Why It Matters
As a leading engineering and construction group in Malaysia, Gamuda was responsible in building some of the nation’s most important and strategic infrastructure, including the SMART tunnel, Electrified Double Track Project (Ipoh – Padang Besar) and the Klang Valley Mass Rapid Transit system.
As an industry leader and a responsible corporate citizen, we recognise our role in spearheading the advancement of the construction sector by maintaining, nurturing and supporting a vibrant local supply chain. It is crucial for us to ensure that the spillover effect of the country’s infrastructure investment properly flows through to medium and smaller contractors and suppliers down the value chain, ultimately achieving the objective of stimulating the local economy.
From the Group’s perspective, sourcing locally results in multiple economic benefits. Local procurement contributes to improved risk management as we can secure timely delivery compared to overseas shipment. The Group always proactively engages its local suppliers and that gives us a tighter control over the product quality, as well as the time of delivery, while the total cost is often cheaper to buy local. This helps us to minimise the risk of project delays, cost overrun and ensure quality delivery. Local procurement also allows for more accurate budget forecasting and risk mitigation since many variable factors such as foreign exchange rates, tax implications, shipping and fuel surcharges are more predictable compared to overseas sourcing. Without the need to ship from abroad, we are essentially registering lower carbon footprint by sourcing locally while enabling local supply chain growth.
Gamuda IBS (Industrialised Building System), an end-to-end digital IBS solutions provider, sourced more than 90 percent of its requirements locally. The idea of Gamuda IBS is to mainly serve the local market (Malaysia). The materials sourced are from local suppliers. Even the factory is managed wholly by local talents. Gamuda IBS is a service product that promotes local supply chain while catalysing the local economy.
- Local suppliers refer to companies registered in Malaysia.
- The percentage include the whole Group procurement value excluding joint ventures and associates (except for MRT Putrajaya Line – included in the percentage).
- Information for the percentage of spent on local suppliers for FY2020 has been assured through Limited Assurance exercise with Ernst and Young.