1ST Digital Construction Summit

SESSION 3:
Driving Factors, Challenges, and Impacting
Risks in Digital Technology

15th March 2023

The MALAYSIAN INDUSTRY-GOVERNMENT GROUP FOR HIGH TECHNOLOGY (MIGHT)
is a non-profit organisation under the monitoring and supervision of
The MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION (MOSTI).

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WILL DIGITAL
TECHNOLOGY
TRANSFORM
CONSTRUCTION
INDUSTRY?

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FUTURE OF CONSTRUCTION OVERVIEW

Source: WEF

ENABLER:
 Artificial Intelligence
 Internet of Things
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CONSTRUCTION
INDUSTRY
SCENARIO Mitigate Improve
WITH DIGITAL Uncertainty
to Achieve
Customer
Centricity &
Communication &
Real-time
TECHNOLOGY
Branding
Project Goals Collaboration

Shift to Cloud
Better Workflow & Automation of Streamline
Technologies
Document Manual Tasks for Business &
Specific to
Tracking Added Productivity Operations
Construction

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 DRIVERS of CHANGE & BUSINESS OPPORTUNITIES

Ageing Bigger and more

Infrastructure complex projects. CONSTRUCTION INDUSTRY
REPRESENTING
13% OF THE GLOBAL GDP

DRIVERS
The global 3D printing
of construction market
size was valued at
CHANGE $1.4 billion in 2021
and is projected to
Markets reach $750.8 billion by
Talent and 2031.
competitiveness
ageing The global augmented The global market size
reality (AR) market for BIM was estimated
workforce. was valued at $24.2 to be $5.20 billion in
billion in 2021 and is 2019 and is projected to
projected to reach rise to $15.06 billion by
Demand in $411.4 billion by 2031. 2027. is projected to rise
developing to $15.06 billion by 2027.
countries. Source: Allied Market Research &27 Advisory
TECHNOLOGIES THAT ARE CHANGING
CONSTRUCTION 3D printing

Virtual reality (VR) &

Augmented reality (AR) Green Construction

Building information Modular and

modelling (BIM) Prefabricated Construction
Source: MIGHT Analytic
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WHERE WE ARE
In 2021, amongst
all Malaysia’s internet
users, 9 out of 10 are now
36th 36th digital consumers.
(Statista)
35th

31st
In 2022,
the market for the
Internet of Things
is grew 14.4 billion
active connected
devices.
In AI Readiness (IoT Analytics)
Malaysia ranks 35th in The World Digital
Index 2021 36th among the Global Cloud Competitiveness
by Oxford 132 economies Ecosystem Ranking IMD assessed
Insights assessed featured in the Index 2022. digital/technological
governments Global Innovation (MIT skills knowledge,
using AI in public Index Technology technology funding
services. 2022. (WIPO) Review) and cyber security.

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CONSTRUCTION INDUSTRY CHALLENGES

Regulation Sustainability

Achieving carbon
Changing regulation neutral assets and
and incentives for Customer Digitalization reducing waste
modern methods of Demand Life-Cycle of products and during construction
construction. New
Entrants Performance processes
Higher demand
for simplified and Reducing the
digital New breed of Digitalization will
lifecycle costs of
interactions. players – impact the
assets and
disrupting operations, design,
designing for
current business construction,
recycle
model production and
logistic channel.

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THE NEEDS OF DIGITAL TRANSFORMATION
Reducing human errors in Quantify workforce's Alleviate construction
engineering and architecture productivity and risks due to
tasks. better hiring decisions. miscommunication.

Reducing the risk of going Improving collaboration between subcontractors

over budget and disrupting and suppliers in a construction supply chain
project timeline. and speeding up the workflow.

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 RISKS & IMPACTS
 Dependency on conventional way led to the
Human Error
multiple human error and safety hazards.

 Difficulty in recruiting high skill talent and future

Competitiveness ready workforce.

 Miss-Communication and non-updated data

Coordination sharing. Delayed of project delivery and
Hurdles increase cost.

Information  Difficulty & Insufficient data accessibility led to

accessibility unreachable data and misleading information.

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 WHAT’S
NEXT ?

Can Digital Technology Transformed Construction Industry?

Can The Digital Technology Resolved the Issues & Challenges

Are We Moving in the Right Direction?

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MOVING FORWARD TO EMBRACE DIGITAL
TECHNOLOGY EMBRACE TECHNOLOGY & INNOVATION
TO GROW THE INDUSTRIES
i. Bolster adoption of technology and
1 automation towards increased
productivity
ii.Intensify R&D resources and ecosystem.
CONDUSIVE BUSINESS ECOSYSTEM
DEVELOPMENT
i. Develop and modernise the physical and
digital infrastructure.
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ii. Integrate end-to-end supply chain.

DEVELOP TALENT THAT MEET

3 INDUSTRY DEMAND
i. Produce high skills and knowledge
INTEGRATE END-TO-END SUPPLY CHAIN workforce.
BY CAPITALISING ON DIGITAL ii. Enhance labour productivity.
APPLICATIONS
i. To use IoT platform in monitoring and delivering
construction activities.
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ii. To equip construction supply chain players
with know how understanding on digital application. Source: MIGHT Analytic

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LET’S HAVE A CONVERSATION
#letscollaborate for a #betterfuture

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