< PreviousCOVER FEATURE opinion, the potential for long-term growth in infrastructure, affordable housing, green building, and sustainable projects remains promising. What are the key opportunities and challenges that you see for your industry in 2024? In terms of opportunities, infrastructure development, affordable housing needs, and the adoption of sustainable construction offer long-term growth potential. In terms of challenges, managing inflation, adapting to supply chain disruptions, and navigating regulatory changes will be critical. What advice would you give to businesses and entrepreneurs operating in your industry as they prepare for 2024? My advice to businesses and entrepreneurs is to embrace innovation, prioritise sustainability, be agile and adaptable, and collaborate and partner with the right people. Invest in technology, upskill your workforce, and explore new construction methods. Align your businesses with green building policies and cater to the growing demand for eco-friendly solutions. Lastly, stay informed about market trends, be ready to adjust plans, and manage risks effectively. And lastly, build strong relationships with suppliers, investors, and innovative startups to navigate the changing landscape. Richard Wong Kwan Song MBAM Vice President / Sunway Construction Sdn Bhd What are the key economic trends that you believe will shape the 2024 market outlook? I believe that the trends that will drive the industry for 2024 are in technology adoption, sustainability initiatives, and the global economic condition. How do you see the ongoing supply chain disruptions and inflationary pressures impacting the Malaysian construction industry in 2024? The effects of supply chain disruptions and inflationary pressures will likely continue to impact the industry in terms of unstable material costs and supply disruptions. This will strain project budgets, timelines and timely project deliveries. The way to navigate these challenges are with proactive strategies, collaborative efforts, and technological solutions. What technological advancements do you see having a significant impact on the Malaysian construction industry in 2024? The continued adoption of Building Information Modeling (BIM), drones for site inspections, and the expanded use of prefabrication methods are the key advancements that will revolutionise the Malaysian construction industry in 2024. These advancements promise heightened efficiency, cost reduction, and improved project management, underlining a transformative shift towards streamlined and tech-driven construction practices. How will the ongoing digital transformation reshape the Malaysian construction industry’s competitive landscape in 2024? The digital transformation will foster an increase in collaboration, improve project management through data analysis, enhance overall efficiency, all to deliver projects more effectively while adapting to changing market demand. What are the key regulatory and policy changes that you anticipate impacting the Malaysian construction industry in 2024? I believe it will largely be on sustainable development goals. What overall message would you convey to investors and stakeholders regarding the outlook for the Malaysian construction industry in 2024? competitiveness, data-driven decision- making, and attracting talents. Companies embracing digital tools like construction ERP solutions, project and document management, project collaboration platforms, and e-commerce for procurement can gain an edge. Meanwhile, utilising construction data analytics to gain insights into project performance, resource allocation, and risk management will drive better decision-making. And lastly, embracing technology can attract a new generation of tech-savvy workers to the industry, addressing the skilled labour shortage. What are the key regulatory and policy changes that you anticipate impacting the Malaysian construction industry in 2024? I am expecting policy changes related to sustainability regulations, infrastructure spending, and labour policies. We can already see some of it in the recent budget for 2024. I am expecting stricter green building mandates and incentives for energy- efficient construction, requiring a shift towards sustainable materials and practices. I also foresee potential government infrastructure projects, which could offer opportunities for construction companies, but competition will be fierce. Also, evolving policies on migrant worker quotas and automation could impact access to skilled labour. The industry needs to stay informed and adapt to comply with changing regulations. What overall message would you convey to investors and stakeholders regarding the outlook for the Malaysian construction industry in 2024? I think the Malaysian construction industry will face both challenges and opportunities in 2024. While growth may be tempered, resilience, innovation, and adaptation will be key. Companies adopting sustainable practices, embracing technology, and managing costs effectively will be well- positioned to thrive. So, invest in the future. In my 18 MASTER BUILDERS JOURNAL #130COVER FEATURE Look towards potential government infrastructure projects to drive the industry, such as the HSR and LRT in Penang. What are the key opportunities and challenges that you see for your industry in 2024? The construction industry