MALAYSIAN ECONOMY AT A GLANCE

Introduction CHAPTER 1

CHAPTER 2
CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL

Introduction 16
Construction Projects 16
Contractors 31
Construction Personnel 33

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 15

CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Introduction/ Construction Projects
Introduction
Overall, construction activities expand well despite the moderate
economic growth in 2016. The emphasis in strengthening the
public infrastructure under the Eleventh Malaysian Plan (11MP)
were seen in the large volumes of infrastructure projects being
awarded during the second half of 2016. Non-residential and
residential projects moderated following peaks experienced in
2014, while social amenities projects were stable. The statistics
are based on data as of 31 March 2017, and is subject to changes
on adjustments made after 31 March 2017.
Apart from SHASSIC and QLASSIC, CIDB have launched the
Malaysian Carbon Reduction and Environmental Sustainability
Construction Projects
A total of 6,547 projects to a value of RM176.3 billion were
recorded in 2016. The value of projects jumped by 25.3%
to RM176.3 billion (2015: RM140.7 billion). In contrast, the
numbers of projects contracted by 12.4% to 6,547 projects
(2015: 7,478 projects). Almost a third of construction projects
awarded in 2016 are located in W.P. Kuala Lumpur. Selangor was
the second state with the highest value of construction projects.
Sarawak rose to the third position with its Pan-Borneo highway
construction packages. For this analysis, construction projects
refers to projects awarded to main contractors, with a value of
more than RM500,00.
Projects by the Government and
Private Sector
Government projects refers to projects awarded by government
agencies, such as federal government, state government and
statutory bodies which are incorporated under the Act of
Parliament. On the other hand, private projects were projects
originates from company, cooperation and organisation registered
with the Companies Commission of Malaysia (SSM), Registry of
Societies Malaysia (RoS) and Malaysia Co-Operative Societies
Commission (SKM). In Sabah and Sarawak, the registration of
sole proprietorship/ partnership of companies falls under the
responsibility of the respective local authorities.
16 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017
Tool (MyCREST) on 12 May 2016. The tool is used to
quantify and reduce the impact of carbon emissions to
the built environment. In the Construction Industry
Transformation Programme (CITP), MyCREST is monitored
under Environmental Sustainability thrust, initiatives E2: Drive
compliance towards environmental sustainability ratings and
requirements. MyCREST covers three phases of the built
environment, which entail the design assessment, construction
assessment and operation and maintenance assessment. In total,
there are 11 criterion in the assessment, which covers new and
existing building. For existing buildings, MyCREST certification
are renewable on a 3 yearly interval.
The proportion of projects between the government and private
sector stands at 28.0% against 72.0% in 2016. The government
sector registered an almost 100% increase to RM48.6 billion
(2015: RM24.7 billion), while the private sector increased by
10.1% to RM127.7 billion (RM116.0 billion). In contrast, the
number of projects for both government and private sectors
contracted by 8.9% and 13.6% to 1,720 and 4,827 projects
respectively (2015: 1,888 and 5,590 projects).
The private sector remains the main contributor of construction
projects in 2016. However, the private sector portion was lower
in comparison to the annual value from 2011 to 2015. During
2011 to 2015, at least 80% of the construction projects came
from the private sector. The low share corresponds to the weak
economic climate. This was more pronounced in the commercial
and industrial segments under non-residential projects. In
the meantime, the jump in the government sector share was
attributed to the Pan-Borneo highway packages awarded in the
second half of 2016.
For projects worth more than RM100 million, a total of 269
projects with a value of RM122.7 billion were registered. Out of
this, the private sector accounted for 202 projects worth RM85.4
billion and the government sector had 67 projects worth RM37.3
billion.
 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects CHAPTER 2

Figure 2.1 | Value of Projects by Sector Figure 2.2 | Numbers of Project by Sector

Source: CIDB Source: CIDB

The five largest private projects were four infrastructure
projects and a commercial project. The infrastructure projects
were included in the private sector as it is being developed
through the Private Public Partnership (PPP) initiative. This
was evident in the Mass Rapid Transit (MRT) projects, as a
measure of ensuring accountability and faster implementation.
Unsurprisingly, the five largest government projects were
dominated by infrastructure projects. The increase in the
government projects was also due to the implementation of the
electrified double tracking between Gemas and Johor Bahru
project, which incidentally is the largest project in the
government sector.

