Career Setback for Construction Industry
By Zul • Jul 6th, 2008 • Category: Career •
Job seekers aspiring to pick a career in the construction industry are facing with a setback, after the mid-term review of the Ninth Malaysia Plan (9MP) revealed the industry will suffer from major cuts in budget and expenditure.
The cancellation of a number of mega projects, including the Penang Monorail and Penang Outer Ring Road projects will contribute to the slump of growth to the sector.
The combined budget allocation for both projects is a massive RM3.5 billion. Another project in Penang, which is the second Penang bridge will continue, and the RM4.5 billion project is targeted to be completed in 3 years time.
Additionally, the increasing cost of raw materials, steel and cement may hamper other construction and property development projects across the country. After the recent 40% fuel price hike, the steel price went up by 60%, while other materials show similar trend, recording between 10% to 30% increase.
While the trend shows that the industry will continue to face setback, the annual growth of the sector is expected to be 5.8%, the highest for the last three years. The construction industry grew by 4.6% in 2007, and 0.5% in the previous year.
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