Business

Published: Tuesday November 10, 2009 MYT 12:39:00 PM

Malaysia's construction sector to grow 3.5% in 2009


PETALING JAYA: The construction industry is expected to register a growth of 3.5 per cent in 2009 despite the current global econonic crisis, said Second Finance Minister Datuk Ahmad Husni Hanadzlah.

He said that during this time of hardship, with a contraction in growth everywhere, the sector remained the pillar of Malaysia's economy.

"The construction sector registered a growth of 1.1 per cent in the first quarter of this year and improved further to 2.8 per cent in the second," he said in his speech at the official opening of the Second Malaysian Construction Summit 2009 here on Tuesday.

Ahmad Husni pointed that the present ecomic crisis also provided the industry with an opportunity to reinvent itself.

He said there would be consolidation within the industry, with smaller players merging, to compete more effectively.

"The industry as a whole, will need to take stock of its position in the market and reassess financial strenth, technical expertise, branding and reputation.

"It has to restructure itself and invest in new technology and systems to build capacity in order to compete, either locally or abroad," he highlighted.

Ahmad Husni said the government would continue to promote the public-private partnership initiatives, in line with the aspiration to increase the role of the latter in the economy.

According to the minister, the construction industry needs to reposition itself in the market place to survive in a competitive market, dictated by the forces of supply and demand.

He also pointed out that Malaysia needs to take into account the green design and technology as part and parcel of future development.

"Buildings and infrastructure works of the future will have to be sustainable in terms of energy usage, material use and technology adoption," he added. - Bernama

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