Challenges for Local Contractors to Compete with Other Local and Foreign Contractors in the Malaysian Construction Industry

Abstract

Despite the benefits, globalisation and liberalisation impose challenges to local contractors. Main problem statement: The local contractors’ lack of competitive advantages provides opportunities to their competitors, limiting chances to secure local projects. This study aims to appraise local contractors’ competitiveness with the objective to assess the challenges to compete in the globalisation and liberalisation. Data from the questionnaire surveys on 60 Malaysian international contractors were analysed using the RASCH model. Three challenges assessed are: unstable economic situation, stiff local competition, and building reputation difficulties. The findings are aligned with the 2021-2025 Strategic Plan to encourage local contractors to venture overseas.

Keywords: Challenges, Local contractors, Foreign contractors, Malaysian Construction Industry, Globalisation, Liberalisation

eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.

DOI: https://doi.org/10.21834/ebpj.v6iSI4.2900