Kuala Lumpur: The government aims to fully localise the construction workforce to maintain sector quality, deputy prime minister Ahmad Zahid Hamidi said today.
Zahid said the initiative was expected to boost the economy and mitigate the adverse effects of relying on foreign labour.
“Housing developers, main contractors, and subcontractors should hire without discrimination.
While employing foreign workers might seem cost-effective in the short-term, long-term consequences, including economic costs and GDP (gross domestic product) impact, can be detrimental, he said when officiating the graduation ceremony of Akademi Binaan Malaysia here.
In June, deputy prime minister Fadillah Yusof also advocated reducing dependence on low-skilled foreign workers in the construction sector. He instead urged the industry to adopt technology such as artificial intelligence.
Fadillah said this would empower local contractors and bridge the productivity gap, ensuring Malaysia’s competitiveness on the international level.
Zahid today said that the government would support initiatives by agencies to increase local participation in construction and reduce reliance on foreign labour.
“We recognise the crucial role of the construction sector in our country’s economic growth. We have witnessed the sector’s revitalisation post-Covid-19.
This sector not only provides numerous job opportunities for Malaysians but also underscores our dependency on foreign workers, an issue that should be addressed by employing skilled local workers, he said.
In July, chief statistician Uzir Mahidin said that the construction industry had significantly contributed to Malaysia’s economic growth in the second quarter of 2024, achieving a robust 9.5% expansion.
