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January, 2010
BSV 702 – Information Technology & Communication System
TABLE OF CONTENT
ABSTRACT 1
1 INTRODUCTION 2
3 DEFINITION OF ICT 6
INDUSTRY 16
9 CONCLUSION 27
REFERENCES 28
BSV 702 – Information Technology & Communication System
ABSTRACT
This paper reports on the use of Communication and Information Technologies (ICT) in
Malaysia construction industry. It refers insight of professional building team, Architect,
Quantity Surveyor, Engineer, Designer, Facilities Manager, Procurement, Contractor and
Sub-Contractor. It also intend to explore and describe the role of Malaysia Government to
ensure that ICT if fully adapt in Malaysia Construction Industry.
In the literature on construction related ICT there are no distinction that usually made
between ICT use in the permanent organization (Construction organization) and the
temporary organization (On going construction team- On site) that forming the building
and construction projects.
This study also to investigate how ICT influence, the adoption and also the use of ICT in
building and construction projects. This objective will be pursued by a study of ICT use
in the Malaysia building and construction sector.
INTRODUCTION
Malaysia is a fast developing country and having stable economic, technology and
infrastructure growth. Martinez-Frias (2003) stated that some South East Asian countries
are indicated as “getting ahead”, which is evaluated based on economic parameters,
scientific and technological development.
Construction industry has been providing buildings, facilities and infrastructures and one
of the contributors to the economy in Malaysia, which the industry is directly linked to
other economy sectors, such as manufacturing. Megat Kamil (2002) mentioned that
construction industry supports a multitude of downstream activities that provide
opportunities to small and medium enterprises.
The construction industry has been one of the contributors to the Malaysia economy.
Based on a report on Market Watch Malaysia on construction industry by Malaysian-
German Chamber of Commerce (2009), construction industry makes up an important part
of the Malaysian economy although small, but it widely linked to many other sectors,
such as education and manufacturing.
Sundaraj (2006) stated that, since 1990s, contribution of the construction sector to the
GDP fluctuated at a more stable rate varying from a high of 4.8% in 1997 to an estimated
low of 2.7% in 2007. This means that the construction industry in Malaysia depends on
the derived demand from other sectors of economy, as well as public and private sectors.
Sundaraj (2006) also mentioned that, since construction involves long-term investment
and risk, thus, it would be the first to be suspended on an economic downturn and the last
to be revived during an economic upturn, which he said as a merely good business sense.
As being laid out in the 9th Malaysia Plan (2006-2010), Thrust 2, the Government will
provide more classrooms in order to improve the quality of education system, especially
in rural areas. In Thrust 4, the Government will provide more low cost houses for the
low-income earners and to improve transportation system in Malaysia by upgrading and
expanding terminals, railway tracks and highways to ease congestion in urban areas.
BSV 702 – Information Technology & Communication System
Flanagan and Jewell (2009) spelled out that the construction industry is a sector that
comprises of four parts:
the consultants (architectural, engineering, and cost)
the construction enterprises who focus on production (including the special trade
contractors)
the manufacturers and suppliers of components, equipment, plant and raw
materials
the service providers to the sector (lawyers, accountants, insurers, bankers,
financiers).
Further to that, amongst each part, there will be sector-specific enterprises that will
specialize in one part of the sector, such as repair and maintenance.
During the 9th Malaysia Plan, the Government has introduced long term project region to
sustain construction industry in Malaysia and also creating opportunities. For example,
the Iskandar Malaysia or formerly known as South Johor Economic Region was made
successfully realized by Middle East investors. Later, the economic growth corridors are
launched nationwide, the Northern Corridor Economic Region which covers Perlis,
Kedah, Penang and northern Perak was launched in July 2007. The East Coast Economic
Region which includes Kelantan, Terengganu and Pahang was launched in October 2007
whilst the Sabah Development Corridor and Sarawak Corridor of Renewable Energy was
launched in early 2009.
Sundaraj (2006) spelled out that the Construction Industry Master Plan (CIMP) was
initiated in order to improve the industry’s performance and mainly to rectify and
overcome weaknesses in the construction industry, which includes, quality deficiencies,
over dependency on foreign labours, social and health problem and low productivity in
the industry within the period of ten years (2006 to 2015).
