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CAUSES OF POOR PARTICIPATION OF LOCAL WORKERS IN


MALAYSIA CONSTRUCTION INDUSTRY AND STRATEGIES FOR
IMPROVEMENT

SHIADRI BINTI SALEH @ AMAN

A project report submitted in partial fulfillment of the requirements for the


award of the degree of Master of Science in Construction Management

Faculty of Civil Engineering


University Technology Malaysia

November 2008

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Specially dedicated to my beloved mother, father, siblings and friends

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ACKNOWLEDGEMENTS

In preparing this thesis, I was in contact with many people and practitioners.
They have contributed towards my understanding and thoughts. In particular, I wish
to express sincere appreciation to my thesis supervisor, Prof. Dr. Muhd Zaimi bin
Abdul Majid, for encouragement and guidance. Without his continued support and
interest, this thesis would not have been the same as presented here.
To all who spent their invaluable time completing the questionnaire, thanks
for the contribution . I would like to say thank you to all my family members for
their continued support. Finally, I wish to thank my friend, Rosedah Muhamad Ramli
and my housemate, Norzanarita Eezan for the motivation and advice.

ABSTRACT

Labour shortage in Malaysian construction industry is due to certain causes


such as poor participation by local labour. In Malaysia, local youth would rather be
unemployed despite working in the construction industry. This is attributed to the
archaic employment practices, outdoor work and prevalence of the temporary and
casual labour. The industry has been forced to rely on foreign labour, mostly from
neighbouring countries. The government of Malaysia aims to reduce the number of
foreign workers in the country from 1.84 million in 2005 to 1.5 million by 2010. It is
envisaged that by this time, only 200,000 foreign workers will remains in the
construction industry. The objectives of this study are; to identify the factors that led
to the poor participation of local labour in the construction industry; to identify the
critical factors that led to the poor participation of local labour; and to identify
strategies to improve the participation of local labour in the construction industry.
The method of the study involved literature review, data collection and an Average
Index method was used for analysis. The data were gathered through questionnaire
and interview. In conclusion, the respondents agreed that the first three major factors
that led to the poor participation of local workforce in construction industry were
related to uncomfortable, unsafe and unhealthy working conditions and temporary
employment status. Five major strategies for the improvement on the local labour
participation were to focus on training and advancement, employment status,
enhance the safety practice and procedure and image of construction workers and site
accommodations and services.

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ABSTRAK

Masalah kekurangan pekerja bagi industri disebabkan banyak faktor dan


salah satu daripadanya adalah kekurangan penglibatan tenaga pekerja tempatan. Di
Malaysia, belia tempatan lebih rela menggangur daripada bekerja di dalam industri
pembinaan. Ini disebabkan oleh kaedah tradisi yang masih digunapakai dalam
proses pengambilan pekerja, melibatkan kerja-kerja luar, status pekerjaan sementara
dan kontrak. Oleh sebab itu, industri ini terpaksa bergantung kepada pekerja asing
yang kebanyakannya daripada negara jiran. Kerajaan Malaysia mensasarkan untuk
mengurangkan kebergantungan kepada pekerja asing daripada 1.84 juta pada tahun
2005 kepada 1.5 juta pada tahun 2010. Pada masa itu hanya 200,000 pekerja asing
akan dikekalkan dalam industri pembinaan. Objektif kajian adalah untuk
mengenalpasti faktor yang menyebabkan kekurangan penglibatan pekerja tempatan;
mengenalpasti faktor kritikal yang menyebabkan kekurangan penglibatan pekerja
tempatan; dan mengenalpasti strategi untuk meningkatkan penglibatan pekerja
tempatan dalam industri pembinaan. Kaedah kajian melibatkan kajian literatur,
pengumpulan data dan kaedah Index Purata digunakan untuk tujuan analisa. Data
dikumpulkan menggunakan kaedah soal selidik dan temuduga. Kesimpulannya ialah
responden telah bersetuju bahawa keadaan tempat kerja yang tidak selesa, kurang
selamat dan tidak sihat dan juga status pekerjaan yang sementara merupakan
penyebab utama mereka tidak berminat menyertai industri pembinaan. Lima strategi
utama untuk meningkatkan penyertaan tenaga kerja tempatan ialah latihan, status
pekerjaan, meningkatkan amalan dan prosedur keselamatan, meningkatkan imej
pekerja binaan, dan kemudahan dan servis di tapak bina.

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TABLE OF CONTENTS

CHAPTER

TITTLE

PAGE

TITLE

DECLARATION

ii

DEDICATION

iii

ACKNOWLEDGEMENTS

iv

ABSTRACT

ABSTRAK

vi

TABLE OF CONTENTS

vii

LIST OF FIGURES

xi

LIST OF TABLES

xii

LIST OF APPENDICES

xiii

INTRODUCTION

1.1

Introduction

1.2

Background of Study

1.3

Problem Statement

1.4

Research Aims and Objectives

1.5

Scope and Limitation of the Study

1.6

Research Methodology

1.7

Summary

FACTORS THAT INFLUENCE THE POOR LOCAL


LABOUR PARTICIPATION IN CONSTRUCTION
INDUSTRY

2.1

Introduction

2.2

Background of Labour Crisis in Malaysia


Construction Industry

viii
2.3

Construction in the Eyes of Workforce

2.4

The Factors of Less Interested of Local Workforce

In Construction

10

2.4.1 Economic Factor

10

2.4.2 Poor Image in the Eyes of Workforce

10

2.4.3 Lack of Training and Skill Formation

12

2.4.4 Outsourcing Labour Through


Sub-Contractor System

2.5

2.4.5 Unattractive Jobs

15

2.4.6 Poor Site Accommodations and Services

15

2.4.7 Change in Education

16

Problems Highlighted by International Labour


Organisation (ILO)

2.6

2.7

12

17

The Critical Factors That Influences to the Less


Interested of Local Workforce

18

Summary

19

THE CURRENT EFFORTS UNDERTAKEN TO


ENCOURAGE LOCAL LABOUR
PARTICIPATION IN CONSTRUCTION
INDUSTRY

20

3.1

Introduction

20

3.2

Definition of Skilled Labour

20

3.3

Definition of Semi-Skilled Labour

21

3.4

Definition of Unskilled Labour

21

3.5

Definition of Foreign Workers

21

3.6

Attracting Local Construction Workers

22

3.6.1 Provide Skills Training

22

3.6.2 Revolutionise the Conservative Labour


Employment and Deployment System

23

3.6.3 Promoting Health and Safety

24

3.6.4 Skills Testing and Certification

25

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3.6.5 Upgrading the Construction Operation
3.7
3.8

25

Good Practices Listed by ILO for Construction


Industry

26

Summary

28

RESEARCH METHODOLOGY

29

4.1

Introduction

29

4.2

Research Methodology

30

4.3

Literature Review

30

4.4

Data Collections

31

4.4.1 Questionnaire Design

32

4.5

Analysis Method

33

4.6

Summary

34

DATA ANALYSIS AND RESULTS

35

5.1

Introduction

35

5.2

The Respondents Background

35

5.3

Result and Analysis

43

5.4

The Result of the Questionnaire Survey

45

5.4.1 The Result of the Factors That Led


to the Poor Participation of Local
Labour to Work in the Construction
Industry

45

5.4.2 The Result of the Critical Factors That Led


to the Poor Participation of Local
Labour to Work in the Construction
Industry

47

5.4.3 The Result of the Strategies to Improve


the Participation of Local Labour in the
Construction Industry
5.5

49

Findings and Discussion

50

5.5.1 Respondents Background

51

x
5.5.2 First Objective: To Identify the Factors
That Led to the Poor Participation of Local
Labour to Work in the Construction
Industry

51

5.5.3 Second Objective: To Identify the Critical


Factors That Led to the Poor Participation
of Local Labour to Work in the
Construction Industry

53

5.5.4 Second Objective: To Identify the


Strategies to Improve the Participation
of Local Labour in the Construction
Industry
5.6

Summary

54
58

CONCLUSION AND RECOMMENDATIONS

60

6.1

Introduction

60

6.2

Conclusion

61

6.3

Recommendation for Future Study

62

REFERENCES

63

APPENDIX A

65

xi

LIST OF FIGURES

FIGURE NO.

TITLE

PAGE

1.1

Methodology Flow Chart

5.1

Respondent Current Job Sector

38

5.2

Respondent Education Background

40

5.3

Respondent Working Experience Background

40

5.4

Respondent Annually Income

42

5.5

Respondent Method of Income Payment

43

5.6

Return Questionnaire

44

5.7

Factors Influences of the Job Selection

45

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LIST OF TABLES
TABLE NO.

