Challenges and Advantages of Globalisation and Liberalisation in the Malaysian Construction Industry

Trades and investment regulations around the globe have been revolutionised significantly due to the effects of both globalisation and liberalisation. These changes have subsequently contributed to both positive and negative effects on various industries of the countries across the globe, including Malaysia. Apparently, the Malaysian construction industry is currently facing many high-profile issues related to globalisation and liberalisation. This paper examines the challenges and advantages of globalisation and liberalisation in the Malaysian construction industry based on the synthesis of previous literature review in construction industry worldwide. One of the challenges is increased private participation in infrastructure work based on the number of projects by public that is lower than the number of projects by private sector in the Malaysian construction industry. In addition, amongst the advantages of the globalisation and liberalisation is the influence of foreign direct investment (FDI) on economic growth translated in the initial gross domestic product (GDP), where the Malaysian construction industry records the highest annual percentage changes other than other industries, which eventually contributes to the growth of the Malaysian economy. The findings of this paper are expected to give a view of the challenges and advantages of globalisation and liberalisation. This allows the local contractors in the Malaysian construction industry to be prepared in facing fierce competition among other local and foreign contractors. Furthermore, local contractors can be positively encouraged to be more competitive in the Malaysian construction industry.