The CIMP (2006-2015) has outlined the vision, mission, success factors and thrusts as
follows:
Vision
The Malaysian construction industry shall be a world class, innovative and
knowledgeable global solution provider.
Mission
To be a dynamic, productive and resilient enabling sector, supporting sustainable wealth
creation and value creation, driven by technologically-pervasive, creative and cohesion
construction community.
DEFINITION OF ICT
For a good understanding of the research, it is useful to define the definition of ICT and
the stages of development of the construction process and the characteristic of the tools
used and tasks performed.
In construction industry, there are two categories of ICT. There are automation and
information and communication technology (ICT).
Construction Automation
The construction automation is base on the use of IT product such as computer in most of
the job site application. Such as surveying application, equipment control, the installation
and fabricating construction product.
BSV 702 – Information Technology & Communication System
The role of ICT in Malaysia has become more crucial than ever with the Malaysian
Government exhilarating the pace for various sectors of the industry to embrace ICT.
The government of Malaysia has realized the need and importance of ICT in helping the
nation to grow. Data and information can be kept and retrieved in databases. Then, ICT is
being introduced in the Malaysia Plan.
The Seventh Malaysia Plan (1996-2000), which guides and charts the policy direction of
ICT saw the Malaysian Government providing various incentives to facilitate the greater
adoption of ICT to improve capacity in the business sector, industry and life in general.
The related incentives covered areas such as computerization and automation, creation of
venture capital funds, enhancement of education and training programmes and the
conducive legal environment to facilitate the development of ICT.
ICT was really booming up with the launching of Multimedia Super Corridor (MSC)
project, which was to attract multimedia enterprises to utilize the region as a testing
ground of ICT applications in an excellent environment. Moreover, the E-Initiatives, for
example, E-Community and E-Learning were introduced. Furthermore, in accordance to
the report by MOSTI (2007), ICT services were expanded among general public and rural
BSV 702 – Information Technology & Communication System
areas. Cellular telephony, Internet and broadcasting were three technologies introduced in
the Malaysian Information Communication and Multimedia Services in 2005.
As a continuity in promoting ICT development, the Eighth Malaysian Plan (2001-2005)
has further emphasized on the strengthening of human resources capabilities, hard and
soft infrastructure of ICT, the building of a critical mass of Small Medium Enterprises
(SMEs) keen on utilizing ICT for further empowerment and encouraging increased
internet usage among users.
Under the 9th Malaysia Plan, the government focused on ICT as an important driver to
put Malaysia as a knowledge based economy and global ICT and multimedia hub. As
stated in the report, the existing cyber cities will be upgraded and a new one will be
developed under this current plan. Furthermore, the information security will be
prioritized in this era of information society.
BSV 702 – Information Technology & Communication System
Date Milestone
The NITC Secretariat also held yearly InfoSoc conference and exposition
events to provide a platform for dialogue and exchange of national and
international experiences on ICT as well as raising awareness among the
Malaysian public about information age developments.
The birth of the Multimedia Super Corridor (MSC) and the setting of
the Multimedia Development Corporation (MDC) to manage the
flagships under the MSC which are:
The Electronic Government which aimed to improve operations.
Examples are the E-Services, Electronic procurement, Generic
Office Environment (GOE), Human Resources Management
Information Systems (HRMIS), Project Monitoring System
E-Services, this covered the scope such as renewal of licenses, fine
processing, utilities and other features. GOE, governs document
management, messaging system and other related features.
Smart Schools, aim at producing a new generation of Malaysians
who are ICT literate and innovative.
Multipurpose Card, covers two aspects such as the Payment
Multipurpose card and the Government Multipurpose card. The
latter can contain data for driving license, bank account,
immigration entry/exit records, health information
Telehealth, the purpose is to accelerate Malaysia’s health care
system.
R&D cluster, to form a cluster of collaborating multimedia R&D
centers, firms to produce leading edge products and technologies.
Under this same initiative, the MSC Research and Development Grant
Scheme (MGS) was formed in 1997 with an allocation of RM 100 million
under the Eighth Malaysian Plan.
