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Breaking the Cost Wall: Tackling Barriers to Sustainable Construction in
Johor Bahru
Mariatul Liza Meor Gheda
1
, Cheah Chin Yee
2
, Mohd Tajuzzaman Bin Hassanor
3
, Suhaila Abdul
Hamid
4
, Nurul Fairuz Buang
5
1,3,4,5
Faculty of Technology and Applied Sciences, Open University Malaysia, Malaysia
2
Sing Tec Development P/L, 16 Kian Teck Way, Singapore 628749
DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100156
Received: 15 November 2025; Accepted: 21 November 2025; Published: 03 December 2025
ABSTRACT
Sustainable construction is gaining traction globally, yet its adoption in Malaysia remains uneven, particularly
within the residential sector. In rapidly expanding urban hubs like Johor Bahru, the transition to sustainable
housing is frequently stalled by financial apprehensions. This study aims to identify specific cost-related barriers
hindering sustainable residential projects and evaluate practical mitigation measures to overcome them. A
quantitative, cross-sectional survey was conducted involving 63 construction practitioners, including
contractors, consultants, and developers in Johor Bahru. Respondents were selected via non-probability
purposive sampling from professional industry directories. Data were analysed using descriptive statistics and
the Relative Importance Index (RII) to rank the criticality of barriers and the effectiveness of strategies. The
results indicate that perceived risks and uncertainty regarding the financial and technical performance of
sustainable buildings constitute the most critical barrier (RII = 0.898). This is closely followed by financial
constraints of clients/contractors and limited access to capital. Conversely, government investment, local
production of green materials, and accessible green financing emerged as the most effective strategies to mitigate
these costs. The study suggests that overcoming cost walls requires a coordinated approach. Policymakers must
move beyond advocacy to provide tangible financial mechanisms, while the industry must strengthen local
supply chains to reduce reliance on expensive imported green materials. While previous studies have examined
national-level barriers, this research offers context-specific empirical evidence for Johor Bahru’s residential
sector, providing targeted recommendations for developers and policymakers operating in high-growth urban
environments.
Keywords: sustainable construction, cost barriers, financial constraints
INTRODUCTION
Sustainable construction has become a central agenda in many developing countries, a trend highlighted in global
studies on climate change and urban development. In Malaysia, as noted by Chen and Luo (2020), the
construction sector continues to grow rapidly, especially in cities such as Johor Bahru, yet the integration of
sustainable practices remains inconsistent. Industry research has shown that environmental advantages,
including reduced carbon emissions, improved energy efficiency and lower long-term operating cost, are well
recognised among practitioners (Ojo-Fafore et al., 2018). Despite this awareness, project level adoption
continues to face significant obstacles. Jaffar et al. (2022) observe that financial concerns remain one of the
strongest deterrents for contractors, developers and clients. Even with sustainability commitments publicly stated
by government linked developers, actual implementation in Johor still falls short of expectations (Johor Land
Berhad, 2021). Market realities in Johor Bahru, including strong price sensitivity, cautious investment patterns
and continued reliance on imported sustainable materials, further limit the transition toward greener residential
construction.
Problem Statement
Sustainable construction has gained increased attention in Malaysia as environmental pressures and urban
growth intensify. According to Chen and Luo (2020), long term environmental and economic benefits are well
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established, yet progress in adopting sustainable practices remains uneven. Studies such as Ojo-Fafore et al.
(2018) and Roslee et al. (2022) show that high upfront costs, limited incentives and financial uncertainty continue
to discourage developers and contractors. Most existing research examines these issues at a broad national scale,
which leaves a gap in understanding local cost pressures experienced specifically in Johor Bahru. Earlier studies,
including work by Samari et al. (2013), seldom explore how local financing constraints, market behaviour and
supply chain limitations influence adoption in this rapidly developing region. Yi (2022) similarly notes that
residential development in Johor Bahru carries unique economic considerations that are not captured in wider
national research.
