The Impact of the Covid-19 Endemic and the Challenges Faced by
Construction Industry of Category G7 in Johor Bahru

by Tanusha A/P Ramani

February 2022

Abstract

The construction industry has a significant impact on global economic development. Construction of adequate buildings and infrastructures ensures that a country achieves specific goals such as social development, industrialization, freight transportation, sustainable development, and urbanization.

This exploratory research study accesses the impact of the Covid-19 endemic in the construction sector particularly in Johor Bahru and the Malaysian Government initiatives to mitigate the Economic, Social and Industrial impact of the endemic. The semi structured interview research approach was applied with getting feedback from management levels employees of construction companies in Johor Bahru with sampling design of 122 (respondents who participated in this study). The construction companies were chosen at random based on category G7 on companies’ listings on the Malaysian Construction Industry Development Board (CIDB) website, and content analysis was used to determine the main outcomes using SPSS software.

Quantitative method was applied in this research to give a comprehensive approach and supportive of research outcomes. Results from the questionnaires found that the pandemic has resulted in 5 (five) main impacts consists of (1) financial constraints; (2) increase in raw material price; (3) Contractual Implication; (4) delay in construction progress and completion and (5) expensive to implement new Act 446. This exploratory research further suggest directive to future researchers to study in-depth related to the endemic and the construction industry, which in return could help the sector transition towards the new normal.

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