TITLE

PAGE

5.1

Respondent Background

37

5.2

Respondent Education Background

38

5.3

Respondent Working Experience Background

39

5.4

Respondent Anually Income

41

5.5

Respondent Method of Income Payment

42

5.6

Return Questionnaire

44

5.7

Factors Influences of the Job Selection

45

5.8

The Factors That Led to the Poor Participation of Local


Labour to Work in the Construction

5.9

The Critical Factors That Led to the Poor Participation


of Local Labour to Work in the Construction

5.10

49

The Strategies to Improve the Participation of Local


Labour in the Construction Industry

5.11

47

50

The Factor That Led to the Poor Participation of


Local Labour

52

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LIST OF APPENDIXES

APPENDIX
A

TITLE
Questionnaire Survey Form

PAGE
67

CHAPTER 1

INTRODUCTION

1.1

Introduction
Malaysia is presently experiencing a new era of prosperity. The government

formulated and implemented a series of five year development plans and laid the
foundation for the development in the country. From the 60s, Malaysian economy
grew rapidly and many jobs were created in the agricultural and construction sectors.
Towards the early 90s, Malaysia experienced a tight labour market and there was a
shortage of labour in the manufacturing industries. The labour shortage later
expanded to the construction sector and domestic services.
The shortage of skilled labour that the Malaysian construction industry is
currently encountering has been perpetuated by several combination of causes. The
economic change that Malaysia has seen for the last decade is one of the leading
causes of the skilled worker shortage. The resultant labour shortage was made worse
by the selective attitude of local labour due to expansion of education, improvement
in living conditions and access to upward mobility.

1.2

Background of the Study


Malaysia has a labour force of 10.9 million in 2005 and nearly 11.1 million in

2006. While Malaysia offers a large workforce, there is currently a shortage of


skilled workers in some industries.
Based on Labour Force Survey Report for 2005, there were 6.47 million
employed persons in Malaysia of which 12.9 per cent were in construction industry,
673,900 were Non-Malaysian citizens and 8 per cent from Non-Malaysian citizens
were in construction industry. As of June 2006, there were 1.84 million registered
foreign workers of which 33.3 percent were employed in manufacturing, plantation
(20.2 per cent), services (including domestic maids) (25.9 per cent) and construction
sector (15.1 per cent) (Bernama, 2006).
Malaysia in recent years has absorbed large numbers of foreign workers to
work in low-paying and low skilled fields. In general, low-skilled foreign workers
are employed in positions that most Malaysian refuse to do it (Ames Gross, 2002).
Malaysian Trade Union Congress (MTUC) pointed out that in early 1990s all
buildings including multistory buildings, highways even the East-West highway was
entirely built by locals. It is obvious that the construction industry is taking unfair
advantage of the understanding shown by the Government. The fact that more than
265,000 of the 322,000 illegal foreign workers were from the construction sector
shows that they prefer illegals. Importing cheap labour is often the main cause of
distortion between relative price of capital and labour. The demand for foreign
workers is not due to genuine shortage but due to the desire of employers to pay
lower wages (MTUC, 2002).
According to the 2006/2007 Economic Report released on September 2006,
Malaysia aims to reduce the number of foreign workers in the country from 1.84

million to 1.5 million by 2010. It is envisaged that by that time, only 200,000 foreign
workers will remains in the construction industry.
A similar situation is found in some developed countries where construction
works has for many years been undertaken largely by immigrants, or by the children
of immigrants (ILO, 1995). In Unite States, where the wage advantage that
construction workers have traditionally enjoyed over other industries has steadily
eroded over the past 20 years leading to a leakage of skilled workers from the
industry and difficulty in replacing them (Philips, 2000).
In china, construction work was ranked the lowest out of 69 occupations, in a
poll of 2600 young people in 63 cities carried out in 1999 by academy of social
sciences (Lu and Fox, 2001).
In India, from the survey of 2600 people in five towns in India, 90 per cent
were working in construction because they have no choice, but they dont want their
children to work in the industry (Vaid, 1999).

1.3

Problem Statement
When we talk about labour crisis in construction industry, number is not only

issue impinging on the manpower development of the industry. Due to certain


reasons, local workforce is less interested to work in the construction industry. This
persistent situation may pose hiccups to the potential development of the industry.
Local workforce is still thinking that the jobs in this sector are not dignified enough
besides being labeled dirty, dangerous and difficult. Therefore as a last result to
overcome the acute shortage of manpower, the industry hired foreign workers.

The group of foreign workers hired by the industry basically unskilled,


acquires their work knowledge while assisting the more experienced workers, and
thus is not meeting the industrys skill standards (CIDB News, 2002).
According to the Third Industrial Master Plan 2006-2020 (IMP3), labour
intensive industries will be encouraged to plan their human resource requirements to
progressively reduce their dependence on low-skilled labour, particularly foreign
unskilled labour.

1.4

Aim and Objectives of Study


The aim of this study is to investigate the reluctant of local manpower to

work in the construction industry and how to increase their participation rate. To
achieve this aim, three objectives are being delineated. Those are as follows:
1)

To identify the factors that led to the poor participation of local labour
to work in the construction industry;

2)

To identify the critical factors that led to the poor participation of


local labour to work in the construction industry; and

3)

To identify the strategies to improve the participation of local labour


in the construction industry.

1.5

The Scope of Study


The scope of this study is narrowed down to simplify the process of

information gathering, so it can be analyzed within an appropriate time limit. The


aspects being considered are:
1) Focused on manpower at the construction site
2) The area of this study is in Klang Valley area

1.6

Research Methodology

The main focus of the study is to achieve earlier stated objectives through the
collection of data using survey questionnaires and interviews, (Uma Sekaran, 2000).
The methodology is set to gather the data to achieve the outlined objectives. The first
step of study is to rationalize the issue to set up the topic of study. Then the statement
of problems, aims and objectives were developed. This study employed several
methods of data collection for the purpose of objectives achievement. For the
knowledge acquisition phase, the literature in connection with the study to be carried
out is reviewed through journals, books, conference papers, magazines, and websites.
From that information, a set of questionnaire form develop. The respondents are
Malaysian Citizenship workforce. The data analyzed using statistical method. The
final phase of the study is to define the conclusions and recommendation with
reference to the objectives, subsequent to the analysis from the questionnaire. The
Methodology Flow Chart is as shown in Figure 1.1 below.

Selected Topic of Study


Er
Statement of Problems

Define Objective

Literature Review

Identify Factor Influence

Identify Critical Factors

Identify Strategy to
Improve

Data Collection

Interview

Questionnaire

Data Analysis & Result

Conclusions & Recommendation


Figure 1.1 : Methodology Flow Chart

1.7

Summary
This study provides some valuable insights into the relative importance of the

participation of local labour in the construction industry.


The First chapter is the introduction of the research, which include the
statement of problems, the aim and objectives of the study, the scope and
justification of the study, and research methodology.
The Second Chapter is on literature review; focus on the identification factors
that influence the poor local labour participation.
The Third Chapter continue with the literature review on current effort
undertaken to encourage local labour participation.
The Fourth Chapter is the Research Chapter that discuss the method of
research.
The Fifth Chapter discuss the Data Analysis and Results of the study.
The Sixth Chapter is the conclusion and recommendation of the study.

CHAPTER 2

FACTORS THAT INFLUENCE TO THE POOR LOCAL LABOUR


PARTICIPATION IN CONSTRUCTION INDUSTRY

2.1

Introduction
This chapter identifies the factors that influence the local labour less

interested to work in construction industry. The factors that influence the local labour
less interested to be discussed related to economy, image, outsourcing labour trough
sub-contractor system, lack of training and skill formation, large number of foreign
workers, poor site accommodations and services and change in education.

2.2

Background of Labour Crisis in Malaysian Construction Industry


Labour crisis in Malaysian construction industry not only impinging on the

manpower development of the industry but due to certain reasons, local workforce is
less interested to join this industry.
MTUC pointed out that in the early 1990s all buildings including multistory
buildings, highways even the East-West Highway was entirely built by locals. It is

obvious that the construction industry is taking unfair advantage of the understanding
shown by the government.
Executive director of the Malaysian Employers Federation said that
Malaysian workers are not willing to work on a plantation or construction site
because it is hard work under the sun. Many of the 26 millions Malaysian workers
want white collar jobs (Bloomberg News, 2005).
The construction industry in Singapura used foreign workers as a necessary
temporary measure to avoid the shortages which could hinder the nations economic
development. The long term intention is to reduce the reliance on such workers and
effort is made to derived optimum benefit from those employed, for example by
enhancing their quality by training.
Malaysia drew significantly on Singapores experience in responding to
labour shortage, revising the skill certification and public education systems and
other policies to upgrade human resource development, as well as production
management and industrial relations (Takeshi, 1998).

2.3

Construction in the Eyes of Workforce


There is evidence from various parts of the worlds to indicate that

construction workers do not view their employment in a very favorable light.


Construction regarded almost everywhere as low status job. In many other countries,
both rich and poor, people work in construction out of necessity and not out of
choice. Almost universally they wish for better things for their children (ILO, 2001).

10

In Malaysia, young workforce would rather unemployed than work in the


construction industry. Official estimates put foreign labours at 80 per cent of entire
construction workforce in 1992 (Abdul Aziz, 2001).

2.4

The Factors of Less Interested of Local Workforce in Construction

2.4.1 Economic Factor


The economic that Malaysia has seen for last decade is one of the
leading causes of the worker shortage. The shortage of skilled workers is not
eased by the tight labour market situation either. Obviously because of the
strong growth of the economy spurred by the influx of investments, job
opportunities have increased resulting in the easing of the unemployment rate
to about 4.3 per cent by the half 1992. It has now become an employees
market and therefore, workers can afford to be choosy. The tight labour
market situations, however, has not reached critical propotions. But this does
not mean that it is not serious. This situation needs to be monitored (Anthony,
1992).

