Muslim A Djalil, Muhammad Adam and Hendra Syahputra

Objective – The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost. According to Mendelson and Greenfield (1996) the remaining part of the twentieth century would involve corporations, institutions and government in a race to survive. A tremendous demand of development worldwide has gained interest of Malaysian construction firms to venture into international construction domain. Identifying and analysing major determinants of the firm's internal and external factors are crucial in order to ease the complexity in global market expansion. Methodology/Technique – The study is carried out through observations and literature review. Findings – This study identifies the factors that are involved in reduction of international projects and its implications on the local economy and contractor companies. Construction projects are currently progressing slowly around the world as a result of the recent global economic crisis. In order to accommodate public needs within the current economic situation, the Malaysian Government has restricted the procurement of public sector projects to “necessary to meet public need” projects only thus narrowing the number of domestic projects available. Consequently, most major contractors have decided to change their focus by looking into international projects outside Malaysia not only to ensure the viability of their businesses but also for long-term survival. Although some Malaysian contractors have managed to penetrate successfully into international construction projects. Novelty – Finally, this study is of relevance to Malaysian construction firms as it systematically highlights the internal and external factors those may affect their performance in international market. Type of Paper: Empirical