Arcadis latest report places Kuala Lumpur in bottom 5% as least expensive cities to construct built asset.
This year’s report builds upon its strong heritage as the leading reference point in relative comparison of global construction costs. This year the comparison covers 100 major cities. From New York to Hong Kong, Mumbai to Buenos Aires, and Barcelona to Sydney, this is one of the largest comparisons of its type and covers every major construction market. Arcadis’ annual International Construction Costs Comparison report is based on industry-leading market knowledge. Apart from providing a comparative indexation of construction costs around the world, the report also provides market insights and recommendations on the factors clients should be considering in order to continue being successful in the future.
Malaysia’s GDP grew by 4.7% in 2018, down from 5.9% the year before. The price of construction materials was stable in 2018, except for steel, which decreased slightly. As of January 2019, the minimum wage was increased, a move which will influence labor costs. In 2019, the construction sector will grow at a slower pace, due to major revisions around mega infrastructure projects and a general slowing down of global construction projects. The Malaysian government’s allocation of over $362 million (USD) for affordable housing, may well stimulate industry growth this year. The Malaysian construction market will grow by 4.7% in 2019, as well as a slight increase of 0-2% in the tender price index.
Source: Arcadis 2019 International Construction Costs Report (6 May 2019)