2.4.2 Poor Image in the Eyes of WorkForce


The poor image of work in the construction industry is generally
thought to stem from the nature of work, which is often describe as dirty,
difficult and dangerous. But the real reason why construction work is so

11

poorly regarded has much more to do with the term on which labour is
recruited than the nature itself. For many construction workers around the
world the term of employment have always been poor (ILO, 2001).
In Malaysia, accidents on construction sites are so common that
everyone has come to accept them as an unavoidable feature of the industry.
This situation is attributed to the casual terms of employment, the
engagement of illegal foreign workers and the non-coverage of workers under
national insurance scheme (Abdul Aziz, 1995).
The danger posed to personal safety by construction work is one of
the reason why Malaysian are unwilling to take up careers in it. Statistics
from the social Security Organisation (SOCSO) showed that on the average,
five thousands accidents occurred in construction sites annually between
2000 and 2004. This figure represents about 5 to 6.5 percent of the total
number of accident reported over the period. An average of eighty workers
was killed in such accidents (Fong Chan Onn, 2006).
Inspection conducted by Department of Safety and Health (DOSH)
found that one of the main contributory factors of accidents at construction
sites was the lack of commitment by employers to implement measures to
improve occupational safety and health. Construction sites rated as
unsatisfactory were not managed in accordance to best practices. And most of
the time, were not in compliance with the laws and regulations governing
construction activities.
Accidents at the construction site do not only involve workers, but
may also inflict injury or even cause death to the general public. Such
accidents had tarnished the image of construction industry.

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2.4.3 Lack of Training and Skill Formation


Lack of opportunities for training and skill formation contribute to the
unattractiveness of a career pathway in construction industry. Attracting new
entrants is a major problem in Malaysia where workers have alternative. In
both developed and developing countries difficulties are experienced in
recruiting young and educated workers.
In Malaysia, the problem noted that the passing on of skills through
informal apprenticeship is often kept within family, clan or tribe and when
circumstances dictate that skills should be transferred to outsiders they may
be some dilution, with not all skilled passed on (Abdul Aziz, 2001).
The high turnover of workers poses a considerable barrier to formal
training in the construction industry. The contractors reluctance is also based
on the fact that training cost money, which will raise the price of their bids
and could make them uncompetitive.

2.4.4 Outsourcing Labour Through Sub-Contractor System


In many countries, the practice of recruiting labour through
subcontractors and intermediaries is long established. Subcontracting is
usually on a labour only basis and may go through several stages on a large,
creating a multi-layer contracting system. A similar system of indirect
employment, which allows contractors to cope with fluctuation in the demand
for labour, has also been practiced in Malaysia for many years. Chief
Executive of CIDB, Datuk Hj Abdul Rahman Abdullah said that under this
system, contractors who secure construction works normally sub-contract the

13

works to sub-contractors known as kepala, who in turn hire construction


labourers to undertake construction works.
The kepala system enables the contractor to avoid the large expenses
of permanent workers and the necessary administrative personnel. The
contractor also avoids investment in training and necessary incentive and
motivational mechanisms. The system requires a large number of
construction workers.
The drawbacks of the kepala system are:
i)

Poor workmanship as the kepala does not invest in training


and switches workers from site to site achieve the best return
from the expenditure on them;

ii)

Wastage of materials as the kepalas workers are most


concerned with the quickest, not necessarily the most
efficient methods;

iii)

Improper usage of the main contractors equipment by the


kepalas workers;

iv)

The kepalas inability to retain workers or seek their


improvement and welfare, leading to the failure to develop a
core pool of construction workers; and

v)

Workers do not enjoy permanent employment; they also do


not receive any perks and welfare benefits normally relating
to such employment.

This system however, has not been effective enough to attract


participant of local workers into the sector, partly because local workforce is
still thinking that jobs in the sector are not dignified enough besides being
labeled as dirty, dangerous and difficult (CIDB News, 2002). MTUC reported

14

that a major construction company pays RM80 per day for each worker
utilized by sub contractor where as the contractor, pay the worker only RM33
per day. More than 50 per cent of the payment meant for the worker is
pocketed by the sub contractor.
Widespread contracting system in the construction sector has
eliminated security of tenure and casualised employment status. This has
understandably compelled locals to shun such insecure jobs. There is
complete lack of coordination which leaves thousands without work in some
work sites and labour shortage elsewhere. Importing cheap labour is often the
main cause of distortion between the relative price of capital and labour. The
demand for foreign workers is not due to the genuine shortage but due to
desire of employers to pay low wages (MTUC, 2002). Cheap foreign
workers had drives down the wages of local workers. It also further erodes
the attraction of careers in construction.
In Singapore, a key distinguishing of the construction industry is
reliance on labour subcontractors. Even the larger companies do not normally
employ full-time site labour, skilled or unskilled. This human resource
management practice has been linked to the industrys labour shortage
problems, as well as its low productivity and quality of workmanship
(George).
One of the issues of most concern to construction workers throughout
the world is the insecurity of income that comes with temporary status.
Providing adequate insurance against periods of sickness or unemployment as
well as medical and retirement benefits, is of critical importance in attracting
and retaining workers in the industry (ILO, 2001).

15

2.4.5 Unattractive Jobs


Another construction-related negative impact of the employment of
large numbers of foreign workers is that it tend to set in motion a vicious
circle. The image of the industry is already unattractive. As more foreign
workers with low skills and poor educational background are engaged in it,
Singaporeans might feel that such work is not for them. This would lead to
locals shunning the construction industry, leading to further reliance on
foreign workers (George). In Malaysia, official estimates put foreign labours
at 80 per cent of the entire construction workforce in 1992 (Abdul Aziz,
2001). These situations also lead to local workforce shunning the construction
industry and leading to further shortage of local workers in this industry.

2.4.6 Poor Site Accommodations and Services


In this industry, it is common practice for the contractor to provide
housing on site for construction workers. This accommodation was less
conducive to the average Malaysian workers. This is also the reason why
Malaysian workers are shying away from the construction sector and consider
employment in the construction sector as not dignified enough (CIDB News,
2002).
An added to problem in many developing countries is the poor state of
site accommodation and services. It is common practice for contractors to
provide housing on site for construction workers, particularly when they are
migrants from the countryside or from overseas. In some countries, living
conditions have deteriorated as subcontractors offer worse conditions than
principal employers (ILO, 2001).

16

In Malaysia, where an estimated 82 per cent of foreign workers live


on the building sites where they are working, the poor quality of
accommodation (kongsi) was the second major grievance (after social
security) of construction workers interviewed in 1996 (Abdul Aziz, 2001).
Overcrowding, crude sanitation, uncontrolled surface water drainage and
poor rubbish disposal are typical of many kongsi. In 1994, three Indonesian
construction workers lost their live when a kongsi collapsed (Abdul Aziz,
1995).

2.4.7 Change in Education


More recently, another change that has affected the inflow of new
labour in construction industry is the educational change that has impacted
younger generation. More people are seeking higher education in an effort to
secure a more lucrative profession and consequently live a better life than
their parents did. It appears that here, a stigma is being cast upon construction
trades as dirty, dangerous and difficult. The term construction worker
embodied as the unskilled manual labour, has negative impact for young
people. Most commonly see the construction worker lacks prestige, class and
respectability.
It is projected that the proportion of the overall labour force with
tertiary education to increase to 21.1 per cent in 2006 (20 percent in 2005) in
line with the governments concerted efforts at enhancing the quality of
human capital in the country (Bernama, 2001).

17

2.5

Problems Highlighted by International Labour Organisation (ILO)


The big issue facing the sector is how to raise the image of the industry and

make the construction more attractive to young people. There are real issues that
have to be addressed.
The construction industry has been examined by ILO and found problems in
the following areas:
i.

Right at work
Basic labour rights (as embodied in core labour standards) are widely
flouted in the construction industry. In many countries construction
workers are excluded by law from joining trade unions because of
their temporary employment status, because they are self-employed,
or because they are foreign. Discrimination between men and women,
local and foreign workers and temporary and permanent workers in
their term and conditions of employment is widespread in both
developing and developed countries.

ii.

Social Protection
Temporary employment status means that the majority of construction
workers enjoy little or no social protection (income security or social
security). Construction workers are also at serious risk of exposure to
unsafe and unhealthy working conditions.

iii.

Social Dialogue

18

Social dialogue in the construction sector is hampered by


fragmentation of the industry and weak workers and employers
organizations.
iv.

Employment
The construction sector is providing employment for some of the most
disadvantaged section of society, and could even increase
employment opportunities in low-wage countries, where there are few
alternatives. However, the quality of work in the industry is not good
and lack of skill could pose a threat the employment in the future.

2.6

The Critical Factors that Influence to the Less Interested of Local


Worforce
The listed below are some of the critical factors that influence the less

interested of local workforce to work in construction industry:


a)

Poor image in the eyes of workforce;

b)

A dangerous, dirty and difficult work;

c)

Lack of training and skill formation;

d)

Unattractiveness of a career pathway in construction industry;

e)

Outsourcing labour through sub-contractor system;

f)

Low wages due to cheap foreign workers;

g)

The image of the industry is unattractive;

h)

Poor site accommodations and services;

i)

Construction workers lack pretigues, class and respectability;

j)

Temporary employment status means that the majority of construction


workers enjoy little or no social protection;

19

k)

Construction workers are also at serious risk of exposure to unsafe


and unhealthy working conditions; and

l)

Insecurity of income that comes with temporary status of


employment.

2.7

Summary
There are several factors that influence to the poor participation of local

labour in the construction industry. The strong growth of the economy, poor image,
outsourcing labour trough sub-contractor system, lack of training and skill formation,
large number of foreign workers, poor site accommodations and services and change
in education were contributed to the shortage of local labour in this industry.

