Kuala lumpur: The construction industry remains a key driver of national development, recording robust growth this year on the back of mega infrastructure projects and a recovering property sector.
According to BERNAMA News Agency, the construction sector recorded solid growth of 12.9 per cent in the second quarter of 2025, with a work value of RM43.9 billion. This expansion was driven by sustained growth in the special trades and non-residential building subsectors, which posted notable double-digit increases of 22.2 per cent and 16.2 per cent, respectively.
However, leakages in the industry persist as a pressing concern, leading to substantial resource wastage at various stages. Beyond financial losses to the nation, they also compromise construction quality and erode public trust in both government and private sector delivery systems. Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki previously revealed that leakages had been detected in road and building projects, along with inflated costs in government contracts. In response, the commission has intensified efforts to address corruption, governance weaknesses, and abuse of power within the construction sector.
Commenting on the issue, Universiti Sains Islam Malaysia (USIM) senior lecturer at the Department of Architecture, Faculty of Engineering and Built Environment, Ar. Ts. Azrul Izwan Ismail, noted that leakages in the national construction industry could occur at three stages: procurement (before construction), construction management (during construction), and building maintenance (after construction). He said leakages were often linked to unhealthy practices such as corruption, cronyism, and cartels in tender awards.
Azrul Izwan added that digital technology is a relevant approach and could serve as a 'saviour' or solution to tackle leakage issues in Malaysia's construction sector. With the help of technology, construction information and data are easier to obtain, enabling better project management. 'The advancement of digital technology offers vast opportunities to curb leakages in the construction industry. Through it, project information and data can be managed more transparently, quickly, and efficiently,' he explained.
Industry players need to adopt the various technologies available to assist in implementing development projects, especially large-scale ones. Azrul Izwan stressed that the use of digital technology in construction is no longer an option but an urgent necessity to curb leakages and enhance project execution efficiency. 'For example, Building Information Modelling (BIM) is designed to plan, build, and manage buildings using a 3D model integrated with technical data,' he said.
He added that the use of Internet of Things (IoT) devices and Radio Frequency Identification (RFID) is effective in monitoring the quality of critical materials like concrete and steel in building structures. These technologies also help reduce risks of quantity fraud and theft, while ensuring construction fully complies with engineering specifications, allowing buildings to be completed safely. 'The use of drones on construction sites is also a smart step to monitor project progress in real time,' he said.
Meanwhile, Azrul Izwan said the Construction Industry Development Board (CIDB) has taken steps to implement digital technologies in line with the growing momentum of the Fourth Industrial Revolution (IR4.0) in Malaysia. He said the agency has introduced the Construction 4.0 Strategic Plan 2021-2025 as a framework to guide industry players towards technology adoption.
Dr Norlia Mohamad Ibrahim, Head of the Department of Civil Engineering, Faculty of Engineering and Civil Technology, Universiti Malaysia Perlis (UniMAP), said that with technological developments, particularly AI, site monitoring methods can now be carried out more effectively and comprehensively. She stressed that stricter enforcement must be taken against construction companies involved in corrupt practices. 'Digital transformation in the construction industry provides an opportunity to proactively prevent corruption,' she said.