Use of industrial building techniques required. Industry benefits from infrastructure projects.
By Achim Haug, U.S. Trade & Invest in Kuala Lumpur
The Malaysian construction industry is hoping for a better order situation. Although they could benefit from the economic stimulus packages, the industry suffered in the 2008-09 economic crisis. In the course of the 10th Malaysia Plan infrastructure projects beckon, however. So far, relatively labor to the construction sector is to become a technologically first-rate, internationally competitive cement industry. The stated objectives are implemented so far, however inadequately.
LRT of Kuala Lumpur, Malaysia
According to the Malaysian Building Committee (Construction Industry Development Board CIDB) were in March 2010 a total of 64 547 building contractors ("Contractors") registered, 80 percent of which were active on the market operate. Most major foreign construction companies in Malaysia maintain representative offices. They usually offer their technology in consortia, together with Malaysian construction companies. In May 2010 137 foreign construction companies were registered with the CIDB, including 31 from Japan, 27 from Singapore, 13 from China and - to fifth - nine German.
Total 4333 larger companies with capital of more than 750,000 ringgit (almost 184 000 €, 1 € = 4.08 ringgit, three-month funds) registered. You can apply without restrictions on projects of all sizes, and this also applies to foreign companies. The main contractors are WCT (turnover tax year 2009: 4.5 billion ringgit), Gamuda (2009: 2.2 billion ringgit), Zelan (2009: 1.8 billion ringgit), IJM (2010: 1.4 billion . ringgit) and Ranhill (2009: 1.3 billion ringgit).
The gross value of construction was according to the statistics office in 2009 around 21.2 billion ringgit, to 19.6 billion. Ringgit a year earlier. According to Frost & Sullivan in 2015 to approximately 28.9 billion. Ringgit can be achieved. The number of projects remained relatively stable compared to 2009 with 6145, 2008, the volume fell against it. For example, a project totaling 62.2 billion. Ringgit reached about one-fifth less than in 2008. The value of government contracts went here in 2009 also declined, but increased their share of the total project volume significantly to around 50 percent since the measures were still down more private. Overall, the construction industry, however, survived the crisis better than other sectors in 2009 and recorded a real growth of 5.7 percent. For 2011 and 2012, expects the Malaysian Institute of Economic Research, a slowdown to 2.3 or 3.3 percent.
At the end of ninth Malaysia Plan (2005 - 2010) held in the public sector with new projects back sooner. Coupled with the global economic crisis in 2008 and 2009, therefore, weak years for the construction industry. The presented in June 2010 10 Malaysia Plan (2011 - 2015) contains a number of major projects again. 52 projects for a total of 62.7 billion ringgit are provided with priority. Among them are seven highway routes, two coal-fired power plants, the expansion of a public transport system and infrastructure improvements for multi-modal transport. With implementation beginning in 2011 is therefore an improved construction market expected.
For 2010 are also still many major awards. Dam projects and the Pahang-Selangor water transfer have already been awarded, a new low-cost carrier terminal and the LRT station in Kuala Lumpur expansion and other transport infrastructure projects are imminent. Especially could move into the focus in the years to East Malaysia Sarawak by the initiated there, "Sarawak Corridor of Renewable Energy (SCORE). It was based on large hydropower plants and to attract heavy industries such as aluminum and manganese melts. The expansion of associated transport infrastructure is planned. Four other "corridors" are to be developed, especially Iskandar Malaysia in Johor stands out because of the high capital expenditures.
The market in Malaysia is characterized by an excess supply of construction services. The companies respond to growing with activities abroad. Major construction companies are committed to success, particularly in other Asian countries in the Middle East and North Africa. 2009 focused on three major projects in Saudi Arabia for 70 percent of the total volume of all foreign projects.
In addition, the company asks the government for some time on to mergers. The businesses employ about 760 000 workers. Officially, 70 percent of registered workers foreigners, are estimated to have 95 percent. In order to stabilize the labor market in crisis, new and old work permit freeze is not extended. This continued for many industries, especially the construction industry.
Excess capacity also characterize the situation in the building material and cement manufacturers. The cement industry has an installed capacity of approximately 28.5 million years tons. In 2009 it produced 19.5 million tonnes, about as much as in 2008, but about 10 percent less than in 2007. The domestic demand for cement has been moving in 2003 between 15 million and 17 million tonnes. The ready-mixed concrete production fell from 10.4 million tons in 2007 to 7.5 million tonnes 2009th To counter impending price increases due to rising global commodity prices, since 2008 the import regime for building materials, especially steel and cement has been liberalized. Most investments in the construction industry flow in the maintenance and modernization of facilities.
Malaysia and construction companies are dependent on the import of machinery. The few domestic manufacturers produce only small machines, and these usually on a license basis. Largest supplier of cement in Japan. The Japanese producers also have the widest network of dealers and service stations. Import licensing requirements for construction equipment imports have been abolished by 2009. The Master Builders Association of Malaysia calls for next to lower the import duties and sales taxes on construction equipment to advance the modernization of industry.
Professionals and public agencies to warn for years to raise the productivity and the introduction of faster and more efficient production processes in the Malaysian construction industry. A more industrial in character design and the use of modern technologies, including construction equipment, is required by the CIDB. So far delayed the implementation of modernization programs - for example the Industrialised Building Systems (IBS) Roadmap - but strong. According to one analysis, only used 10 percent of completed construction projects in 2006 IBS, target was 50 percent. One reason is seen in the availability of cheap foreign labor. As a long-term challenges facing the sector market observers call quality problems in the provision of construction services, the lack of own research and development activities, low productivity and lack of availability of local staff.
Sustainable or "green" building in Malaysia is also a buzzword in the public debate, probably to the wide use but still have a long way to go. The government has created in 2009 with the introduction of "Green Building Index" a standard for voluntary certification, which is coupled with financial incentives. Architects are currently looking for developers but not yet ready to bear the higher investment. In July 2010, seven projects have been certified.