20

CHAPTER 3

THE CURRENT EFFORTS UNDERTAKEN TO ENCOURAGE LOCAL


LABOUR PARTICIPATION IN CONSTRUCTION INDUSTRY

3.1

Introduction
This chapter highlights the strategies to encourage local labour participation

in the construction industry. The previous chapter has shown that the implications for
security, health, safety and skill formation in the construction industry have been
serious. This chapter discusses the definition of skill labour, semi-skilled labour,
unskilled labour, foreign workers and the current effort undertaken to raise the image
of the industry and make work in construction more attractive to local labour.

3.2

Definition of Skilled Labour


International Labour of Organisation defined skilled labour as a person that

have served an apprenticeship, practice the trade learned or a similar activity, and by
reason of their knowledge and vocational capacity are given tasks which are
particularly difficult, involving varied responsibilities or field.

21

3.3

Definition of Semi-Skilled Labour


International Labour of Organisation defined Semi-Skilled labour as a person

that can only perform their job after a period of instruction of several months in
general and are given task-mostly specific to the industry which are regularly
repeated, are less difficult and involve less responsibility.

3.4

Definition of Unskilled Labour


International Labour of Organisation defined unskilled labour as a person

who is require no specific vocational training or only brief initiation and work on
auxiliary tasks.

3.5

Definition of Foreign Workers


The United Nations Convention on the Protection of the Rights of All Migrant

Workers and Members of Their Families legally defines a migrant worker as a


"person who is to be engaged, is engaged or has been engaged in a remunerated
activity in a State of which he or she is not a national". This Convention has been
ratified by Mexico, Brazil and the Philippines (amongst many other nations that
supply foreign labour) but it has not been ratified by the United States, Germany and
Japan (amongst other nations that depend on cheap foreign labour).

22

3.6

Attracting Local Construction Workers


The construction industry in Malaysia has been burdened by unfavorable

image which has worsened as the country has much greater economic progress over
time, and more glamorous and obviously more challenging work opportunities have
emerged. Construction work is largely viewed as dirty, dangerous and difficult.
Continuous effort has been made to increase the participation of local workers in the
construction industry.

3.6.1 Provide Skills Training


Human capital is the most essential resource to move the construction
industry. Equipping the manpower with right skills and at par with the global
standard will enable the industry to compete globally. Efforts are being made to
develop a core of skilled local construction workers. Training in construction, as in
other technical skills, has been given increased attention. The establishment of
Akademi Binaan Malaysia (ABM) under CIDB for construction skill training shows
the priority given to development of construction skills in Malaysia. CIDB has
developed construction training modules based on the National Occupational Skill
Standard (NOSS). They also provide state-of-the art training facilities and even
provide rebates to contractors who send their existing workers to train at their
training centre. It offers multi-skills training to make workers versatile, reducing the
number a company will need to employ and increasing their utility. Apart from
imparting necessary skills in construction operations, emphasis is also put on
developing appropriate worker attitude, discipline, teamwork and good
housekeeping.
In addition, a number of training establishments were set up in the early
1990s with the purpose of training high-levels technicians (the German Malaysian

23

Institute, the France Malaysia Institute, and the Japan Malaysian Technical Institute).
Moreover, in September 1992 a system of skill proficiency certification was
established and the Skill Certificate of the Department of Skill Development (JPK)
was extended to jobs in the service sector and skilled developed in-company training
were brought into the certification system.
Training is fundamental to meeting the skill requirements of the construction
industry. Its also an important factor in the realization of several objectives, notably
securing improvements in occupational safety and health and improving wages and
other terms on which labour is engaged.

3.6.2 Revolutionise The Conservative Labour Employment and Deployment


System.
CIDB has embarked on a move to develop trade contactors who are
construction specialist with entrepreneurship capabilities. Under this program, subcontractor cum specialist construction workers are provided entrepreneurship which
includes business management, construction project management, accounts and book
keeping and information technology to shape them to become efficient trade
contractors who will pave changes in the construction industry. The trade contractors
will systematically hire skilled workers who are specialist in their own fields and
with systematic knowledge of construction management and help achieve cost
efficient construction works. In a couple of years, CIDB hope it will attract more
Malaysians to join the industry and enhance the consciousness of industry players on
the importance of quality workmanship, productivity and efficiency (CIDB News,
2002).

24

3.6.3 Promoting Health and Safety


The Human Resources Ministry is confident that the countrys construction
sector will achieve zero accident rate within the next two or three years due to
improvement in safety standards. Datuk Wira Dr Fong Chan Onn, The Human
Resources Minister said that if the safety standards can be further improve it will
attract more local workers to work in the sector. The Ministry of Human Resources
also worked closely with the contractor to achieve zero accident. The good safety
practiced can reduced accident rate at the construction site and local workers will be
more interested to work in the construction sectors (News Straits Times, 2001).
Department of Occupational & Health (DOSH) has set policies and strategies
to ensure safety and health in construction sites. One of the strategies is to take legal
action on repeated cases of non-compliance with the law and regulations. This
reflects the governments seriousness in overcoming the problem.
DOSH also conducted checks on the construction site throughout the country
for the compliance of occupational safety and health category. Its show that in 2001,
70 percent of construction sites are satisfactory compared to 2000, where checks at
construction site founds that more than 50 per cent of the sites were unsatisfactory.
DOSH carried out inspections and occupational safety and health audit at the
construction sites. From the results of these inspections and audits, it was found that
there was an improving trend in the safety and health performance on some of sites
inspected (Fong Chan Onn, 2006).

25

3.6.4 Skills Testing and Certification


Amongst developing countries, skill certification was pioneered in Singapore
but has recently has taken up by the CIDB in Malaysia. There are several categories
of skill registered by the CIDB, skilled and semi-skilled workers, construction site
supervisors and construction managers. Applicants have to prove their competencies
by submitting their relevant certificates or they can be tested on site (Abdul Aziz,
2001).
CIDB is working towards ensuring there are more local skilled workers.
Since 1997, CIDB has produced 65,000 local skilled workers but the current
construction industry needs at least 500,000. CIDB aims to reduce the number of
foreign workers and produce more local workers by 2020 to reduce the foreign
labour workforce. The implementation of accrediting skilled workers system was to
maintain a high standard in workforce. These workers will get higher pay than
normal labourers (The Star, 2006).

3.6.5 Upgrading the Construction Operation


Continuous efforts have been made to reduce the number of workers engaged
in the construction industry. Standardization and prefabrication of components have
promoted as the main components of the drive in this regard. Faced with the shortage
of workers, the government has decided to promote the use of pre-fabricated material
in the construction industry. IBS is a system where a building would be constructed
or assembled using standardized and modularized components either on site or off
site. Datuk Seri S. Sammy Vellu said that this is part of the Governments initiative
to cater for the demand side of the implementation of IBS as an effort to reduce
dependency on foreign workers in the construction. He also said that there are

26

insufficient number of local workers to satisfy the demand of this construction


method, thus leading to an influx of foreign workers.(Daily Express, 2005).
The construction industry now used the conventional method of construction,
commonly referred as wet construction, a practice that employed a large number of
workers in harsh working condition.
The recent repatriation of foreign workers who were employed legally and
the slow return of legalized foreign labour had created difficulties in the industry and
decision to utilize the IBS system is to overcome the worker shortage problem.
IBS is an alternative approach of construction that will change the scenario of
the current local construction industry towards a systematically approach of mass
production of construction materials. IBS will definitely among others reduce
unskilled workers in the country, less wastage, less volume of building materials,
increased site cleanliness and better quality control.

3.7

Good Practices Listed By ILO For Construction Industry


Some of the problems facing the construction industry, particularly in

developing countries, have deep roots in history, culture or economic circumstances


(ILO, 2001). Below are some good practices drawn by ILO:
i.

New role of trade unions and other pressure groups


Organisation amongst construction workers for collective action, as well

as being a fundamental right, is also important in making progress towards


other goals.

27

ii.

Flexibility with worker protection: Extension of Social security to all


One of the most concern issues is insecurity of income that comes

with the temporary status. Where there is state insurance schemes that apply
to permanent workers (as is the case in most developed countries) then
attempts can be made to extend them to all workers. But in many countries a
new approach may be required, with schemes specifically tailored to the
needs of construction workers.
iii.

Promoting Health and Safety


The poor image of work in construction is in large part due to its

appalling safety record. Ensuring that accident prevention strategies are


adopted in a fragmented industry may be difficult but there are ways of
tackling it. In some countries the laws needs to be updated to bring it into line
with the provisions of safety and health convention, 1988, the most important
of which are as follows:

There should be cooperation between employers and workers in


taking appropriate measures to ensure that workplaces are safe and
without risk to health;

All parties to a construction contract have responsibilities,


including those who design and plan projects;

The principal of contractor is responsible for coordinating the


prescribed for their application in respect of workers under his
authority; and

28

Workers have the duty to report risks but also the right to remove
themselves from imminent and serious danger;

iv.

Developments in training and skills formation


Training is fundamental to meeting the skill requirements of the

construction industry. It is also important factor in the realization of several


other objectives, notably securing improvement in occupational safety and
health and improving wages and other terms on which labour is engaged.
v.

