Construction sector projects 9.2 pct growth

CONSTRUCTION is projected to lead Sarawak’s major economic sectors in 2026, with growth of 9.2 per cent.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the value of construction work done increased by 2.2 per cent in the first half of the year, with civil engineering accounting for 63.7 per cent of the total.

He outlined the projects expected to support construction activity during the remainder of the year.

“Further momentum in the second half will be supported by the advancement of major infrastructure and development projects, alongside programmes under the Thirteenth Malaysia Plan (13MP),” he said when tabling the Supply (2027) Bill, 2026 on Monday (Oct 12).

Meanwhile, he said the services sector, which accounts for nearly 40 per cent of Sarawak’s economy, was projected to expand by 5.7 per cent in 2026, supported by firm consumer activity and stronger transportation and logistics services.

He expected consumer-related activities and business services to benefit from continued domestic economic activity.

“Growth in consumer-related subsectors is expected to remain supported by resilient domestic consumption, while sustained trade, investment and business activity will continue to generate demand for transportation, logistics, financial and other business-related services,” he said.

Within the services sector, tourism continued to contribute to economic growth despite lower visitor arrivals during the first seven months of 2026.

Abang Johari said visitor arrivals declined by 2.0 per cent to 4.69 million during the period, compared with 4.78 million in the corresponding period last year.

“Nevertheless, resilient regional travel, improved connectivity, and a strong calendar of business, cultural, sporting, and entertainment events are expected to enhance tourism-related activity during the remainder of the year,” he said.

In agriculture, he said that the sector was projected to grow by 2.4 per cent in 2026, supported by stronger oil palm production and improved productivity.

Abang Johari also projected the mining and quarrying sector to expand by 4.6 per cent in 2026, with stronger growth expected in the second half of the year.

He attributed the outlook to a steady recovery in natural gas production and improved activity across the mining and quarrying subsectors, amid sustained demand for energy and mineral resources.

“The recovery in gas availability is also expected to support downstream manufacturing, with the manufacturing sector projected to grow by 2.3 per cent this year.

“The sector would benefit from the recovery in liquefied natural gas (LNG) production following improved gas availability and operational conditions, alongside sustained activity in the basic metal industry.”

He expected continued LNG production and basic metal output to support manufacturing activity and overall economic growth during the latter part of the year.