Table 2.1 | Five Major Private Projects

Note : The 10 major private projects in 2016 are listed in Appendix 2.1.a
Source : CIDB

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 17

 CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects
Table 2.2 | Five Major Government Projects
Note : The 10 major government projects in 2016 are listed in Appendix 2.1.b
Source : CIDB
Projects by Category
Apart from the private and government sectors, construction
projects are also categorised into non-residential, residential,
infrastructure, and social amenities. Almost half of the
Figure 2.3 | Value of Project by Category
Source: CIDB
Non-Residential
Overall, non-residential projects had the second highest value of
projects. Non-residential projects were affected by the economic
slowdown in 2016. The commercial and industrial subcategory
registered lower value of RM16.0 billion (38.9%) and RM16.5
billion (40.1%) respectively. On the other hand, the performance
of administrative/ office space stood at RM6.7 billion (16.3%),
18 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017
construction projects in 2016 came from infrastructure at RM87.2
billion (49.5%), against non-residential projects with RM41.1
billion (23.3%) residential projects at RM40.1 billion (22.7%),
and social amenities’ projects at RM7.9 billion (4.5%).
Figure 2.4 | Numbers of Project by Category
Source: CIDB
travel and leisure at RM0.4 billion (1.0%) and others at RM1.5
billion (3.6%). Compared with the value registered in 2015, each
subcategory posted a lower value and numbers of projects except
for others. In 2016, the five major non-residential projects awarded
comprise of 2 commercial complexes, 1 administrative/ office
space and 2 in others category. Three of these projects were located
in W.P. Kuala Lumpur, while the rest were in Johor and Sarawak.
 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects CHAPTER 2

Figure 2.5 | Non-Residential Projects by Subsector

Source: CIDB

Table 2.3 | Five Major Non-Residential Projects

Note : The 10 major non-residential projects in 2016 are listed in Appendix 2.2.a.
Source : CIDB

Residential by terraced houses at RM7.6 billion (19.0%); others at RM5.0

The value of residential projects registered a moderate RM40.1
billion (2015: RM47.1 billion). The private sector still commands
the larger portion at RM38.9 billion (97.0%), against RM1.2
billion (0.3%) by the government sector. The scarcity of land in
urban areas resulted in apartment & condominium leading in this
project category with RM24.2 billion (60.3%). This was followed
billion (12.5%); semi-detached houses at RM2.5 billion (6.2%);
and bungalow at RM0.8 billion (2.0%). The largest residential
project awarded was in Selangor, while W.P. Kuala Lumpur
continues to be the coveted location with eight major residential
projects.

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 19

 CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects

Figure 2.6 | Residential Projects by Subsector

Source: CIDB

Table 2.4 | Five Major Residential Projects

Note : The 10 major residential projects in 2016 are listed in Appendix 2.2.b.
Source : CIDB

Infrastructure
The value of infrastructure projects almost tripled in 2016.
Unsurprisingly, transportation projects were in the lead with
RM72.0 billion (82.5%) in this category. Next were the utility
(RM12.1 billion; 13.9%), drainage and sewerage (RM2.5 biilion;
2.9%) and disaster prevention projects (RMRM0.6 billion;
0.7%). A total of 1,784 infrastructure projects were registered in
2016, with 901 projects (50.1%) from the transportation projects
alone. This could be explained by the implementation of 12
MRT2 projects packages worth RM5.8 billion and 8 Pan Borneo
projects’ packages worth almost RM13.0 billion. The largest
infrastructure projects were the MRT2, followed by the electrified
double tracking projects in Gemas and the power plant project in
Alor Gajah.

