CIDB urges the construction sector to accelerate technology adoption to reduce reliance on foreign labour

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CIDB urges adoption of construction technology

Highlights

CIDB is pressing the construction industry to accelerate technology adoption after confirming 600,000 registered foreign workers and a shortage of local labour.
The Digital Maturity Index being developed by CIDB and the Master Builders Association Malaysia is expected to be completed in two to three months to assess the sector’s level of digitalisation.
High upfront costs, insufficient incentives and a lack of expertise remain key barriers to the widespread adoption of industrialised building systems and automation.

This article was translated from the original. Read the original version by our correspondent here.

Modernising operations and reducing the workforce

As reported by The Edge Malaysia, Construction Industry Development Board chief executive officer Ahmad Farrin Mokhtar said the construction industry has approximately 600,000 registered foreign workers and needs to accelerate technology adoption to reduce its reliance on them. He made the remarks on the sidelines of the Modern Construction Technology 2026 Roundtable and Forum organised by Rehda Institute on Tuesday.

He said the difficulty of finding local workers to fill all existing roles makes technology, robotics and sensors key ways to replace some workforce requirements. He also said CIDB and the Master Builders Association Malaysia are developing a Digital Maturity Index to assess the level of digital adoption in the construction sector, and that the index is expected to be completed within two to three months.

Ahmad Farrin said many projects still rely on manual processes, highlighting a gap that must be addressed before the target for reducing foreign workers can be achieved sustainably. This emphasis makes automation not only an option for improving productivity, but also an operational necessity for the industry.

Cost barriers and productivity impact

The need to accelerate technology adoption was also highlighted by Rehda Institute trustee Datuk Seri Dr Michael KC Yam, who said improving construction productivity requires change across the entire development process, not just a focus on on-site methods. In his welcoming remarks, he identified high upfront costs, insufficient incentives and a lack of expertise as barriers to wider adoption of industrialised building systems.

He said the industry needs to demonstrate the returns from adopting modern construction methods and identify practical steps to encourage uptake. The full-day forum brought together 45 organisations and key stakeholders from the construction, manufacturing, property development and education sectors to discuss the commercial viability of modern construction technology.

Forum sessions covered building information modelling, artificial intelligence, prefabrication, materials innovation and project delivery. Discussions focused on how technology can improve productivity, cost control and quality while protecting project margins.

In our previous coverage of the platform launch of Menarabena, we explained how Menara Asia is driving digitalisation of the construction supply chain by matching contractors with building materials suppliers and providing certification, documentation and compliance information. The article also discussed its collaboration with CIDB Holdings through the Information Centre in Shanghai to accelerate product approval and certification processes, helping the industry improve efficiency without replacing existing regulatory requirements.

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