Research Objectives
Existing research on sustainable construction in Malaysia largely focuses on national-level issues or general
challenges without narrowing down to the localised economic conditions of Johor Bahru. Furthermore, while
international studies propose broad strategies, there is a scarcity of empirical work offering context-specific
measures tailored to Johor Bahru’s residential development landscape. To bridge this gap, this study aims to:
1. Identify the key cost barriers affecting the adoption of sustainable construction in residential projects in
Johor Bahru.
2. Propose appropriate measures that can reduce or overcome the identified cost barriers.
LITERATURE REVIEW
The literature on sustainable construction highlights growing interest in reducing environmental impact and
improving long-term project performance, yet adoption remains slow in many developing contexts due to
financial pressures, policy gaps and uneven industry readiness. Studies repeatedly show that cost concerns,
limited incentives, weak supply chains and a shortage of technical skills continue to influence decision-making
among construction practitioners. These challenges are particularly relevant in settings where market sensitivity
and project affordability shape development choices. The following review brings together the main themes
discussed in past research, focusing on cost barriers, policy and institutional issues, industry capacity and
structural limitations, as well as the effectiveness of measures proposed to address these constraints.
Cost Barriers in Sustainable Construction
According to Durdyev et al. (2018), Ifijie and Aigbavboa (2020), and Wang et al. (2021), cost related pressures
continue to dominate as the main barriers to sustainable construction across many regions. High initial
investment and the premium on certified green materials consistently restrict adoption, especially where
affordability remains a concern. Research in developing contexts shows that firms often work within narrow
financial margins, which causes sustainable construction to be viewed as a costly commitment rather than a long-
term benefit (Agetepey et al., 2015; Aigbavboa et al., 2017; Fathalizadeh et al., 2021). In Malaysia, earlier and
recent studies highlight technical gaps, fragmented policy direction, and uneven industry readiness as limiting
factors (Samari et al., 2013; Wong et al., 2021; Roslee et al., 2022).
Ahzahar et al. (2022) and Szydlik (2014) state that energy-efficient systems, specialised equipment, and certified
materials typically require higher expenditure, and the lack of clear life-cycle cost information makes
justification difficult for many firms. Price escalation, market volatility, and uncertain performance outcomes
also contribute to hesitation among developers (Tafazzoli, 2017). The cost burden becomes more apparent where
sustainable materials must be imported. Evidence from Malaysia and other developing regions indicates that
transportation charges and currency movement raise total project expenditure (Samari et al., 2013; Roslee et al.,
2022). These conditions strongly influence decisions in Johor Bahru’s residential sector, where buyers remain
highly price sensitive.
Institutional and Policy Barriers
Institutional clarity and policy support play central roles in shaping adoption. According to Ahzahar et al. (2022)
and Jaffar et al. (2022), incentive schemes remain underutilised in Malaysia because they are not widely
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communicated or easily accessed. Similar patterns are reported internationally, where weak enforcement and
limited funding reduce policy effectiveness. Research from China, Nigeria, Chile, and Kuwait confirms that
unclear guidelines and inconsistent support limit industry uptake (Chang et al., 2016; Babalola & Harinarain,
2024; Serpell et al., 2013; AlSanad, 2015). For Malaysian developers and contractors, this lack of consistent
support reinforces perceptions that sustainable construction increases cost rather than generating future savings,
especially in residential markets.
Industry Readiness and Professional Capacity
Industry readiness remains a concern. Jaffar et al. (2022) and Roslee et al. (2022) found that many professionals
have limited exposure to sustainable methods, which restricts their ability to implement or advocate for green
features. Conventional construction practices still dominate, partly due to fragmented training and limited
demonstration opportunities (Serpell et al., 2013; Dalirazar & Sabzi, 2022). These capacity constraints are linked
to wider labour issues. Green installations require specialised skills, yet many workers in Malaysia’s labour-
dependent sector lack formal training. Wang et al. (2021) explain that this raises project cost and creates
hesitation among firms that face strong price expectations in residential work.
