11/05/2021
CURRENT CONSTRUCTION INDUSTRY TREND IN MALAYSIA
The Malaysian construction industry has been greatly affected because of a disruption caused by a pandemic of Corona virus (Covid-19). Global Data estimates that industrial output shrank 17.2% by 2020, because construction activities were brought to many parts of the country, due to the impact of Covid-19 detention measures. According to the Malaysian Department of Statistics (DOSM), the added value of the state in 2015 the constant price fell 21.3% (YoY) in the first three quarters of 2020. During this period, the work of civil engineering was the most affected, followed by non-housing activities and housing.
This industry is expected to post sharp recovery in 2021, assuming that there was no repetition of existing detention steps in 2020, with growth supported by investment in transportation and energy projects. The industry is expected to grow 9.8% by 2021 and register an annual increase in the range of 6.0-6.6% between 2022 and 2025. In mid-December 2020, the government approved a budget of 2021 worth MYR322.5 billion (US $ 73, 3 billion (US $ 73.3 billion)), which was the largest in the country's history and 2.4% higher than last year's budget MyR314.7 billion (US $ 76 billion). Of the total budget, 73.3% was allocated to operational expenditure, 21.4% of development expenses, and the remaining 5.3% headed for dealing with Covid-19.
Industrial growth during the estimated period will be supported by recovery in economic conditions, coupled with investment in infrastructure, renewable energy, and housing, telecommunications, and water infrastructure projects. As part of the budget of 2021, the government allocated a total MyR9.6 billion (US $ 2.2 billion) to the Government of Sabah and Sarawak to improve road, power and water infrastructure projects, and improve the health and education of facilities. The government's target will also encourage the growth period growth to produce 20% of its energy from renewable energy sources in 2025 and the target of building one million housing units for low income at the end of 2029.
Construction in the Malaysian industrial profile provides top qualitative and quantitative summary information including: market size (2015-19 value, and estimates of up to 2024) with positive progress in the development of vaccines, the Malaysian economy briefly projected to rebound with growth between 6.5% for 7, 5% this year. The construction industry is expected to grow by 13.9% this year, as the main infrastructure and affordable housing projects revived and accelerated to meet deadlines. Most growth is expected to be triggered by domestic investment. The investment and development of the country in Penang, Johor and Negeri Sembilan will also help improve the construction industry in 2021.
The prospect of the construction industry seems more optimistic after the budget proposed 2021 was launched on November 6, 2020.
Pep Chia, Director of Associate Construction, Property & Engineering at Randstad Malaysia said, "The annual budget is always a driving force for the construction industry. The National Infrastructure Project will also direct the state government and local business to focus their investment and resources on the development of the business center and City, raised the overall construction industry. "
The work that will be problematic in the construction industry in 2021 is in contract management, tender management, assessment and quality control and project management. General technical skills sought by employers include BIM, IBS, and quality assessment systems in construction (QweLassic) and construction quality assessment system (Conquas).