INTRODUCTION The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works.

During a period of rapid economic expansion, the sector generally outperforms Gross Domestics Product (GDP) growth. However, during an economic downturn, the sector tends to undergo a sharper correction. During the previous cycle of construction boom in Malaysia between 1989-1997, the construction sector recorded an average growth of 14.3% vis--vis economic growth of 9.2%. The implementation of several large-scale projects such as Kuala Lumpur International Airport, Petronas Twin Towers, Sepang International Circuit, and the development of Putrajaya and Cyberjaya contributed to the construction boom during this period.

From 2000 to 2006, following the completion of large-scale projects, the construction sector experienced stagnated growth, particularly after the Asian Financial Crisis. During this period, construction grew marginally by 0.7%. However, the sector has improved

during2007-2011 with an average growth rate of 5.9%, boosted by construction new infrastructure projects such as the low-cost carrier terminal (LCCT), Jabur Kuala Terengganu East Coast Expressway and electrified double-tracking rail between Seremban Gemas and Ipoh Padang Besar as well as the acceleration of low and medium cost housing projects initiated by the government. The sector was also boosted by the implementation of the government stimulus package during the global financial crisis in 2008/2009. During the first half of 2012, the sector expanded strongly by 18.9% supported by strong activities in the residential and civil engineering subsectors. Going forward, the sector is expected to experience a robust growth given the many construction projects in the pipeline or under implementation such as the MY Rapid Transit (MRT), River of Life, Tun Razak Exchange (TRX), Bandar Malaysia at Sungai Besi, LRT extension and the Rubber Research Institute of Malaysia (RRIM) land development in Sungai Buloh.

Malaysia Construction Performance from 2006 to 2012(June) Due to the recommendation from System of National Accounts 2008 (SNA 2008) statistical framework, the Department Of Statistics, Malaysia (DOSM) has rebased the National Account Statistics from year 2000 to year 2005, effective from 2012, the national account in constant prices will based on 2005 prices. To enable a better presentation of Malaysia construction sector performance, the entire statistic below (GDP) will be present at constant 2005 prices. The bar chart below shows the Gross Domestic Product in Malaysia and output value of construction sector between the year 2006 until June 2012, at constant 2005 price.

GROSS DOMESTIC PRODUCT (AT CONSTANT 2005 PRICE) FROM 2006 TO 2012(JUNE)
800 700 674.9 600 573.9 500 RM billion 400 GDP 300 200 100 0 2006 2007 2008 2009 Year 2010 2011 2012(June) 363.0 610.1 639.6 629.9

709.3

OUTPUT VALUE OF CONSTRUCTION SECTOR (AT CONSTANT 2005 PRICE) FROM 2006 TO 2012(JUNE)
25

20 17.4 16.0 18.2 19.3

20.4

21.4

RM billion

15

10

11.9

Output value of construction sector

0 2006 2007 2008 2009 Year 2010 2011 2012(June)

Generally, The GDP is showing a rising trend from 2006 to 2011, except for year 2009 I showing a slightly dropping, the same pattern is shown on output value of construction sector, it has been increase continuously from year 2006 until 2011. During the year of 2006, The GDP recorded the number RM573.9 billion, compare to the year before, it has increase RM 30.3 billion, or 5.5%. In that number, construction sector share 2.8% of the total GDP, which record a number of RM16.0 billion, compare to year 2005, it was dropping about 0.6% from the previous output value RM16.1 billion. During the first six month of 2006, the output value was recorded contracted by 1.1% due to continued slow down on the civil engineering sub-sector. However, the contraction was slowdown by benefitting from the implementation of 9th Malaysia Plan (9MP) project scheduled in 2006. Thus at the end of the year, the growth of construction sector is recorded -0.6%. In the year of 2007, despite uncertainty in the global economic environment, the GDP still able to grow at 6.3% to RM610.1 billion, and construction sector share 2.9% of

