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Do You Realize How Much Industry of Malaysia Runs on Projects… Still Managed in Excel?

The majority of Malaysia’s key sectors – from construction and fabrication to manufacturing and services – still run critical projects using basic spreadsheets and WhatsApp, creating hidden risks in cost, control, and delivery.
January 30, 2026 by
Do You Realize How Much Industry of Malaysia Runs on Projects… Still Managed in Excel?
KEYWAY DIGITAL LABS SDN. BHD.

Walk through Malaysia’s economy and you’ll see one common pattern behind very different businesses:

  • Construction & renovation
  • Engineering & fabrication
  • Manufacturing with custom jobs
  • Service, consulting and training projects

All of them are project‑based. And yet, most are still managed with a mix of Excel, WhatsApp and email.

For years, this “campur‑campur” approach has helped SMEs grow from micro to small and medium size. But as projects get bigger, customers more demanding, and teams more complex, the question becomes:

Is Excel still enough to manage your projects, or is it time to move to a proper project management system?

This is not about buying software for fun. It’s about cost, control, and competitiveness in some of Malaysia’s most important project‑driven sectors.


Projects: The Engine Behind Major Sectors in Malaysia

When we talk about “project management”, some people think it’s only for big construction companies. In reality, projects drive a huge part of Malaysia’s GDP.

1. Construction & Renovation

  • The construction sector contributes roughly 3–4% of Malaysia’s GDP based on recent national accounts and World Bank–type sector data.
  • When related activities are included, construction supports close to one in ten jobs in the country.

Every high‑rise, housing scheme, renovation, road, or plant upgrade is delivered as a project – with phases, milestones, budgets, and risks.

2. Manufacturing with Custom Jobs

  • Manufacturing as a whole adds around 23–25% of Malaysia’s GDP in recent years.

A large portion of this is project‑based work:

  • Custom fabrication jobs
  • Specialty machinery & equipment
  • One‑off production runs for key clients
  • Assembly and installation contracts

These are not simple, repeatable transactions – they are time‑bound, budget‑bound projects.

3. Engineering & Fabrication

Engineering and fabrication activities sit across both construction and manufacturing:

  • Steel structures, piping, tanks
  • M&E works, plant upgrades
  • Industrial automation and system integration

Official statistics don’t break out “engineering & fabrication” as a standalone category, but in reality, these jobs are the project backbone inside the construction and manufacturing sectors above.

4. Service, Consulting & Training Projects

  • The services sector is Malaysia’s largest, contributing around 55–60% of GDP.

Within this broad category, many activities are delivered as projects:

  • Engineering and EHS consulting
  • IT and software implementation
  • Training program and certifications
  • Business improvement and transformation projects

So, from construction and fabrication to manufacturing and professional services, a huge share of Malaysia’s economy runs on projects – not just routine transactions.


How Malaysian SMEs Typically Manage Projects Today

Across these sectors, the default toolset looks like this:

  • Excel for schedules, cost tracking, VO lists
  • WhatsApp for day‑to‑day communication and photos
  • Email for documents and approvals
  • Separate accounting software for billing and finance

This approach is:

  • Familiar
  • Low direct cost
  • Fast to set up

But as your company grows past a certain point – more sites, more projects, more people – the cracks start to show.


Excel: Where It Helps, and Where It Starts to Hurt

Strengths of Excel

Excel has earned its place:

  • Low cost – most SMEs already have Microsoft 365.
  • Flexible – you can design almost any format (Gantt chart, material list, cost sheet, VO tracker).
  • Offline ready – no internet? You can still work.
  • Low barrier – most staff know the basics.

For micro businesses and very simple projects, this is more than enough.

Common Problems When You Rely Only on Excel

Once you handle more projects, higher values, and more people, these issues appear:

  1. Version Chaos
    • “Use this file: Project_A_Schedule_FINAL_v6_NEW.xlsx”
    • People edit different copies; nobody is 100% sure which is latest.
  2. Information Scattered Everywhere
    • Schedules in Excel
    • Photos in WhatsApp
    • Approvals in email
    • Cost details in a different file
  3. No Real-Time View for Management
    • To answer, “Which projects are delayed?” or “Which jobs are losing money?”
      someone has to open and combine multiple Excel sheets.
    • By the time you see the report, it’s already old news.
  4. High Risk of Manual Error
    • Wrong formulas, broken links, overwritten data.
    • One small mistake in Excel can distort the whole project picture.
  5. Harder to Scale
    • As you add more projects, more sites, and more people, keeping everything aligned via Excel and WhatsApp becomes a daily struggle.

What a Proper Project Management System Does Differently

A project management system is designed specifically for:

  • Structuring work into projects, tasks, milestones
  • Assigning owners, deadlines, and priorities
  • Centralizing files, comments, and updates
  • Providing dashboards across all projects
  • Linking to related functions (e.g. timesheets, inventory, invoices) when needed

Instead of many separate Excel files and chat groups, you have a single source of truth for each project.

Let’s compare them directly.


1. Planning & Scheduling

Excel

Pros:

  • Very flexible; you can design your own schedules and Gantt charts.
  • Simple for basic planning and short projects.

Cons:

  • Updating plans after changes is tedious.
  • No built-in reminders or workflows.
  • Anyone can break formulas or layouts.

Project Management System

Pros:

  • Built-in Gantt, Kanban, list, and calendar views.
  • Every task has an assigned person and due date.
  • Rescheduling is as simple as drag‑and‑drop.
  • Everyone sees the same plan, in real time.

Cons:

  • Needs some setup and agreement on standard stages and templates.
  • Staff need time to learn the interface.

