ABSTRACT
The Malaysian construction industry has consistently contributed to the economy. Its growth rate fluctuates between extremities that vary from as high as 21.1% in 1995 to as low as -24% in 1998. In the whole year of 2007, the construction sector expanded 4.6% which is the highest growth since 1999. The construction sector strengthened further in the first quarter of 2008 by achieving a growth of 5.3% as compared to 4.1% in the first quarter of 2007. However, it eased to 3.9% in the second quarter 2008 and moderated further to 1.2% in the third quarter 2008. The moderation was influenced by the slower growth in Civil Engineering sub-sector and weaker activity in residential segments amidst higher prices of building materials. Measures were taken by the Government to drive growth in the construction industry, which has been contracting over the last five years. Amongst them was the introduction of Private Financing Initiative (PFI) under the 9th Malaysia Plan as a new measure under the privatisation programme to increase opportunities for the private sector to participate in infrastructure and utilities development. On 6 August 2008, the Government announced several provisions to allow variations in the contract value of government projects to assist contractors to cope with escalating prices of construction materials. Several measures to improve the delivery system for the construction sector, including expediting approvals, streamlining processes and introducing self-regulatory system were also taken. The breakdown of work done by type of construction for 2004 (based on the latest official statistics available) is shown below.
