KUALA LUMPUR: Malaysian construction industry players have to keep up with the latest local and global trends and developments to maintain their competitive edge, says Construction Industry Development Board (CIDB) Malaysia chief executive Datuk Ahmad Asri Abdul Hamid.
Recalling the industry’s robust growth in the past 10 years, especially in terms of technology, construction methods and materials used, he adds: “For example, Singapore is heavily focused on using IBS (industrialised building system), and Malaysia’s Sunway Construction has become the IBS expert in that country.
“The value and complexity of projects are also increasing. To compete in the international market, a company needs to grow at a greater scale to ensure that it has the resources, skills, and experience to perform. To put it simply, if the company is not big enough, it will not be able to compete.”
Ahmad Asri said in an interview that in recent years, there was less demand in the domestic market due to slower economic conditions, hence creating pressure for Malaysian industry players to seek business opportunities abroad to sustain their business.
Despite slower economic conditions, he added, other factors that have affected the internationalisation of construction companies include locality, with 68% of the total projects won abroad being in Commonwealth and ASEAN countries.
This, he said, is because the laws and regulations practised in these countries were very similar to Malaysia’s.
Ahmad Asri said that CIDB has been making good progress in the internationalisation aspect of the Construction Industry Transformation Programme with several companies finding success overseas.
This is in line with the government’s aspiration to boost Malaysian construction players’ position on the domestic front as well as to gain prominence as global players on the international arena, he added.
“From 2016 until the first quarter of 2019, some 124 projects worth RM12.7 bil had been won by Malaysian companies in many countries, including in the ASEAN, South Asian and Gulf regions.
“In fact, Malaysian companies have built landmarks in other countries such as the F1 circuits in Bahrain and Abu Dhabi by WCT Engineering, Doha International Airport by Gamuda Bhd and Hamad International Airport in Qatar by Muhibbah Engineering (M) Bhd, WCT Engineering, Eversendai Corporation Bhd and a few others,” he pointed out.
Ahmad Asri said CIDB, in its role to facilitate the Malaysian players to undertake and execute projects and render services overseas, has led delegations to explore opportunities overseas that will help enhance the export of Malaysia’s construction services.
“The initiatives led by CIDB such as inbound and outbound missions, international business meetings and participation in international exhibitions serve as platforms for the local construction players to build networks, which facilitate the matching of their products, services, and innovative solutions with the needs of international buyers.
“CIDB conducts construction missions four times a year. We facilitate local players to source new clients abroad, identify potential business partners, and expand their business to an international audience. In 2018, CIDB led delegations to London, the Philippines, Indonesia and Singapore,” he added.
To further facilitate the local players in internationalising their business, Ahmad Asri said, CIDB also conducts the International Sourcing Programme (INSP), which helps identify potential foreign buyers who are interested in sourcing products or services in Malaysia.
“The potential buyers are invited to meet with local companies that are nominated and recommended by CIDB. This increases local companies’ chances in securing export deals. INSP had been conducted twice, in conjunction with International Construction Week.
“CIDB continuously engages with local construction industry players who are interested in exporting their products/services. Engagements are conducted to understand their plans and identify destinations that they are keen on for their products or services,” he added. – Bernama