Example – Construction & Renovation:

A contractor running 10–15 sites can’t realistically keep every schedule accurate in Excel without heavy admin work. In a system, rescheduling one phase updates the timeline across the project, and all team members see it immediately.


2. Collaboration & Communication

Excel

Pros:

  • Easy to email or share via cloud links.
  • Works if only 1–2 people update it regularly.

Cons:

  • Comments often stay in WhatsApp or email, not tied to the specific task.
  • Site supervisors may not open Excel on their phones.
  • No structured way to see the full conversation around a problem or delay.

Project Management System

Pros:

  • All key conversations and files are attached to relevant tasks/projects.
  • Site staff can update status and upload photos directly from the field.
  • Management can view latest updates without calling or scrolling through chats.

Cons:

  • Requires new habits: “if it matters, log it in the system”.
  • Needs basic digital discipline from everyone, not just the office team.

Example – Engineering & Fabrication:

Instead of searching through WhatsApp for a drawing or site photo, your engineer opens the project, clicks the task, and finds all related files and comments in one place.


3. Data Accuracy, Control & Traceability

Excel

Pros:

  • Quick to edit; great for ad‑hoc analysis.
  • No access control limits (anyone can change anything).

Cons:

  • That same freedom creates risk: accidental edits, deleted rows, wrong formulas.
  • Difficult to know who changed what, when, and why.
  • Weak audit trail for disputes, claims, or audits.

Project Management System

Pros:

  • Role‑based access rights (view, edit, approve).
  • Activity logs and history for tasks and documents.
  • Standard templates reduce inconsistencies.

Cons:

  • More structured; changes to process require planning.
  • Someone must maintain user roles and permissions.

Example – Service, Consulting & Training:

When a client questions whether a particular task was completed, you can show a clear history of updates, time logs, and attachments – instead of piecing together Excel sheets and emails.


4. Cost Tracking & Project Profitability

Excel

Pros:

  • Easy to create simple cost tracking sheets.
  • Flexible to model your own cost structure.

Cons:

  • Labor, materials, and subcontractor costs often live in different files.
  • Hard to see real‑time profitability while the job is still ongoing.
  • Analysis is usually done at the end of the project – too late to fix.

Project Management System

Pros:

  • Time (timesheets), material usage, and purchases can be tied to specific projects.
  • You can view budget vs actual during the project, not only at the end.
  • Helps identify loss‑making jobs early.

Cons:

  • Requires discipline in recording time and costs accurately.
  • Works best when integrated with inventory and finance modules.

Example – Manufacturing with Custom Jobs:

A fabrication shop can immediately see if a custom job is consuming more steel and labor hours than planned and take corrective measures before the project eats the margin.


5. Reporting & Management Visibility

Excel

Pros:

  • Capable of powerful reports if you have an Excel expert.
  • Good for one‑off dashboards.

Cons:

  • Consolidating data from many projects is slow and error‑prone.
  • Reports are usually weeks behind reality.
  • Very difficult to get a live overview across all projects.

Project Management System

Pros:

  • Dashboards show, in real time:
    • Which projects are on track or delayed
    • Workload by project manager or team
    • Project status by client or region
  • Easier to track KPIs like on‑time completion and % of work done.

Cons:

  • You must decide which KPIs truly matter to your business.
  • Managers must actively use dashboards for decision‑making.

Example – Growing SME with 15–30 active projects:

Instead of asking for Excel updates every week, the owner or GM can log in anytime and see exactly where each project stands.


6. Scalability & Professionalism

Excel

Pros:

  • Almost zero incremental software cost.
  • Works fine for a small number of projects and simple structure.

Cons:

  • Quickly becomes messy when you have many simultaneous projects, teams and locations.
  • Harder to standardize SOPs; every project manager may do things differently.
  • Less convincing when dealing with large corporates, GLCs, or international clients who expect structured project tracking.

Project Management System

Pros:

  • Designed to support growing teams, multiple branches, and more complex projects.
  • Helps enforce standard processes across the company.
  • Enhances your professional image in pre‑qualification, audits, and tenders.

Cons:

  • Requires investment in software and implementation.
  • Change management: people need time and support to adapt.

When Is It Time to Move Beyond Excel?

You don’t need a project system on day one.

But you should seriously consider it when:

  1. You have more than 5–10 active projects running at any time.
  2. Projects involve multiple teams, sub‑cons, or branches.
  3. Management often feels surprised by delays or cost overruns.
  4. Progress claims and billing are frequently delayed.
  5. You aim to work more with T20 customers, MNCs, or GLCs who demand stronger reporting and control.

If several of these sound familiar, Excel is no longer just a cheap tool; it’s quietly becoming a hidden cost in delays, rework, and lost margin.


Why Odoo Is Your Best Partner to Manage Projects

Among the many project management systems available, Odoo is a strong fit for Malaysian SMEs because it doesn’t stop at task lists and Gantt charts.

With Odoo:

  • Projects, tasks, and milestones are managed in one place.
  • Timesheets, materials, and purchases are linked directly to each project.
  • Sales, inventory, HR, and accounts all connect to your project data, so:
    • Quotations turn into projects
    • Material usage flows from your warehouse
    • Labor costs come from timesheets
    • Invoices follow real project progress

Instead of many disconnected Excel files and apps, Odoo gives you one integrated platform where all your project data is linked. That’s what delivers real‑time visibility, tighter control, and the confidence to take on bigger, more complex work.

For Malaysian SMEs whose business runs on projects, Odoo is not just another software – it can be your best partner to manage projects professionally, protect margins, and scale with confidence.


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