THE construction industry is a pivotal driver in the country's quest to attain high-income status.
Last year, labour productivity in construction had increased by 5.2 per cent, with the industry contributing significantly to the nation's economy.
The Malaysia Productivity Corporation (MPC), through the Construction and Built Environment Productivity Nexus (COBEPN), plays a key role in enhancing the construction sector's productivity through building a workforce of the future, driving digitalisation and innovation and forging a robust ecosystem.
COBEPN, led by Nexus Champion Datuk Seri Dr Michael K.C. Yam with support from industry and government representatives, is dedicated in making the construction sector more productive and competitive.
Malaysia's construction sector is currently in a significant transformation, with a primary focus on enhancing productivity, bolstering competitiveness, and promoting sustainability.
This transformation is intricately linked to the Environmental, Social, and Governance (ESG) strategy and the pursuit of Sustainable Development Goals (SDGs) designed to address climate change, with a resolute aim of achieving net-zero carbon emissions by the year 2050.
To fulfil this goal, the construction sector should adopt sustainable practices and technologies, emphasising low-carbon materials and circular economy principles.
Embracing cutting-edge technologies, such as Industrialised Building System (IBS) and Building Information System (BIM), is imperative for businesses to maintain competitiveness and successfully execute projects within established timelines and budgets. This transition needs to be rapid and widespread.
Both IBS and BIM offer more advantages that enhance project efficiency, and work quality that result in cost effectiveness.
In addition to IBS and BIM, emerging construction technologies like the Augmented Reality (AR), Internet of Things (IoT), 3D printing, Artificial Intelligence (AI) and other cutting-edge innovations present new avenues for enhancing production and efficiency in the industry.
"The adoption of Modern Methods of Construction (MMC) enhances the sector's productivity. MMC has the potential to improve overall performance in the construction sector in terms of quality, safety, cost-effectiveness, and waste reduction of building materials," said Yam.
"The adoption of new technologies is critical in achieving a net-zero carbon footprint, but the construction industry has been slow to adopt them due to cost concerns," he added.
Hence, COBEPN introduced the Productivity Step-up for Contractors Programme to help the industry players begin their digital technology journey.
The Productivity Step-up programme encourages small and medium-sized contractors to utilise technology and sustainable practices, such as low-carbon materials, energy efficiency, and circular economy principles, with a focus on inclusivity and resilience in development.
This programme aims to propel the construction industry toward a more environmentally friendly and sustainable future while aligning with Malaysia's economic and societal goals.
Contractors are given an opportunity to evaluate their performance in terms of embracing and implementing digital technologies.
This self-assessment is pivotal as it allows them to gauge their level of digital adoption and identify areas where improvements or enhancements are necessary.
It marks a critical moment in the industry where contractors can take a closer look at their digital strategies and ascertain whether they are effectively leveraging the latest technologies to streamline their operations, enhance efficiency, and remain competitive in a rapidly evolving digital landscape.
Based on the evaluation, contractors can make informed decisions, drive innovation, and stay ahead of the curve in an increasingly digital-centric environment.
Through the Productivity Step-up programme, contractors have improved the workflow of their operations by implementing the latest technology into the process.
MPC director-general Zahid Ismail said based on the participants' testimonials, they have seen great improvements by applying certain technologies to their operation process according to their needs.
Participants noted that technologies have helped them reduce their operational costs as their task is done faster and accurately.
One example of the proof-of-concept project carried out by Productivity Step-up programme participants was the use of drone technology to conduct site surveys.
The task could be done accurately and in a shorter time compared with traditional methods. As a result, the contractors were able to complete a site survey at an average of four times faster than before.
In conclusion, it is important to make the point that even though the initial financial investment required to implement new technologies may be substantial, the potential long-term benefits may significantly outweigh the costs.
Innovative technologies as a component of modern methods of construction can drive efficiency, reduce waste, streamline processes, and ultimately lead to cost savings and improved environmental performance.
This will indirectly contribute to achieving the national productivity agenda and the construction sector's productivity target growth of an average rate of 3.7 per cent per annum under the 12th Malaysia Plan.