Kuala Lumpur (May 25, 2026) – Rising oil prices caused by geopolitical tensions in the Middle East are expected to increase cost pressures on Malaysia’s construction and property sectors over the next 6 to 12 months. Higher prices for steel, cement, logistics, fuel, and construction equipment may affect project viability, especially for contractors under fixed-price contracts..
Industry experts believe premium properties may better absorb rising costs, while the mass and mid-market segments could face slower demand and fewer new project launches. However, selling prices are not expected to rise significantly in the near term.
The government is encouraged to maintain supportive financing policies, speed up project approvals, and address affordable housing challenges to support the industry.
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Rising oil prices threaten to squeeze Malaysia’s construction sector as costs climb