BSV 702 – Information Technology & Communication System
Multi-purpose Card
Electronic Smart School
Government
7 Flagships of
MSC
Telehealth
Technopreneur
Development
R&D
E-Business Cluster
Electronic E-Service
Labour
Exchange
E-Procurement
E-Government
E-Syariah Pilot
Applications
Human
Project Resource
Monitoring Generic Office Management
System Environment System
1998 Creation of the NITC Strategic Agenda which aims at pushing Malaysia
forward into the E-World. The E-World governed a few important scopes
as depicted inthe following diagrams. The five initiatives under the E-
World include the EEconomy, E-Public Services, E-Community, E-
Learning and E-overeignty.
1998 Communications and Multimedia Act 1998 (CMA 1998) was introduced
to monitor economic sectors such as market content, network services,
network facilities, regulatory control and application sectors.
2000 Set up of the Universal Access Policy which covers 3 principles namely
availability, accessibility and affordability as well as the Universal Service
Programme and fund.
2000 Rural Internet Programme (RIP) initiated by the then Ministry of Energy,
Communications and Multimedia (MECM) or now known as the Ministry
of Energy, Water and Communications, Malaysia.
This programme aimed to create an ICT literate society among the rural
folks. ICT infrastructure set up at post offices and the launching of
websites provides information concerning government services, local
events and activities.
2002 The Electronic Transaction Bill and the Electronic Government Bill
were formed.
2003 Transfer of the NITC Secretariat from MIMOS Berhad to the Ministry of
Energy, Communications & Multimedia to enable the Ministry to handle
ICT Policy matters.
2004 Transfer of the NITC Secretariat from the Ministry of Energy, Water and
Communications to the Ministry of Science, Technology and Innovation
(MOSTI) to handle ICT policy matters.
BSV 702 – Information Technology & Communication System
ICT plays a crucial role in all aspects of the Malaysian industry with certain sectors
utilizing more of ICT. In 2003, Malaysia’s ICT spending projected a figure of US$7.8
billion as compared to US$7 billion spent in 2002 which was an increase of 10.9%
(“Malaysia’s ICT Spending to Grow...”, 2004, Bernama”).
The Manufacturing sector spent the most on ICT amounting to 18% or RM 1416 million
in 2003 and followed by the Banking and Finance sector with 14% or RM1101 million.
The Government sector invested substantially in ICT with an expenditure of RM865
million or amounting to 11% (Source: Association of the Computer and Multimedia
Industry (PIKOM), 2003).
Subsequently, both the Home and Telecommunications sectors invested about 8% in ICT
or around RM629 million in 2003. The Oil and Gas sector recorded an expenditure of
RM393 million in terms of ICT spending while the Utilities, Professional Services,
Education and Research sectors spent RM314 million or 4% on ICT.
About RM236 million was spent by the Transportation sector in ICT while the
Healthcare sector projected an amount of RM79 million in terms of ICT spending
(Source: PIKOM).
Expenditure by Sector 2003
SECTOR % IN MIL (RM)
Manufacturing 18 1416
Banking and Finance 14 1101
Government 11 865
Distribution 11 865
Home 8 629
Telecommunications 8 629
Oil and Gas 5 393
Utilities 4 314
Professional Services 4 314
Education and Research 4 314
Transportation 3 236
Healthcare 1 79
Others 9 708
The awareness of ICT has been seen by Malaysia since the technology has been invited
decades ago. However, due to rapid growth of intelligence and technology nowadays, it
seems very costly to adapt ICT into daily operations, especially the construction industry.
ICT should support the whole process of construction.
As cited by Public Works Department, director-general Datuk Seri Prof Judin Abdul
Karim, the cost of investing in technologies is the constraint especially for small
companies compared to big companies. Moreover, according to him also, there are small
companies adopting ICT to leverage their operations but they do not have much capitals
to upgrade them.
Construction is a late adaptor of ICT. Applications for bookkeeping and drawings are
generally accepted. Advanced applications such as modeling, GPS and internet are
incidentally applied. For the development of the industry, ICT is of major importance. To
set up a knowledge database for construction industry would require a huge amount of
resources especially in the application of information and communication technology of
ICT. The described scenario is inherent in the Malaysia construction industry at the
present time.
