PMP Experts Shaping Malaysia’s Construction Industry

Welcome to a discussion about a vital industry in Malaysia and its mandatory role. Malaysia is one of the top countries concentrating on the construction industry. The market size of the construction industry is expected to be $41.85 billion in 2025 and $63.07 billion by 2030, which is at a CAGR rate of 8.55% from 2025 to 2030. Many residential buildings, government-initiated public transportation, and infrastructural projects contribute to this demand.

 Construction projects require crucial concerns from planning to execution. I have seen projects fail because of a lack of management. The industry needs the support of project management professionals to handle projects effectively and complete them on time and within budget. I‘ll share my experience of where and how PMP experts can guide the construction industry in Malaysia.

Enroll in PMP Certification in Mumbai to gain essential project management skills and boost your career opportunities.

How is the Future Construction Industry in Malaysia?

Construction industry plays an important part in the country’s economic growth. Growth of the Construction Sector can result in the government's and citizens' welfare. The government of Malaysia has planned multiple construction projects to improve infrastructure and transportation nationwide. A report states that the construction industry is also gaining momentum from the private sector. Projects like constructing industrial and high-rise residential properties are the major contributors to industrial growth. 

Some promising projects like the 

• Penang Mutiara Light Rail Transit (LRT)

This is a public transportation-oriented project. It is planned to be completed by 2031. It takes 29.5 km to get to the line, starting from George Town City Center and going to Sebarang Perai. 

• MRT3

MRT3 is a transportation project. It is a circular model covering 51 km, including 12 km underground and 39 km elevated sections. Construction is expected to begin in 2027. 

• Kuala Lumpur–Singapore High-Speed Rail (HSR)

This is also a transportation project that links Kuala Lumpur to Singapore. This project is expected to be completed by 2026. 

Research shows that 65% of construction projects in Malaysia fail because of improper panning. This project's failure could affect the country's economic value. Project failure issues can be handled by implementing an expert project management professional (PMP) in the construction industry management team. Many find the PMP to have a key role in the construction industry and can act as a determinant of the project.

To further clarify, continue reading about the factors affecting the construction industry and the role of PMP in solving the factors in detail. 

Excel Your PMP Certification Exam with Confidence

Download Brochure

 

Key Challenges that Malaysia’s Construction Sector Facing 

The project's success rate is closely tied to our ability to address the challenges present within the sector effectively. Below, I will outline the key challenges currently faced by Malaysia's construction industry:

1. Cost Overrun

Cost overrun is a reason behind the failure of many construction projects in Malaysia. Research states that 417 construction projects dropped during 2005 because of the cost overrun. Kuala Lumpur International Airport 2 project suffered from the same issue. It is an issue when the projects exceed the planned budget for different reasons. This situation occurs for several reasons:

• Unexpected Issues

When a project is initiated, unexpected factors like environmental challenges, changes in regulations, or site conditions may cause the budget to rise more than planned.

• Poor Budgeting

Before the construction projects, the team is supposed to give the budget. If the estimation is not up to mark, then the budget planned will not be the same as the cost during the project. 

• Scope Creep

When considering the Kuala Lumpur International Airport 2 project, the project had a low-cost carrier terminal plan during the initial phase. That plan was later changed to a hybrid concept terminal, leading to a 71% cost overrun.  Some unexpected factors, such as regulation changes or site conditions, may cause the budget to rise more than planned. 

The project team creates the scope for the complete project before beginning. If any part of the project is missed during the scope planning or when a new part is added, the scope will not remain the same as it was at the beginning. This will cause the budget and timeline to exceed what was planned.

• Material Price Fluctuations

The costs of raw materials for the project may fluctuate during its duration. If these values change unexpectedly, the costs could exceed the planned budget.

2. Delays

Construction is generally a long-term project. The size of the area to be covered varies. Time delays may affect the project more. When there is a delay, the project's cost may differ, failing. Research indicates various reasons for the delay in Malaysia’s construction projects. 

• Supply Chain Issues

The project can be delayed or fail if there is a shortage or delay in the supply of materials during construction

• Labor-related delays

If there is a lack of skilled laborers, unexpected Strikes and absenteeism can result in project delays.

• Regulatory delays

To complete a construction project, Administrative bottlenecks in getting approval can slow approvals from government bodies and can work beyond the schedule.

• Weather conditions

The construction process must be halted whenever the weather has an adverse effect. Delays can occur, especially in regions prone to heavy rain or floods.

3. Slow Adaptation to Technologies

The construction sector has a lot of technologies that can speed up the projects. The project facilitators must know the latest trends like Building Information Modeling (BIM), robotics, and artificial intelligence (AI). Research shows that Missing such advanced techniques can slow down projects:

• High costs 

Emerging technology requires higher investment if the construction company lacks it. The company will not invest in technologies as a small or medium-sized enterprise.

• Skills Gap 

Skilled operators are required to operate the new technology, but it is difficult to find them.  

• Resistance to Change 

The construction industry tends to be conservative, and many companies are reluctant to shift away from traditional methods.