Skills testing and certification


Both employers and workers gain from the certification of skills,

especially if safety training is incorporated into the certification process. Even


without any formal registration scheme, contractors in many countries try to
nurture good subcontractors. The mutual dependence between contractors and
subcontractors is widely recognized and it is not uncommon to find
continuous working relationships which can extend over many years.
Similarly, subcontractor tries to keep good workers on their payroll as long as
possible.

3.8

Summary
Malaysia wishes to reduce its reliance on foreign construction workers. Measures

it is taking include further training and certification, improvement of the image of the
industry in order to attract more local manpower, upgrading construction operations
to reduce the requirements for labour as well as improve the environment on the
construction sites.

29

CHAPTER 4

RESEARCH METHODOLOGY

4.1

Introduction
This chapter will describe the methodology used in carrying out this study.

The research methodology is essential in guiding the researcher to achieve the aim
and the objectives of the study. The aim and objectives of this study were achieved
by using three methods. The study was carried out first through the literature search
and followed by interviews and questionnaire. Subsequently, the questionnaires and
their results and inferences will be presented. It follows through discussions and
suggestions and eventually conclusions were drawn to conclude the study.

30

4.2

Research Methodology
Initially the questionnaires were designed and communicated in a user-

friendly multiple-choice format, with only a few open-ended questions, to reduce


answering effort, and to aid the recipients in making decisions. The questionnaires
were distributed to the targeted respondents by hand and email. For the postal
surveys, the questionnaire was accompanied by a personalized letter and gave
instruction to the participant. A self addressed stamped envelope was included for the
convenience of the respondents.
Both telephone and personal interviews will be conducted with related
agency. For this study the brief methodology is divided into four stages, such as:
(1)

Literature Review;

(2)

Data Collection;

(3)

Analysis; and

(4)

Findings.

In the part of the preliminary study, the following three items were identified and
been studied;

4.3

a)

Statement of problems;

b)

Objectives; and

c)

Scope of study.

Literature Review
There are two important sections under the literature review where the first

section explains the factors that influence the poor participation of local labour. The
second part of the section describes the current effort undertaken to improve the

31

participation of local labour in construction industry. The purpose of the literature


review was to help the author to gather and establish some sound knowledge of the
study topic. The literature study was done through reading and searching on the
subjects from books, journals, magazines, newspaper and paper works.
The literature review hence, provides guidance to questionnaire preparation,
which is discussed in the following section.

4.4

Data Collections
In this stage, data collections to be study in this research were categorized

into two kinds of data:


a)

Primary data

b)

Secondary Data

The primary data was collected in two method, the first method by the
questionnaire where question been developed and distribute to the relevant
respondent and the second method by face to face interviews.
The questionnaire was design base on literature and consultation with the
relevant professional. The questionnaire was structured into 4 parts including
questionnaire cover, general information and instructions; background of respondent;
factors that led to poor participation of local labour in construction industry; and
strategies to improve the participation of local labour.
Sample size larger than 30 and less than 500 are appropriate for most research
(Uma, 2000)

32

The distributed questionnaires will be collect and analyze using statistical


method. Discussion was did base on the derived results and related statistic and
suggestion by the participants were included.

4.4.1 Questionnaire Design


The question ask in the questionnaire was in the form of multiple choice or
open ended questions. Multiple-choice questions require the anticipation of the
whole range of likely answers, which would be given, and formulating the options as
such.

Ordinal scale 1 to 5 in ascending order


1

Increasing degree of agreement


Each scale represents the following rating:
1 = Strongly Disagree
2 = Disagree
3 = Not Sure
4 = Agree
5 = Strongly Agree

Figure 4.1: Five Ordinal Measures of Contributing Factors


Of Likert Scale
The multiple-choice questions are based on Likerts scale of five ordinal
measures of agreement towards each statement (from 1 to 5) as shown in Figure 4.1
above.

33

4.5

Analysis Method
The questionnaires will be mainly based on a Likerts Scale of Five ordinal

measure from one (1) to five (5) according to the level of agreement as stated in
figure 4.1 above.
The data generated from questionnaires will be analyze using the frequency
analysis. The measurement tools in the survey provide quantitative indication of
qualitative judgments.
The average index formula:
Average Index = X n
N

(1)

Where,
is weighting given to each factor by respondents;
n is the frequency of the respondent;
N is the total number of respondent.
With the rating scale as below, (Abd. Majid and McCaffer, 1997);
1 = Strongly Disagree

( 1.00 Average Index < 1.50 )

2 = Disagree

( 1.50 Average Index < 2.50 )

3 = Not Sure

( 2.50 Average Index < 3.50 )

4 = Agree

( 3.50 Average Index < 4.50 )

5 = Strongly Agree

( 4.50 Average Index < 5.00 )

34

4.6

Summary
For the conclusion, the method of data collection is divided in two ways, by

the questionnaire and face to face interviews. The questionnaires will be use to
collect data. The average index formula been used to analyzed the data. Finally, from
the findings of questionnaire survey, the researcher will be able to identify the factors
and the strategies as well as the way to improve the participation of local labour in
construction industry.

35

CHAPTER 5

DATA ANALYSIS AND RESULTS

5.1

Introduction

This chapter presents the analysis and the results of the research derived from
the data gathered from the literature review, questionnaires and interview. In
accordance to the research methodology as described in the previous chapter, the
data and the results are analyzed and presented in alignment with the objectives in
Chapter 1. This chapter also gives the brief information about the respondents
background.

5.2

The Respondents Background

The respondents are the Malaysian citizen that have certificate holder and
below.

36

The list shows that 22 percents of the respondents are working in the
construction sector, government sector (19 %) and others sector (25%). Others are
tabulated in Table 5.1 and Figure 5.1 below.

Table 5.1: Respondent Current Job Sector


Respondent

Frequency

Percent (%)

Cumulative %

Manufacturing

Marketing

15

Hotel

16

31

Agriculture

34

Construction

22

54

Government

19

75

Unemployed

75

Others

25

100

TOTAL

32

100

100

Working Sector

37

Others
25%

Manufacturing
6%

Marketing
9%
Hotel
16%

Unemployed
0%
Government
19%

Agriculture
3%
Construction
22%

Figure 5.1: Respondent Current Job Sector

a.

Working Experience and Education Background

The main factor on choosing a job by respondent is depending on the


qualification and working experienced. Therefore among the information needed is
qualification, working experienced and working duration recently.
The tabulated of respondent education and working experience are as shown
in Table 5.2, Table 5.3, Figure 5.2 and Figure 5.3 below:

38

Table 5.2: Respondent Education Background


Description

Frequency

Percent (%)

Cumulative %

Certificate

13

13

SPM

22

68

81

SRP / PMR

81

Others

19

100

TOTAL

32

100

100

Table 5.3: Respondent Working Experience Background

Duration of

Frequency

Percent (%)

Cumulative %

< 1 years

25

25

1 5 years

11

34

59

6 10 years

28

87

> 10 years

90

none

10

100

TOTAL

32

100

100

Working
Experience

39

SRP / PMR
0%

Certificate
13%

Others
19%

Certificate
SPM
SRP / PMR
Others

SPM
68%

Figure 5.2: Respondent Education Background

> 10 years
3%

none
9%

< 1 years
25%
< 1 years
1 5 years
6 10 years
> 10 years
none

6 10 years
28%
1 5 years
35%

Figure 5.3: Respondent Working Experience Background

40

b.

Respondent Annually Income

The respondent annually income were range from less than RM 12,000.00 to
more than RM48,000.00 are as shown in Table 5.4 and Figure 5.4 below:
Table 5.4: Respondent Annually Income
Description

Frequency

Percent (%)

Cumulative
%

< RM 12,000

18

55

55

RM 12,000 RM 48,000

13

68

RM 24,001 RM 48,000

13

81

> RM 48,000

87

Unrelated

13

100

TOTAL

32

100

100

41

> RM 48,000
6%

Unrelated
13%

RM 24,001 RM
48,000
13%
RM 12,000 RM
48,000
13%

< RM 12,000
55%
< RM 12,000
RM 12,000 RM 48,000
RM 24,001 RM 48,000
> RM 48,000
Unrelated

Figure 5.4: Respondent Annually Income

The figure shows that the highest percentage of respondents annually income
were less than RM 1,000.00 that consists of 55%.

c.

Method of Income Payment

The wages of respondent paid based on hourly, daily, monthly or others basis.
The respondents methods of income payment are shown as follows:

42

Table 5.5: Respondent Method of Income Payment


Description

Frequency

Percent (%)

Cumulative %

Hourly

25

25

Daily

13

38

Monthly

10

30

68

Others

19

87

Unrelated

13

100

TOTAL

32

100

100

Irrelevant
13%

Hourly
25%

Others
19%
Daily
13%
Monthly
30%

Hourly
Daily
Monthly
Others
Irrelevant

Figure 5.5: Respondent Method of Income Payment


The figure above shows that the highest method of income payment were
paid through monthly basis that consists of 30% each, follow by hourly of 25 % and
daily 13%.

43

5.3

Result and Analysis


Out of the 35 questionnaires that were given, 32 (91%) questionnaires were

useable, 3 were rejected (9%) due to the incorrect and not properly answered. The
non-respondents quoted the following for their non-participation;, lack of time (too
busy) and lack of interest.
Table 5.6 and Figure 5.6 below show the tabulated and the percentage of the
returned questionnaire.
Table 5.6: Returned Questionnaire
Description

Frequency

Percent (%)

Cumulative %

Useable

32

91

91

Reject

100

TOTAL

35

100

100

Reject
9%

Useable
Reject

Useable
91%

Figure 5.6: Returned Questionnaire

44

From the analysis of the respondent as the participant from the returned of 33
questionnaires, the factors influences to the selection of the current jobs have been
found:
a.

