A study on the readiness of Malaysian contractors towards trade liberalization

A study on the readiness of Malaysian contractors towards trade liberalization. Malaysian Construction Research Journal (MCRJ), 18 (1): 1. pp. 1-27. ISSN 1985-3807 (2016)


Malaysia is committed under various trade and economic agreements. In line with the ASEAN Framework Agreement of Services (AFAS), the country’s construction sector is earmarked for full liberalization in 2015. While the introduction of liberalization policies may increase productivity and create a healthy competition between the leading domestic and international construction industry, unpleasant speculation is rising among local contractors as they felt that domestic players may not be able to stand a chance for their business survival. As such, the present study was conducted: (i) to evaluate the level of readiness of local contractors towards liberalization, and (ii) to identify challenges and opportunities of liberalization on local contractors. The findings reveal that the respondents’ readiness towards trade liberalization can be categorized with respect to the level of awareness of FTAs, the ability of local competition, and the intention to export overseas. Most of the respondents (62.3%) were found not aware of the FTAs, but with the opinion that local contractors are able to compete in the local market when the market is opening up, and having no plan to export their services within the next three years. Such confidence was mainly built upon the advantage local contractors enjoy in the domestic market due to their knowledge of the domestic market and superiority in relationships with government and firms. Low awareness of FTAs and inspiration among respondents to venture into an international market are mainly due to the lack of connection and information about overseas markets, particularly the requirements and acceptance of local workmanship quality, as well as lack of international exposure are the main constraints contributed to the low motivation of venturing out of their comfort zone.

Item Type: Article
Keywords: Construction, Contractor, Liberalization
Taxonomy: By Subject > Architecture, Planning & Surveying > Construction Management
Local Content Hub: Subjects > Architecture, Planning & Surveying
Depositing User: Eza Eliana Abdul Wahid
Date Deposited: 15 Feb 2021 07:09
Last Modified: 15 Feb 2021 07:09
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