BSV 702 – Information Technology & Communication System
The findings found that all construction companies used internet. The internet users most
companies used internet for e-mail, had internet connections installed on building sites,
E-commerce, E-procurement and for communication with external parties in the building
process. Internet technology may support a number of activities. The most important
options found by the project team clustered into 7 main groups:
Exchange of drawings
Exchange of planning
Time registration and worksheets
Material Identification
Equipment Identification
Access to experts knowledge
Registration of inspection
There are three areas where use of computers is very high. These are the areas of Office
Administration, Communication and Construction Drawings Production. As expected,
the technology provides efficiency and speed. Firstly, in administration, activities
generally involve the production, alteration and storage of the written word in the form of
letters, memos, reports and documents.
Secondly, communication is another major area of use but will be further elaborated in
the Networks section below.
The third area of high use of computers is a profession-specific area where it displays the
use of IT at the core production at the workplace, which is a construction drawing. The
area of design though was ranked average, and the area of presentations was the least of
all seven categories provided.
BSV 702 – Information Technology & Communication System
Electronic Mail
E-mail offers many advantages, in reaching a large number of people promptly and
easily, and in improving productivity, (Phiri, 1999).
By attaching documents and graphics to E-mail messages, users can essentially reduce
phone and fax expenses. Messages are sent using inexpensive means. It certainly presents
itself as a critical element of technology, but again lends itself to the disadvantage of the
security issue.
Internet
The Internet and its powerful accessibility from anywhere, anytime, have certainly
changed and influenced the way work is accomplished in the various businesses and
professions. Notwithstanding a number of major unresolved technology and system
issues, such as security, privacy, bandwidth and network reliability, for the construction
industry there are several benefits of being connected to the Internet.
BSV 702 – Information Technology & Communication System
This global network of networks, which connects endless number of user’s world-wide,
allows for access to current data offered on the net by suppliers and consultants, a fast
inexpensive means to communicate interactively with one or multiple users across the
globe, and more importantly,an opportunity to make information about the organisation
available to other net-users.
As cited in The New Straits Time Press (Malaysia) Bhd, 2007, ICT can enhance
productivity and efficiency of the construction industry through the use 3D Computer
Aided Design (CAD) during design and the use of the internet to improve team
productivity. The architects, for instance, can create an intelligent 3D CAD models that
can be viewed and shared with the rest of the design team members. Working from the
same based model, the engineers can rapidly develop their respective engineering and
detail designs allowing the quantity surveyors to quickly quantify preliminary cost
estimates of the project.
Chao (2001), as cited by Wan and Amran (2005), mentioned that most construction
projects are large, extensive, expensive and subjected to tight schedule and budget. Thus,
construction industry is getting more unique and complex, which deals with various
disciplines, both from public and private sectors. Wan and Amran (2005) also outlined
unpredictable factors that influence construction projects, which are, rapid changing
market environment, technology changes and advancement and competitive trends.
Continuous research and development urges the players in the construction industry to
keep up with the rapid growth of technology. Inventions of new and creative methods,
materials and tooling and equipment helps players to operate day to day operations in a
shorter period of time in a more systematic and standardized manner.
Sundaraj (2006) explained that the players in the construction industry have not been
fully utilizing the powers of ICT and optimizing the performance in daily operations, not
only in Malaysia, but also globally.
BSV 702 – Information Technology & Communication System
Organization for Economic Co-Operation and Development (OECD) (1998) defined ICT
sector as ‘a combination of manufacturing and services industries that capture, transmit
and display data and information electronically’. Thus, keeping and retrieving data and
information virtually is very crucial in this borderless world. Internet is seen as the best
one-stop centre to access to information all round the clock and in shorter period of time
whilst email has been the fastest medium in exchanging and receiving data and
information.
In the construction industry, the key players who utilized ICT in their daily affairs will be
the professionals i.e. architects, engineers, quantity surveyors, etc. softwares have been
created and to suit each profession. This software have helped the construction players to
complete the job in shorter period of time than conventional method of using pen and
papers or typewriters.
As cited by Public Works Department director-general Datuk Seri Prof Judin Abdul
Karim, he suggested that there should be an integrated software system rather than the
professionals such as architects and engineers are using various kinds of software, in
order to set a standard, which will be effective in project development and
implementation.
