House prices can be lowered without sacrificing profit margins if builders increase productivity and efficiency by adopting new and modern technology.
Khazanah Research Institute (KRI) director of research Dr Suraya Ismail (pix) said that inefficiency of construction firms has translated into high costs and subsequently, very high property prices. Instead of cutting profits, which would result in builders making a loss when providing affordable homes, Suraya said the Malaysian construction industry can benefit from higher productivity.
Citing KRI’s case study on a construction firm in Manila, Suraya said construction firms can provide affordable homes and enjoy profits at the same time if they utilise the right technology that is custom-made, and localised equipment and materials rather than spending on expensive imports which add on to the overall cost.
