PETALING JAYA: Construction firms in Malaysia are bracing for lingering cost pressures as the fallout from the US-Iran conflict continues to ripple through global energy and materials markets.
Diesel prices in Peninsular Malaysia have surged by around 85% from RM2.99 a litre in mid-February 2026 to RM5.52 a litre by the end of March, while coal and other building material costs are trending higher, albeit at a slower pace.
According to MBSB Research, while the sector could withstand the shock, particularly larger contractors with diversified project portfolios, there would be an impact on their margins.
“In our base case, we expect the impact to stabilise within one to two months; however, cost pressures are expected to persist into the second quarter of financial year 2026 (2Q26) to 3Q26 due to lag effects from earlier cost hikes, before normalising beyond 3Q26,” it noted.
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