faces a variety of opportunities and challenges. Opportunities of note are the significant demand for sustainable construction practices, digitalisation and infrastructure projects. However, challenges loom in the form of supply chain disruptions and inflationary pressures, underscoring the need, for players to be agile and employ adaptive strategies to capitalise on opportunities while navigating economic complexities. What advice would you give to businesses and entrepreneurs operating in your industry as they prepare for 2024? My advice would be multifaceted: Embrace digital transformation as a cornerstone for operational efficiency and competitiveness. Prioritize sustainability initiatives to align with the growing demand for eco-friendly practices. Bolster supply chain resilience to mitigate disruptions and navigate challenges posed by inflationary pressures. Invest in talent – our industry definitely needs high-quality talent to support the innovation and expertise needed to be competitive. And lastly, to exercise financial prudence, carefully navigating cost structures and pricing models, ensuring sustained profitability amidst market fluctuations. Eric Yong Shang Ming MBAM Vice President / Crest Builder Sdn Bhd What are the key economic trends that you believe will shape the 2024 market outlook? In 2024, we will see a new Agong from Johor. I believe there will be a push for development and infrastructure in the region, with possible revivals of the HSR and so on. There will be anticipation for the MRT3 as well. Otherwise, it will be business as usual as the government continues to push out more affordable housing. How do you see the ongoing supply chain disruptions and inflationary pressures impacting the Malaysian construction industry in 2024? The industry has seen prices increase by almost 30–40% since early 2022 until now. A lot depends on the outcome of the Hamas-Israel and Russia-Ukraine conflicts, as it directly affects the oil prices, which hit our inflation numbers. As prices are already pretty high, they are expected to remain as they are, stabilising and trending slightly upward going forward. What technological advancements do you see having a significant impact on the Malaysian construction industry in 2024? In terms of technology, the country continues to harp on industrialised building systems, which remain the most feasible ‘new’ technology in the immediate timeline. With the market going through a perceived slowdown, it’s unlikely that companies will be investing heavily in untested new technology. How will the ongoing digital transformation reshape the Malaysian construction industry’s competitive landscape in 2024? The industry continues to venture further and deeper into BIM, and there are some who will be going into management systems such as Procore and Autodesk. What are the key regulatory and policy changes that you anticipate impacting the Malaysian construction industry in 2024? So far, there have not been any major regulatory or policy changes anticipated as the current government gears towards pushing the economy into full swing. What overall message would you convey to investors and stakeholders regarding the outlook for the Malaysian construction industry in 2024? I believe that the worst is nearly over for the construction industry, and any further impacts would have been priced in previously. While there haven’t been many impactful public sector projects, the private sector has continued to push. What are the key opportunities and challenges that you see for your industry in 2024? As seen in the news, there have been a lot of foreign investments coming in, especially in the industrial sector, specifically in data centres and warehouses. I believe many developers will be heading in that direction going forward to capitalise on these investments. What advice would you give to businesses and entrepreneurs operating in your industry as they prepare for 2024? Key advice: know what you do, know your prices well, and don’t go into a price war with those who don’t. Dato’ Sri Eric Kuan Khian Leng MBAM Vice President / Fajarbaru Builder Sdn Bhd What are the key economic trends that you believe will shape the 2024 market outlook? Economic conditions and trends are 19 MASTER BUILDERS JOURNAL #130COVER FEATURE subject to change based on various factors, such as government policies, global economic conditions, and local developments. However, I can provide some general factors that typically influence construction market outlooks. Some of these include: i. Government Policies and Infrastructure Spending— Government initiatives and spending on infrastructure projects can significantly impact the construction sector. Policies supporting construction and development projects can stimulate market growth. According to Bank Negara’s report for Q3 2023, the recovery in the construction sector was slower, especially in the residential and civil engineering subsectors. This was due to elevated building material costs and lingering labour shortage issues. Pre-existing structural issues also remain a drag, such as property overhangs and housing demand-supply mismatches. Growth for the construction sector is expected to be 6.3% in 2023, and the projection for 2024 is 6.8%. The progress of infrastructure projects, including catalytic initiatives under the various national plans, will