalal also supports Jetro’s efforts at major physical trade shows, including Food and Hospitality Malaysia 2025, scheduled for Sept 23–26. During the event, the curated Japan Street Halal Catalogue, de veloped by Jetro, will be leveraged to enhance in-person business meetings, connecting Japanese suppliers directly with Southeast Asian halal-focused buyers. “We view our project with Jetro as a step towards strengthening halal trade relations between Japan and Southeast Asia. This partnership creates substantial opportunities for Japanese companies, ensuring their innovative and high-quality halal products are effectively showcased and successfully enter the regional markets,“ the spokesperson said.

The private sector remains the primary driver of growth in the construction sector, contributing RM28.2 billion or 64.2% of the total value in the second quarter of 2025. – BERNAMAPIC

RM2.4 billion sub-sectors. Meanwhile, Johor ranked second with a value of RM7.7 billion or 17.5%, primarily from the non-residential buildings (RM3.4 billion) sub-sector. In the meantime, the value of work

done in Sarawak was RM5.2 billion (11.9%), while Federal Territories recorded RM4.2 billion (9.5%). “In the first half of 2025, the sector posted a value of RM86.8 billion, reflecting a 14.7% increase compared

to the same period in 2024, driven by positive performance across all sub sectors, particularly in special trade activities of 28.3% and residential buildings (20%),” Mohd Uzir said. – Bernama

Foreign investors continue to trim holdings of Malaysian bonds in July

DagangHalal to help Japanese halal businesses widen international reach

PETALING JAYA: Foreign investors continued to pare back their holdings of Malaysian bonds in July, marking the second consecutive month of outflows. The sell-off totalled RM5.5 billion, following a RM5.4 billion decline in June, reflecting persistent caution amid external trade tensions. Kenanga Investment Bank Bhd (Kenanga IB), in a note, attributed the retreat largely to tariff-driven un certainty, with sentiment dampened early in the month after the United States proposed a 25% tariff on Malaysian goods. Although the rate was trimmed to 19% by the end of July, the initial impact had already weighed heavily on investor appetite for Malaysian Government Securities (MGS), Kenanga IB said. By month-end, foreign holdings of local debt had decreased to RM291.1 billion (from RM296.7 billion in June), reducing their share of total outstanding debt to 13.2% from 13.6% in June. “While global trade concerns dominated headlines, Malaysia’s domestic backdrop remained com paratively resilient. “Gains from improved market access through the Comprehensive and Progressive Agreement for Trans Pacific Partnership – notably entry into the UK market – and strengthened economic ties with New Zealand offered some medium-term upside potential,“ Kenanga IB said.

sukuk purchases worth RM0.2 billion, partially offset by a RM0.1 billion reduction in conventional corporate bonds. Foreign ownership in this segment remained steady at 2%, the highest level since January 2019. Foreign investors withdrew RM0.9 billion from Bursa Malaysia in July, a moderation from the RM1.3 billion withdrawal in June. While Bank Negara Malaysia’s (BNM) rate cut and solid macro-economic indicators helped cushion some of the outflows, tariff-related uncertainty kept foreign partici-pation subdued. Kenanga IB said the selling was led by the financial services sector, followed by telecommunications, media, and entertainment, as investors remained cautious over earnings volatility and sector-specific risks. Overall capital market outflows eased slightly to RM6.5 billion in July from RM6.7 billion in June. Notably, the combined RM13.2 billion in net outflows over June and July nearly offset the RM14.4 billion net inflow recorded in May. Kenanga IB further stated that investor sentiment has been buoyed by growing expectations of further US Federal Reserve rate cuts, following weaker-than-expected payroll data and rising concerns about stagflation. Weak demand at recent US bond auctions also signals a shift in capital flows towards European markets and reform-driven emerging economies, including Malaysia, it added.

On the macroeconomic front, Kenanga IB noted that Malaysia posted stronger-than-expected 4.5% gross domestic product (GDP) growth in the latest quarter, supported by a new stimulus package, a 25-basis-point cut in the Overnight Policy Rate (OPR) to 2.75%, and robust labour market data. The investment bank said investor confidence was further bolstered by the launch of the 13th Malaysia Plan, which outlines key development priorities through 2030, as well as the International Monetary Fund’s upward revision of Malaysia’s 2025 growth outlook. Nonetheless, Kenanga IB noted that sustained improvement in foreign inflows will depend on the resolution of trade frictions and a more stable global risk environment. “With domestic fundamentals showing resilience, Malaysia is positioning itself to capture renewed interest once external headwinds ease,“ it said. Bond market outflows in July were concentrated in MGS, which saw a larger decline of RM5.2 billion compared with RM2.9 billion in June. Foreign holdings of MGS slipped to 33.5% from 34.4% previously. Malaysian Islamic treasury bills recorded outflows of RM0.3 billion, slightly lower than June’s RM0.4 billion, with the foreign share easing to 12.6% from 15.8%. In contrast, corporate bonds and sukuk registered a modest net inflow of RM0.04 billion, driven mainly by