Datuk Sharifah Hasidah Sayeed Aman Ghazali
KUCHING: Sarawak’s construction sector is expected to grow by 16.8 per cent this year, driven by higher state government spending.
Assistant Minister in the Chief Minister’s Department (Law, State-Federal Relations and Project Monitoring) Datuk Sharifah Hasidah Sayeed Aman Ghazali said Sarawak’s economy is moving towards a promising future and the state government is vigorously pursuing its development agenda to achieve a high-income economy by 2030.
“The various development projects implemented under the current 11th Malaysia Plan and going into 12th Malaysia Plan will continue to spur the growth of the construction sector in 2020 and beyond,” she said at the Asian International Arbitration Centre (AIAC) Standard Form of Building Contracts (SFCs) Roadshow yesterday.
Pointing out that the construction industry is a driving force in Malaysia’s economy, Sharifah Hasidah said it “affects not only those within the industry but the lives of citizens as a whole”.
She said a strong construction industry reduces the number of projects abandoned or delayed due to unresolved disputes.
“It is crucial to identify the potential issues at the earliest stage possible. Particularly in Sarawak, construction projects often involve issues surrounding Native Customary Rights and adverse soil conditions, which are distinct from the rest of the country,” she said.
She noted that AIAC and the Expert Advisory Committee were committed to updating their SFCs to fit industry needs.
“For example, by having a single unified contract, without the distinction between with or without quantities, provides for more efficiency and allows for the parties to customise the contract to their specific needs.
“Additionally, the introduction of the contract administrator allows for the advancement of the scope and avenues for architects, quantity surveyors, engineers, and other stakeholders to come on board,” she said.
She added that AIAC SFCs recognised the importance of balancing the liabilities of all the stakeholders involved as well as maintaining checks and balances, which are vital for the function of the construction industry.
“The AIAC SFCs provide an opportunity to implement change in the Malaysian construction industry and beyond.
“Whilst the AIAC SFCs will not be able to eliminate disputes all together, it is nevertheless a significant step towards reducing those numbers,” she said.
Sharifah Hasidah said the current growth of the construction industry provided an opportunity for Malaysia to not only strengthen its economy but also be a leader in global construction reform.
“If we are able to drastically reduce the number of disputes which cause delays while exponentially increasing the number of projects, Malaysia will become a model for other jurisdictions to follow,” she said.
She called on industry players to abandon their old ways and look for new opportunities to build on and strengthen the foundation of the construction industry.