Challenges Faced by Contractors in Adopting Industrial Revolution 4.0 in the Malaysian Construction Industry
Authors
University Technology MARA, Perak Branch, 32610 Seri Iskandar, Perak (Malaysia)
University Technology MARA, Perak Branch, 32610 Seri Iskandar, Perak (Malaysia)
University Technology MARA, Perak Branch, 32610 Seri Iskandar, Perak (Malaysia)
University Technology MARA, Perak Branch, 32610 Seri Iskandar, Perak (Malaysia)
University Technology MARA, Perak Branch, 32610 Seri Iskandar, Perak (Malaysia)
University Technology MARA, Perak Branch, 32610 Seri Iskandar, Perak (Malaysia)
Article Information
DOI: 10.47772/IJRISS.2026.100601453
Subject Category: Management
Volume/Issue: 10/6 | Page No: 21184-21190
Publication Timeline
Submitted: 2026-07-08
Accepted: 2026-07-13
Published: 2026-07-24
Abstract
The Malaysian construction industry serves as a basis of national economic growth, yet it remains hindered by low labor productivity and a heavy reliance on manual, low-skilled labor. Despite the roadmap provided by the Construction 4.0 Strategic Plan (2021–2025) and the Industry4WRD policy, the transition toward cyber-physical systems remains stagnant among local contractors. The objective of this study is to investigate how the challenge impacts the contractor regarding the adoption of IR 4.0 technologies in the construction industry. This study employed a quantitative approach. A total of 115 out of 286 respondents in Selangor from G1 to G5 participated, for a response rate of 40%. The data were subsequently analysed using SPSS tools version 29. The result reveals that Increased expenses for tools and software are the most significant challenge faced by contractors when adopting IR 4.0 in their construction projects. Contractors agree that higher software and tool expenses are the biggest obstacle to IR 4.0 implementation in the construction industry. Thus, through gaining a deeper comprehension of these challenges, researchers and industry pioneers may develop strategies to overcome them and enhance the efficient implementation of digital technology in the construction sector.
Keywords
Challenges, Contractors, Industrial Revolution 4.0, Malaysian Construction Industry
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References
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