A
t a construction site on the outskirts of the capital city, a group of workers can be seen diligently carrying out their tasks.
The workers, mostly foreigners, are supervised by engineers, contractors and developers, who serve as the backbone of any construction project.
“How great it would be if there’s a smart machine, like a robot, that could monitor the entire construction site with AI-powered cameras. A robot that can detect anything that is ‘not right’… for example, if a worker is not wearing a safety helmet, it can emit an early warning before an accident occurs,” said contractor Mohd Naim Zainol, 38, when met by Bernama recently.
He said having the opportunity to work with artificial intelligence (AI) technology would surely bring new life to his career.
“(Currently) a lot of time is spent rechecking plans or waiting for safety reports. With an AI system, alerts can be sent directly to a smartphone. Work becomes faster and risks can also be reduced.
“I hope the use of AI technology will continue to expand in Malaysia’s construction industry, especially for on-site work, while also benefiting small- and medium-sized construction companies,” he said.
MALAYSIA SECOND IN THE ASIA PACIFIC
The use of AI in the construction industry is already widespread globally. According to the website of the Construction Industry Development Board Malaysia (CIDB), based on industry insights, AI in the global construction market was valued at more than US$2.5 billion in 2022.
Minister of Works Datuk Seri Alexander Nanta Linggi during the Integrated Enforcement Operation (OPB) by the Construction Industry Development Board (CIDB) at construction sites around the capital.
Forecasts suggest the market is expected to grow steadily at a compound annual growth rate of about 20 percent between 2023 and 2032.
In Malaysia, several major companies such as Gamuda Bhd and Sunway Construction Group Bhd are pioneers in applying this technology, reaping benefits such as improved efficiency in monitoring workers’ compliance with site safety, project management optimisation and cost reduction.
This progress is timely as it helps the industry navigate current challenges such as fluctuating building material prices, shortages of skilled labour and the pressure to complete projects within set timelines.
Even more interesting, AI is also used to forecast extreme weather that could disrupt work schedules at construction sites. Given the increasingly unpredictable climate due to global weather changes, AI forecast data helps stakeholders postpone high-risk work, thus avoiding losses that may amount to millions of ringgit.
Sharing his views, Associate Prof Dr Md Asrul Nasid Masrom from the Department of Construction Management at Universiti Tun Hussein Onn Malaysia said, citing CIDB, that according to the ‘State of Digital Adoption in the Construction Industry 2024’ report by Autodesk and Deloitte, Malaysia ranks second in adopting digital technology among six countries surveyed across the Asia Pacific, including Japan, Singapore and Australia.
“According to the report, Malaysian construction firms use an average of 6.9 digital technologies, surpassing the regional average by 50 percent. This surge is driven by the country’s increasing focus on integrating advanced technology into traditional construction practices.
“Current estimates suggest that around 30 to 40 percent of large- and medium-scale construction companies in Malaysia have started integrating AI technology, especially for data analytics, site safety monitoring and project scheduling optimisation.
“This percentage is expected to rise to 60 to 70 percent over the next 10 years, in line with falling technology costs, advances in digital infrastructure and the implementation of high-impact mega projects such as the data centre headquarters and the national digital infrastructure project,” said Md Asrul Nasid, who is dean of the Faculty of Technology Management and Business at Universiti Tun Hussein Onn Malaysia, and chief researcher at the same faculty’s Centre of Sustainable Infrastructure and Enviromental Management.
Associate Prof Dr Md Asrul Nasid Masrom from the Department of Construction Management at Universiti Tun Hussein Onn Malaysia.
He said globally, countries like Singapore, the United Kingdom, Japan and Sweden can serve as reference models.
Singapore, through its Building and Construction Authority, uses AI-powered drones for façade inspections, shortening inspection time from four weeks to only four days while improving safety.
“In the United Kingdom, research and projects at Cambridge University and initiatives by the Centre for Digital Built Britain demonstrate the success of AI and ‘digital twin’ in reducing project risks and improving the accuracy of scheduling predictions.
“In Japan, its Komatsu Smart Construction integrates AI for earthwork automation, while Sweden uses AI technology such as Safety Sidekick for proactive safety monitoring at construction sites,” he said.
SOLOW ECONOMIC THEORY
Meanwhile, Universiti Utara Malaysia School of Economics, Finance and Banking senior lecturer Muhammad Ridhuan Bos Abdullah said economic theories such as the Solow Growth Theory have proven that technology accelerates economic growth.
Artificial intelligence (AI) technology has the potential to drive the nation’s construction industry to a higher level.
“The combination of AI, capital and human labour adds value by boosting productivity. It can also improve the quality and safety of building materials by complying with standards set by agencies such as SIRIM and CIDB.
