TOPIC: CONTRACTOR’S PERCEPTIONS ON MANPOWER ISSUES IN MALAYSIA

CONSTRUCTION INDUSTRY
Nurul Amalina Binti Ismail (2015165591)

CHAPTER 1
1.1 INTRODUCTION

According (Mohamed, 2015), Malaysia construction industry as the “wet trade”

construction approach at present relies heavily on the large number of foreign labour when
manpower it need more in construction industry. Development of construction industry was
increase when the immigration of foreign labour to fully the construction demands to recruitments
for skilled and semiskilled workers. (Zaki, Mohamed, & Yusof, 2010) reported that, skilled labour
shortage happened worldwide including United States, United Kingdom, Canada, India, Bahamas
and Malaysia. Government and business organisation of Canada recommended immigration of
skilled worker as a strategy to deal with shortage issue.

According to (Shiadri, 2008), the shortage of skilled labour that the Malaysian construction
industry is currently encountering has been perpetuated by several combination of causes. The
economic change that Malaysia has seen for the last decade is one of the leading causes of the
skilled worker shortage. The resultant labour shortage was made worse by the selective attitude of
local labour due to expansion of education, improvement in living conditions and access to upward
mobility.

(Rahim, Hamid, Singh, & Mazlan, 2013), stated that the construction project depends on
project resources. Among the most important resources is the workers and local which covered the
skilled workers, semi source of workers. Shortage of labor resources in Malaysia resulting, the
country depends on the labor workforce from outside, especially from Indonesia. Scenarios for the
recruitment of foreign workers in the construction sector in Malaysia not a new issue. Malaysia
has started taking foreign workers since the reign of the British. Malaysia is the biggest net
importer of labor in Asia with a migrant labor force of around 2 million (21 percent of 9.5 million
of the total work force) as of 2010.

(Hamid, Singh, Yusof, & Abdullah, 2011) stated that labour resources are important in
ensuring the successful completion of a project. The nature of construction works in Malaysia are
still labor intensive. Nearly 1 million construction workers are needed every year and majority of
them are foreigner. (Bernama, 2012) reported that based on Labour Force Survey Report for 2005,
there were 6.47 million employed persons in Malaysia of which 12.9 per cent were in construction
industry, 673,900 were Non-Malaysian citizens and 8 per cent from Non-Malaysian citizens were
in construction industry. As of June 2006, there were 1.84 million registered foreign workers of
which 33.3 percent were employed in manufacturing, plantation (20.2 per cent), services
(including domestic maids) (25.9 per cent) and construction sector (15.1 per cent)

According to (Hamid, Singh, Yusof, & Abdullah, 2011), the construction industry is among
the most important industries in the country that are closely related to other economic sectors.
Construction industry is one of the sectors that require labor intensive to fulfill the work at sites.
Generally, workers are classified into three classes based on the skills and their respective
academic standings. The lowest class is the unskilled workers, the middle is composed of semi
skilled workers and the highest class is the skilled workers.

1.2 RESEARCH PROBLEM

(Mohamed, 2015) stated that the construction industry has been experiencing an acute
labour shortage since the eighties. Development of construction industry cause the demand of
labour becoming increase and the lacking participation of local cannot to fully the demand.
Manpower is one of the most constrain challenge facing by Malaysian construction industry as we
rely too heavy on large number of foreign labour workforce. Economic Report 2011/2012 stated
that total employment of foreign labour force was about 12,645,700 while 768,800 were involved
in construction sector.

(Mohamed, 2015) also reported that, one of the many sectors that are heavily dependent on
foreign labour in Malaysia it is construction sector. The desperate call for foreign workers to fill
the current void clearly flies in the face of the perceived waning of our dependence on them.
According the (Immigration, 31 August 2012), there were 1.5 million foreign workers with
temporary working visiting pass (PLKS).

According to (CIDB, 2002), the group of foreign workers hired by the industry basically
unskilled, acquires their work knowledge while assisting the more experienced workers, and thus
is not meeting the industry’s skill standards.(Hamid et al., 2011) stated that unskilled and
problematic workers will not only cause the delay in project completion but also poor quality of
works.

According to (Mohamed, 2015), the numbers likely do not account for the illegal foreign
workers who are also hired because of the lack of manpower. Indonesia, the Philippines, Nepal,
and Bangladesh are mainly hired by employees in Malaysia as a labour. In recent years, there has
also been an increase in the number of migrant workers from Myanmar and Cambodia. (Rahim et
al., 2013) also stated that nowadays the local workers unable to fulfill the demand of construction
market from time being. This reason caused the contractor willing to import foreign workers from
outside to meet the needs and requirement labor market in construction sector.

Shortage of skilled construction workers is very crucial issues in construction industry

(MBAM, 2010). Besides that, MBAM also stated that, the acute shortage of skilled workers in the
construction industry will give negative impact towards the projects under Malaysian Plan (10MP)
and Economic Transformation Programmed. (The Star, 2011)

1.3 RESEARCH AIM

This purpose of the study is to determine the contractor’s perception on manpower issues in
Malaysia construction industry.

1.4 RESEARCH OBJECTIVE

i. To identify the causes of manpower issues in Malaysia construction industry.

ii. To explore the effects of manpower issues in Malaysia construction industry.
iii. To make the recommendation on solution to improve manpower issue by contractor’s
perception

1.5 RESEARCH QUESTION

i. What the causes of the manpower issues in Malaysia construction industry?

ii. What the effects of manpower issues in Malaysia construction industry?
iii. What the recommendation on solution to improve the manpower issues by contractor’s
perception?
1.6 SCOPE OF LIMITATION RESEARCH

This study basically concentrates on manpower issues in Malaysia construction

industry.This research only scopes down to company in Selangor, Malaysia due the immense
location of construction and development sites. The respondents are among experience contractors
in Malaysia construction industries.

1.7 SIGNIFICANT OF RESEARCH

There are benefits to three parties involved in construction project:

i) Client
a) Increase the trust and satisfaction to the clients.
ii) Contractor
a) Turnover and profits of the organization will increase due to quality work and
can increase the number of clients quickly than any other organization.
b) Can achieve overall goals of the company as quality employees deliver quality
work
c) Completion the project within the time period.
iii) Labor
a) Increase the productivity and skilled of construction labor and consequently,
project performance
b) Improve the overall performance of construction projects.

1.8 RESEARCH METHODOLOGY

The methodology is set to collect data to achieve the objectives outlined. The first step is
to rationalize this issue to set up a topic of study. Then the problem statement, goals and objectives
have been developed. This study uses several methods of data collection for the purpose of
achieving objectives.

1.8.1 Primary Data

These studies mainly adopt research methodologies such as questionnaire survey. Descriptive
analysis based on statistical results will be obtain from questionnaires results.
1.8.1.1 Questionnaires
A set of questionnaire form that related to objectives will be developed. The
question that develops in the questionnaire was in the form of multiple choice or open
ended questions. The respondents are among the contractors parties that involved in
construction projects. The result obtained from questionnaire will be represent in data table,
bar and pie chart. The data will be analyzed using statistical method that is mean or average
index, frequencies and percentage calculation. The final phase of this study is to define the
conclusion and recommendation with reference to the objective, subsequent to the analysis
from the questionnaire.

1.8.2 Secondary Data

The method for this research also involves compilation of information from published and
unpublished information obtained from book, journals, articles, reports, thesis and websites. The
information can be used to provide the right references and guidelines to carry out the study.

1.9 RESEARCH FLOWCHART

REFERENCES

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Mohamed, R. B. (2015). Manpower needs in construction. Razlina Mohamed, (December).
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