Development of international strategic planning for Malaysian contractors

Abstract

International constructions provide the opportunity for Malaysian contractors to participate in overseas project. However, it is not an easy task to get involved in the international construction market. In order to become a successful company, a proper and strong strategic planning is needed. Therefore this study aims to suggest the potential strategic planning for Malaysian contractors to operate in overseas project. The research begins with reviewing the strengths and weaknesses as well as the opportunities and threats of the Malaysian contractors that have been involved in the international construction projects previously. The methodologies adopted for the study are in-depth interview with the companies’ representatives followed by the questionnaire survey and round table discussion with government and private bodies in Malaysia. The result shows that having good track records from previous project is one of the main strengths. Meanwhile, the low labour productivity is the main weaknesses. Moreover, the strong economic growth of developing countries increases the opportunities for the Malaysian contractors to penetrate in overseas projects. However, corruptions in host country influence their involvement in overseas construction. Thus, contractors need to prepare themselves before penetrate into the international constructions in order to ensure the successfulness of the projects. Furthermore, this research suggested several international strategies such as formation of joint-venture with local companies, recruitment of engineer from host country to work in Malaysia and review of client financial standing