The construction sector is expected to under-perform if the fourth quarter growth does not improve substantially, the Master Builders Association Malaysia said today.
This is in view of the fact that the sector grew only by 3.8 per cent and 0.6 per cent in the first two quarters, it said.
Bank Negara announced recently that the construction sector only managed a three per cent growth in the third quarter of this year.
The association urged the government to immediately speed up the award of new projects particularly projects with high impact on the economy as the construction industry has a multiplying impact on over 140 other industries.
For projects involving foreign direct investments and domestic investors, the timely issuance of construction permits would further improve investors’ confidence, it said in a statement today.
“Timely awards and project implementation under the 10th Malaysia Plan and the Economic Transformation Programme from now will positively contribute to
next year’s growth as the projects require gestation period to generate impact to the economy.
“This planned and progressive project awards will reduce any abrupt increase in demand for building materials and manpower which may jeopardise the targeted
growth due to temporary supply shortages.
“This will also prevent unnecessary price increases, which will add burden to contractors,” the association said.
It said the construction industry due to its multiplying impact would hopefully be able to continue to be the “engine of growth” if the industry
pulled together and work as one entity with all the stakeholders participating actively for the nation’s benefit.
Last year, the construction sector recorded 5.3 per cent growth.