Contractor Management Weakness Blamed for 75% of Delayed Malaysian Projects

Weak contractor management is the primary culprit behind delayed and problematic construction projects across Malaysia, accounting for a substantial 75% of such issues, according to the Deputy Minister of Works, Datuk Seri Ahmad Maslan.

Speaking at the Contractors Convention 2026 in Butterworth, Ahmad Maslan elaborated that these delays are directly linked to poor financial management, inadequate operational supervision, and overall weak internal governance within contracting firms. The remaining 25% of project delays are attributed to technical challenges encountered on the construction sites themselves.

“

Seventy-five percent of delayed projects stem directly from weak contractor management, weak operational oversight, and financial constraints.

Ahmad stressed that contractors can no longer rely solely on technical expertise for long-term survival. He emphasized the critical need for robust governance, strong cash flow, skilled labor, technological adoption, and a proven track record of project delivery. To remain competitive and secure government tenders, contractors must possess strong financial capacity, effective management, and adhere to established timelines, costs, and quality standards.

Furthermore, Ahmad encouraged contractors to explore the burgeoning field of Facility Management (FM) and maintenance. This sector presents significant business opportunities, with 1,541 FM and maintenance projects valued at RM39.59 billion recorded between 2023 and 2025. Despite this potential, only 468 contractors are registered under the relevant specializations (F01 and F02), indicating ample room for growth and encouraging more contractors to register in this often-overlooked area.

“

This is an opportunity that contractors need to seize. We not only need to be involved in construction, but also maintenance, because it is a business opportunity that is sometimes forgotten.