the total value. For the construction sector, the scheduled implementation of 9MP projects and improvement in the property market has boosted the construction sector, the construction sector has record a significant growth of 8.8% and achieved the number RM 17.4 billion. This expansion was largely led by increased civil engineering activity, following by the implementation of 9MP projects. For year 2008, the slowdown of the United States economy and high crude oil prices are adversely impact to Malaysia economy performance. However, the GDP is able to achieved a growth of 4.8% with a number of RM 639.6 billion, and construction sector shared 2.8% from the total value, which was contract by 0.1% compare to year 2007. On the other hand, the construction sector remains a positive growth of 4.6% and achieved output value of RM 18.2 billion at the end of the year. This is mainly benefit from higher civil engineering, special trade works and residential activities in the year. In the year of 2009, Malaysia being an open economy is adversely affected with exports contracting sharply, following the global financial crisis and economic downturn, and this has cause a slightly decline in Malaysia GDP. In 2009, Malaysia GDP recorded a negative growth of 1.5% and was contract by RM 9.7 billion, and achieved RM 629.9 billion at the end of year 2009. However, the construction section manage to achieve a positive growth in the financial crisis, this is due to strong performance of residential, non-residential and special trade works sub-sector. This was driven by implementation of various projects under the stimulus packages, which among others, include building low and medium cost houses as well as upgrading, repairing and maintenance of public buildings and rural roads. At the end of the year, the output value of construction sector recorded RM 19.3 billion, which has grow 6.0%, and achieved a share of 3.1% from GDP, which has increase 0.3% compare to 2008. During the year of 2010, the Malaysia economy has been strongly recover from the global financial crisis in 2009, and has experienced a stable growth for each sector. The GDP has grow significantly by 7.1% and recorded the value of RM 674.9 billion at the end of the year, and construction sector shared 3.0% from the total value in 2010. The construction sector still experiencing a stable growth of 5.7%, and recorded RM 20.4 billion at the end of the year. This expansion was largely led by increased civil

engineering and non-residential activities following the speedy implementation of construction projects under 9MP and the stimulus packages. As for year 2011, the Malaysia economy continues to expand, the GDP has recorded with the value of RM709.3 billion at the end of the year, which achieved a 5.1% growth. From this value, construction sector shared 3.0% from it. For construction sector, the output value recorded RM 21.4 billion with a growth of 4.9% , this is led by the recovery in residential construction as well as increased activities in the non-residential sub-sector, and by the end of year 2011, the growth of construction sector was supported by the acceleration of 10MP projects. For the first six month in year 2012, the economic has shown a stable growth although the global economy is expected negatively as the euro debt crisis shows no signs of abating, and the slowdown of emerging economies were point to weakening global economy prospects. The GDP growth has recorded 5.4% compare to the corresponding period in year 2011, and achieved a value of RM 363.0 billion for the first six month from January to June, and construction sector shared 3.3% from the total amount, it is the highest record among the few years before. For the output value of construction sector, RM 11.9 billion is recorded for the first six month, it shows drastically growth of 19% compare to the corresponding period in year 2011, it is the fastest pace since 1995. This impressive performance was underpinned by robust construction activity in the civil engineering and residential sub-sector.

GROWTH OF GROSS DOMESTIC PRODUCT AND CONSTRUCTION SECTOR FROM 2006 TO 2011 (AT CONSTANT 2005 PRICE)
10

6 Percentage (%) GDP 4 Construction Sector

0 2006 -2 2007 2008 2009 2010 2011

-4

Year

The chart above shows the growth of GDP and output value of construction sector. The growth of construction sector shows a stable pattern since 2008, and has achieved a stable growth in 2009 despite the impact of global financial crisis, and is expect to continue growth for year 2012.

Part 2 PUBLIC SECTORS ROLE IN MALAYSIAN CONSTRUCTION INDUSTRY To enable a conducive and vibrant economic environment The transition to sustainability are discussed for each of five stages in the life cycle of the built environment: urban planning; project design; the manufacture of building materials and products; construction and maintenance and management. When these trends are evaluated in terms of the economic, social, and environmental components of sustainability, a number of issues become apparent. Differing forms of environmental sustainability are evident in all five stages of the life cycle, although environmental factors should not be overlooked in development, driven as it is by a sense of urgency to create economic growth.

Economic sustainability is most readily observed in the construction phase through the empowerment of emerging contractors, employmentintensive practices, and training initiatives for construction workers.