20 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects CHAPTER 2

Figure 2.7 | Infrastructure Projects by Subsector

Source: CIDB

Table 2.5 | Five Major Infrastructure Projects

Note : The 10 major infrastructure projects in 2016 are listed in Appendix 2.2.c.
Source : CIDB

Social Amenities
The social amenities’ projects increased by 43.6% to RM7.9
billion (2015: RM5.5 billion). The category ranking saw little
change, with education at the top with RM2.9 billion (36.7%),
health at RM2.5 billion (31.6%), public amenities at 1.3 billion
(16.5%) and other projects at RM1.2 billion (15.2%). The
upgrading works on a Bukit Jalil complex charted the highest
value for a social amenities project in 2016. Other social
amenities projects were a composition of upgrading, extension,
renovation, maintenance and other type of projects. In social
amenities project category, the ratio of private to government
sector contribution stands at 1 to 3.

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 21

CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects

Figure 2.8 | Social Amenities Projects by Subsector

Source: CIDB

Table 2.6 | Five Major Social Amenities Projects

Note : The 10 major infrastructure projects in 2016 are listed in Appendix 2.2.d.
Source : CIDB

Projects by Location In general, private sector projects continue to dominate most

Construction projects awarded in 2016 were mainly concentrated
in W.P. Kuala Lumpur (30.1%; RM53.1 billion), Selangor (17.8%;
RM31.4 billion) and Sarawak (13.0%; RM22.9 billion). It came
as no surprise since W.P. Kuala Lumpur and Selangor remain
preferred choices for construction projects. The higher value in
Sarawak arose from the Pan Borneo highway which is aimed at
developing the infrastructure and economy in the rural areas.
Construction progress in the 5 upcoming years is expected to
transform rural Sarawak, offering greater benefit for the people.
states. This is especially true for W.P. Kuala Lumpur (94.9%;
RM50.4 biilion), Melaka (92.5%; RM7.1 billion), Selangor
(89.3%; RM28.0 billion), Johor (89.2%; RM15.5 billion) and
Kedah (81.9%; RM2.0 billion). In contrast, government sector
was in the lead in Negeri Sembilan (83.3%; RM10.1 billion) and
Sarawak (80.0%; RM18.3 billion). In terms of numbers, Selangor
(21.2%; 1,392 projects), Johor (16.8%; 1,097 projects) and W.P.
Kuala Lumpur (10.0%; 655 projects) had the most construction
projects.

