Key Strategies in Undertaking International Construction Project: Contractors’ Perspective

Department of Construction Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Parit Raja, Batu Pahat, Johor, Malaysia.

^* Corresponding author: norliana@uthm.edu.my

Abstract

The pressures of internationalisation have generated a high competitive market on Malaysian construction industry. However, the competitive and saturated of domestic market has driven many Malaysian contractor to undertake international projects. Without any denial, participation in international projects is a challenging task. It requires Malaysian contractors to develop strategy to enable them to operate successfully abroad. Therefore, the objectives of this research is to examine the key challenges for Malaysian contractors to undertake international construction projects thus identify strategies for Malaysian contractors to undertake international construction projects. To achieve the objectives of this research, quantitative method were adopted by using questionnaires. Questionnaire were distributed to participants from well experienced management team of G6 and G7 companies that have vast involvement in international projects. The findings of this research revealed that skilled worker shortage, high cost of financing of international project and limited experience with similar projects are the top three key challenges encountered by the Malaysian contractors in international construction project. The research identifies risk management and forming joint venture are the key strategies for Malaysian contractor to undertake international projects. In conclusion, this research can assist Malaysian contractor who wish to embark in international projects in supporting the current Construction Industry Transformation Programme (CITP) and the 4th Industrial Revolution in construction industry.