Structural and Supply Chain Limitations
Structural conditions within the construction ecosystem also influence adoption. Developing countries often
struggle to build reliable supply chains for sustainable materials because demand remains lower than required to
support local manufacturing (Akindele et al., 2023). When regulations attempt to strengthen sustainability, small
and medium-sized contractors may face higher compliance costs, which add further pressure (Ahmed et al.,
2023). Studies from China and Nigeria show that weak coordination among regulatory bodies and limited
financial commitment restrict the effectiveness of sustainability frameworks (Chang et al., 2016; Babalola and
Harinarain, 2024). These systemic issues are similar to those found in Malaysia, where local supply chains for
green materials are still growing and industry demand remains modest.
Efficiency-Based Measures and Their Limitations
Some scholars argue that improved coordination, scheduling, and cost management can strengthen project
performance. Durdyev et al. (2018) emphasise that efficiency gains help minimise delays and unnecessary
spending. However, operational improvements alone do not address the inherent cost premiums associated with
sustainable materials. Findings from Malaysia and Iran indicate that high material prices, limited financing, and
immature supply chains persist even with better management practices (Fathalizadeh et al., 2021; Samari et al.,
2013). While efficiency contributes to smoother project delivery, it does not fully resolve affordability concerns.
METHODOLOGY
This study applies a quantitative, cross-sectional survey design to address the two research objectives, which
involve identifying cost barriers to sustainable residential construction in Johor Bahru and determining the
relative importance of measures that can reduce these barriers. As highlighted by Apuke (2017) and Daniel
(2016), quantitative methods allow structured responses to be collected from a broad group of practitioners and
enable statistically meaningful analysis. Such approaches are common in sustainable construction research,
where surveys are frequently used to explore how practitioners assess the links between barriers and mitigation
strategies (Fathalizadeh et al., 2021; Jaffar et al., 2022; Wang et al., 2021; Zulu et al., 2022). The use of this
design also supports comparison with earlier studies carried out both in Malaysia and internationally, as
demonstrated by Ahzahar et al. (2022) and Roslee et al. (2022). Although operational improvements such as
enhanced coordination, improved scheduling and cost control can reduce inefficiencies, Durdyev et al. (2018)
explain that these measures alone cannot resolve the financial pressures associated with sustainable construction.
Evidence from Malaysia and Iran further shows that cost challenges and supply chain constraints persist even
when management practices improve (Fathalizadeh et al., 2021; Samari et al., 2013). These findings reinforce
the need for a structured quantitative approach to examine the barriers and the measures intended to address
affordability concerns within this context.
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Sampling
Sampling involves selecting a portion of the population that can reflect the characteristics of the wider group, a
principle explained by Etikan and Bala (2017). Guided by this understanding, the study adopted a non-
probability purposive sampling strategy. This approach is appropriate when respondents must possess specific
technical knowledge and direct exposure to sustainability related construction practices, rather than being
selected through a randomised process. Researchers examining sustainable construction barriers often rely on
similar sampling techniques because practitioner expertise is central to generating meaningful findings
(Fathalizadeh et al., 2021; Jaffar et al., 2022).
The sampling frame consisted of construction professionals in Johor Bahru, including contractors, consultants
and developers. These groups are closely involved in decisions concerning project cost, technology selection
and the application of sustainable features. To identify suitable respondents, firm directories issued by the
Construction Industry Development Board (CIDB), the Association of Consulting Engineers Malaysia (ACEM)
and the Johor Master Builders Association (JMBA) were reviewed. Additional consideration was given to
companies and professionals with experience in green construction principles or those known to actively support
sustainable development initiatives in Malaysia.