support the construction sector’s ongoing recovery. Based on Budget 2024, the government intends to roll out several big-ticket projects like Pan Borneo Sabah Phase 1B (RM15.7bil), flood mitigation packages worth RM11.8bil, Penang LRT (RM10bil), Sabah-Sarawak Link Road (RM7.4bil), and LRT3 reinstatement (RM4.7bil). ii. Global Economic Conditions—The nation’s economy is expected to remain resilient, with a forecasted 4% to 5% GDP growth in 2024 (2023, 4%). However, economic conditions globally can affect demand for construction projects. Factors such as geopolitical tensions, trade relationships, global market trends, and economic stability can influence investor confidence and construction activity. iii. Technology Adoption and Innovation—The adoption of new construction technologies and innovative practices can shape the industry. Embracing advanced construction methods and materials may impact the competitiveness and efficiency of the market. iv. Sustainability and Green Construction—Increasing awareness of environmental issues may drive demand for sustainable and green construction practices. This includes energy-efficient buildings, eco-friendly materials, and adherence to green building standards. How do you see the ongoing supply chain disruptions and inflationary pressures impacting the Malaysian construction industry in 2024? i. Material Costs—Ongoing supply chain disruptions can lead to increased costs for construction materials. Delays in the production and transportation of materials may result in shortages, driving up prices. This can impact project budgets and timelines. ii. Inflationary Pressures and Cost Escalation—Inflationary pressures can contribute to overall cost escalation in the construction industry. Rising prices for labour, materials, and energy can increase project costs, potentially affecting profit margins for construction companies. iii. Impact on the Housing Market and Affordability Concern—Inflation and rising construction costs may contribute to concerns about housing affordability. Higher costs for materials and labour can lead to increased home prices, potentially affecting the demand for residential properties. iv. Technology Adoption and Efficiency Solutions—In response to cost pressures, the construction industry may accelerate the adoption of technology and innovative practices to improve efficiency and cost-effectiveness. What technological advancements do you see having a significant impact on the Malaysian construction industry in 2024? The construction sector is undergoing a significant transformation by embracing the digital revolution. Conventional methods are giving way to cutting-edge digital tools that revolutionise the conceptualisation, execution, and management of projects. Malaysia’s construction industry needs to make a transformative journey, utilising technology to pave the path for a more promising future. For the industry at large, the main key technologies that continue to be focus of adoption are Building Information Modelling (BIM), Augmented Reality (AR) and Virtual Reality (VR), Drones and Unmanned Aerial Vehicles (UAVs), Internet of Things (IoT), Robotics and Automation, Prefabrication and Modular Construction, Sustainable Construction Technologies, and 5G Technology. i. BIM—BIM is a modelling technology that enables the creation and management of digital representations of the physical and functional characteristics of buildings. It facilitates collaboration among stakeholders, improves project efficiency, and enhances decision-making throughout the construction lifecycle. BIM projects can assist in decreasing the carbon footprint in the construction industry. BIM software is able to provide energy consumption data for a building. You can use this energy data as vital information to make decisions on how to properly manage the energy cycle of the building. Thus reducing the carbon footprint. ii. AR and VR—AR and VR technologies are being used in construction for design visualisation, project planning, and on-site training. These immersive technologies enhance the understanding of complex projects, improve communication, and support training programmes. iii. Drones and UAVs—Drones are employed for surveying, mapping, and monitoring construction sites. They provide real-time data, improve site inspection efficiency, 20 MASTER BUILDERS JOURNAL #130COVER FEATURE and enhance safety. Aerial surveys and monitoring can also aid in project planning and progress tracking. iv. Internet of Things (IoT)— IoTdevices, such as sensors and connected equipment, are used for monitoring and collecting data on construction sites. This data can be leveraged for better project management, equipment maintenance, and overall site safety. v. Robotics and Automation—Robotic systems are increasingly being used in construction for tasks such as bricklaying, 3D printing of structures, and autonomous machinery operation. Automation can improve efficiency, reduce labour costs, and enhance safety. vi. Prefabrication and Modular Construction—Prefabrication and modular construction techniques involve assembling components off-site before transporting them to the construction site. This approach can significantly reduce construction time, costs, and waste. BIM software is an integral aspect of prefabrication. For instance, if you have a coordinated BIM model, you