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Trends of construction industry in Malaysia and its emerging challenges

Trends of construction industry in Malaysia and its emerging challenges The transition of Malaysia from a developing country to a developed country was considered in vision 2020, whereby an average construction contribution of 6.0% in growth domestic product (GDP) per annum was required. Despite this importance, still, the Malaysian construction industry has not reached the target yet. Understanding the weakness and strength of this industry can be an effective way to help the policymakers in selecting the best strategy in the promotion of the Malaysian construction industry in GDP growth. Hence, the purpose of this paper is to present an overview of the current issues and challenges faced by the contribution of the Malaysian construction industry in GDP growth.Design/methodology/approachTo achieve this objective, all the latest statistical data presented by the Department of Statistic and Construction Industry Development Board in Malaysia until March 2018 being collected and interpreted. Furthermore, through the literature review, the most significant challenges encountered by the Malaysian construction industry identified, compared and presented.FindingsThe results highlight that the contribution of Malaysian construction into GDP is increasing with a gentle slope. Nonetheless, the Malaysian construction industry has a high impact on the employment rate. More investment in the construction sector is required to meet an average of 6% contribution in GDP. Also, to be able to seize new opportunities in the global construction market, more exerted efforts have to overcome the challenges faced by this industry.Practical implicationsThis study offers practical implications to policy and decision makers in the Malaysian construction industry. Despite the constant growth of the Malaysian construction industry in recent years, there is a need for more investments and overcome to challenges to encounter an average of 6% contribution in GDP. This study provides an overview and insights to investors, stockholders and managers to formulate a long-term plan promoting the efficiency of the Malaysian construction industry.Originality/valueThis study through explaining, comparing and interpreting the real statistical data, through the tables, figures and graphs, simplified the understanding of the weakness and strength of the Malaysian construction industry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Financial Management of Property and Construction Emerald Publishing

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References (36)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1366-4387
eISSN
1366-4387
DOI
10.1108/jfmpc-08-2020-0054
Publisher site
See Article on Publisher Site

Abstract

The transition of Malaysia from a developing country to a developed country was considered in vision 2020, whereby an average construction contribution of 6.0% in growth domestic product (GDP) per annum was required. Despite this importance, still, the Malaysian construction industry has not reached the target yet. Understanding the weakness and strength of this industry can be an effective way to help the policymakers in selecting the best strategy in the promotion of the Malaysian construction industry in GDP growth. Hence, the purpose of this paper is to present an overview of the current issues and challenges faced by the contribution of the Malaysian construction industry in GDP growth.Design/methodology/approachTo achieve this objective, all the latest statistical data presented by the Department of Statistic and Construction Industry Development Board in Malaysia until March 2018 being collected and interpreted. Furthermore, through the literature review, the most significant challenges encountered by the Malaysian construction industry identified, compared and presented.FindingsThe results highlight that the contribution of Malaysian construction into GDP is increasing with a gentle slope. Nonetheless, the Malaysian construction industry has a high impact on the employment rate. More investment in the construction sector is required to meet an average of 6% contribution in GDP. Also, to be able to seize new opportunities in the global construction market, more exerted efforts have to overcome the challenges faced by this industry.Practical implicationsThis study offers practical implications to policy and decision makers in the Malaysian construction industry. Despite the constant growth of the Malaysian construction industry in recent years, there is a need for more investments and overcome to challenges to encounter an average of 6% contribution in GDP. This study provides an overview and insights to investors, stockholders and managers to formulate a long-term plan promoting the efficiency of the Malaysian construction industry.Originality/valueThis study through explaining, comparing and interpreting the real statistical data, through the tables, figures and graphs, simplified the understanding of the weakness and strength of the Malaysian construction industry.

Journal

Journal of Financial Management of Property and ConstructionEmerald Publishing

Published: Jun 15, 2022

Keywords: Challenges; Malaysia; Construction industry; Issues; Economic growth; GDP

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