The construction industry is one of the first sectors of the national economy in Malaysia,. In the era of growing Malaysia’s economy, its contribution to gross domestic product (GDP) is in the range from 3 to 6% per year. From 1989 to 1996, the construction industry had achieved double-digit growth rates. The development of the construction industry is directly proportional to the national economy.
This is due to the construction of the project or activities involving high costs. Good economic conditions and stability represent that the county is able to have enough funds or cash flow to start all these construction projects.
This can achieve the highest growth of 19.1% by observing the growth of the construction industry and the good stable state in year 1990, while the growth during the 1998 recession had dropped to 23.0%.The research examined the development of the construction industry and its relevance to output components of the residential ,commercial and civil engineering.
In 1995 ,the construction industry achieved the best performance with real estate growth transfer rates of new and existing buildings of 15.
8% and 34.1% respectively. The new and existing transfer growth rate of housing reached 11.7%, exceeding 150,000 units, and the amount exceeded RM15.8 billion. In addition, the bank provided bank loans of approximately RM5.1 billion to RM33.1 billion, or 18.1% at the end of 1995. During the year 1995, the construction of the industry is achieved the best performance which is successfully transferred the property growth of new buildings with 15.8 % and the existing building with 34.1%.
The relationship between the construction industry and the construction industry in Malaysia.
The construction industry has also stimulated the economy. The rapid development of the construction industry will stimulate the transportation, sale and purchase of factories, building materials and so on. It also provides a large number of employment opportunities, which has led to improvements in purchases that indirectly promote the national economy.
This shows that the relationship is two-way between the economy and the construction industry . Because of this relationship, the World Bank (1984) recognizes that construction activity is an economic stimulus. Research in the construction industry is more focused on the micro aspects of the industry.
This includes materials research, project management, and more. More specific or more research focuses on materials research, technology and research Management aspect. Because the construction industry is supported by many important components, the components of the research. Housing is a major sub-sector of the construction industry. This is because the sector contribute to about 35-40% of GDP per year.
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