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 the Department of Statistics Malaysia, 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.
ADDRESSING LEAKAGES
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.
“Leakages at the procurement stage are usually exposed through mass media or audit reports by relevant agencies, while those during construction are rarely highlighted to the public.
“As for post-construction, leakages can occur through unnecessary increases in building maintenance costs due to poor quality construction or non-compliance with building standards, such as leaking roofs in newly completed buildings or inefficient energy use,” he told Bernama.
He 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.
“In fact, dependence on human judgment can be reduced, indirectly lowering the potential for errors and manipulation by certain parties,” he explained.
TECHNOLOGY READINESS
Azrul Izwan said industry players need to adopt the various technologies available to assist in implementing development projects, especially large-scale ones.
He 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). This technology is designed to plan, build, and manage buildings using a 3D model integrated with technical data. When BIM is combined with additional dimensions such as 4D, 5D, and 6D, project management capabilities become more advanced.
“BIM has been used by professional consultants and developers in recent years. It can also automatically update construction costs and schedules. This efficiency is crucial in managing construction contracts such as variation orders (VOs) from consultants or contractors in a faster, more transparent, and fraud-free manner,” he said.
He added that the use of Internet of Things (IoT) devices and Radio Frequency Identification (RFID), widely adopted in developed countries such as Australia and Sweden, 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, thus 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, particularly for large-scale projects. Drone cameras can be integrated with AI-powered image detection systems to identify delayed works or deviations from building plans.
“Drones facilitate site monitoring by consultants and clients from multiple viewpoints, traditionally limited to site walks. Any progress inspections for project claims can be made digitally with records, without relying solely on individual assessments,” he said.
ENFORCEMENT THROUGH DIGITALISATION
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.
“This is an important start to ensure the country’s construction industry can grow in a structured and planned manner. As the main implementing agency for government projects, the Public Works Department (JKR) has also begun to adopt digital technologies in enforcement and site monitoring, particularly for large-scale projects.
“In July 2025, JKR launched the ‘i-Supervision 2.0’ system, aimed at enhancing the efficiency of public road maintenance monitoring, ensuring transparency in infrastructure expenditure, and providing officers with easy access to real-time data,” he said.
He added that among its features are access to before-and-after images of maintenance works, worksite location tagging via Global Positioning System (GPS), and the ability to assess contractor performance digitally using only mobile devices.
The system also integrates BIM, AI, and IoT within cloud computing.
“This innovation is seen as the government’s starting point to drive the adoption of digital technologies. With i-Supervision 2.0, it is hoped that such pilot projects can serve as examples and catalysts for further digitalisation in the country’s construction industry,” he added.
MORE EFFECTIVE SITE MONITORING
Meanwhile, 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, while minimising costs, time, and manpower.
She said that transparent use of technology can optimise supply chains and improve output quality without compromising site safety standards.
However, she noted there is still room for improvement in the use of technology as part of ongoing efforts to fight leakages in the national construction industry.
She stressed that stricter enforcement must be taken against construction companies involved in corrupt practices, regardless of personal, political, or individual interests.
Industry players, she said, must also be more open to implementing technology and fully support efforts by various parties, including the government, to combat leakages and corruption.
“Digital transformation in the construction industry provides an opportunity to proactively prevent corruption.
“In addition, compliance by industry players—especially construction companies—with the ISO 37001 Anti-Bribery Management System (ABMS) will ensure commitment to addressing leakages. ABMS can help companies detect, prevent, and respond to any incidents of leakage and corruption,” she said.
-- BERNAMA
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