Technology Adoption Key to Address Foreign Labour Reduction in Malaysia’s Construction Sector: CIDB

Kuala lumpur: Technology adoption will be crucial for Malaysia's construction industry to offset an annual reduction of about 60,000 foreign workers under the 13th Malaysia Plan (13MP). Construction Industry Development Board Malaysia (CIDB) chief executive Ahmad Farrin Mokhtar stated that the sector currently employs about 600,000 foreign workers, with the government targeting a 10 percent reduction annually under the 13MP.

According to BERNAMA News Agency, Ahmad Farrin emphasized that replacing foreign workers with local workers is not feasible, and technology is the only way forward for the industry. He made these remarks after attending the preview of the International Construction Week (ICW) and BuildXpo Malaysia 2026. Digitalisation is essential for transforming the construction industry, with the need for exposure to new technologies and construction methods to accelerate adoption among industry players.

Ahmad Farrin highlighted the potential of technologies such as robotic painting to significantly improve productivity. He noted that several companies in Malaysia are already using systems capable of painting up to 4,000 square meters a day, equivalent to 200 apartment units in one day. This technology requires input from Building Information Modelling (BIM) to fully realize its productivity benefits.

While acknowledging that new technologies may involve higher initial costs, Ahmad Farrin pointed out that the investment could help reduce costs in the longer term while delivering immediate productivity gains. On the topic of Budget 2027, he mentioned the construction industry's hope for a larger allocation and more projects, with the government adopting a more engaging approach by seeking input from industry players.

Ahmad Farrin also expressed concerns over the potential impact of geopolitical conflicts on the construction sector, particularly measures to mitigate rising material costs. He noted that some materials, especially petroleum-based ones, are quite affected, though some remain stable. The industry has also raised concerns about aging infrastructure requiring proper maintenance and monitoring.

Additionally, Ahmad Farrin mentioned that CIDB has prepared its own budget proposals to support the industry's transformation towards digitalization and the adoption of new technologies.