RISK MANAGEMENT IN THE CONSTRUCTION INDUSTRY IN MALAYSIA

Abstract

This paper explores the risk management practices within the Malaysian construction industry, which is essential for the success and sustainability of construction projects. Given the sector's complexity and exposure to various risks such as fluctuating costs, labour shortages, and regulatory changes, effective risk management is crucial. The study examines how companies and contractors identify, assess, and mitigate risks, while also highlighting the challenges in implementing comprehensive risk strategies, particularly among small and medium-sized enterprises (SMEs). The paper provides insights into current practices, identifies gaps, and offers recommendations to improve risk management through better frameworks, training, and the integration of technologies like Building Information Modelling (BIM). The research methodology includes a comprehensive literature review and analysis of case studies from Malaysian construction projects. Findings indicate that while larger firms have adopted structured risk management approaches, SMEs continue to face challenges in implementation due to resource constraints and lack of expertise. The study concludes with recommendations for enhancing risk management practices through standardized frameworks, increased training, and greater technology adoption. Ultimately, enhancing risk management will help ensure the successful completion of construction projects in Malaysia.