Chapter 3

PROJECT MANAGEMENT IN
MALAYSIA
 Learning Outcome

Understand the evolvement of project management in

Malaysia.

Understand the effect of project management through

economy.

Identify the strategic thrust for Malaysian construction

industry.

Identify the challenges faced by Malaysian construction

industry.

Recognize the importance of project management

 DEFINITION IN THE
CONSTRUCTION INDUSTRY

Customer –
State Governments, public and private companies.

Parties involved –
Main contractors, client and consultant.

The finished products

Within time, cost and quality required.
Involves residential, commercial building and
infrastructure
 OVERVIEW OF THE MALAYSIAN
CONSTRUCTION INDUSTRY

• Construction industry is one of the important

element that contribute to Malaysian economy.

• The decline in construction performance in recent

years has resulted to the need of strengthening the
construction foundation through the project
management to face the current and future
challenges.

• In 2006, gross domestic products (GDP) for

construction industry only account for 2.7%.
 Gross domestic product (GDP)

• Is the market value of all officially

recognized final goods and services
produced in a country within a year, or
other given period of time.
• GDP per capita is often considered an
indicator of a country's standard of living
 What is gross domestic product
(GDP)?

• Currency value (such as U.S. dollar) of all final

goods and services produced within a country in
a given period
• Total income of a nation
• Measure of nation’s economic well-being
• Measure of a nation’s economic growth from
one period to the next
 What’s included in GDP?

1) Consumption by households
– Goods: groceries, clothes, iPods
– Services: haircuts, oil changes
2) Investment by businesses and households
– Fixed assets for production
– New homes
– Inventories
3) Government expenditures by local, state, and federal government
– Roads and schools
4) Net exports
– Value of a country’s exports to other nations, less its imports
from other nations
 What’s included in GDP?

• GDP = Consumption + Investment +

Government spending + Net exports

• GDP is equal to all of the spending by households,

businesses, government, and the international sector on
final goods.
• It is also the dollar value of the nation’s goods and
services produced in a given period within the nation’s
borders.
 WHAT ARE THE COMPONENTS OF GDP?

GDP

Personal
Consumption
Expenditures Investment Government Net Exports
(C) (I) (G) (NX)

Fixed Investment Inventories Export Imports

s

Nonresidential Residential

GDP = C + I + G + NX
 What’s not included in GDP?

• Intermediate goods
• Used goods / second-hand sales
• Underground production (black market)
• Financial transactions
• Household production
• Transfer payments
 EVOLVEMENT OF PROJECT MANAGEMENT IN MALAYSIA

• Project Management Institute (PMI) was formed

• The tools and techniques is made common
1969

• PMI board director authorized the PMBOK Guide

• This contain guidelines of practice
1981

• PMIMY was formed - PMI Malaysia Chapter founded

• To advocate and advance project management excellence and
1994 discipline in Malaysia

• To focus and apply the sustainable development in the

Current construction process
 WHAT IS PMI?

PMI is the world’s leading

not-for-profit global professional
organization for project
management knowledge,
information and professionalism
 PMI
MALAYSIAN
CHAPTER

• Global Not-for-profit professional organization for project management

comprised of Project Managers or those involved in Management of
Projects. Headquartered in Newtown Square, Philadelphia USA.

• In Malaysia, it is located at Project Management Instititute Malaysia

Chapter Business Advanced Technology Center BATC, Universiti
Teknologi Malaysia City Campus, Jalan Semarak, 54100 Kuala Lumpur,
Malaysia.

• PMI sets industry standards, conducts research, and provides

education, certification, and professional exchange opportunities,
designed to strengthen and further establish the profession.
• PMI advances the careers of practitioners, while enhancing
overall business and government performance.
 WHAT PMI PROVIDES

• Professional Standards
– A Guide to the Project Management Body of
Knowledge (PMBOK® Guide) - 2000 edition
• Certification
• Research & Wisdom Center
• Publications
• Professional Development
• Education & Training
• Corporate Relationships
• Networking and fellowship
 TYPES OF PMI
CERTIFICATION

• Project Management Professional (PMP®)

– most valuable credential that can be obtained in PM

• Certified Associated in Project Management (CAPM

™) –
– Project management who has demonstrated project
management fundamental and knowledge through the
experiences.
 OBJECTIVES OF PMI
CERTIFICATION

• Provides professional/personal recognition

• Expedites professional advancement
• Creates job opportunities
• Provides framework for standardized project
management requirements
• Increases employee’s value in organization
• To be a truly global certification
 THE EFFECT OF PROJECT
MANAGEMENT THROUGH ECONOMY

Increase in
Quantity and
Quality

Better
Flexibility Opportunities
to Expand
Effect of project Services
management
through economy in
Malaysia

Improved /
Increased / Improved
Enhanced Growth and
Customer Development
Satisfaction
 THE EFFECT OF PROJECT
MANAGEMENT THROUGH ECONOMY

Better Efficiency in Delivering Services

Project management provides a “roadmap” that is easily followed and leads to project completion. Once you know where
to avoid the bumps and pots holes it stands to reason that you’re going to be working smarter and not harder and longer.