Factors Influences of the Current Job Selection


From the analysis, the highest percentage of respondents

choose higher

income as a factor ( 21%), 15 percent each for secure income, provision of physical
facilities and social services and secure work. The tabulated percentage as shown in
Table 5.7 and Figure 5.7 below:
Table 5.7: Factors Influences of the Current Job Selection

Description

Frequency

Percent

Cumulative

(%)

Higher income

21

21

Secure income

16

37

16

53

Secure work

16

69

Respect and regard by the public

13

82

Career development

88

Comfortable and Safe Workplace

94

Others

100

32

100

100

Provision of social services and


physical accommodation

TOTAL

45

Higher Income

6%

6%

6%

21%

Secure Income
Provision of Social Services
and Physical Accomodation
Secure Work

13%

16%
16%

16%

Respect and Regard by the


Public
Career Development
Comfortable and Safe
Workplace
Others

Figure 5.7: Factors Influences to the Current Job Selection

5.4

The Result
The attainment of this objective was achieved via literature review, conducted

questionnaires survey and interview.

5.4.1 The result of the factors that led to the poor participation of local labour
to work in the construction industry
The attainment of this objective was achieved via conducted questionnaires
survey. This section investigates the factors that led to the poor participation of

46

local workers to work in construction industry. Table 5.8 shows the results of survey.

Table 5.8 :

The Factors that led to the poor participation of local labour to

work in the construction industry

Frequency Analysis
No

Factor That Led to the Poor

Participation of local workforce

Average
Index

No. of Respondents
1

The image of the construction

18

3.44

12

12

4.00

12

3.38

16

10

4.06

industry is unattractive and


unskilled and low class
2

Unattractiveness of a career
pathway in construction industry

Lack of Training and Skill


Formation

Labeled as a dangerous, dirty and


difficult work

Low wages

14

3.13

Poor site accommodations and

3.44

14

3.75

services
7

Construction workers lack


pretigues, class and respectability

47

Uncomfortable working condition

24

4.69

18

12

4.31

14

16

4.38

(dirty, hot, dusty, etc)


9

Temporary employment status


based on the project and unsecured
job

10

Construction workers are also at


serious risk of exposure to unsafe
and unhealthy working conditions.

11

Insecurity of income

14

10

4.06

12

Poor image in the eyes of

16

4.06

workforce due to employment of


poor educational and unskilled
foreign workers

5.4.2. The result of the critical factors that led to the poor participation of local
labour to work in the construction industry
A table 5.9 shows the result of the critical factors that led to the poor
participation of local labour to work in the construction industry. This result comes
from the factors that led to the poor participation of local workforce to work in
construction industry with strongly agree and agree by the respondents, then the
factors been ranked to get the result which number 1 as the most critical to number 6
the less critical and the result as shown below:

48

Table 5.9:

The Critical Factor That led to the poor participation of local labour

to work in the construction industry

No. Critical Factor That led to the poor participation

Rank

of local labour to work in the construction


industry
1

Uncomfortable working condition (dirty, hot, dusty,

etc)
2

Construction workers are also at serious risk of

exposure to unsafe and unhealthy working


conditions.
3

Temporary employment status based on the project

and unsecured job


4

Insecurity of income

Labeled as a dangerous, dirty and difficult work

Poor Image In The Eyes of workforce due to

employment of poor educational and unskilled


foreign workers
7

Unattractiveness of a career pathway in construction

industry
8

Construction workers lack pretigues, class and


respectability

49

5.4.3. The result of the strategies to improve the participation of local labour in
the construction industry
The attainment of this objective was achieve via conducted questionnaires
survey, literature reviews and interview The last section of the questionnaire
investigates the extent of the strategies to improve the participation of local labour in
the construction industry. The results are as tabulated in Table 5.10 below:
Table 5.10: The Strategies to improve the participation of local labour in the
construction industry

No.

The Strategies to Improve


the Participation of Local
Labour in the Construction
Industry

Provide opportunities for

Frequency Analysis
1

Average

Rank

Index

No. of Respondents
0

12

16

4.38

14

12

4.19

training and skill formation


for the skill and career
development
2

Better career pathway and


opportunities to have better
position

Permanent employment status

14

16

4.38

Enhance safety practice and

14

14

4.31

18

12

4.31

procedure at construction site


5

Enhance image of
construction workers

50

Enhance effective

10

12

3.81

18

12

4.31

10

12

3.81

communication between
workers and employers
7

Proper Site Accommodations


and Services

Provide construction uniform


as an image of construction
workers

5.5

Findings and Discussions


This section discusses the findings of this study. The results of the study are

analyzed and discussed in the following sequence to answer the objectives mentioned
in Chapter 1. The aforementioned analysis sequence is organized and presented the
data in some meaningful and logical order. After the data have been organized and
presented into descriptive manner, it is then analyzed and interpreted them in order to
draw inferences about the data obtained. The discussions are divided into four parts.
The first part discusses the respondent background. The second part discusses the
factors that influence the less interested of local workforce to work in construction
industry. Then the establishment of Critical Factor That Influence the less interested
of local workforce to work in construction industry will be discuss. Finally, discuss
on the strategies to improve the participation of local labour in the construction
industry

Discussion on the findings will be based on Average Index as the indicator


corresponding to each statement. The value of Average Index ranging from 1.00 to

51

5.00, with 3.13 being the lowest degree of rating for the responses and 4.69 gives the
highest degree of responses.

5.5.1. Respondents Background


A group of respondents (59%) have worked in different sectors such as hotel,
manufacturing and agriculture, (19%) have experienced in government sector and
(22%) have work in construction industry.

5.5.2. First Objective: To identify the factors that led to the poor participation
of local labour to work in the construction industry
This section discussed the findings based on the results obtained from the
questionnaire survey via the factors that led to the poor participation of local labour
to work in construction industry. Table 5.11 shows the Average Index of the factors
that led to the poor participation of local workforce to work in construction industry.
The value of Average Index with 3.13 being the lowest degree of rating for the
responses and 4.69 gives the highest degree of responses for the first objectives.
Table 5.11 : The factor that led to the poor participation of local labour

No.

The Factor led to the poor

Average

participation of local labour

Index

Uncomfortable working condition (dirty,


hot, dusty, etc)

4.69

Category

Strongly Agree

52

Construction workers are at serious risk

4.38

Agree

4.31

Agree

4.06

Agree

of exposure to unsafe and unhealthy


working conditions.
3

Temporary employment status based on


the project and unsecured job

Labeled as a dangerous, dirty and difficult


work

Insecurity of income

4.06

Agree

Poor image in the eyes of workforce due

4.06

Agree

4.00

Agree

3.75

Agree

3.44

Not Sure

to employment of poor educational and


unskilled foreign workers
7

Unattractiveness of a career pathway in


construction industry

Construction workers lack prestigues,


class and respectability

The image of the construction industry is


unattractive and unskilled

10

Poor site accommodations and services

3.44

Not Sure

11

Lack of training and skill formation

3.38

Not Sure

12

Low wages

3.13

Not Sure

The Tables 5.11 indicate most of the factors listed above achieving the
average index of more than 3.5 to not more than 5.0 rating scale region that directly
indicate 8 critical factors that influence to the poor participation of local workforce.
Relatively, the majority of the respondent agreed it is crucial to be taken into

53

consideration the 8 factors. This indicates major factors that most contribute to the
less interested of local workforce to join the construction industry.

5.5.3. Second Objective: To identify the critical factors that led to the poor
participation of local labour to work in the construction industry
From the ranking above, the critical factors that influence to the less
interested of local workforce to work in construction industry has been identified
The factors that strongly agree and agree by the respondents are considered as are
critical factors.. The respondents tend to strongly agree with average index 4.69 that
uncomfortable working condition (dirty, hot, dusty, etc) was the most critical factor
that influenced local workforce shunning away from this industry.
The second highest rank of the critical factors is the construction workers are
at serious risk of exposure to unsafe and unhealthy working conditions with average
index 4.38. The industrys perceived poor safety record have contributed to the
decline in number of workforce willing to enter in the industry.
The respondent also agree with average index 4.31 that temporary
employment status based on the project and unsecured job are critical because these
factors has affected local workforce participate poorly in this sector. The image of
the industry in the eyes of potential workers has declined dramatically in recent years
due to casual and temporary employment terms.
There are three critical factors with average index 4.06. Construction works is
labeled as a dangerous, dirty and difficult work. This factor critical because
influence to the industrys image and agreed by the respondents .Lack of continuous
employment affects income and limits the opportunity to acquire skills for the
workers. The respondents agree that insecurity of income made the locals shunning

54

away from this sector. Poor Image in the eyes of workforce due to employment of
poor educational and unskilled foreign workers is also one of the critical factors
shared same values of an average index.
Unattractiveness of a career pathway in construction industry also agree as
one of the critical factor that influence to the poor participation of local workers with
average index 4.00.

5.5.4 Third Objective: The Strategies to Improve the participation of local


labour in the construction industry
This section discussed the findings based on the literature review, personal
interviews and result obtained from the questionnaire via the strategies to improve
the participation of local labour in the construction industry.

