Investigating the impact of inflation on labour wages in Construction Industry of Malaysia

Labours in construction are one of the main pillars in the construction industry of Malaysia for projects execution. Construction labours not only contributes to the development of the construction industry but also impacts the Malaysian economy. Consideration of labour wages is made in the initial...

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Main Authors: Alaloul, W.S., Musarat, M.A., Liew, M.S., Qureshi, A.H., Maqsoom, A.
Format: Article
Institution: Universiti Teknologi Petronas
Record Id / ISBN-0: utp-eprints.23708 /
Published: Ain Shams University 2021
Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85099813369&doi=10.1016%2fj.asej.2020.08.036&partnerID=40&md5=c4a9d2335389c357cf657ae596aa8ddc
http://eprints.utp.edu.my/23708/
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spelling utp-eprints.237082021-08-19T09:13:55Z Investigating the impact of inflation on labour wages in Construction Industry of Malaysia Alaloul, W.S. Musarat, M.A. Liew, M.S. Qureshi, A.H. Maqsoom, A. Labours in construction are one of the main pillars in the construction industry of Malaysia for projects execution. Construction labours not only contributes to the development of the construction industry but also impacts the Malaysian economy. Consideration of labour wages is made in the initial phase of the project budget, however, wages are getting changed over time. The inflation rate is one of the key factors which affect labours wages. Regrettably, the inflation rate is being ignored while computing labour wages for projects budget development, resulting in cost overrun of construction projects. In this regard, the correlation coefficient test was used to determine the impact of the inflation rate on labour wages gathered from the year 2013 to 2019. The results showed that a significant acceptable relationship exists among the inflation rate and several categories of labour wages. Most of the labour wages showed a negative relationship with the inflation rate, indicating the deviation in the wages, thus, result in cost overrun. To steer the cost overrun effect, it is recommended to adopt automation system and introduce the Industrial Revolution (IR) 4.0 in construction projects as a replacer of labours. © 2020 Faculty of Engineering, Ain Shams University Ain Shams University 2021 Article NonPeerReviewed https://www.scopus.com/inward/record.uri?eid=2-s2.0-85099813369&doi=10.1016%2fj.asej.2020.08.036&partnerID=40&md5=c4a9d2335389c357cf657ae596aa8ddc Alaloul, W.S. and Musarat, M.A. and Liew, M.S. and Qureshi, A.H. and Maqsoom, A. (2021) Investigating the impact of inflation on labour wages in Construction Industry of Malaysia. Ain Shams Engineering Journal, 12 (2). pp. 1575-1582. http://eprints.utp.edu.my/23708/
institution Universiti Teknologi Petronas
collection UTP Institutional Repository
description Labours in construction are one of the main pillars in the construction industry of Malaysia for projects execution. Construction labours not only contributes to the development of the construction industry but also impacts the Malaysian economy. Consideration of labour wages is made in the initial phase of the project budget, however, wages are getting changed over time. The inflation rate is one of the key factors which affect labours wages. Regrettably, the inflation rate is being ignored while computing labour wages for projects budget development, resulting in cost overrun of construction projects. In this regard, the correlation coefficient test was used to determine the impact of the inflation rate on labour wages gathered from the year 2013 to 2019. The results showed that a significant acceptable relationship exists among the inflation rate and several categories of labour wages. Most of the labour wages showed a negative relationship with the inflation rate, indicating the deviation in the wages, thus, result in cost overrun. To steer the cost overrun effect, it is recommended to adopt automation system and introduce the Industrial Revolution (IR) 4.0 in construction projects as a replacer of labours. © 2020 Faculty of Engineering, Ain Shams University
format Article
author Alaloul, W.S.
Musarat, M.A.
Liew, M.S.
Qureshi, A.H.
Maqsoom, A.
spellingShingle Alaloul, W.S.
Musarat, M.A.
Liew, M.S.
Qureshi, A.H.
Maqsoom, A.
Investigating the impact of inflation on labour wages in Construction Industry of Malaysia
author_sort Alaloul, W.S.
title Investigating the impact of inflation on labour wages in Construction Industry of Malaysia
title_short Investigating the impact of inflation on labour wages in Construction Industry of Malaysia
title_full Investigating the impact of inflation on labour wages in Construction Industry of Malaysia
title_fullStr Investigating the impact of inflation on labour wages in Construction Industry of Malaysia
title_full_unstemmed Investigating the impact of inflation on labour wages in Construction Industry of Malaysia
title_sort investigating the impact of inflation on labour wages in construction industry of malaysia
publisher Ain Shams University
publishDate 2021
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85099813369&doi=10.1016%2fj.asej.2020.08.036&partnerID=40&md5=c4a9d2335389c357cf657ae596aa8ddc
http://eprints.utp.edu.my/23708/
_version_ 1741196718982037504
score 11.62408

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