Govt to ensure construction sector stays competitive, sustainable — PM

• Prime Minister Datuk Seri Anwar Ibrahim said the construction industry is growing in tandem with the evolution of digital technology, including big data and artificial intelligence, which exponentially increases demand for data centres.

KUALA LUMPUR (Oct 23): The government is taking proactive steps to ensure that the construction industry remains competitive and sustainable, amid expectations of rising tender prices, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the government is driving major infrastructure projects to ensure the construction sector remains resilient by enhancing public-private partnerships.

The projects include the Sarawak-Sabah Link Road Phase 2, the Pan-Borneo Highway upgrades, and the data centre developments in Johor.

“These initiatives ensure that the sector stays resilient amid rising costs,” he said at the launch of the International Construction Week (ICW) and BuildXpo 2024.

The text of his speech was read by Works Minister Datuk Seri Alexander Nanta Linggi.

Anwar said the construction industry is growing in tandem with the evolution of digital technology, including big data and artificial intelligence, which exponentially increases demand for data centres.

“Our nation's rise in the data centre cost index — surpassing Oslo, Berlin, and Sydney — demonstrates our growing leadership in this sector.

“Industry giants like Microsoft, Amazon Web Services, and Google have chosen Malaysia for their data centre expansions due to our strategic location, robust infrastructure, and supportive government policies,” he said.

The prime minister said this symbiotic relationship between construction technology and data centres will be pivotal in driving Malaysia’s leadership in both industries.

“But as this growth accelerates, so does the need for energy and water, with data centres requiring vast amounts of both to function efficiently.

“Therefore, integrating green technologies and smart energy management into data centre construction will be critical in ensuring that the growth aligns with Malaysia’s commitment to the Sustainable Development Goals (SDGs), and our transition towards a low-carbon economy by 2050,” he noted.

Anwar added that the government will also invest heavily in green building practices and low-carbon infrastructure development, further aligning the nation's commitments to the SDGs.

He said that the sector is on the cusp of a new era in construction, wherein digitalisation, sustainability and collaboration will be key drivers of success.

“The future isn’t just a destination; it's your masterpiece in the making. You are not just the architects; you are the builders of a sustainable tomorrow. Professionalism, integrity, collaboration, and recognition begin today.

“Together, we can ensure that Malaysia not only remains a regional leader, but emerges as a global powerhouse in construction, setting the benchmark for innovation and excellence,” he said.

The prime minister also shared the construction sector's stellar performance, which recorded a 17.3% growth for the consecutive three quarters of 2024.

This marks the first double-digit growth the country has achieved since 2014, reflecting the industry’s capacity to overcome adversity and emerge stronger, according to Anwar.

During the Covid-19 pandemic, the industry faced significant challenges from halting construction and disrupted supply chains.

As a result, the sector contracted by 19.3% in 2020 and 5.1% in 2021.

However, through the determination of all industry players and strategic recovery efforts, the nation witnessed positive growth of 5.0% in 2022 and 6.1% in 2023.

Anwar believes that the surge in construction activity will lead to more job creation, bolster domestic and foreign investment, and drive infrastructure development across the country, propelling Malaysia as the leader in the region’s construction industry.

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