The result obtained from literature review and personal interviews with
Department of Skill Development, Ministry of Human Resources which is located at
Level 7 & 8, Block D4, Parcel D, Putrajaya. Among its current strategies undertaken
by this department to attract local workers are:

Implementation of National Dual training System (NDTS):

Department of Skill Development has been appointed as the coordinating


agency to ensure the success of the system. The NDTS is an industry-oriented
training that combines workplace and institutional training. This system
minimize dependence on foreign workers, offers strategic and cost effective
succession plan by recruiting new workers or upgrading existing workers,
and develop strong ties between workers and employers.

55

National Skill Certification System: This system was introduced to

meet the government policy to explore the possibility of accreditation for


master craftsmen so that there is career path for skilled craftsman, expand the
accreditation system to include skills higher than the advanced level and
explore avenues for upgrading of skilled workers to technicians and higher
level jobs for the Department of Skill Development certificate holders. The
National Skill Certification System in Malaysia is deemed to be beneficial to
the country and can attract local workforce to join this industry.
The result obtained from literature review and personal interviews with
Construction Industrial Development Board (CIDB) which is located at CIDB
headquarters, Grand Season Avenue, No 72, Jalan Pahang, Kuala Lumpur. Among
its current strategies undertaken by this agency to attract local workers to join
construction industry are:

Perakuan Kemahiran Pekerja Asing (PKPA): The implementation

of this accrediting skilled workers system maintains a high standard in


workforce and the workers will get higher pay than normal labourers.

Skill training by Akademi Binaan Malaysia; This training offers

multi skills training to make workers versatile, providing skilled workforce


for the industry and also developing appropriate workers attitude, discipline
teamwork and good housekeeping. Its also an important factor in the
realization of securing improvements in occupational safety and health and
improving wages and other terms on which labour engaged.

Upgrading The construction Operation : One of the ways introduced

by CIDB to reduce the countrys dependence on foreign worker and attract


more locals is by encouraging more labour saving devices such as
construction methods using Industrial Building System (IBS) and through
greater automation and mechanization.

56

Based on the results from the questionaires shows in Table 5.12, all the
strategies listed in the survey agree by the respondents with average index ranging
from 3.81 to 4.38. The ranking of strategies to improve participation of local
workforce in the construction industry are shows in table 5.10.
As the Table 5.12 presented that the focus on training and skill formation
opportunities and employment status is the most important strategy to improve the
local workforce participation in the construction sector with average index of 4.38.
The enhancement on safety practice and procedure, image of construction workers,
and proper site accommodation and services is the second rank of 4.31 average
indexes, while better career pathway and opportunities to have better position is the
third rank with 4.19 average indexes.
From the result above, the 5 most important strategies to improve the
performance of the contractors were identified, there are;
i..

Focus on skill and career development by providing training and skill

formation; the employers must understand the concept from the beginning of
what are the local workforce needs. Providing training is a strategy to nurture
a desire amongst the locals to work in the industry and to develop them into
multi-skilled workers. To get a good participation from local workers, formal
training must be provided to improve their knowledge and skills. Skills can
be learned entirely through informal on-the-job-training, but the more
education received, generally the more skilled workers become.
ii.

Revolutionalise employment and deployment system ; develop


more trade contractors who are construction specialist and
provided them with entrepreneurship to shape them to become
efficient trade contractor and they will systematically hire skilled
workers who are specialist in their own fields.

57

This system will eliminate conservative employment system and enhance the
level of professionalism of the industry.
Government also must promote efficient utilization of manpower in
the construction sector by registering all construction workers. This must be
carried out by manpower department, so that government can efficiently
monitor and coordinate labour availability and needs.
iii.

Enhance safety practice and procedure at construction site; this

strategy required raising the awareness of its importance among relevant


stakeholders and the implementation of quality management system,
occupational health and safety management system and assessment system.
To ensure the adoption of these practices and standard, strict enforcement
measure need to be in place. To accomplish the improvements in image,
perceptions of the construction worker and the construction industry must be
change in the long run.
iv.

Enhance image of construction workers; promoting construction as a

field to Malaysian can be done with an intensive media campaign such as


press and television., as well as poster, booklets, brochures, exhibitions and
talks. The campaign can highlight as below;

The contribution made by construction industry to the development of


nation;

The multiplicity of the job opportunities available;

The more challenging nature of construction work;

The improved working conditions;

58

Awareness that construction industry was not as dangerous, dirty and


difficult as perceived;

Awareness that Malaysian must have a share in building their homes,


school, roads, offices and etc;
Upgrading of construction operation also can reduce the number of

unskilled workers engaged and provide better working condition so that the
level of professionalism of the industry will be enhance.
v.

The site accommodation must be condusive enough for the average

Malaysian workers and this strategy can attract local workforce and enhance
the image of construction industry.

5.6

Summary
Quantitative judgments were employed in data analysis. Statistic was used to

analyzed the background of the respondents and Likert Scaling used to analyzed the
factors that influence to the less interested of local workforce to work in construction
industry, the critical factors that influence the less interested of local workforce to
work in construction industry and the strategy to improve the local workforce
participation in order for the construction industry to be more successful in the
country and internationally. The final result of the analysis was listed. According to
the result analysis, it shows that to uncomfortable, unsafe and unhealthy working
conditions and employment status is the most significant and critical factors that
influence the less interested of local workforce to join the industry. Lastly, the most
frequent strategy must be undertaken by construction stakeholders is to focus on

59
training and skill formation employment status, occupational safety and health
practices and image of worker to attract local labour to join this industry.

60

CHAPTER 6

CONCLUSIONS AND RECOMMENDATION

6.1

Introduction

This Chapter concludes the study by listing down the results of the analysis.
Some recommendations to attract local workers to join construction industry were
included. Based on the literature reviews, questionnaires distribution, feedbacks and
result analysis, the three main objectives of this project report have been achieve.

61

6.2

Conclusions
As a conclusion, this study has identified and met the entire three objectives

that had stated earlier:


Objective 1: To identify the factors that led to the poor participation of local
labour to work in the construction industry.
In overall the respondents agree that the first three major factors that
influence the poor participation of local workforce in construction industry were
related to uncomfortable, unsafe and unhealthy working conditions and temporary
employment status.
Objectives 2: To identify the critical factors that led to the poor participation of
local labour to work in the construction industry.

The most critical factors were rank the factors that influence the poor
participation of local labour to work in the construction industry from 1 to 5 as
follows:
1.

Uncomfortable working conditions (dirty, hot, dusty, etc) ;

2.

Serious risk of exposure to unsafe and unhealthy working conditions;

3.

Temporary employment status based on project and unsecured job;

4.

Insecurity of income that comes with the temporary employment


status; Labeled as a dangerous, dirty and difficult work; Poor image
in the eyes of workforce due to employment of unskilled and poor
educational foreign workers; and

5.

Unattractiveness of a career pathway in construction industry;

62

Objectives 3: To identify the strategies to improve the participation of local


labour in the construction industry

From the questionnaire, the respondent agrees to select the five major
strategies that can influence on the improvement of local labour participation, The
strategies identified were training and advancement, employment status, enhance the
safety practice and procedure and image of construction workers, and provide
conducive site accommodations and services.

6.3

Recommendations for Future Study


There is some area suggested by the author for further study in the area of

poor participation of local workforce and make work in construction more attractive
to Malaysian as listed below:
1) The company based training in construction industry focused on
implementation and an effectiveness;
2) The sub-contracting system focused on effect on local labours and
strategies to improve; and
3) What measures can governments, employers and workers organization
take to promote and enhance image of construction industry.

63

References

Department of Statistics Malaysia, (2006), Labour Force Survey Report 2005,


Department of Statistics Malaysia
Bernama, (2006), Malaysia Aims To Reduce Foreign Workers By 2010, Retrieved
From http://web6.bernama.com/v3news.php?id=217249&vo=99
Ames Gross, (2002), Hr
http://pacificbridge.com

In

Malaysia:

An

Overview,

Retrieved

From

MTUC, (2002), Memorandum to YB Datuk Dr Fong Chan Onn Regarding Foreign


Workers, MTUC
Asia Pacific Migration Research Network (APMRN), Issues Paper From Malaysia,
Retrieved From http://www.unesco.org/most/apmrnwpp9.htm
Ministry of International Trade and Industry Malaysia, (2006), Imp3 Third Industrial
Master Plan 2006-2020, Percetakan Nasional
Abdol R.Chini, Brisbane H.Brown & Eric G. Drummond, (1999), Causes Of The
Construction Skilled Labor Shortage And Proposed Solutions
Bloomberg News, (2005), Malaysia faces a labor shortage, Bloomberg News
Philips, Peter, (2000), A tale of two cities; The high-skilled, high wage and low skill,
low wage growth paths in US construction. Paper presented to the International
Conference on Structural Change in building industrys labour market, working
relations and challenges in the coming years, Institut Arbeit and Technic,
Gelsenkirchen, Germany, 19-20 Oct.
Lu, Youjie; Fox, Paul W, (2001), The construction industry in the 21st Century: Its
image, employment prospect and skills requirements: Case study from China,
Report for ILO
Vaid.K.N, (1999), Contract labour in the construction industry in India, D.P.A.
Naidu(ed): Contract labour in South Asia, Geneva, ILO
CIDB News, (2002), Construction Skills Training: A key Effort to Develop the
Malaysian Construction Industry, CIDB
Uma Sekaran, 2000, Research Methods for Business; A Skill-Building Approach,
John Willey & Sons