Contractors were prioritised as the main respondent group due to their direct involvement in on-site cost
decisions and the practical implementation of sustainable materials and technologies. From the directories, 107
suitable firms were identified. To determine the minimum required sample size, Slovin’s formula was applied:
Where:
n = required sample size
N = 107 firms
e = precision level (0.05)
Thus, 85 practitioners were identified as the target sample. Out of these, 63 completed responses were obtained
and used for analysis. This response rate aligns with typical participation trends in construction-management
studies using purposive sampling (Zulu et al., 2022; Olahan & Oyentuji, 2021).
Survey Instrument
The questionnaire consisted of three sections: demographic information, cost barriers to sustainable construction
and measures to overcome these barriers. Respondents evaluated each item using a five-point Likert scale
ranging from 1 (strongly disagree) to 5 (strongly agree). The instrument was adapted from previous sustainable
construction studies and reviewed by two experts to refine the wording and content relevance. A pilot test
involving 10 professionals was conducted to confirm clarity and internal consistency.
Data Analysis
Data were analysed using descriptive statistics and the Relative Importance Index (RII). Means and standard
deviations summarised perceptions of barriers and measures (Jowwad & Gupta, 2019). RII was applied to rank
the significance of each cost barrier and the perceived effectiveness of each mitigation strategy. following widely
used formulas in construction-management research (Kassem et al., 2020). SPSS provided computational
support for numerical analysis, ensuring methodological consistency with similar studies (Wang et al., 2021;
Zulu et al., 2022).
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The use of purposive sampling may introduce selection bias as participation depended on the accessibility and
willingness of professionals. The findings reflect practitioners’ perceptions rather than actual project cost data.
Despite these limitations, the results provide a useful indication of cost-related challenges within Johor Bahru’s
residential construction sector.
RESULT
Demographic Analysis
Table 6.1: Demographic Profile
Category
Options
Frequency
Percentage
Working Sector
Public Sector
23
36%
Private Sector
33
52%
Self Employed
7
12%
Career Background
Client or Developer
9
14%
Contractor
10
16%
Project Manager
12
19%
Architect
5
8%
Engineer
9
14%
Quantity Surveyor
17
29%
Working Experience
Less than 1 year
6
10%
1 to 2 years
4
6%
3 to 5 years
15
24%
5 to 10 years
15
24%
More than 10 years
23
36%
Experience in Sustainable
Construction
Practical experience
43
68%
Theoretical knowledge
16
25%
No experience
4
7%
The demographic characteristics of the 63 respondents are summarised in Table 6.1. The survey respondents
predominantly operate within the private sector (52%), aligning with the study's focus on residential
development. Professionally, the sample is heavily weighted towards roles central to cost management and
execution, with Quantity Surveyors (29%) and Project Managers (19%) constituting the largest groups. This
distribution is particularly significant as these professionals possess direct insight into the financial intricacies
of construction projects.
The respondents exhibit a high level of seniority, with 60% possessing more than 5 years of experience,
including 36% with over a decade in the industry. Most critically, the data validates the reliability of the
findings, as 68% of respondents reported having practical experience with sustainable construction, ensuring
that the identified barriers are based on actual field exposure rather than theoretical knowledge alone.
