Malaysia’s construction industry is expected to enter a new phase of high-value growth in 2026, driven by infrastructure completion, industrial expansion, and rising lifecycle demands from ageing buildings, according to Nippon Paint Malaysia.
According to the Department of Statistics Malaysia, the value of construction work done increased by 12.9 per cent year-on-year in Q2 2025, indicating healthy activity across the infrastructure, commercial, and residential segments.
Furthermore, economic forecasts indicate that the Malaysian construction sector is projected to sustain robust growth of approximately 6.1 per cent in 2026. This upward trend, coupled with the strategic direction and capital expenditure allocated under the 13th Malaysia Plan (2026-2030), points to another promising period, characterised by a pivot toward high-value, specialised projects.
“Nippon Paint Malaysia foresees steady growth in 2026, underpinned by infrastructure projects reaching key milestones, industrial expansion and advanced manufacturing, and continued demand for residential refurbishment,” said Tay Sze Tuck, General Manager of Nippon Paint Malaysia.
He added, “As Malaysia continues to urbanise and attract foreign investment, our focus is on providing integrated Total Coating & Construction Solutions (TCCS) that meet the sector’s evolving needs, from durability and safety to sustainability and long-term performance.”
Infrastructure Finishing Becomes the New Growth Engine
Government policies on infrastructure, industrialisation, and sustainability continue to spur growth. Large-scale projects such as the East Coast Rail Link (ECRL) and Rapid Transit System (RTS) Link are advancing into final structural, finishing, and systems phases, where demands evolve beyond civil works to specialised materials.
Tay shared, “As these mega-projects progress, they require reliable drymix mortars, waterproofing systems, flooring, architectural and protective coatings, and sealant adhesive fillers (SAF) that must work as a compatible, engineered system.”
Budget 2026 allocates MYR 81 billion toward public development, reinforcing demand for materials that reduce long-term maintenance costs and support Total Cost of Ownership (TCO) objectives.
Industrial Expansion: Compliance and Performance Drive Demand
Malaysia’s industrial property segment, spanning manufacturing, warehousing, and cold-chain logistics, is accelerating in line with the country’s ambitions to strengthen supply-chain resilience and advanced processing.
Nippon Paint’s primary involvement in 2026 is centred on manufacturing plants, warehousing, food-processing environments, and other industrial complexes that require high-performance building materials and finishing systems.
“Industrial flooring is no longer a backroom decision,” Tay noted. “Whether it’s a food plant or an electronics facility, flooring affects hygiene, worker safety, and operational uptime.”
Nippon Paint’s FloorShield industrial flooring systems include solvent-free epoxy, solvent-based polyurethane (PU), and self-levelling epoxy, each engineered to withstand heavy loads, chemical exposure, and stringent cleanliness requirements.
“These environments require systems that are certified, compliant, and compatible, and that’s where industrial clients are raising their standards,” Tay added.
Addressing the Refurbishment Wave
More than half of Malaysia’s commercial and residential buildings are over 20 years old, creating a rising demand for structural and surface rehabilitation. These problems not only affect safety and asset value but also increase long-term maintenance expenditure when not addressed at the root.
“Refurbishment will be a key segment in 2026 as building owners seek long-term, cost-effective solutions instead of short-term fixes,” said Tay. “Our TCCS approach provides a one-stop refurbishment solution, including repainting, re-waterproofing, re-flooring, and resealing, all backed by root-cause diagnosis, system compatibility checks, and engineered materials designed to work together.”
The company conducts substrate diagnostics to identify root causes such as falling tiles, peeling, water leakage, hollowness, corrosion, and more. Nippon Paint offers complete end-to-end support, covering site assessment, surface preparation, system selection, professional application, and technical support. Every project is completed by certified applicators and backed by a warranty for added assurance.
“Owners can save the most by addressing issues at the root rather than the surface, preventing repeated failures, avoiding construction problems, reducing miscommunication between suppliers, and ultimately gaining peace of mind,” Tay said.
Nippon Paint’s 2026 Outlook
“With infrastructure projects reaching completion, industrial growth accelerating, and refurbishment demand rising, we expect 2026 to be a year of steady, balanced progress for Malaysia’s construction industry,” said Tay.
He added, “Our mission remains clear: to be a trusted partner to developers, contractors, and property owners by delivering compatible, end-to-end TCCS that enhance safety, durability, and efficiency across every stage of construction.
“We are committed to leading innovation in Malaysia’s construction ecosystem, supporting both government and private sector ambitions to build stronger, more energy-efficient, and future-ready infrastructure and buildings.
Source: Nippon Paint Malaysia (Press Release)