To facilitate growth and competitiveness of the industry and the Private Sector There are opportunities overseas but there are challenges too. Need to secure financing for company going overseas. Opportunities to foster closer co-operation among the construction contractors and thereby promote joint ventures and joint operations for enhancement of Malaysian construction contracting capabilities and also to help promote mutual consultation among construction contractors and thereby encourage exchange of information and know-how for improvement of construction technology and management, upgrading of construction labour skills and standards. Promotion of Malaysian construction services overseas through international trade exhibitions.

 To support the countrys manpower needs The massive roll-out of projects will require numerous skilled workers, both local and foreign to ensure its successful completion, considering the complexity and fast-track nature of the projects. There is an urgent need to provide quality construction industry-based training to meet the construction industrys needs especially for the up skilling of the current local construction workforce. The Government to train local workers to replace foreign workers as well as to reduce the total number of foreign construction labour to 200,000 by 2015 as per the Governments long term policy on reducing the reliance on foreign workers. Need to stop flow of competent human resources out of the country, especially in the professional, managerial, supervisory and skilled labour segments of the construction job markets. Need to breed interest in construction related careers and to do this Government should continue to teach construction related skills in vocational schools. Industrialized Building Systems (IBS), Mechanization and other labour saving methodologies must be encouraged in order to drive yield of construction workers to achieve a higher income economy. Need to prepare for free flow of workers within ASEAN countries by 2015. To enhance the quality of life of Malaysian citizens. Residential and neighborhoods satisfaction is an important indicator of housing quality and condition, which affects individual quality of life. The factors, which determine their satisfaction, are essential inputs in monitoring the success of housing policies. The Malaysian government under its 5 year National Plan has introduced the low, medium and high cost housing categories. To provide Malaysians of all income levels, particularly the low-income groups, accessibility to adequate, affordable and quality shelter. It

provides direction to housing development in the country which should emphasis human settlement of better quality of life, national integration and unity.

PRIVATE SECTORS ROLE IN MALAYSIAN CONSTRUCTION INDUSTRY Undertake Urban Facilities Project Private sector has higher financial strength and technical capabilities as compared to public sector. Examples of financial projects are power plants, hospitals tolled roads, airports and so on. Under the Economic Transformation Program, the government has allocated RM20 billion Facilitation Fund to encourage private sector to undertake infrastructure projects which are advantages and profitable without burdening citizens. Reduce wastage of time, money and energy without affect the quality of the outcome.

Public Private Partnership (PPP) Malaysia is the Asean leader in formulating policies on using public-private partnerships (PPPs) to finance and develop infrastructure, according to Philippines-based Asean Constructors Federation chairman Jorge Consunji. ( The Star). The concept of Critical Success Factors (CSFs) was first introduced by Rockart and the Sloan School of Management (Jefferies et al., 2002 and Hardcastle et al., 2005). Rockart (1982) defined CSFs as those few key areas of activity in which favourable results are absolutely necessary for a particular manager to reach his or her own goals. Critical success components are crucial in order to find out key features an organizations should take notes so that the project can be well done. The key elements of a PPP infrastructure had been identified as: Investment in public infrastructure and provide related non-core services by the private party. The government keeps the responsibility for the delivery of core services. The government and private party co-operate under long-term contracts or arrangement. Government shall enhance the life-cycle costs of the infrastructure projects because the private party involved would be responsible for the maintenance, operation and construction of the project which is under PPP. Advantages of Public Private Partnership are Early project delivery Value for money and reduce financial risk Access to upgraded services Gains from innovations

Number of Projects and Value Awarded According to Sector

In the year 2001, the number of project awarded by government was RM26.01 billion exceed the private sector that was RM 24.99 billion. However, the number of project and value awarded decrease in year 2002, and remain steadily at RM48 billion to year 2003. A slight increase occurred to the next year in 2004 about RM14.84 billion for the government and RM38.16 billion for the private sectors. The trend of the graph goes same to the year 2005 as it increase to RM55 billion affected by 33% increase for the government sectors project compared to private sector which decrease to 67% from 72%. As the year 2006, the value grows to RM61 billion from the incensement of private sectors for about 3% from the past year, whilst the government undergoes decrement from 67% to 64%. In 2007, a steep increment occurred from RM61 billion to RM93 billion which is due to the large grow of governments project for 16% indicated by RM48.46 billion value awarded. As it goes to 2008, the graph drops slightly to RM81 billion in-total caused by decreasing value of 8% to the government sectors but a credit to the private sectors for the risings of 6%.

