Introduction to the

Construction Industry and the

Building Team
LECTURE 1
 Malaysia Economic Sector

Percentage Distribution of GDP Based on Economic Activity for the Year 2010

• Based on the historical statistics, the Malaysian construction

industry has consistently been the smallest contributing
sector to the economy, contributing on average 3% to the
total GDP.
 The Construction Industry
• An important role in generating wealth and
improving the quality of life for Malaysians
through the tra slatio of Gover e t’s
socioeconomic policies into social and
economic infrastructures and buildings.
• Provides job opportunities to approximately
800,000 people, about 9.3% of overall
workforce.
• Creates a multiplier effect to other industries,
including manufacturing, financial services, and
professional services.
 CONSTRUCTION INDUSTRY VALUE CHAIN
• Figure 1 below defines the construction industry value chain, where it involves multiple
stakeholders at different stages of the value chain and key sectors that could leverage on the
construction industry: opportunities include building and construction materials, tooling,
heavy equipment and machinery, and financial services.
 Importance of the construction
industry
• Enables the growth of other industries through
its role as a fundamental building block of the
atio ’s socio-economic development.
• Essential elements of a healthy, functioning
economy such as Educational institutions,
Government offices, tourist attractions,
transportation infrastructure (airports, seaports,
roads), housing, commercial property need to be
built and maintained by the construction
industry.
 Importance of the construction
industry
• Besides enabling socio-economic
development, the construction activities
generate tremendous spill-over opportunities.
It contributes to the growth of other
industries in its role as a large user of
manufactured goods (building and
construction materials, iron and steel, etc.),
specialised tooling and heavy machinery (such
as cranes), and financial services.
 SECTORS IN THE INDUSTRY
• Malaysia began to develop its construction
industry since independence (Lewis 1955).
• The Malaysian construction industry (MCI) is
generally separated into two areas that include:
1. General construction, which comprises residential
and non-residential construction and civil
engineering construction.
2. Special trade works, which comprises activities of
metal works, electrical works, plumbing, sewerage
and sanitary work, refrigeration and air-conditioning
work, painting work, carpentry, tiling and flooring
work, and glass work
The Building Team

DESIGN TEAM

CONSTRUCTION
TEAM