02 July 2025

KUALA LUMPUR: Malaysia's surge in the world's competitiveness ranking offers crucial insights into areas within the local construction sector that demand continued focus and strategic enhancement, a top industry executive said.

Datuk Seri Michael Yam Kong Choy, champion of the Construction and Built Environment Productivity Nexus (COBEPN), said the ranking improvement reflects more than just progress - it validates Malaysia's commitment to reform, invest and innovate.

"This is not merely a numbers game, it is a validation of Malaysia's resolve to reform, invest, and innovate," Yam said in a statement today, when commenting on the country's competitiveness ranking.

Malaysia surged to 23rd place from 34th in the IMD World Competitiveness Ranking 2025, marking its strongest global standing since 2020.

Yam noted that the construction sector recorded a strong turnover of RM17.8 billion in the first quarter of 2025, cementing its status as a key contributor to Malaysia's gross domestic product (GDP).

Malaysia's climb in competitiveness, he said, has been bolstered by strategic infrastructure investments and the construction sector's adoption of digital technologies that have redefined productivity and project delivery efficiency.

"These bold initiatives, supported by forward-thinking government policies and our growing skilled workforce, significantly amplify Malaysia's competitive edge on the global stage", he added.

While the positive shift merits celebration, the ranking also offers crucial insights into areas within the construction sector that demand continued focus and strategic enhancement.

Yam also emphasised that sustained improvement in productivity through advanced technology adoption, such as Building Information Modelling, modern methods of construction and Design for Manufacture and Assembly approach remains paramount.

He highlighted the urgency of intensifying efforts to embrace sustainability practices, circular economy principles, and secure green building certifications, integrating advanced technologies like artificial intelligence to align with evolving global environmental, social and governance standards.

"Streamlining regulatory processes and enhancing efficiency will also prove crucial in attracting further foreign direct investments and stimulating local innovation," he added.

Meanwhile, Malaysia Productivity Corporation (MPC) - through COBEPN - said it is committed to spearheading initiatives designed to elevate the construction sector's productivity and overall competitiveness.

It urged every industry player, policymaker and member of the workforce within the construction sector to seize the momentum and leverage by boldly embracing innovation and championing sustainable practices.

This collaborative effort is essential to forge a more resilient, productive, and globally competitive Malaysian economy, driving relentlessly towards the nation's shared national target of being among the world's top 12 most competitive economies by 2033.

Source: New Straits Times, Lumi News, KLScreener, Pick@Stock