AS Malaysia strives to elevate its economic status and become a high-income nation, the construction industry has emerged as a crucial catalyst for this transformation.
The construction sector is recognised for its significant contribution to the country's economy and development, and holds immense potential for propelling the country towards its goals.
Last year, the construction industry's labour productivity, which is assessed as value added of employment, increased by 5.2 percent to record a value of RM38,575 per person, compared with 2021, when it decreased by -4.3 per cent to RM36,669 per person.
However, when compared with the performance of other sectors, construction's labour productivity performance for last year still lags behind.
The Malaysia Productivity Corporation (MPC) drives improvements in productivity and competitiveness in an all-encompassing manner at the national, sectoral, and corporate levels.
This is done through five strategic thrusts, which are building workforce of the future, driving digitalisation and innovation, making industry accountable for productivity, forging a robust ecosystem, and securing a strong implementation mechanism.
Eleven Productivity Nexuses have been established to assure an improvement of productivity at the sectoral level based on the trusts identified to raise national productivity.
The Productivity Nexus is directed by a prominent figure in the relevant industry, and it receives support from government, private and academic institutions.
The Construction and Built Environment Productivity Nexus, also referred to as COBEPN, is one of the Productivity Nexuses that was established under MPC and is responsible for driving the sector's productivity.
COBEPN was founded with the objective of reforming the construction industry in Malaysia into one that is one that is more productive, competitive, and sustainable so that it may contribute to the expansion of Malaysia's economy and the improvement of its social wellbeing.
Malaysia's resolute commitment to fostering productivity and bolstering its global competitiveness has yielded exceptional results, as evidenced by its rise from 32nd to 27th position in the IMD World Competitiveness Ranking 2023.
COBEPN's vision of ensuring more environmentally friendly and sustainable construction in Malaysia is in line with MPC's ESG Corporate Strategy, which was launched on Jan 27.
This strategy is a plan that directs MPC and the 11 Productivity Nexus to apply ESG to their sectors and accomplish the 17 Sustainable Development Goals (SDGs) set by the government.
One of the main goals of the ESG strategy and the SDGs is to achieve net zero carbon emissions by 2050, which is the national target to fight climate change and its impact.
The implementation of new technologies plays a pivotal role in our journey towards achieving a net-zero carbon footprint.
"These technologies offer innovative solutions and opportunities for reducing emissions and enhancing sustainability in various sectors, including the construction industry," said MPC deputy director general Zahid Ismail.
However, despite the potential benefits, the sector has been slow to adopt such technologies due to perceived cost implications especially for small-sized contractors.
One of the reasons for the industry's reluctance to embrace technology is the concern about increased expenditures.
Many construction companies are hesitant to invest in new technologies as they see them as an additional financial burden. The initial costs associated with implementing these technologies, such as purchasing and installing new equipment or training staff, can be significant.
This financial strain creates a lack of motivation or urgency among industry players to adopt technological advancements in their building activities.
To address this challenge, it is essential to raise awareness among industry players about the long-term benefits and potential cost savings associated with technology adoption.
Thus, the development of Digital Roadmaps that serve as a guide to help the government, business, and academia in the construction industry respond to the rapid changes leading up to the Fourth Industrial Revolution (IR4.0) is one of the activities carried out by MPC through COBEPN to encourage the adoption of technology.
This Digital Roadmap targets one of the four main enablers that underpin Construction 4.0, which are People, Integrated technology, Governance, and Economy respectively.
To get ready for digital transformation, these documents show what has to be done on each enabler and how they may be improved.
The roadmap also includes instructions on how to get started and outlining activities towards embracing digital transformation.
"In our commitment to support contractors on their digital journey, MPC has introduced the Productivity Step-Up for Contractors programme. This initiative aims to empower the sector by promoting the adoption of technology and driving productivity improvement," added Zahid.
This was done to ensure that the players in the industry begin their digital journey. The programme aims to help small- and medium-sized contractors to improve their performance
and competitiveness.
It also encourages the contractors to adopt more sustainable practices and technologies, such as using low-carbon materials, enhancing energy efficiency, and promoting circular economy.
Circular economy is a concept that aims to minimise waste and maximise resource efficiency by designing products and systems that can be reused, repaired, recycled, or regenerated.
By participating in the Step Up programme, contractors can also ensure that their development is inclusive, equitable, and resilient, and that it leaves no one behind.
This means providing affordable and quality housing for the low and middle-income groups and developing sustainable cities that cater to the needs of diverse communities.
In conclusion, Zahid said it is worth noting that while the upfront costs of adopting new technologies may be significant, the long-term benefits can greatly outweigh the initial investment.
Innovative technologies can drive efficiency, reduce waste, streamline processes, and ultimately lead to cost savings and improved environmental performance.
The Productivity Step-Up for Contractor programme is a game-changer for the construction sector in Malaysia, as it helps contractors to improve their performance and competitiveness, as well as to adopt more sustainable practices and technologies, and to ensure inclusive, equitable, and resilient
development.
Quote: These technologies offer innovative solutions and opportunities for reducing emissions and enhancing sustainability in various sectors, including the construction industry.
Zahid Ismail
MPC deputy director general