The construction industry and the private sector assume an important role in generating wealth and improving the quality of life for Malaysians through the translation of Government’s socio-economic policies into social and economic infrastructures and buildings. The construction industry also provides job opportunities to approximately 800,000 people. Further, the construction industry creates a multiplier effect to other industries, including manufacturing, financial services, and professional services
According to the “Yearbook of Statistics 2003”, Department of Statistics, construction means “new construction, alteration, repairs and demolition. Installation of any machinery or equipment which is built-in at the time of the original construction is included, as well as installation of machinery or equipment after the original construction but which requires structural alteration in order to install
The construction industry has endured lackluster financial performance over the past five years. While GDP grew at an average rate of 5.2% from 2000 to 2005, the construction industry stagnated, recording an average growth of 0.6% over the same period. Output for the construction sector hovered around the RM 7 billion mark, but steadily shrank as a share of GDP1, from 3.3% in 2000 to 2.9% in 2005 (refer to Table 1).
The construction industry enables the growth of other industries through its role as a fundamental building block of the nation’s socio-economic development. Educational institutions, Government offices, tourist attractions, transportation infrastructure (airports, seaports, roads), housing, commercial property - all the essential elements of a healthy, functioning economy, need to be built and maintained by the construction industry.
The return of a cyclical downturn in the business cycle is the second contributing factor to the industry’s recent performance. While most businesses are subject to the ups and downs of a business cycle, the magnitude of the construction industry’s fluctuation is atypical. A review of GDP and construction growth trend over a 30-year period (1974 to2004) reveals that the business cycle swings endured by the construction industry noticeably exceed those of GDP movements as shown in the diagram below.
Value added of the construction industry strengthened further by 5.3% (Q4 2007: 4.7%) attributed to higher civil engineering, special trade works and non-residential activities. The civil engineering sub-sector registered significant growth of 10.4% (Q4 2007: 3.5%) due to higher activity in the oil and gas sector as well as the implementation of projects under the Ninth Malaysia Plan (9MP). Meanwhile, special trade works and non-residential activities expanded further by 5.0% and 2.1%, respectively (Q4 2007: 5.5%; 11.0%). On the other hand, growth in the residential sub-sector contracted by 1.2% (Q4 2007: 2.7%) due to lower housing starts.
According to the “Yearbook of Statistics 2003”, Department of Statistics, construction means “new construction, alteration, repairs and demolition. Installation of any machinery or equipment which is built-in at the time of the original construction is included, as well as installation of machinery or equipment after the original construction but which requires structural alteration in order to install
The construction industry has endured lackluster financial performance over the past five years. While GDP grew at an average rate of 5.2% from 2000 to 2005, the construction industry stagnated, recording an average growth of 0.6% over the same period. Output for the construction sector hovered around the RM 7 billion mark, but steadily shrank as a share of GDP1, from 3.3% in 2000 to 2.9% in 2005 (refer to Table 1).
The construction industry enables the growth of other industries through its role as a fundamental building block of the nation’s socio-economic development. Educational institutions, Government offices, tourist attractions, transportation infrastructure (airports, seaports, roads), housing, commercial property - all the essential elements of a healthy, functioning economy, need to be built and maintained by the construction industry.
The return of a cyclical downturn in the business cycle is the second contributing factor to the industry’s recent performance. While most businesses are subject to the ups and downs of a business cycle, the magnitude of the construction industry’s fluctuation is atypical. A review of GDP and construction growth trend over a 30-year period (1974 to2004) reveals that the business cycle swings endured by the construction industry noticeably exceed those of GDP movements as shown in the diagram below.
Value added of the construction industry strengthened further by 5.3% (Q4 2007: 4.7%) attributed to higher civil engineering, special trade works and non-residential activities. The civil engineering sub-sector registered significant growth of 10.4% (Q4 2007: 3.5%) due to higher activity in the oil and gas sector as well as the implementation of projects under the Ninth Malaysia Plan (9MP). Meanwhile, special trade works and non-residential activities expanded further by 5.0% and 2.1%, respectively (Q4 2007: 5.5%; 11.0%). On the other hand, growth in the residential sub-sector contracted by 1.2% (Q4 2007: 2.7%) due to lower housing starts.