“So far (in Malaysia), the construction sector has remained labour-intensive from upstream to downstream (the industry still relies heavily on human labour at every stage of the construction process, from initial planning to project completion),” he said.
Citing the application of the Industrialised Building System (IBS), he said reported data still shows it is not widely adopted in Malaysia, compared to the construction industries in countries like Japan and South Korea.
He added that the use of AI requires upskilling and reskilling strategies for workers as some mid-level sectors, such as building materials manufacturing and professional services, are expected to be affected.
On where AI can be used to predict the prices of building materials such as steel and cement, Muhammad Ridhuan Bos said it has the potential to do so, but it would depend on greater access to open data.
“Economists don’t have a ‘crystal ball’ to make precise predictions. But with AI, it can be done if there is skilled human capital to operate it,” he said.
He said the construction materials cost index by the Department of Statistics Malaysia can also be improved with industry support so that the data becomes more comprehensive.
“Dynamic economic models such as the stochastic dynamic general equilibrium used by researchers in Europe and the United States can serve as references,” he said, adding that more accurate cost forecasting would help the government plan incentives, control prices and manage infrastructure project budgets more effectively.
SKILLED WORKFORCE
As in other industries, the use of AI in the construction sector has raised concerns about whether this technology will replace humans or create new job opportunities.
Universiti Utara Malaysia School of Economics, Finance and Banking senior lecturer Muhammad Ridhuan Bos Abdullah.
Addressing the issue, Muhammad Ridhuan Bos said for low-skilled workers, such concerns are valid. However, those who are technologically literate will have an advantage in the new job market.
“AI can take over some of the routine tasks performed by humans, but at the same time, it creates new job opportunities.
“AI will reshape the nature of jobs in the construction industry. Low-skilled jobs may decline, but there will be strong demand for workers skilled in digital technology, AI and green innovation. This is where the government, CIDB, and Technical and Vocational Education and Training (TVET) institutions will play a crucial role in ensuring that local workers are equipped with new skills,” he said.
He also said the widespread use of AI could contribute to the construction sector’s Gross Domestic Product (GDP), stabilise housing costs and make Malaysia a more attractive destination for foreign direct investment.
“If local talent in the AI and technical fields is given opportunities, we can not only reduce dependence on foreign labour but also export skilled talent abroad. This would increase net inflows to the nation’s GDP,” he said.
Touching on fiscal aspects, he said tax incentives should be strengthened, especially those supporting the adoption of green technology, IBS and Building Information Modelling (BIM).
“The government has previously introduced incentives for IBS and BIM. Similar measures should be extended to upskilling and reskilling local talent in green and digital technologies so that not only companies benefit, but human capital also gains added value.
“The TVET agenda must continue to be strengthened in line with the demands of the Fourth Industrial Revolution, alongside CIDB’s support in ensuring that local workers are not only highly skilled but also able to adapt to technological change, particularly in this AI era. This, in turn, will enhance the global competitiveness of our country’s construction industry,” he added.
AI BENEFITS OCCUPATIONAL SAFETY & HEALTH
According to Aziz Abdul Hamid, a safety consultant and co-founder of HRB Solutions Sdn Bhd – a training and safety consultancy firm – AI has shifted the safety paradigm from a reactive approach to a proactive one.
Aziz Abdul Hamid, a safety consultant and co-founder of HRB Solutions Sdn Bhd .
He explained that traditional safety approaches in the construction industry tend to be reactive, referring to safety management actions such as audits and the restructuring of protocols, which are usually carried out only in response to accidents or incidents.
“In contrast, AI-assisted safety management systems operate based on a proactive paradigm. With AI, such systems are capable of predicting and preventing accidents before they happen, unlike traditional methods that rely entirely on manual supervision, which is inconsistent, time-consuming and often highly prone to human error.
“AI systems provide continuous (24/7) automated monitoring with high consistency and accuracy, processing large volumes of real-time data. This (AI system) makes a huge difference in occupational safety and health management, especially in the construction industry,” he said, adding that AI technologies used at construction sites include computer vision, smart sensor systems and the Internet of Things (IoT).
He said this use of AI is not merely technical but also has major implications for the safety culture at construction sites.
According to Aziz, the shift from “managing crises” to “preventing crises” through AI systems that provide direct early warnings can foster a stronger culture of compliance and accountability among both workers and employers.
This also aligns with the Department of Occupational Safety and Health’s efforts in promoting a “prevention culture”.
“In short, AI provides the tools needed to achieve this cultural shift, something that cannot be fully realised through manual methods alone,” he added.
On Aug 26, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia cannot afford to be left behind in mastering AI technology, which has become central to human capital development and national competitiveness.
He said the nation’s ability to master new skills and technologies will be the key to Malaysia’s capacity to face global digital transformation.
