KUALA LUMPUR (Feb 15): Malaysia's construction industry is expected to record RM90 billion worth of projects for implementation this year, driven by government and private projects, said the Construction Industry Development Board (CIDB).
Its chief executive Datuk Seri Judin Abdul Karim said private financing initiatives and public-private partnerships are expected to account for the highest value of projects at RM32 billion, followed by government projects (RM24 billion), residential (RM13 billion) and other private investments totalling RM19 billion.
"This year the trend is expected to be in line with the trend for the previous four years, where construction investment by the private sector averaged at about 65 per cent," he said at the Eighth Construction Review Outlook here on Tuesday.
The event was held in conjunction with the International Construction Week 2012 programme, in which Judin was one of the panelists for the "Construction Prospect 2011/2012" presentation.
Judin said the sector is projected to continue its upward trend and is forecast to grow by 7% this year from 3.4% last year.
The implementation of entry points projects under the Economic Transformation Programme would be among the key drivers of government and private projects.
He said local contractors must adopt the industrialised building system (IBS) practice to improve their efficiency.
The usage of IBS products is still low in Malaysia and the practice was mostly used in building schools.
"Contractors are urged not to depend on low wage workers but more on productivity and quality," he said.
Judin said the use of IBS would not just reduce the number of employees, but would also attract local workers as it emphasises more on knowledged workers rather than lowly paid labour.
He said small- and medium-sized contractors, most of whom are Bumiputera, need to consolidate their businesses to be more competitive in obtaining tenders.
To date, small and medium contractors formed 90% of the country's construction industry players. — Bernama
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