can easily prefabricate components that will fit together on the installation site. vii. Sustainable Construction Technologies—The construction industry is increasingly adopting sustainable technologies, including energy-efficient building designs, eco-friendly materials, and renewable energy integration. viii. 5G Technology—The rollout of 5G technology can enhance connectivity and communication on construction sites. This is particularly beneficial for real-time data transfer, remote monitoring, and the use of IoT devices. How will the ongoing digital transformation reshape the Malaysian construction industry’s competitive landscape in 2024? The Malaysian construction industry stands to undergo a substantial transformation through digitalisation, bringing about streamlined processes, enhanced collaboration, and heightened efficiency throughout every phase of a construction project. This represents a pivotal transition towards a more data-driven, customer- centric, and collaborative approach to construction endeavours. The ongoing revolution in the industry is not only reshaping practices but also directing a focus towards sustainability. The integration of digital tools, particularly within platforms like Building Information Modelling (BIM), offers opportunities to optimise design and construction workflows, efficiently manage building materials, and curtail waste through reduction and recycling. Ultimately, this leads to the optimisation of building designs, energy consumption, and material utilisation in the constructed environment. What are the key regulatory and policy changes that you anticipate impacting the Malaysian construction industry in 2024? In Malaysia’s pursuit of achieving a net-zero target by 2050, there will be a heightened emphasis on incorporating low-carbon and climate- resilient components in the country’s development planning. This strategic approach aims to mould a more efficient and sustainable economic landscape. Within the framework of the National Energy Transition Roadmap (NETR), the government is committed to expediting the energy transition process and ensuring a consistent and sustainable provision of clean energy to meet the needs of all. The construction industry is experiencing ongoing expansion, buoyed by growth across all its subsectors. This is, in part, attributed to the rising demand for renewable and clean energy, aligning with the objectives of decarbonisation and the broader green economy agenda. What overall message would you convey to investors and stakeholders regarding the outlook for the Malaysian construction industry in 2024? Investors and stakeholders should be optimistic about the outlook for the Malaysian construction industry in 2024 and beyond. The sector is poised for continued growth, driven by expansion in various subsectors. Key factors contributing to this positive outlook include increasing demand for renewable and clean energy projects and a commitment to decarbonisation in alignment with the green economy agenda. The industry’s continuous expansion presents lucrative investment opportunities, especially for those interested in sustainable and environmentally friendly projects. As Malaysia focuses on achieving its net-zero aspirations by 2050, the construction sector will likely play a pivotal role in shaping a more efficient and sustainable economic landscape. It is advisable for investors to closely monitor developments in renewable energy initiatives, infrastructure projects, and sustainable construction practices, as these areas are expected to be significant drivers of growth. Additionally, staying abreast of government policies and regulations related to the construction industry will provide valuable insights into the evolving landscape. Overall, the Malaysian construction industry in 2024 holds promise for those looking to invest in a sector that aligns with both economic growth and environmental sustainability goals. What are the key opportunities and challenges that you see for your industry in 2024? Key Opportunities for the Construction and Property Development i. Renewable Energy Projects: Growing demand for renewable energy presents opportunities for construction firms to engage in the development of solar, wind, and other sustainable energy projects. ii. Smart Infrastructure: The rise of smart cities and infrastructure offers prospects for incorporating advanced technologies, enhancing efficiency, and creating modern, connected urban spaces. iii. Green Building Initiatives: Increased emphasis on sustainability may drive demand for eco-friendly construction methods and materials, offering 21 MASTER BUILDERS JOURNAL #130COVER FEATURE opportunities for companies to specialise in green building practices. iv. Digital Transformation: Leveraging digital technologies like Building Information Modelling (BIM), augmented reality, and virtual reality can enhance project planning, design, and collaboration, leading to increased efficiency. v. Affordable Housing: Meeting the demand for affordable housing remains a persistent opportunity, with government initiatives and private investments contributing to this sector’s growth. Key Challenges for the Construction and Property Development Industry i. Supply Chain Disruptions: Global events and disruptions to the supply chain can impact the availability and cost of construction