Malaysia’s building materials industry is set for a robust 2026, fuelled by rising cement and steel demand linked to major infrastructure works under the 13th Malaysia Plan, as well as expanding data centre and industrial developments, according to CIMB Securities. The sector is also expected to benefit from higher selling prices, driven largely by increased transport costs. Companies with strategically located plants in Penang, Selangor and Johor are likely to gain a competitive edge by offering more efficient logistics to key demand hubs.
The research house highlighted that haulage fees and quarry-product prices have surged between 15 and 40 per cent since November 2025 due to stricter overloading rules, contributing to cost pressures across the supply chain. CIMB projects sector core earnings to rise by 15 per cent this year, accelerate to 68 per cent in 2026, and moderate to 16 per cent in 2027.
In the steel segment, CIMB expects manufacturers to pass on higher logistics costs, especially amid thin margins caused by subdued global steel prices. With carbon taxation on the horizon, steel producers that invest in green steel technologies will be better positioned to tap into emerging demand for low-emission products and command “green steel premiums” in Malaysia and Singapore—though substantial initial investment will be required.
Meanwhile, Matrix Concepts has launched its ONEFest Celebration homeownership campaign, offering fee waivers, free broadband, club memberships, loyalty rewards and a “Lucky Spin” prize draw. The initiative blends Christmas, Chinese New Year and Hari Raya Aidilfitri festivities to boost sales across its developments in the southern region, Negeri Sembilan and the Klang Valley.
Reference : Malaysia’s building materials sector set for strong 2026