22 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects CHAPTER 2

Figure 2.9 | Value and Numbers of Project by States

Source: CIDB

Figure 2.10 | Government and Private Projects by States

Source: CIDB

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 23

 CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects
Figure 2.11 | Value of Projects by States
Source: CIDB
Johor
Johor ranks fourth, with a 9.9% share or RM17.4 billion worth of
projects. Both non-residential and residential projects contribute
to nearly 80% of the projects in Johor, at RM8.9 bilion and RM5.0
billion respectively. Infrastructure and social amenities projects
led the rest at 20.3%. Approximately RM2.6 billion of projects
awarded in Johor were related to the development of the Refinery
and Petrochemical Integrated Development Project (RAPID). The
top 4 largest projects were made up of various EPCC RAPID
projects in Pengerang, while the rest were a mix of commercial
and residential projects (Appendix 2.4.a).
Kedah
A total of RM2.5 billion or 1.4% construction projects were
awarded in Kedah. Private sector projects dominated construction
activities as reflected in the 7 out of 10 largest projects in Kedah.
Non-residential made up more than half of the projects (57.5%;
RM1.4 billion), followed by residential projects (22.3%; RM0.6
billion); infrastructure projects (10.8%; RM0.3 billion) and social
amenities projects (9.3%; RM 0.2 billion). The largest project in
24 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017
Kedah was the proposed factory at Kulim Hi-Tech Industrial Park,
with an estimated cost more than RM0.4 billion (Appendix 2.4.b).
Kelantan
With a value of RM1.6 billion for 2016, Kelantan contributes less
than 1% towards construction projects awarded. The share of
construction projects between the government and private sector
stands at 53.6% and 46.4%. Whilst the portion between the four
categories seems to be evenly distributed with non-residential
(26.8%; RM0.43 billion); residential (26.6%; RM0.42 billion);
infrastructure (26.8%; RM0.43 billion) and social amenities
(19.8%; RM0.32 billion). A total of 3 projects from residential,
commercial and social amenities projects, with 1 infrastructure
project rounded up the top 10 largest projects in Kelantan
(Appendix 2.4.c).
Melaka
At RM7.7 billion, and contributing 4.4% to the overall value were
construction projects located in Melaka. Most of the construction
projects were infrastructure (53.5%; RM4.1 billion); and non-
 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
residential (34.1%; RM2.6 billion). The rest were residential and
social amenities projects (12.4%; RM1.0 billion). The jump in
construction projects’ value could be attributed to the gas turbine
project in Alor Gajah, which was also the largest construction
project in Melaka. Aside from the largest project awarded in
2016, the rest of the projects in the top 10 hi-valued projects in
Melaka were under RM1 billion. (Appendix 2.4.d).
Negeri Sembilan
In fifth position was Negeri Sembilan, with a share of 6.9% or
RM12.2 billion of projects value. The large share of government
projects in Negeri Sembilan (83.3%) was due to the electrified
double track project from Gemas to Johor Bahru, which was
also the largest project in Negeri Sembilan. This project also
contributed to the large share in the infrastructure category
(83.3%; RM10.1 billion) compared to the other categories
(16.7%; RM2.2 billion). The other top 10 projects in Negeri
Sembilan were comprised of smaller projects, each with a value
of under RM0.3 billion (Appendix 2.4.e).
Pahang
On the basis of construction value, Pahang fell to eight position
(4.0%; RM7.0 billion). The share of private and government
projects stood at 75% and 25% respectively in 2016. This shows
from the share of non-residential (59.1%; RM4.2 billion) and
infrastructure (19.1%; RM1.3 billion) projects awarded. At the
lower end were residential (17.1%; RM1.2 billion) and social
amenities projects (4.5%; RM0.3 billion). The largest project
awarded in 2016 was the steel mill plant in Kuantan (Appendix
2.4.f).
Perak
Perak had a share of 1.9% or RM3.3 billion of projects awarded
in 2016. Unlike in 2015, the projects in Perak were driven by
residential projects. More than a third of construction projects
were residential (42.3%; RM1.4 billion), against non-residential
(32.3%; RM1.1 billion), infrastructure (17.7%; RM0.5 billion)
and social amenities (7.8%; RM0.3 billion). Among others,
Construction Projects CHAPTER 2
the rise in the number of residential projects was from PR1MA,
people’s housing project, government housing quarters and
private housing projects. Unsurprisingly, the largest project
awarded in Perak was the PR1MA housing project in Manjung
(Appendix 2.4.g).
Perlis
Corresponding to its small land size, Perlis offered the least
contribution in construction projects at 0.2% valued at RM0.4
billion. Unlike most of the states in Malaysia, government sector
was the main driver of construction projects awarded in Perlis
with 74.6%. The largest portion of projects were non-residential
projects (71.8%; RM0.3 billion), against the rest of categories
(28.2%; RM0.1 billion). Except for the largest project, all of
the construction projects awarded in Perlis were small-valued
projects worth not more than RM50 million. The largest project
in Perlis was the design and build of the Perlis police headquarter
(Appendix 2.4.h).
Pulau Pinang
At sixth position, Pulau Pinang had RM7.9 billion or 4.5% of
construction projects awarded in 2016. The private sector is still
the major player, with a share of 63.2%, against the government