materials, affecting project timelines and budgets. ii. Regulatory Changes: Changes in regulations and policies can pose challenges for construction firms, requiring them to adapt quickly to new compliance standards. iii. Labour Shortages: The industry may face challenges related to skilled labour shortages, potentially leading to project delays and increased labour costs. iv. Economic Uncertainty: Economic fluctuations and uncertainties may affect funding and financing for construction projects, influencing the feasibility of certain developments. v. Environmental Compliance: Stricter environmental regulations may add complexity to construction projects, requiring compliance with green building standards and sustainable practices. Navigating these opportunities and challenges will require a proactive approach, with industry players staying abreast of technological advancements, regulatory changes, and market dynamics to ensure sustainable growth and success in 2024. What advice would you give to businesses and entrepreneurs operating in your industry as they prepare for 2024? As businesses and entrepreneurs in the construction and property development industry prepare for 2024, here are some key pieces of advice: i. Embrace Sustainability—Prioritise sustainable practices and green building initiatives. Consider integrating eco-friendly materials, energy-efficient technologies, and environmentally conscious design principles into your projects. ii. Invest in Technology—Embrace digital transformation by investing in construction technologies such as Building Information Modelling (BIM), project management software, and other innovative tools. This can improve efficiency, reduce costs, and enhance collaboration. iii. Stay informed on regulations— Keep a close eye on regulatory changes and compliance standards. Understand the evolving legal landscape, especially in terms of environmental regulations, safety protocols, and building codes, to avoid potential setbacks. iv. Build Strong Partnerships—Cultivate strong relationships with suppliers, contractors, and other stakeholders. Reliable partnerships can contribute to smoother project execution, better negotiation power, and enhanced overall resilience. v. Prioritise Risk Management— Develop comprehensive risk management strategies. Identify potential risks associated with your projects and establish contingency plans to mitigate the impact of unforeseen challenges. vi. Focus on Innovation—Encourage a culture of innovation within your organisation. Foster creativity and be open to adopting new construction methods, materials, and technologies that can set your projects apart. vii. Customer-Centric Approach— Maintain a customer-centric approach. Understand the evolving needs and preferences of property buyers. Offering personalised solutions and a positive customer experience can contribute to long- term success. Yeoh Keong Yuan MBAM Treasurer-General / Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd What are the key economic trends that you believe will shape the 2024 market outlook? There’s a palpable sense of anticipated growth in Malaysia, offering abundant opportunities in the construction industry. Recently, Malaysia has seen growth in the industrial sector, and coupled with the government’s push towards digitalisation, I believe that the different industries—not just construction—will have to move forward together in order to stay ahead of the curve. How do you see the ongoing supply chain disruptions and inflationary pressures impacting the Malaysian construction industry in 2024? Addressing the challenges of supply chain disruptions and inflation is a priority for us. We’re navigating these hurdles by making informed decisions on where and how we source materials and manpower. We highly value local partnerships, and our strategic integration of technology ensures that we have real-time data on project performance and needs, keeping our projects on track even when faced with industry-wide challenges. What technological advancements do you see having a significant impact on the Malaysian construction industry in 2024? 22 MASTER BUILDERS JOURNAL #130COVER FEATURE I’m really excited about the tech advancements happening—basically, upgrades to what we already have. Thanks to artificial intelligence (AI), progressing technologies like Building Information Modelling (BIM) and drones are true game-changers. They shake up how we do projects. BIM is all about teamwork in design and construction, making things smoother, and cutting down on mistakes. And then there are drones—they can now bring some serious precision and aerial insights, speeding up work and saving costs. By jumping on board with these cutting-edge technologies, we are able to become more efficient and pave the way for the future of construction in Malaysia. How will the ongoing digital transformation reshape the Malaysian construction industry’s competitive landscape in 2024? The ongoing digital transformation is fundamentally altering the competitive dynamics of the Malaysian construction industry. It’s a paradigm shift—no longer can construction companies rely solely on traditional brick-and-mortar methods to stand out. The key now is not just to adapt but to transform over time. Integrating artificial intelligence (AI), the Internet of Things (IoT), and cloud tools is an absolute