Autodesk has released its latest report on the State of Digital Adoption in the Construction Industry for 2024, shedding light on major digitalization trends in the sector. Conducted in collaboration with Deloitte, this second annual survey draws insights from 933 construction firms across six markets: Malaysia, Japan, Singapore, Australia, India, and Hong Kong.
The report reveals that construction firms in Malaysia are among the leaders in digital adoption, using an average of 6.9 technologies, the second highest among the surveyed countries. Additionally, Malaysian firms reported a median expenditure of 23% on new technologies. Alongside India, Malaysia is at the forefront of digital adoption, utilizing approximately 50% more technologies than the regional average.
Sumit Oberoi, Senior Industry Strategist at Autodesk for the Asia Pacific, emphasized the importance of digital adoption in addressing the challenges faced by Malaysia’s construction industry. “To reduce rising costs and the heavy reliance on foreign workers, AI and digital adoption are becoming key factors for business success and improved workplace safety,” he said.
The combination of disruptive new technologies and a challenging business environment requires construction leaders to rethink their tools, workforce skills, and client interactions.
Support from Government Policies
David Rumbens, Partner at Deloitte Access Economics, highlighted the role of supportive government policies in driving digital transformation in Malaysia’s construction sector.
“The rise of digital transformation in Malaysia’s construction industry has been driven by supportive government policies, with the Construction Strategy Plan 4.0 building on previous strategies to facilitate digitalization and the implementation of emerging technologies,” Rumbens noted.
As a result of these policies, 48% of Malaysian businesses have developed an effective, organization-wide strategy for adopting new technologies— the highest of any country surveyed and more than double the rate seen in Australia, Japan, or Hong Kong.
The report underscores the Malaysian construction sector’s focus on adopting digital technologies, particularly those related to safety, such as safety wearables and site sensors.
Sunway Group, a major conglomerate in Malaysia, has been leveraging AI technology paired with cloud solutions to enhance worker safety. “Worker safety is one of our foremost concerns at Sunway. Pairing AI technology with image recognition software has enabled real-time interventions that can prevent potential accidents,” said Liew Ziqing, Head of Digitalization at Sunway Group.
In addition, Malaysia has increased its investment in technologies like Building Information Modelling (BIM), prefab and modular construction, and drones. Gamuda, an engineering, property, and infrastructure company based in Malaysia, has established an Innovation Hub to experiment and find innovative solutions for construction.
“Experimentation has been central to our approach for many years. It’s about trying new things in an environment where it’s okay to make mistakes or fail. That’s where groundbreaking innovations happen,” explained John Lim, Chief Digital Officer at Gamuda.
Gamuda’s innovative efforts have led to the development of the world’s first autonomous tunnel boring machine (A-TBM) and the Building Information Modelling Augmented Reality (BIMAR) feature for construction sites.
Despite these advancements, the most common barrier to digital adoption is a lack of digital skills among employees, with 49% of firms in Malaysia reporting this challenge. To address these skill gaps, the International Labour Organisation and Master Builders Malaysia have collaborated to increase the representation of young people and women in the construction industry.
Overall, the report highlights Malaysia’s leadership in digital adoption and its strong commitment to safety and workforce development within the construction industry. The Malaysian construction sector is actively embracing digital technologies, ensuring a safer and more efficient future.