sector’s 36.8%. The majority of construction projects were
residential (35.4%; RM2.8 billion) and infrastructure (33.6%;
RM2.7 billion), while the rest were non-residential (21.7%;
RM1.7 billion) and social amenities projects (9.3%; RM0.7
billion). The largest project in Pulau Pinang was the road
construction between Tanjung Bungah and Teluk Bahang, that
includes a road bypass from Tun Dr. Lim Chong Eu highway to
Ayer Hitam. The largest project was also the main contributor in
the overall increase in infrastructure projects (Appendix 2.4.i).
Sabah
Sabah’s construction projects stood at 3.1% with a value of RM5.4
billion. The difference in the shares between the government and
private projects were close, at 44.7% and 55.3% respectively.
More than 60% of projects (RM3.4 billion) in Sabah were
CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 25
CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects
infrastructure projects, while the rest of the categories together
contributed moderately (36.6%; RM2.0 billion). Most of the
infrastructure projects comprised of the federal government’s
road upgrading and expansion works, a package of Pan-Borneo
highway, along with several electricity supply projects. The
largest awarded project in Sabah was the expansion of roads from
Donggongon to Simpang Jalan Papar (Appendix 2.4.j).
Sarawak
Sarawak elevates to third from fourth position in 2015, with
RM22.9 billion or 13.0% share of construction projects. A large
portion of the projects, were from the government sector (80.0%),
compared with the private sector (20.0%). More than 80% of
the projects (RM18.8 billion) were infrastructure projects, while
the rest were non-residential (11.3%; RM2.6 billion), residential
(4.1%; RM0.9 biilion) and social amenities (2.6%; RM0.6
billion). The increase in infrastructure projects was due to the
award of several contract packages under Pan Borneo highways
evident in the top 10 largest projects in 2016 (Appendix 2.4.k).
Selangor
At second position was Selangor with the value of RM31.4 billion
or 17.8% of the overall construction projects in 2016. Of this
value, a great portion was made up of residential (38.7%; RM12.1
billion), infrastructure (33.9%; RM10.6 billion), and non-
residential projects (21.3%; RM6.7 billion). Social amenities was
the least contributor for construction projects in Selangor (6.1%;
RM1.9 billion). The main mover of construction projects in
Selangor was the private sector (89.3%), against the government
sector (10.7%). Approximately RM2.8 billion of infrastructure
26 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017
projects comprised of the 8 MRT contract packages awarded in
2016. The largest projects awarded in Selangor was a housing
project at Taman Bayuemas, Klang (Appendix 2.4.l).
Terengganu
The construction projects in Terengganu was highly reliant on the
government sector (82.3%; RM2.9 billion), against the private
sector (17.7%; RM0.6 billion). Nearly 60% of the projects
awarded in Terengganu were infrastructure projects (RM2.1
billion), while approximately 20% of the projects were non-
residential projects (RM0.7 billion). A total of 15.7% or RM0.5
billion projects were social amenities projects. Residential
projects (5.1%; RM0.2 billion) had the lowest portion amongst
the four categories. The largest project awarded was the water
treatment plant in Northern Terengganu, which was also the sole
Terengganu located project valued at more than RM1 billion
(Appendix 2.4.m).
W.P. Kuala Lumpur
Maintaining top position was W.P. Kuala Lumpur, with 30.1%
or RM53.1 billion of projects awarded in 2016. Of this value, a
total of 94.9% or RM50.4 billion were private sector projects,
against a meagre 5.1% or RM2.7 billion government projects.
Infrastructure projects were the main contributor with a share of
57.8% (RM30.7 billion), against the other categories (42.2%;
RM22.4 billion). The increase in infrastructure projects was
due to the award of MRT packages, which was developed under
Public-Private Partnership (PPP). Of the top 10 largest projects,
7 were infrastructure projects and 3 were non-residential projects
(Appendix 2.4.n).
 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Projects by Grade of Contractors
Figure 2.12 | Value of Projects by Grade of Contractors
Source: CIDB
Local contractors from grade G1 to G7, managed to acquire a
respectable RM140.9 billion (79.9%) worth of projects, against
RM35.4 billion (20.1%) attained by foreign contractors. Among
the grade of contractors, grade G7 contractors were again in the
lead, with projects worth RM130.5 billion (74.0%). This amount
was enormous compared with RM10.4 billion (5.9%) acquired by
the rest of grades G1 to G6. In terms of projects numbers, local
and foreign contractors each acquired 6,364 projects (97.2%)
and 183 projects (2.8%) respectively in 2016.
Construction Projects CHAPTER 2
Figure 2.13 | Value of Projects by Grade of Contractors
Note : Contractors were only counted once for more than
one awarded projects.
Source : CIDB
A total of 4,638 contractors were awarded construction projects
in 2016. Out of this number, 4,498 were local contractors
(97.0%). A detailed analysis revealed a total of 2,227 were G7
contractors (48.0%); 446 were G6 contractors (9.6%); 591 were
G5 contractors (12.7%); 659 were G4 contractors (14.2%); 507
were G3 contractors (10.9%), while 68 contractors were G1 and
G2 contractors (1.5%). The rest were composed of 140 foreign
contractors (3.0%).
CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 27
CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects

