ECONOMY PERSPECTIVE IN MALAYSIA

What will happen if this industry is non-existence?

As we can see, if there is no construction industry, the economy will be segregated according to the places where the industry is being conducted. Plus, it would be hard for the transport of the goods, as it used to happen during the British colonization in Malaysia. During the time, it was hard to export goods to UK, because there was no transportation system to connect the roads on business purposes. Without the construction industry on the transport, it will be hard on the export and import purposes since part of GDP growth lies on the businesses.

As tourism is the third largest sector that contribute to Malaysia GDP growth, it is believed that, behind this industry, the construction sector has contributed a lot to the tourism industry, by providing with the road and buildings infrastructure, that allows foreign investment to come in. This is due to the matter that, construction industry provides road infrastructure, facilities and building architecture, that interest the foreigners to invest in property development, since Malaysia GDP remain on the steady rate at the first quarter of 2013, with 4.1% and expected to increase by 5.1%, driven by the factors of consumer spending and businesses conducted. Without the construction industry, this sector will be unable to support other sector that have huge impact on the GDP, thus, Malaysia will be underdeveloped.

Under the economy development, construction industry is known as the backbone of the economic growth, which basically this industry is integrated with other industries. Furthermore, this industry is the birth of industrialization, which comes in the technology and the services, which actually increase the rate of employment in Malaysia. According to Statistics of Malaysia, construction industry direct employment contributed by 8 percent from the total workforce. It also contributes from various level of workers, likely from non-professional to professional workers. Without this industry, the employment only expand at the certain areas according to its demographic, thus leading to the inequalities of the distribution of income, as communication and transport is under developed, that prevents from the business flow to happen among those industries.

During British colonization, the political development happens when British have interest on Malay land, such that loans and inter-colonial scheme. This occur when infrastructure development need substantial support. The re-distribution of finances, however, being adopted right now by the government policies, in which they imposed taxes to the road and services, to help developing the infrastructure of other states. If there is no construction industry being developed, it is hard for the government to imposed taxes on other states, since the communication is hard to reach them. The states that is poor, will remain undeveloped. I also believed that Human Development Index will decrease, since education and other facilities will not properly distributed among the people. For example, during the British colonization, India have been exported to Malaysia as British need cheap laborers for the rubber plantation. The difference in socio-economic will lead to the segregation between the judgement, facilities and awareness. According to Goodpal, 2018, people in rural area is still on caste-conscious rather than people that lives in urban area. This is due to the matter that, free-government after 1947 and British colonization assimilates them, which the Indian villagers are left isolated.

Source:

https://www.iproperty.com.my/resources/why-invest-property-malaysia.aspx

https://soapboxie.com/social-issues/Reasons-Why-India-is-So-Poor