 New project investments had decreased, in tandem with the global economic momentum. CIDBs record as at 31 December 2009 shows that projects with total value of RM57.2 billion were awarded in 2009, a decrease of 29.5% in terms of value as compared to RM81.1 billion of projects awarded in 2008. The decrease in the value of projects secured was due to the decline in private investments, which was affected by the global economic crisis. This was evident in the distribution of projects according to sectors in 2009 which saw a balanced demand for construction from the Public sector which amounted to RM28.4 billion and demand from the Private sector amounting to RM28.8 billion and contributed 50.0% to the total construction work value annually. This is in contrast to the number of projects awarded in 2008, where the Private sector projects contributed 56.4% to total value of projects awarded. This is in accordance with the nature of the construction sectors activity which functions as the catalyst and stimulates the movement of other economic sectors. Malaysia has implemented the RM67 billion economic stimulus packages, where approximately RM22 billion was spent for the construction sector which had contributed towards an increase in the Government sectors projects. CIDBs records also indicates that the RM134.2 billion Government projects spent during the four-year period of the 9MP (2006 2009) had surpassed the Governments project value of RM102.2 billion spent under the 8MP.

Part 3 Introduction Nowadays, with Malaysia stepping into the 21st century and coming closer and closer to achieve the status of a developed country, the programs of resources development will therefore become the main aim to ensure that every citizen can gain benefits from it. Today, the development of economic which based on knowledge will affect the trend of the growth of the demand of the labor at the future. So, the priority will be given to the chances of education and practice which have quality to support the development of economic based on knowledge (K-Economic) which have been planned in the Rangka Rancangan Jangka Panjang Ketiga (RRJP3) (Dasar Wawasan Negara, Rangka Rancangan Jangka Panjang ketiga. The important of the labors especially in construction field cannot be denied since our country is faced with shortage problems. As an effort to solve this matter, the government is forced to build many institutions such as technical school etc. in order to train and produce more professional labors to support the increasing demand in our country. Labor is one of the most important factors in construction industry besides capital, machine and material. The labors in construction sector can be categorized to 3 main groups that are general workers, semi-skilled and skilled labors. So far now, our country is importing foreign workers from foreign countries to support the lack of the local workers. One of the reasons for labor shortage is due to the lack of local participation. This is because of the narrow- minded thinking of the society which viewed labor job as unprofessional. Hence, our government has also carry out some efforts to overcome this matter through the Construction Industry Development Board Malaysia (CIDB) by giving RM15 Million to train 18 000 local skilled labors in construction industry. Construction Labors in Malaysia Construction process needs 4 main resources that consist of capital, labor, machine and materials. These resources need to be managed efficiently to ensure the cost wont increase because of the wastage of the resources. Besides that, the resources of the labors

can be categorized into 3 main groups also, skilled workers, semi-skilled workers and untrained workers.

1) General Workers This kind of worker does not have any skills or expertise in doing construction works. Generally, this kind of worker just starts their works in construction field or become assistant to the skilled workers and semi-skilled workers in doing construction works. So, the supplies of general workers are easier to get compared to semi-skilled and skilled workers. However, general workers still have chance to improve their statuses by obtaining finesses to become semi-skilled workers and skilled workers. The mastership can be obtained through a long time working experiences. 2) Semi-skilled workers This kind of workers usually works with skilled workers at construction site even though their skills level is not as high as skilled workers who are efficient and make many decisions about the way of the works. Generally, this kind of semi-skilled worker is trained in institutions like IKBN, ABM and IKM. They work in construction sector not more than 3 years.

3) Skilled workers Skilled labors are workers that have their expertise and skill in a particular work, which they are specified into. Normally, they have a certain level of knowledge about the work scope. Besides that, skilled worker can be defined as a worker where his or her ability is to produce a good quality product and his or her expertise has been qualified. Furthermore, someone who had become pioneer in construction field for a few years and expert in that field can be said as skilled worker. Examples of skilled labors are bricklayer, glazier, plumber, roofer, drain layer, painter, welder, concreter, bar bender, carpenter, masonry, tile fixer and plasterer. Normally the expertise that own by skilled workers are easily obtain from working experiences, knowledge and talents Someone can be defined as skilled worker if he or she has at least 3 years working experiences and pass his or her pioneer period. The salary gained by skilled workers are much higher that unskilled and semi-skilled workers. To become a skilled worker, he or she need a long time to learn all the knowledge needed. So as reward, the payment to skilled workers are the highest compared to the other 2 kinds of worker.