Projects by Type of Work

Figure 2.14 | Projects by Type of Work

Source: CIDB

Construction projects were also categorised into 6 types of
works. A major portion of construction works were new projects
with a total value of RM162.0 billion (91.9%). In comparison, the
others were smaller works made up of upgrading (RM6.5 billion;
3.7%); repair (RM2.3 billion; 1.3%); expansion (RM2.1 billion;
1.2%); maintenance (RM1.9 billion; 1.1%) and renovation works
(RM1.5 billion; 0.8%). New projects also accounted for 4,950
construction projects (75.6%), supported by upgrading (547
projects; 8.4%); repair (394 projects; 6.0%), maintenance
(300 projects; 4.6%), renovation (255 projects; 3.9%) and
expansion works (101 projects; 1.5%).

28 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects CHAPTER 2

Projects by Contract Size

Figure 2.15 | Projects by Value Range

Source: CIDB

On a contract value scale, more than a third of contracts awarded
in 2016 were projects worth more than RM1 billion. This uniquely
reflected the large infrastructure projects awarded in 2016
(RM61.0 billion; 34.6%). In a normal environment, contracts
awarded were commonly within value range of exceeding RM100
million to RM300 million and exceeding RM10 million to RM50
million. Both contract value range categories form a share of
RM30.8 billion (17.5%) and RM23.2 billion (13.2%) each.
on the statistics, contractors were offered more construction
projects with values exceeding RM1 million to RM5 million
(1,894 contractors and 2,944 projects; 40.8% and 45.0%) and
exceeding RM0.5 million to RM1 million (894 contractors and
1,233 projects; 19.3% and 18.8%). Contracts with the value
range of exceeding RM50 million and RM100 million saw lower
concentration of contractors and projects’ numbers, which
suggested specialised contractors participation.

Contractors and projects’ numbers were geared towards contract

value worth exceeding RM10 million to RM50 million and
below. This highlights the importance of small construction
contracts, which supports the construction industry. Based

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 29

 CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Projects

Projects Awarded to Foreign Contractors

Figure 2.16 | Projects Awarded to Foreign Contractors by Country

Source: CIDB

Overall, 107 foreign contractors from 14 countries were awarded
183 projects worth RM35.4 billion. China and Korea each had
RM18.2 billion (51.4%), and RM7.5 billion (21.2%) worth of
contracts. The other countries each managed to capture smaller
valued contracts, cumulatively at RM9.7 billion (27.4%). More
than half of contracts awarded to foreign contractors were
projects worth exceeding RM1 billion (53.6%). The most number
of projects were awarded to Singapore (53 projects; 29.0%),
China (51 projects; 27.9%) and Japan (37 projects; 20.2%).
Similarly, most foreign contractors with projects originated from
these 3 countries, with China (36 contractors; 33.6%), Singapore
(23 contractors; 21.5%) and Japan (22 contractors; 20.6%).
The other contractors were from Hong Kong, Italy, France, India,
Spain, Sri Lanka and United Kingdom.