necessity. This digital integration goes beyond merely managing projects better; it’s about creating a more collaborative, agile, and responsive construction process. What are the key regulatory and policy changes that you anticipate impacting the Malaysian construction industry in 2024? Following the announcement of Budget 2024, it’s clear that the government is committed to substantial spending on infrastructure. Not just traditional infrastructure but digital infrastructure. With the recent announcements on data centres and renewable energy, I see the government being very interested in turning Malaysia into a digital and green energy hub in the region. This isn’t just to enhance the day-to-day for the rakyat but also to solidify our standing as one of the more economically progressive countries in the region. What does this mean for the construction industry? It means we are poised for an injection of projects and tenders, which in turn promotes growth through healthy competition. What overall message would you convey to investors and stakeholders regarding the outlook for the Malaysian construction industry in 2024? To investors and stakeholders, our message remains grounded in the YTL core value of “Building the Right Thing.” Yes, challenges exist, but our optimism keeps us hungry. As my previous answers have shown, I believe that the construction scene in Malaysia is brimming with exciting opportunities. At YTL Construction, we are embracing innovation and adaptability so that we can continue building a good future for future generations. What are the key opportunities and challenges that you see for your industry in 2024? We are presented with opportunities in sustainable or green construction, particularly in the use of green construction materials and processes. For example, working with YTL Cement, we have introduced eco- cement and concrete to all our construction projects. This enables us to build in a more sustainable manner. Collaboration within the industry is so important for this; we need to balance the needs of the construction industry while catering to evolving client expectations. What advice would you give to businesses and entrepreneurs operating in your industry as they prepare for 2024? My advice may sound easier said than done, but here’s my two cents. Embrace innovation, whether it’s technology that boosts efficiency or exploring new ways of doing things. And stay adaptable. The ability to pivot in response to changes in regulations and market dynamics will be the key differentiator for any company looking to succeed in this dynamic industry. Lee Chun Fai Group Chief Executive Officer & Managing Director, IJM Corporation Berhad What are the key economic trends that you believe will shape the 2024 market outlook? In 2024, we anticipate the Malaysian construction industry to be shaped by a combination of increased government spending on infrastructure and a revitalised private sector, especially in industrial property developments, supported by the New Industrial Master Plan 2030. The Madani Economic Framework and Budget 2024 have placed the construction industry at the forefront of transformative economic measures. Notable allocations include RM27 billion for infrastructure projects, RM24.7 billion for people’s housing projects, and RM2.8 billion for federal road and bridge maintenance. Among the major government projects in 2024 are the Mass Rapid Transit Line 3 (MRT3), the Penang LRT, the East Coast Rail Link, and flood-mitigation projects in the Klang Valley. Additionally, the revival of mega infrastructure projects, such as High-Speed Rail, on a Private Finance Initiative (PFI) basis is anticipated to enhance economic dynamism for both Malaysia and Singapore while reflecting a shift towards innovative financing models in the undertaking of these large-scale infrastructure projects. Malaysia has also seen a strong resurgence of industrial property developments since the COVID-19 pandemic. These projects include new manufacturing plants, particularly in the electrical and electronics subsector, large logistic hubs to cater to the surge in e-commerce, and data centres to cater to the growing demands of A.I. 23 MASTER BUILDERS JOURNAL #130COVER FEATURE and cloud computing. Overall, the combination of government initiatives, private sector revival and a focus on sustainable, technology-driven practices under the New Industrial Master Plan 2030 is poised to drive significant growth and transformation in Malaysia’s construction industry in the near term. How do you see the ongoing supply chain disruptions and inflationary pressures impacting the Malaysian construction industry in 2024? Considerable supply chain disruptions were felt during and immediately after the pandemic. However, vendors and subcontractors have since been able to resume their respective operations to full capacity, and we do not foresee any major supply chain bottlenecks in 2024. Arising from the rebound of construction activities post-pandemic, the sector did experience building material price increases, particularly cement and quarry products. However, it’s important to note that the increase in the price of building materials, including sand and ready- mixed concrete, has posed challenges to the industry. For instance, the price of sand rose to RM45 per tonne in March 2024, up from RM42 per tonne in