Generally, the factors affecting adoption are divided into internal and external factors. Internal factors can be eliminated by working on them. External factors are out of hand and are difficult to rectify.

4. Inadequate Communication

Smooth communication is required for perfect project execution. If the communication is poor, then it leads to a collapse in the project. Here are some reasons for ineffective communication:

• Fragmented Teams

Construction projects involve different teams, such as contractors, subcontractors, architects, and suppliers. Because these teams are from other teams, clear communication with stakeholders is impossible, resulting in misunderstandings and mistakes.

• Information Silos

Without centralized communication, important information can be misinterpreted or delayed in reaching the team, causing project inefficiency.

• Cultural and Language Barriers

When the multicultural workforce is involved, communication difficulties can result, especially if there is a lack of clear understanding or differences in language proficiency.

5. Labor Shortage

Labor shortages are a bigger issue in Malaysia’s construction sector and a significant issue in Malaysia, particularly in skilled trades. This problem stems from:

• Aging workforce

As older workers retire and experienced laborers leave the projects, it becomes difficult to find experienced replacements.

• Lack of training

Insufficient vocational training programs for young people mean there aren’t enough skilled workers to meet the demand for construction workers.

• Dependence on foreign labor

Malaysia relies heavily on migrant workers from neighboring countries. Political changes or stricter immigration laws can limit the availability of foreign labor.

6. Poor Planning and Forecasting

Effective planning and forecasting are required to complete a construction project successfully. If there is less planning, then problems will occur during the project. Proper planning can be affected by:

• Foreseeing the Situation of Projects

Prior foreseeing the situation can only help identify obstacles that may occur during the project. 

• Over-Optimistic Projections

If the contractors underestimate the time and money involved in a project required to secure the contract, they will face difficulties later on.

• Unforeseen Risks

Before starting the project, risk identification should be done to avoid wasting time and money.  

How PMP Experts Handle Issues Faced in the Construction Industry

The project management professionals get enough training during the PMP certification to handle the odd situation projects. By using the knowledge gained during the PMP course and with years of experience, they solved the problems faced during the construction project in Malaysia by following steps:

1. Cost Overrun Handling by PMP Experts

A project management professional takes down cost overruns by using a structured approach. The structured way includes processes like 

• Project Planning

• Joining with Experienced Supervisors and Contractors

• Frequent Process Meeting

• Proactive Risk Management 

• Implementation of Past Project Knowledge 

• Regular Budget Monitoring

• Effective Resource Allocation 

• Timely Corrective Actions

• Clear Communication with Stakeholders.

PMP experts use these principles from Project Management Institute standards. This can help identify potential cost issues early and make required adjustments to stay within budget.

Related Blog that you can Also Read: Push and Pull Communication in Project Management

2. Eliminating Time Delays

When a project experiences time delay, project management professionals must work on bringing the project back on track. The PMP must identify the root cause of the problem and perform the following actions:

• If a shortage or delays in the supply of materials cause the project to be delayed, the experts must find an alternate source for the required resources. 

• The PMP experts should arrange the upskilling session for the laborers to avoid the lack of skilled laborers that results in project delays.

• The complete approvals required for the project must be applied before the construction projects. 

3. Bridging the Slow Adoption of Technology Issues 

To tackle the slow adoption of  technology issues, PMPs can perform the following activities:

• Follow the phased-up investment technique to implement the technology gradually.

• Collaborate with some institutes to provide the labor force with skills related to the new technology. 

• Continuous improvement to the technology usage by collecting regular feedback from laborers

4. Improve the Communication

To overcome the communication issues, PMP must work on developing the following skills:

• Develop active listening skills, which are required during the feedback sessions, and make the necessary adjustments.

• Provide all information straightforwardly to avoid any misinterpretation. 

• Getting regular updates from all the teams included in the project to keep updated on the project status. 

5. Manage Labor Shortage

The labor shortage is also a main challenge faced during the construction project. The active participation of PMP experts is required. They have to follow steps like: 

• PMP experts must monitor team capacity and calculate the projected workload to find labor shortages in the early stages. 

• PMP experts must know the required skills for the project and find if any training is needed to upskill the staff. 

• Even when a situation arises, PMP experts must have a backup plan, such as assigning alternate labor for unexpected absences or departures.

These competent project management skills of project management professionals can make a remarkable difference in the construction industry. 

Related that you also Read: How to Get PMP Certification in 2025-26: Step by Step Process

Conclusion

The Malaysian construction industry is experiencing significant growth, but some challenges exist. Factors like cost overruns, delays, and labor shortages affect the industry and should be addressed. An Expert project management professional with PMP certification can play a key role in the industry. The professionals can gain the essential skills required from the PMP course to overcome these obstacles. This can also help the industry ensure the success of projects. 

PMPs can enhance project success rates by implementing structured approaches and fostering clear communication. Including PMPs in Malaysia’s construction industry will help groom the process involved and increase the project's output and support. Contact us to learn more about PMP capabilities!