Annual Report 2017

103 D E L I V E R I N G V A L U E CONSTRUCTION & BUSINESS SERVICES The construction sector in Malaysia is expected to grow at 10.3% per annumwith a contribution of RM327 billion or 5.5% of GDP by 2020. Towards this end, the government has introduced the Construction Industry Transformation Programme (CITP) 2016-2020 to propel the industry forward and meet market demands. Looking at the current scenario of construction services and building materials industry in Malaysia and the need to increase exports of both sectors, the following strategies are proposed: Internationalisation of Malaysian construction companies through: • Strengthening the development of the construction industry to become internationally competitive, and • Adoption of international construction standards. Strengthening access to financing for overseas bound construction companies through: • Leveraging on financial incentives for participation in international programmes, and • Establishing collaboration with government agencies and financial institutions to help local players increase their knowledge on accessing financial facilities. Accelerating export through targeted trade promotional activities by identifying selected export market. Branding Malaysia as a competitive, capable and reliable service provider globally by: • Highlighting success stories and performance records, and • Leveraging on participation of industry players at international awards, forums and trade fairs organised through other government ministries, agencies and trade associations. Enhancing utilisation of ‘Malaysian content’ in overseas projects by encouraging Malaysian contractors and developers to use Malaysian-made products and services in their overseas projects. Export Promotion Programmes International Sourcing Programme (INSP) in conjunction with International Construction Week (ICW) 2017 in Kuala Lumpur (held on 12 April 2017) • Organised in collaboration with the Construction Industry Development Board. • 30 participating Malaysian companies. • 78 pre-arranged meetings concluded with eight foreign buyers fromCambodia and Myanmar. • Reported sales outcome of Malaysian companies: RM11.61 million. MATRADE’s Broad Strategy and Direction Moving Forward The Construction Unit will continue to focus on targeted markets such as India, ASEAN and Gulf Cooperation Council (GCC) countries, in promoting the construction sector through participation in trade fairs, Export Acceleration Missions (EAM), International Sourcing Programme (INSP) and trade and investment missions. The Unit will also collaborate with large Malaysian corporations, conglomerates and project owners such as the AlloyMtd Group, YTL Corporation Bhd, SP Setia Bhd to increase local sourcing initiatives. Implement import substitution where available for projects in Malaysia via: • Smart partnership with agencies and project owners in Malaysia for local sourcing, and • Encouraging local content requirement for projects in Malaysia. Strengthening market intelligence to grow export by leveraging TC offices and foreign embassies for market intelligence. “ APAC is the major revenue contributor to the global construction materials market due to increasing construction activities in the developing countries. Commercial and residential constructions are increasing rapidly due to the emerging economies in APAC.” Construction Materials Global Industry Guide 2017 Ken Research