early 2023. Similarly, the cost of ready-mixed concrete increased by 18% to RM230 per cubic meter (m 3 ) in March 2024, compared to RM195 per m 3 in January 2023. These rising material costs have impacted project budgets and may lead to cost increases for end users. Effective cost management strategies are essential to navigate these challenges successfully. What technological advancements do you see having a significant impact on the Malaysian construction industry in 2024? The significant technological advancements poised to impact the Malaysian construction industry in 2024 include smart construction practices like Building Information Modelling (BIM) and the use of prefab and modular systems such as the Industrialised Building System (IBS). These technologies are crucial for meeting tight timelines and reducing dependence on foreign labour. Additionally, there will be a heightened emphasis on enhancing safe-work systems to minimise hazards and risks in construction methodologies. IJM’s SMART Industrialised Building System (IBS) exemplifies our commitment to innovation, delivering projects faster while reducing waste and ensuring high-quality output. Integrated construction methodologies like system formwork further enhance productivity and safety on-site. Our investment in automation and robotics, including drones for site monitoring and automated turnstiles for access control, underscores our commitment to efficiency and safety. While IoT, AI, and BIM are significant industry trends, our focus remains on practical applications of technology that directly enhance construction practices. Equally important is building the capacity of our workforce in digital and automated construction methods, ensuring optimal project outcomes. How will the ongoing digital transformation reshape the Malaysian construction industry’s competitive landscape in 2024? The ongoing digital transformation in the Malaysian construction industry is reshaping its competitive landscape significantly. At IJM, we are actively engaged in capacity and capability building to stay competitive in this evolving digital landscape. IJM’s engagement in this shift is evident through our digital initiatives, including our MyIJM and IJMeDMS (electronic document management system) apps, which are designed to optimise project site management. These in-house developed apps not only streamline communication and approval processes but also consolidate vital updates on safety, inspections and productivity into a cohesive mobile platform. Digital technology streamlines processes, enhances planning, communication, and coordination among stakeholders, resulting in fewer errors and projects staying on schedule and within budget. It also improves efficiency by enabling better data collection, analysis, and decision- making. Through IoT, sensors, drones, and surveillance cameras, we gain real- time oversight of construction sites, identifying challenges before they escalate. Overall, digital technology drives positive change, improving performance, efficiency, collaboration, safety, and sustainability. Embracing this transformation is crucial for shaping a more competitive and resilient Malaysian construction industry in 2024. What are the key regulatory and policy changes that you anticipate impacting the Malaysian construction industry in 2024? We anticipate several key regulatory and policy changes that will impact the Malaysian construction industry in 2024. Firstly, the implementation of the 8% Sales and Services Tax (SST) may lead to a minor increase in material costs. Additionally, professional fees will increase from 6% to 8%, impacting project budgets. Moreover, the introduction of e-invoicing requires compliance by August 2024, necessitating supply chain adjustments and system updates. These changes highlight the need for proactive adaptation to evolving regulations to maintain competitiveness and ensure sustainable growth. As we prepare for these changes, we are also aligning our practices with the growing shift towards sustainability in construction building materials and practices, as well as with digital adoption and labour policies. This approach not only ensures compliance with new regulations but also positions us as leaders in setting industry standards. These regulatory shifts provide an opportunity to strengthen our commitment to ethical practices, worker safety and environmental stewardship. By staying ahead of regulatory trends, we aim to lead in compliance, innovation, and sustainable construction practices. What overall message would you convey to investors and stakeholders regarding the outlook for the Malaysian construction industry in 2024? 