Cost Barriers to Sustainable Construction
Table 6.2: Cost Barriers to Sustainable Construction
Mean
RII
Rank
4.492
0.898
1
4.476
0.895
2
4.333
0.867
3
4.349
0.857
4
4.286
0.857
5
4.270
0.854
6
4.206
0.841
7
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4.159
0.832
8
3.984
0.797
9
3.746
0.749
10
The findings in Table 6.2 show that perceived risks and uncertainty (RII = 0.898) emerged as the most significant
barrier, signalling that industry stakeholders remain cautious about the financial and technical performance of
sustainable buildings. This hesitation is consistent with earlier studies demonstrating that unclear payback
periods, fluctuating material prices and inconsistent operational outcomes cause developers to view green
projects as high-risk investments (Gan et al., 2015; Wang et al., 2021). Malaysian studies, including work by
Roslee et al. (2022) and Ahzahar et al. (2022), indicate that many firms remain uncertain about the performance
of sustainable technologies due to limited evidence and inconsistent institutional support. This lack of clarity
reinforces cautious decision-making and contributes to risk-averse behaviour in project planning. The next
barrier, the financial constraints of clients and contractors (RII = 0.895), reflects a wider pattern across
developing construction markets. High construction costs, narrow profit margins and restricted fiscal flexibility
often lead firms to prioritise cost containment over sustainability features. Research from Ametepey et al. (2015)
and Aigbavboa et al. (2017) shows that initial capital outlay remains a major deterrent to adopting green practices
in many regions. Evidence from Iran and Malaysia further supports this trend, with Fathalizadeh et al. (2021)
and Jaffar et al. (2022) reporting that rising material prices and limited client willingness to incur additional costs
continue to restrict adoption. The third-ranked barrier, limited access to capital (RII = 0.867), highlights the
financial difficulties firms face when attempting to incorporate sustainable technologies. In many emerging
economies, financing instruments designed specifically for green buildings are scarce, and mainstream lenders
are often hesitant to support such innovations without clear valuation frameworks, as shown by Durdyev et al.
(2018) and Ahmed et al. (2023). Studies from Chile and Kuwait present similar findings, with Serpell et al.
(2013) and AlSanad (2015) noting that insufficient financial mechanisms continue to hinder progress toward
sustainable building practices. Together, these top-ranked barriers reveal that risk perception and financial
limitations dominate industry decision-making in sustainable residential projects. The results suggest that
improving adoption requires more than environmental advocacy. Instead, the sector needs targeted financial
incentives, accessible green financing schemes and clearer economic evidence to reduce perceived exposure and
strengthen investor confidence.
Measures to Overcome Sustainable Construction
Table 6.3: Measures to Overcome Sustainable Construction
Statements
Mean
RII
Rank
Government should invest more on sustainable construction
4.556
0.911
1
Production of green construction materials locally
4.444
0.889
2
Green financing options and loans with favourable terms
4.429
0.886
3
Encouraging sustainable design–build practices to streamline project costs
4.333
0.867
4
Regulatory support and streamlined permitting processes
4.270
0.854
5
Procurement policies and green public procurement
4.270
0.854
6
Collaborations with sustainable technology providers and manufacturers for cost-
effective solutions
4.254
0.851
7
Education and awareness programs on the long-term financial benefits of
sustainable construction
4.254
0.851
8
Collaborative partnerships and consortiums
4.222
0.844
9
Government incentives and subsidies for sustainable projects
4.190
0.838
10
The findings in Table 6.3 show that practitioners place the highest priority on government investment as the
most effective measure for reducing cost barriers, reflected by the highest RII value of 0.911. This outcome
mirrors evidence from earlier studies which report that strong and consistent public-sector support is essential
for driving sustainable construction, particularly in developing economies where market confidence is still
limited. Research from Malaysia, Chile and China demonstrates that well-funded government programmes,
research grants and long-term policy commitments help reduce uncertainty and encourage wider adoption of
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sustainable building practices. Evidence from Ahzahar et al. (2022), Serpell et al. (2013) and Chang et al. (2016)
shows that clear policy direction and stable funding streams increase confidence among developers and
contractors. The second most important measure reported by respondents is the local production of green
materials. This aligns with concerns highlighted in earlier studies, where reliance on imported products increases
transportation expenses, exposes firms to price fluctuations and contributes to delays. Akindele et al. (2023) and
Durdyev et al. (2018) note that several regions in Africa and the Middle East face similar problems, and local
supply chain development is widely regarded as an effective way to lower project costs. Respondents in the
present study also emphasise that local manufacturing improves stability, availability and affordability of
materials. Green financing options received strong support as well, reflecting the view that access to affordable
capital is central to adoption. Previous work by Gan et al. (2015) and Ahmed et al. (2023) found that loan
schemes with favourable terms, green mortgages and sustainability linked credit facilities significantly
strengthen the feasibility of cost sensitive sustainable construction projects. Measures that appear in the middle
range, such as streamlined permitting, design and build approaches and green public procurement, highlight the
need for structural improvements that enhance efficiency and reduce administrative burden. Although incentives
and subsidies are ranked lowest, respondents still acknowledge their value when integrated with broader
financial and regulatory reforms. Overall, the results suggest that meaningful progress requires a combination of
financial support, supply-chain strengthening and policy reform.