64

Takeshi Inagami, (1998), Labour Market Policies in Asian Countries: Diversity and
Similarity Among Singapore, Malaysia, The Republic of Korea and Japan,
Retrieved From http://www-ilo-mirror.corner.edu
ILO, (2001), The Construction Industry in The Twenty First Century: Its Image,
Employment Prospects and Skill Requirements, Report For Discussion at the
Tripartite Meeting on Construction Industry in The Twenty First Century: Its
Image, Employment Prospects and Skill Requirements, Geneva
Abdul Aziz, (2001), Site Operative in Malaysia: Examining the foreign-local
asymmetry, Report For ILO
ILO, (1995), Social and labour issues concerning migrant workers in the
construction industry. Sectoral Activities Programme, Report For Discussion at
the Tripartite Meeting on Social and Labour Issues Concerning Migrant Workers
in the construction Industry
Anthony Yeo, (1992), Overview of the ministry of human resources, human
resources development fund and foreign labour, Ministry of Human, Resources
Retrieved From http://mgv.mim.edu.my/MMR/931202.Htm
Goerge Ofori, Foreign Construction workers in Singapore, working paper part 2,
ILO
Fong Chan Onn, (2006), Opening Remarks For Majlis Dialog Bersama Menteri
Dengan Ketua Pegawai Eksekutif Industri Binaan, Ministry of Human
Resources.
New Starits Times, (2001), Building Sector To Achieve Zero Accident Rate By 2003,
19 April, NST
Daily Express, (2005), Govt to Promote Pre-Fab in View of Worker Shortage,
Retrieved From http://www.dailyexpress.com.my, 25 April, Daily Express
The Edge, (2002), Cost of Scarce Construction Labour, 25 August, Retrieved From
http//www.ijm.com
The Star, (2006), CIDB Aims to Produce More Local Workers, 1st Mac
Abd. Majid M.Z. and Ronald McCaffer, M.ASCE (1997), Factors of Non
Excusable Delays That Influence Contractors Performance, Journal of
Construction Engineering and Management, ASCE

65

APPENDIX A
Sample of Questionnaire
PUNCA YANG MENYEBABKAN KURANGNYA PENYERTAAN PEKERJA
TEMPATAN DI DALAM INDUSTRI PEMBINAAN MALAYSIA DAN STRATEGI
MENGATASINYA

FAKULTI KEJURUTERAAN AWAM


UNIVERSITI TEKNOLOGI MALAYSIA
OBJEKTIF:
UNTUK MENGENALPASTI FAKTOR-FAKTOR YANG MENYEBABKAN PEKERJA TEMPATAN
KURANG BERMINAT MENYERTAI INDUSTRI PEMBINAAN MALAYSIA

NAMA RESPONDEN

JAWATAN (Jika Ada)

BIDANG KERJA YANG DICEBURI

PERKILANGAN

PEMASARAN

KERAJAAN

PERHOTELAN

PERTANIAN

PENGGANGUR

PEMBINAAN

LAIN-LAIN (Nyatakan) :

DISEDIAKAN OLEH;
FAKULTI KEJURUTERAAN AWAM,
UNIVERSITI TEKNOLOGI MALAYSIA,
81310 UTM SKUDAI,
JOHOR DARUL TAKZIM

66

QUESTIONNAIRE
POOR PARTICIPATION OF LOCAL LABOUR IN MALAYSIA
CONSTRUCTION INDUSTRY: CAUSES AND STRATEGIES TO IMPROVE

Dear Sir/Madam,
I am a final year student in Masters of Science (Construction Management) from
Faculty of Civil Engineering, Universiti Teknologi Malaysia (UTM). Due to the
requirements of my course, I would be conducting a survey to obtain some data that
are relevant to this research. Therefore I would appreciate very much if you would
kindly participate by being one of my respondents to help me in my research. You
can be rest assured that ALL THE INFORMATION IN THIS SURVEY WILL
BE STRICTLY CONFIDENTIAL. Lastly but not least, I would like to take this
opportunity to thank you for your valuable and kind support.
Again, thank you.

SHIADRI SALEH @ AMAN

67
MAKLUMAT UMUM RESPONDEN
1. Apakah kelulusan Tuan sekarang?
Sijil, nyatakan

SRP / PMR dan setaraf

SPM dan setaraf

Lain-lain, nyatakan

2. Berapa tahun pengalaman kerja Tuan?


( Sekiranya tiada nyatakan tiada )
< 1 tahun

6- 10 tahun

1 - 5 tahun

Lebih dari 10 tahun

Tiada

2. Jika bekerja, berapa lamakah Tuan bekerja di tempat kerja sekarang?


Kurang 1 tahun

6- 10 tahun

1 - 5 tahun

Lebih dari 10 tahun

Tiada berkaitan

4. Jika bekerja, Berapakah pendapatan tahunan tuan sekarang?


Kurang RM 12,000

RM24,001 RM 48,000

RM 12,000 RM24,000

Lebih RM48,000

Tiada berkaitan

5. Bagaimanakah gaji anda dibayar?


Berdasarkan jam bekerja

Berdasarkan bulanan

Berdasarkan hari bekerja

Lain-lain, nyatakan

Tiada berkaitan

68
6. Mengapakah tuan memilih untuk bekerja di jawatan sekarang?
Pendapatan Lumayan
Bergaji tetap
Berpeluang untuk naik pangkat
Lebih dipandang tinggi oleh
masyarakat

Kemudahan sosial dan


fizikal yang disediakan
memuaskan
Tempat kerja selesa /
selamat
Kerja yang terjamin
Lain-lain, nyatakan

69

SENARAI SOALAN ( QUESTIONNAIRE )


BAHAGIAN 1
Bahagian ini bertujuan untuk mengenalpasti faktor-faktor yang mempengaruhi pekerja tempatan
kurang berminat bekerja di industri pembinaan;
Bagi pendapat tuan, apakah faktor-faktor yang menyebabkan pekerja tempatan tidak berminat untuk
bekerja di dalam industri pembinaan?
1
Amat Setuju

2
Setuju

3
Tidak Pasti

4
Tidak Setuju

5
Amat Tidak
Setuju

a. Imej pekerja industri pembinaan - yang tidak menarik dan merupakan pekerjaan
berstatus rendah dan tidak berkemahiran

b. Peluang peningkatan kerjaya dan kenaikan pangkat yang terhad / tiada


(contohnya daripada buruh dinaikan pangkat sehingga penyelia)

c. Kekurangan peluang menjalani latihan sambil bekerja untuk meningkatkan


kemahiran
d. Pekerjaan ini dilabelkan sebagai pekerjaan yang merbahaya, kotor dan susah

e. Pekerjaan ini bergaji rendah

f. Kurangnya kemudahan / Kemudahan yang tidak sesuai disediakan


(contohnya dari segi penginapan, kemudahan kesihatan, perlindungan sosial dan
insuran, pengangkutan, tandas dll)

g. Pekerja binaan tergolong sebagai kerja yang kurang berprestij, dipandang rendah
dan
kurang dihormati oleh masyarakat

h. Tempat kerja yang tidak selesa (contohnya kotor, panas, berhabuk dll)

i. Status pekerjaan yang sementara mengikut projek dan tidak terjamin

j. Pekerja binaan terdedah kepada risiko keadaaan tempat kerja yang merbahaya dan
tidak sihat

k. Pendapatan yang tidak tetap

l. Penglibatan ramai pekerja asing yang tidak mahir dan tidak berpendidikan
menyebabkan ianya dipandang rendah dan tidak menarik

Lain-Lain Cadangan;

70
BAHAGIAN 2
Mengenalpasti cara atau kaedah untuk meningkatkan penglibatan pekerja tempatan di dalam industri
pembinaan
Bagi pendapat tuan, apakah cara yang sesuai untuk menarik minat pekerja tempatan untuk bekerja di
dalam industri pembinaan ?
1
Amat Setuju

2
Setuju

3
Tidak Pasti

4
Tidak Setuju

5
Amat Tidak
Setuju

a. Mewujudkan lebih banyak peluang menjalani latihan untuk meningkatkan


kemahiran dalam pekerjaan ini.

b. Mewujudkan lebih banyak peluang dan laluan bagi peningkatan kerjaya dan
peluang kenaikan pangkat. (cthnya dari buruh berpeluang dinaikkan pangkat
kepada penyelia)

c. Mengambil pekerja untuk bekerja secara tetap dan mengurangkan sistem subkontraktor

d. Meningkatkan amalan keselamatan semasa bekerja dan menyediakan tapak bina


yang lebih selamat.

e. Meningkatkan imej pekerja bidang industri pembinaan di mata masyarakat.

f. Meningkatkan komunikasi yang berkesan di tapakbina di antara pekerja dan


majikan

g. Menyediakan kemudahan fizikal dan sosial yang lebih selesa (contohnya


kemudahan penginapan yang memuaskan, kemudahan kesihatan, perlindungan
sosial, caruman kwsp, dll)

h.

Mewujudkan pemakaian pakaian seragam yang berimejkan pekerja industri


binaan (contohnya
seperti
chef, mekanik, juruteknik dll yang boleh
mewujudkan rasa bangga dikalangan pekerja industri pembinaan)

Lain-Lain Cadangan;

Terima Kasih di atas kerjasama anda.

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