Table 2.7 | Five Major Construction Projects by Foreign Contractors

Source : CIDB

30 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Contractors CHAPTER 2

Contractors
Figure 2.17 | Contractors

Source: CIDB

Total contractor registrations grew by 11.3% to 79,883 (12.2%) and G7 contractors (10.7%). As with previous years,
contractors (2015: 71,799 contractors). This was also the the largest portion of the market consisted of grade G1, G2 and
highest growth since 2012. Among the contractors, the highest G3 contractors with 62,408 contractors (78.1%). The other
increase was observed on grade G2 (30.0%), G3 (14.4%); G4 grade contractors were minuscule in comparison.

Figure 2.18 | Contractors by Classification

Note:
1
Active – Local contractor with projects awarded during their registration period.
2
Semi-Active – Contractor who were not awarded any project during their registration period but were active in tender bidding.
3
Dormant – Contractor who were not awarded any project during their registration period and did not bid for any tender
4
New – Newly registered contractor in the first year.

Source: CIDB

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 31

 CHAPTER 2 CONSTRUCTION
Contractors
PROJECTS, CONTRACTORS AND PERSONNEL
Contractors were classified into four categories that correspond
to their current status. A total of 56,330 contractors (70.5%) were
classified as active compared with semi-active (484 contractors;
0.6%), dormant (11,877 contractors, 14.9%) and new contractors
(11,192 contractors; 14.0%). Contractor registration increased
across all grades in the active classification, except for grade G1
contractors which saw a decline to -4.0% to 26,061 contractors
(2015: 27,144 contractors), while grade G3 contractors
increased marginally by 0.1% to 6,833 contractors (2015: 6,823
contractors). The highest increase in the active classification
was the grade G2 contractors, which rose by 11.2% to 9,699
contractors (2015: 8,719 contractors).
Figure 2.19 | Contractors by State
Source : CIDB
In 2016, more than 30% of contractors were based in Selangor
(13,351 contractors; 16.7%), Sabah (11,249 contractors;
14.1%) and W.P. Kuala Lumpur (8,862 contractors; 11.1%).
Half of the states registered a double-digit growth of contractors
(Sarawak: 33.1%; Kelantan: 15.0%; W.P. Kuala Lumpur: 13.6%;
Selangor: 12.9%; Johor: 11.7%; Pulau Pinang: 11.4%; and
Melaka: 10.8%). On a closer observation, grade G1, G2 and G3
32 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017
Semi-active contractors fell by -42.4% to 101 contractors (2015:
163 contractors). All grade of contractors registered a drop in
the semi-active classification. Dormant contractors had the
largest increase at 54.3% to 11,877 contractors (2015: 7,698
contractors). The increase in dormant contractors has
been steadily on the rise, since 2014. Among the contractors,
grade G1, G2 and G3 contractors made up the bulk of the
dormant contractors in 2016 (10,064 contractors; 84.7%).
With the jump in numbers, new contractors grew by 46.6%
to 11,192 contractors (2015: 7,636 contractors).
contractors were mostly found in Sabah (10,206 contractors),
Johor (6,288 contractors) and Selangor (8,975 contractors).
Whilst Selangor and W.P. Kuala Lumpur had the most numbers
of grade G4, G5, G6 and G7 contractors. More than 90% of grade
G1, G2 and G3 contractors make up the composition in Perlis
(1,107 contractors; 93.5%) and Sabah (10,206 contractors;
90.7%).
 CONSTRUCTION PROJECTS, CONTRACTORS AND PERSONNEL
Construction Personnel
Figure 2.20 | Construction Personnel by Trade
Source : CIDB
Construction personnel grew by 7.1% to 767,583 personnel
(2015: 716,542 personnel). Out of this, general construction
worker formed the largest share of workers at 452,054 personnel
(58.9%). This indicates a large number of construction personnel
were workers without any type of skill or other certifications.
Construction site supervisor and skilled construction worker each
Construction Personnel CHAPTER 2
had a share of 118,145 (15.4%) and 94,576 personnel (12.3%).
Year-on-year basis, both construction site supervisor and skilled
construction worker also saw the most increases at 130.7% and
80.0% respectively. At the same time, administration personnel
contracted by 66.5% to 42,952 personnel (2015: 128,378
personnel).
CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 33