Bridging the Digital Divide: Overcoming Challenges in Technology Adoption in Malaysia’s Construction Industry

Abstract

The integration of advanced digital technologies within Malaysia's construction industry represents a transformative step toward enhancing efficiency, sustainability, and global competitiveness in line with the Industry 4.0 revolution. Despite advancements in digital tools like Building Information Modeling (BIM), Internet of Things (IoT), and artificial intelligence, the sector faces challenges such as poor communication, high costs, and resistance to change. This study examines the key factors driving digital technology adoption, the challenges hindering its implementation, and the strategies to accelerate digital transformation within the industry. Using a structured survey method, data was gathered from 141 respondents, including consultants, subcontractors, and project owners actively engaged in Malaysia's construction sector. Enhanced budgeting, cost management, and improved risk management emerge as critical drivers, while lack of process standardisation and digital expertise are noted as secondary concerns. Data-driven decision-making, infrastructure investment, and structured change management are identified as pivotal strategies for successful technology integration. Findings suggest that widespread adoption requires collaboration among stakeholders, comprehensive training programs, and phased implementation plans to address barriers and foster acceptance. This research contributes to Malaysia’s Construction 4.0 framework, emphasising the need for targeted interventions to modernise practices, improve productivity, and achieve national development goals.