The Importance of the Construction Industry

Provide to the Economy Growth and the Society

In this ever-changing modern world, construction industry has become one of the
most important sectors in any country’s economy. This sector had proven to be the
pivoting sector in generating the world’s economy, improving the overall quality of
the life of the public and increasing the living standards of the people.

Construction industry includes the works of planning, design, conservation,

demolition and repairing multiple types of buildings or all types of civil engineering
works. The construction industry holds a major part of the economy of any given
country as it is considered to be expensive and unique in comparison to other sectors.
In developing countries, such as Malaysia, the growth of economic development now
is in a more rapid manner as compared to decades ago. Hence, the construction
industry is likely to be the main sector that can aid in the increment of Malaysia’s
economy in the coming years. This is because the contribution of the national
economy almost to 6 percent in the output analysis of the gross National Product
(KDNK). The construction industry is an important economy in the management and
activities either in the private and government sector.

The end products of the construction industry can be beneficial to the society.
Buildings and public infrastructures can cater the needs in other fields, such as
business, educations, commercial and other relevant industries. Other than the end
products of the construction industry, the industry itself opens numerous
employments to those who deserved to. Economic growth can be seen from the
increasing amount of goods and services produced by an economy over time. It is
conventionally measured as the percent rate of increase in real gross domestic
product, or real gross National Product (KDNK).
Main Sector in Aiding the Malaysia’s Economy

In Malaysia, the construction industry is one of the first sectors of the national
economy. It has become the most important sector ever since, as other industries and
sectors evolve around the construction industry. Therefore, construction industry in
Malaysia is like a fortune for the country’s economy and increasing employability to
produce more professionals of the field.

During the era of increased economic development in Malaysia's development, its

contribution to gross domestic product (GDP) is in the range of 3-6 percent per year.
For eight years from 1989 -1996 year, the construction industry has recorded double-
digit growth rates. The development of the construction industry is directly
proportional to the national economy. This is due to the construction of the project or
activity involves high costs. This can be demonstrated by looking at growth of the
construction industry and a good stable country. In 1990, Malaysia has achieved the
highest growth of 19.1 per cent, while growth during recessions in 1998 also was 23.0
percent.

In the 1998 recession, the construction industry where the growth of -23%
compared to 9.5% recorded in 1997. Reduction in the value of the transfer of 28% -
34.8% was recorded. Comparing the performance of the construction industry in 1995
and 1998 has shown a close link between the performances of the construction
industry to the national economy. The research cycle analysis and product demand is
needed to enable us to know in greater detail about the nature of the industry and
enable a more effective investment.
Construction Industry Helps the Research and Development (R&D) of the
Country

The construction industry has attracted researchers, but most studies have been
done on the construction industry is revolves around the study of technology as design
analysis. This includes the study of materials, project management and so on. More
clearly or more studies focused on materials research, technology and management
aspects. Lack of researches and studies on the technologies and design within the
scope of construction industry had caused the downfall of the sector. This is probably
one of the causes surplus in output growth falling building and construction industry
is worse than the national economy when the economic downturn. Analysis of
product demand and the relationship between economic growth and the construction
industry have seen. Research examines the development of the construction industry
and correlation with output components such as commercial, residential and civil
engineering to be carried out.

As the construction industry involving investments or high cost and different

components, is often associated with the request output. Analysis of demand for each
type of product development is very important to know the extent of the economic
influence on the development of the construction industry in Malaysia. This will give
a clear picture of the development of the construction industry in the past, but also to
estimate its future. Close relationship between the construction industry and economic
growth of a country is often referred to. A detailed analysis is made to study the
development of the construction industry in Malaysia to systematic planning and
preparation in advance can be done to overcome the problem of the construction
industry during the recession.

As the construction industry as a major economic sector in Malaysia, a detailed

study should be made so that its development trends can be identified. This study is
expected to be a reference in planning and investment sectors of the construction
industry in the future by taking into account changes in the size or demand that may
occur. Studies should focus on a detailed analysis of the pattern of industrial
development.
Realization of the Aspiration to Make Malaysia an Urban and Developed
Country

The Malaysian construction sector is an important gear in the wheel boosting the
Malaysian economy. It is playing a pivotal role in the transformation, industrialization
and urbanization process of Malaysia. As Malaysia rushes towards becoming a
developed and high-income nation, the government will have to emphasize more on
the growth of construction industry as it helps in the increment of the living standards
and quality of life for Malaysians.

Once all required energies are put on the construction industry, it is believed that
the Malaysia’s economy will see a major uplift in the future. With the rise of the
country’s economy, it will undeniably affect the society and other industries in a
positive manner. Urbanization of the country can be made with ease as the economy
growth is significant, and Malaysia can be considered as a well developed country in
years to come.

With the construction industry becomes as success in the country, the life of
Malaysian can be directly, or indirectly, better over time. Malaysia can be
theoretically better in terms of the economy and liveability, in direct comparison to
other developing countries around this region. In addition, Malaysia can be up to par
with other well-developed countries in years to come.