KUALA LUMPUR: THE construction industry needs a continuous supply of foreign workers for infrastructure and building projects in order for it to sustain growth of eight to 10 per cent this year.
The construction industry grew 7.9 per cent in the first quarter of the year and 8.8 per cent in the second quarter, said Master Builders Association Malaysia (MBAM) president Foo Chek Lee.
“It is important that the construction industry, which has tremendous multiplier effects on other sectors, sustain this growth momentum with an adequate supply of labour, skilled technicians and timely payment for jobs done,” he told Business Times in an interview.
Malaysia’s construction sector is still labour intensive, with an estimated one million construction workers needed every year, the majority of them foreigners.
“In the first half of this year, government and private jobs awarded to contractors amounted to RM58.67 billion. As the projects roll out, we will need the human resources to complete the jobs in a timely manner.”
He estimated that about 1.3 million foreign workers were needed at construction sites throughout the country.
“We still face a shortage and we urgently need more foreign workers.”
Foo noted that the Construction Labour Exchange Centre Bhd, established in 2003 by the Construction Industry Development Board, was working closely with MBAM, Home Affairs Ministry and other agencies to facilitate legal and suitable workers for the industry.
He said the government had this year raised the foreign worker levy and minimum wages. Fuel prices are also on the rise.
The accumulative consequence is the rising cost of doing business.
“Our members are struggling to be more productive to cope with the situation,” said Foo.
There are 45 construction companies listed on Bursa Malaysia and the top five based on market capitalisation are IJM Corp Bhd, Gamuda Bhd, Sunway Construction Group Bhd, WCT Bhd and Ekovest Bhd.
Foo said financially strong contractors had always striven to be productive and cost-conscious. Wherever possible, they would incorporate the industrialised building system (IBS) in their job scopes.
He said class G7 contractors, such as Gamuda, Sunway and SP Setia Bhd, were using IBS as their jobs required usage of efficient machinery and building methods.
Foo was happy to say that the Construction Industry Payment and Adjudication Act (CIPAA) 2012 was ensuring timely completion of projects as contractors were able to get paid for the jobs done.
“The implementation of CIPAA is bringing about positive change for the construction industry. Serious problems associated with delayed payments and non-payments are being solved,” he said.
Five months ago, at the Malaysian Construction Summit 2016, Works Minister Datuk Seri Fadillah Yusof said the construction sector was expected to grow between eight and 10 per cent this year from 8.2 per cent last year, driven by government infrastructure projects.