24 MASTER BUILDERS JOURNAL #130The outlook for the Malaysian construction industry in 2024 is optimistic. It is poised for growth, driven by increased government spending, private sector participation and technological advancements. I believe investors already recognise this. Since the start of January 2024, the Bursa Malaysia Construction Index has risen by 9.0%. This follows the strong performance of a 25.8% increase in 2023, reflecting the industry’s strong growth momentum. Infrastructure projects and sustainability initiatives are key focal points for growth, showcasing the industry’s adaptability and commitment to innovation. A strong balance sheet and a proven track record of successful project execution are essential for sustained success in this competitive environment. While there is a clear need for critical infrastructure development, it is also apparent that the government is trying to balance its financial position and approach infrastructure development in a more fiscally responsible manner. Part of the prioritising of public projects would mean that the pace of project roll- outs may be more measured, but at the same time, at a more sustainable rate. The longer visibility of project pipelines therefore bodes well for the industry’s continued participation in the Malaysian economy. What are the key opportunities and challenges that you see for your industry in 2024? Opportunities: The post-pandemic economic recovery is gaining momentum. For the construction sector, this has translated to healthy project pipelines of both public and private sector projects in the near term. As the Malaysian government balances the country’s fiscal position and keeps disciplined in prioritising which large-scale projects to embark on, it will also necessitate the need for innovative financing structures. This should lead to a healthy pace of large infrastructure projects being carried out in the country that should support broad participation in the construction supply chain as well as promote the sector’s economic participation in the years to come. COVER FEATURE Another important theme that is gaining its rightful prominence in the industry is sustainability. With the built environment accounting for more than one-third of all CO2 emissions, it is vital that we work together to reduce the carbon footprint of our sector. As the journey is uncharted, requiring a long lead time and the cooperation of many actors, it presents both sizeable opportunities and challenges. If not already, then many in the sector should use 2024 to start building their strategies on how to take advantage of this paradigm shift towards a low- carbon model. As a start, sector players can assess their respective carbon footprints, increase productivity and accuracy on-site in order to reduce waste and, in turn, carbon emissions, and encourage their respective supply chains to adopt low-carbon alternatives to gradually progress along their low- carbon journey. The need for construction to embrace technology to improve efficiency and quality is not new, but the industry has not yet managed to streamline our processes to take full advantage. By embedding technologies into a company’s operations—design, project planning, safety, quality and record- keeping—we will be able to enhance the reputation of the industry and keep up with the other sectors that have made better progress in digitalise. In today’s landscape, artificial intelligence, particularly generative AI, is a game- changer and there are compelling reasons for the industry to embrace AI and become more data-driven on site and within the organisation. The supply chain also needs to upskill themselves in technology and digital transformation as a means to reduce our dependence on foreign labour. Challenges: However, amidst these opportunities, the Malaysian construction industry faces its share of challenges. Keeping pace with evolving regulatory changes is a significant hurdle. Compliance with new standards, especially those related to sustainability and digital adoption, will require adjustments in construction practices and new skills to be developed. Finally, intense competition is a perpetual challenge in the construction sector. Maintaining a competitive edge in terms of quality, efficiency and pricing is an ongoing endeavour for companies like IJM. In summary, the Malaysian construction industry in 2024 will be a dynamic landscape marked by both opportunities and challenges. To thrive in this environment, companies must engage in strategic planning, innovation and adaptability to navigate the path to success. What advice would you give to businesses and entrepreneurs operating in your industry as they prepare for 2024? • Embrace digital transformation: invest in technologies like BIM and automation for improved efficiency and project outcomes. • Prioritise sustainability: Sustainability is no longer just a buzzword; it is a market demand. Focus on sustainable construction practices, green building materials and energy-efficient designs. • Enhance safety measures: Invest in advanced safety technologies, training programmes, and integrated safety systems to minimise risks and ensure the well-being of your workforce. • Invest in human capital: Equip your team with the necessary skills for the digital age. Focus on capacity and capability building to leverage advanced technologies effectively. • Manage costs: Implement efficient cost management practices to ensure projects stay within budget. • Innovate for growth: view challenges as opportunities for innovation. Identify areas where you can differentiate your business, whether through technological advancements, sustainable solutions, or unique value propositions. Our advice to fellow businesses and entrepreneurs in the construction industry as we embark on 2024 is to embrace agility, technological innovation and sustainability. These principles are not just the keys to success in 2024; they are the foundations for thriving in the future construction industry. 25 MASTER BUILDERS JOURNAL #130Next >