TRANSFORMING the construction sector will involve the adoption of automation, digitalisation and environmental and social governance policies, as well as the creation of relevant skills and expertise.
This shift will ensure businesses competitiveness and sustainability in the long run.
Technologies such as building information modelling, industrialised building system, the Internet of Things and big data analytics will drive better control of the construction process.
The enhancement of digital construction was enshrined in Malaysia’s Construction 4.0 Strategic Plan (2021-2025).
The five-year plan comprises 12 emerging technologies and is expected to boost the sector in line with the Fourth Industrial Revolution.This plan has outlined a framework to improve the capabilities of the sector through four enablers, namely people, integrated technologies, economy and governance.
Hence, construction projects are expected to be implemented efficiently through value optimisation and waste minimisation.
The construction sector’s linkages to other economic sectors are vital.
For example, bricks (manufacturing sector) are used to construct a commercial lot (construction sector), which will then be used as a restaurant (services sector).
In line with Vision 2020 and the Sixth Malaysia Plan, the robust sector saw an average annual 7.2% growth and an annual average share of 3.9% of gross domestic product contribution from 1991 to 2000.While the contribution is relatively small, it provides a valuable multiplier effect to the aggregate economy.
To address the impact of the Covid-19 pandemic, various stimulus packages were introduced to revive domestic investment activities, mainly in the construction sector.Under these packages, new allocations were provided for projects such as improving roads and upgrading and repairing dilapidated schools, which were over and above the continued implementation of projects under the existing 2020 annual budget.
Ongoing mega projects such as the Mass Rapid Transit Putrajaya Line and Light Rail Transit Line 3 were also given priority due to high multiplier effects.
Thus, the sector’s growth saw a small contraction of 5% in 2021, compared to a major 19% decline in 2020.
The sector has also played a major role in accumulating the nation’s capital stock such as buildings, roads, railways, ports and airports.Moreover, a sustainable construction sector can ensure both social prosperity and economic stability.
As can be seen in the development of Putrajaya, it has had significant spillover effects on the economy including creating new settlements, increasing household income, rising property value, providing jobs and boosting the tourism industry.
Challenges include the rising cost of building materials, which greatly affect firms’ cash flow and their long-term sustainability.
Also, changes to projects’ timelines due to the shortened duration of construction activities and the lengthy process for approvals by related authorities have affected project operations.
Also, high reliance on foreign workers may have an adverse impact on productivity and quality levels since most of the foreign workers are unskilled.
Malaysia’s construction business models and operations are mainly reliant on manual labour and low technology adoption.
The importance of boosting the sector’s development and growth will not only contribute to the economy, but also gear industrial players to become major global competitors.