DISCUSSION
The findings of this study provide a clear understanding of the cost barriers affecting the adoption of sustainable
residential construction in Johor Bahru and the strategies that practitioners consider most effective in overcoming
them. The results show that perceived risks, financial constraints and limited access to capital are the most
significant obstacles. These barriers reflect patterns reported in earlier studies across Malaysia and other
developing economies, where uncertainty about long-term cost recovery, escalating material prices and limited
financial capacity contribute to cautious decision-making among developers and contractors (Gan et al., 2015;
Aigbavboa et al., 2017; Fathalizadeh et al., 2021). Respondents in this study demonstrated similar concerns,
emphasising that inconsistent performance data, lack of reliable cost benchmarks and limited institutional
support continue to undermine industry confidence. These observations reaffirm the structural nature of the cost
challenges and suggest that sustainability ambitions remain constrained by financial risk and market hesitation.
In relation to the measures that address these challenges, the results highlight a preference for interventions that
directly reduce cost pressures. Government investment is viewed as the most influential measure, consistent with
evidence that sustained policy commitment and targeted financial programmes can reduce market uncertainty
and encourage wider adoption of sustainable practices (Chang et al., 2016; Ahzahar et al., 2022). The strong
support for local production of green materials further indicates a desire to stabilise supply chains and mitigate
the cost impacts associated with imported products, a concern previously noted in studies from Africa, the
Middle East and Southeast Asia (Akindele et al., 2023; Durdyev et al., 2018). Respondents also expressed high
confidence in green financing mechanisms, reinforcing the need for accessible capital and financial products that
reduce the upfront burden traditionally associated with sustainable construction (Ahmed et al., 2023).
The prominence of regulatory streamlining, design and build adoption and green public procurement within the
mid-ranked measures indicates that the industry recognises the importance of systemic reforms that improve
efficiency and reduce administrative delays. These strategies can complement financial interventions by
lowering indirect costs and encouraging more predictable project workflows. Although respondents agreed on
the value of incentives and subsidies, their lower ranking suggests that financial rewards alone are insufficient
without broader structural changes.
In conclusion, sustainable residential construction in Johor Bahru remains held back by a "Cost Wall" built on
financial risk, capital scarcity, and fragmented supply chains. This study shows that economic pressures are not
simply one factor among many but the central force slowing adoption, with developers facing the high cost of
imported technologies and a market that has yet to recognise the long-term value of sustainability. The findings
indicate that meaningful progress requires more than operational improvements and instead calls for structural
change in how green projects are supported and delivered. Policy implications point to the need for sustained
government involvement that reduces risk through clearer incentives, planning support and long-term funding
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commitments. At the same time, barriers such as cautious lending behaviour, uneven industry capacity and
limited local production of green materials may restrict the impact of recommended measures. Strengthening
interagency coordination, widening access to green financial products and encouraging local manufacturing can
help address these challenges. Future research may examine actual project cost data, the role of financial
institutions in shaping investment decisions and buyer attitudes toward green housing. When policy support,
financial reform and local supply chain development move together, they can create a more stable environment
that reduces uncertainty and supports the wider uptake of sustainable residential construction in Johor Bahru.
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