BSV 702 – Information Technology & Communication System
As cited in the article (New Straits Times, Leveraging on ICT usage in construction
industry, 13 May 2007), CIDB has conducted a survey which showed that the contractors
and builders are still not adopting ICT in their daily operations due to reasons such as, the
mindset of contractors to only transforms resources into built environment, remote
project site and computer literacy.
Further to the article, the consultants or professionals are the fastest group to absorb ICT
in their concept or idea into information to be forwarded to the contractors for
construction purposes.
FM
Client
Engineer
Architect & ICT
Designer Facilities
Contractor
QS
Consultant
Sub-Cont
procurement
Construction
BSV 702 – Information Technology & Communication System
All of these key players are using computer facilities as their tools of information and
communication (ICT) in order to complete their job. They are such as internet, Local
Area Network, E-mail, Computer Aided Design, Masterbill, Buildsoft and Computer
Aided Engineering.
Client
Architect &
Designer Engineer
Construction
FM
Contractor
QS
Sub-Cont
Consultant
procurement
Construction Team
Internet
Internet is the most important tools that always being used in accessing information every
time, anytime and anywhere. It also influenced the way of work to accomplish in any
type of business. (Aza A.Arif & Aly H. Karam, 2001)
BSV 702 – Information Technology & Communication System
E-Mail
E-mail offers a lot of advantage in connecting and reaching a large number of people
promptly and easily. It also improving the productivity (Phiri, 1999). People can reduce
expenses on phone calls and fax by attaching writing and graphic document in E-mail.
They also can communicate using the e-mail massagers.
Connection Of ICT Use
procurement
Architect
&
Designer
Engineer
Masterbill
LAN email
Myob
FM
CAD Contractor
CAE
ICT
QS
Internet FM Sub-Cont
Software
BSV 702 – Information Technology & Communication System
Engineers
Computer Aided Engineer
Same as the Designers engineer also related in design workload of building. This CAE
system also providing application in drafting as design and presentation tools. It provide
tools for design and construction of drawing. This ICT tools helps in reducing the
drawing workload and also labour intensive task.
Quantity Surveyor
Masterbill, Ripac and Buildsoft
In quantity surveying works they are more on calculating cost and budget of construction
works. Masterbill, Ripac and Buildsoft is a fully featured Bills Of Quantity production
package comprising pricing, tender analysis, estimation and valuation. This software
application helping in reducing the workload and labour intensive task.
Facilities Manager
Computer Aided Facilities Management
This software is based on combination of CAD and management database system. The
services known as CAD, CMMS and CAFM. The CAD system is used to locate the
facilities together with their services. It is important software for FM to keep update and
in holds data on people and their services.
BSV 702 – Information Technology & Communication System
Procurement
Myob and USB
This is more on accountancy software which link with procurement works. The most
being used in Malaysia is USB. This ICT tools help in collecting data and updating the
flow of material supplies order during construction. The using of it helping out to make it
more systematic for each project.
Strategic Goals
Technology in Construction
where ICT software easily
software industry
Community
Iniciative
Educated / E-Tendering
knowledge
Efficient Effective
E-Construction E-Government
BSV 702 – Information Technology & Communication System
CONCLUSION
The construction industry in Malaysia is growing steadily despite of the hiking prices of
building materials and fuel-prices. ICT is very much synonym to our everyday life in this
borderless world where information and data are kept and retrieved at just a click of a
mouse. Internet application is considered to be the most promising technology for the
construction sector, followed by the most common tools used are Microsoft Office tools
and AutoCAD. However, the construction industry is relatively slow in adopting
available ICT tools. Professionals such as architects, engineers and surveyors have been
applying the benefits of ICT in the daily operations. Apparently, ICT has not been fully
optimized. This scenario does not only applicable to Malaysia but also worldwide.
BSV 702 – Information Technology & Communication System
REFERENCES
Azza A. Arif & Aly H. Karam, A. (2001) A Comparative Study : With Insight Into The
Use Of IT in Local Architectural Practices.
Sundaraj, G. The Way Forward: Construction Industry Master Plan (2006-2015). Master
Builders, 1st Quarter 2007: pp. 48-49.