Labour Rates
Labors (workers) are classified into 3 established labors classifications with different base rate follows: 1) General workers serves as a benchmark 2) Skilled labor receives a certain percentage more than general workers 3) Supervisor -receives a certain percentage more than skilled labor and sometime receives fixed amount on top of the base of the skilled labor and also known as kepala.

NUMBER OF FOREIGN WORKERS IN MALAYSIA CONSTRUCTION INDUSTRY, 2006-2008

Year
Sector Maid Manufacturing Plantation Construction Services Agriculture Total
r

2006
Total

2007
% 16.6 34.6 18.9 14.3 8.9 5.6 100
Total

2008
% 15.4 35.9 16.5 14.4 9.8 8.1 100
Total

% 14.2 35.3 16.2 14.9 10.3 9.1 100

310,662 546,412 354,124 267,809 166,829 123,373 1,869,209

314,296 733,372 337,503 293,509 200,428 165,698 2,044,805

293,359 728,867 333,900 306,873 212,630 186,967 2,062,596

NUMBER OF FOREIGN AND LOCAL WORKERS IN MALAYSIA CONSTRUCTION INDUSTRY, 2006-2008

2006
TOTAL Foreign Worker s Local Worker s TOTAL %

2007
TOTAL %

2008
TOTAL %

267,809 487,391 755,200

35.5 64.5 100

293,509 463,791 757,300

38.8 61.2 100

306,873 451,527 758,400

40.5 59.5 100

Source: Ministry of Home Affairs From year 2006 to year 2008, state shows that the number of labors in construction industry increases .The worrying sight is that the growth in number of foreign workers is contrasting to the declining in number of local workers involved .This shows the heavy and heavier reliance on foreign workers in our construction industry.

GENDER INEQUILITY

The gender inequality issue is not uncommon and can still be observe even at this modern age in almost every known industry. This issue is even obvious when it comes to the construction industry, which was always been regarded as the heavier, testosterone oriented sector and unsuitable for the famine.

Labor Force Participation Rates by Gender 1995-2006

Gender 1995

1996

1997

1998

1999

2000

2004

2005

2006

Total

64.5

65.8

66.6

64.3

64.3

65.4

64.4

63.3

63.1

Male

83.8

84.8

85.7

83.4

83.4

83.0

80.9

80.0

79.9

Female

44.3

45.8

47.4

44.2

44.2

47.2

47.3

45.9

45.8

Source: Economic Report 1999/2000, 2003/2004, 2006/2007

However, when compared to the past decades, the womens labor force participation rate has increased over the years, but as shown by the data, still significantly lower than that of men. Many companies still prefer hiring men as women are seen as high risk group, likely to get married and raised children (Ahmad, 1998).

We know that construction industry needs many labors or workers to work because of the tough works that need a lot of workers to complete the work right on time. So, we can do a research to investigate the number of worker who comes from local and foreign based on the report that we gained. From the report, we can see that most of the labors in construction field come from foreign countries. The foreign labors are come from Indonesia, Bangladesh, Philippines, Thailand, Pakistan and others. However, there are also illegal foreign workers works in our country construction field.

Conclusion The rapid development of the country causes the construction industry to rely mainly on foreign workers due to the high demand of labor that are unable to satisfy. The lack of local labors caused the government to give permit to more than 500 000 foreign workers in order to fulfill with the current demand of Malaysias construction industry. From the investigation, it clearly shows that the construction field has been monopolized by the foreign workers. Most of the construction work trends done by foreign workers are concreting, carpentry and metal-working. Trends works which are easily done such as concrete pouring, steel bending and plastering are giving to the unskilled workers. On the other hand, local construction labors dominate trends such as carpentry works, tile job and painting. This is because most of the local construction labors are skilled labor which is well trained. Most of the local contractors also preferred and are willing to hire experienced and skilled local construction workers for such tasks. Generally, the work trends with the most number of labors working on site are carpentry work trend, brick work, plastering, mental-working and concreting.