Enhanced Effectiveness in Delivering Services

The same strategies that allowed you to successfully complete one project will serve you many times over.

Greater Standing and Competitive Edge

This is not only a good benefit of project management within the workplace but outside of it as well; word travels fast and
there is nothing like superior performance to secure your place in the marketplace.

When all the players are lined up and yourIncreased

strategy is inRisk
placeAssessment
potential risks will jump out and slap you in the face. And
that’s the way it should be. Project management provides a red flag at the right time: before you start working on project
completion.

Enhanced Customer Satisfaction

Whenever you get a project done on time and under budget, the client walks away happy. And a happy client is one you’ll
see again. Smart project management provides the tools that enable this client/manager relationship to continue.
 Challenges Faced By Malaysian
Construction Industry
CLIENT CONTRACTOR DEVELOPER PUBLIC

•Project must be concerned with the environment of the surroundings.

Avoid catastrophic natural disasters
•Lack of efficiency and effective approach in construction.
•Unable to attract local to image on construction industry (dirty, difficult
and dangerous)
•Unable to securely manage the time and finance in construction.
•Insufficient knowledge in providing an integrated solution in foreign
projects.
•Public view on the project
•Bribery, the most difficult challenges
Challenges Faced By Malaysian Construction
Industry
• Clients
1) Finance and payments problems
2) Client sophistication
3) Unrealistic contract duration

• Contractors
1) Poor site management
2) Improper construction methods and planning
3) Inadequate contractor experience
Challenges Faced By Malaysian Construction
Industry
• Consultant
1) Growth of local firm
2) Adopt environmental friendly operation
3) Efficiency management

• Labor Workers
1) Illegal immigrant labor workers
2) Shortage workforces
3) Lack of skilled labor
 CHALLENGES IN CONSTRUCTION
INDUSTRY

The challenges in construction

Inefficient and effective method of
practice in construction

Inability to attract and develop local

workforce due to the “dirty, difficult and
industry

dangerous” image of the industry

Difficulty in securing timely and

adequate financing at various
construction stage

Inability to provide total integrated

solutions in foreign projects
 CHALLENGES IN CONSTRUCTION
INDUSTRY

• Client sophistication • Absenteeism of

• Changes of design labour
during construction • Lack of skilled
• Late payment workers
• Time constraints • Inability to develop
and excessive locals workforce
overtime • Huge number of
• Cost overruns
foreign workers
• Inexperienced
• Safety liability
management and
• Inflation
supervision
 24
FACTORS CONTRIBUTING
TO DELAYS

• Land acquisition, relocation of squatters and

utilities
• Unsuitable sites
• Lack of equipment, material & manpower
• Variation orders
• Delays in decision making
• Problematic contractors
 SEVEN STRATEGIC THRUSTS WERE
IDENTIFIED:

1. Integrate the construction industry value chain to enhance productivity and

efficiency

2. Strengthen the construction industry’s image.

3. Strive for the highest standard of quality, occupational safety and health,
and environmental practices

4. Develop human resource capabilities and capacities in the construction

industry

5. Innovate through research and development and adopt new construction

methods

6. Leverage on information and communication technology in the construction

industry

7. Benefit from globalization including export of construction products and services.


Enhance people
skills
- Leadership skill /
Communication skill
i) Achieve the
project objective The Importance of
ii) Motivate team
members
THE IMPORTANCE OF
PROJECT MANAGEMENT
Flexible but structure
organization
- Change in decision
making
- Implied project-based
organization structure
- Maximum teamwork
contribution to solve the
Project problem.
Management

Efficiency and effectiveness of

Human focused -
- Focus to one work - less
confusion – more ideas – easy to
manage – project complete –
achieve goal.
project.
- Balance 3 requirement ( cost,
time, quality)
- Clear start and clear end
- Good planning - less mistakes –
less confusion – no delays.
THANK YOU