International Convention on Melaka Twin Cities 2015 - · PDF fileInternational Convention on...
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240683-44 Presentation on G8 registration vf.pptx 1
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Construction industry is crucial to the economy
Overall economy
120 + industries rely on
construction industry1
• ~4% of GDP with 2x multiplier
• Strong backward and forward
linkages (e.g., consumes
15% of total manufacturing
output)
Critical to large-scale
infrastructure development
and nation building
Double-digit growth in past
few years
Investments and jobs
RM 0.5 Tn in project value
(2011 – 2014)2
• Increasing at rate of 8% per
annum
9.5% of workforce3
• 1.2 million registered workers
• ~75% are resident
Malaysians
• Includes professionals such
as engineers, architects,
surveyors
National agenda
Sizeable entrepreneurial
activity involving SMEs
• ~90% firms are SMEs
Inclusive and providing
opportunities for Bumiputera
• 56% of firms
1. Including non-metallic mineral products, basic metals, and fabricated metal products, financial services and insurance, petroleum, chemicals, rubber products, wholesale & retail, logistics, real estate, etc. 2. CIDB data 3. 2013 data, from DOSM
Construction will become even more critical as we
advance towards High Income nation
240683-44 Presentation on G8 registration vf.pptx 2
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Urgent issues across 4 thrusts in the construction industry
InternationalisationEnvironmental
Sustainability
Quality, Safety &
ProfessionalismProductivity
Reliance on low-skilled
workers
• 60% of local workers
and 93% of foreign
workers are unskilled
Low adoption on tech.
and modern methods
• Only 24% of public
projects2 adopted IBS
Fragmented industry
with sub-scale players
• SMEs are 87% of total
firms, but contribute only
24% value add
Recent natural disasters
expose limited resilience
Floods from Dec 2014 to
Jan 2015 resulted in:
• 21 people dead
• Nearly 400,000 people
affected
• Estimated RM 2.9 Bn
infra. damage
Globalisation affecting
many local players
• 10 %pt. increase in total
% domestic contract
value won by foreign
players (2014 vs. 2013)
Relatively low value of
overseas contracts
• In 2012, only RM 6.4 Bn
Safety standards need to be
enhanced
Limited demands for
quality workmanship
Regulatory burden in
approvals / permits
• #28th (2015) for construction
permit rank1, can be further
improved1. Dealing with Construction Permits is one of the 10 categories factored into 'Ease of doing business' ranking by World Bank; Only KL was measured in the ranking of Malaysia 2. For projects > RM 10 MnSource: "The Employment of Foreign Workers at Construction Sites, by UTM JB", Asia Construct Conference 2013 Country Report – Malaysia, China Statistics Yearbook 2010-2012, Korean Statistics Bureau, Ministry of Works Germany, Ministry of Economy Republic of Turkey, CIDB Review of Construction Industry, CIDB, World Bank, Press search
Sultan Mizan Stadium collapse, 2009
9 11
2110
0
100
+10
100
89
2012
100
91
100
79
2013 2014
Local Foreign
Total domestic contract value won,
% of total project value
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Initiatives to transform the construction industry across 4
strategic thrusts
ProductivityEnvironmental
SustainabilityInternationalisation
Quality, Safety &
Professionalism
Improve ease of doing
business by addressing
regulatory constraints
Improve image and public perception of construction industry
Improve workplace safety
and workers' amenities
Increase implementation of
QLASSIC and publish scores
Public projects to lead the
charge on sustainable practice
Drive innovation in
sustainable construction via Centre
of Excellence
Reduce irresponsible waste
in construction industry via
regulations
Facilitate industry adoption
of sustainable
developments/practices
Drive compliance to
environmental sustainability
ratings and certification
requirements
S.2
S.1
S.3
S.4
S.5
Q.2
Q.1
Q.3
Accelerate adoption of IBS
and mechanisation
Continued investment in
human capital development in the
construction industry
Roll-out technology
advantage for construction
Advance strategic info. provision
for policy formulation and
business planning
Enhance control and balance
of workforce supply
P.2
P.1
P.3
P.4
P.5
Accelerate Bumiputera / SME
capacity and capability-building
P.6
Provide privileged access to
financing for Malaysian champions
going abroad
Internationalise construction
processes and standards
Support consortia formation
and provide market intelligence for
overseas projects
I.2
I.1
I.3
Q.4
Note: Several initiatives may belong to more than one strategic thrust. In such instances, these initiatives have been placed under the strategic thrust where it is expected to have the highest impact (e.g., Initiatives 9 and 15)
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We have already engaged with a broad range of stakeholders
to co-develop the initiatives
1. Federation of Sabah Industries 2. Unit Perancang Ekonomi Negeri 3. Sabah Urban Development Corporation (SUDC) 4. Jabatan Pembangunan Sumber Manusia 5. MARA 6. Stanford University 7. Harvard University 8. Rosenheim University 9. Western Australia Skills Training 10. RISM 11. PAM 12. BQSM 13. IEM 14. MBAM Australia 15. BEM 16. LAM
Industry players Ministries and agencies
Ecosystem
• Eversendai Corp
• UEM Sunrise
• Binapuri
• TLC Architect
• Minconsult
• MKH
• Sime Darby
• Samsung
Sabah
• FSI1
• UPEN2
• SUDC3
• JPSM4
Global / regional cos.
• Daelim
• IHRDC
• Maybank
Industry associations
• REHDA
• MGBC
• PKMM
• ACEM
9876
5
Universities and training institutes
International
• World Bank
• UN BSEEP
• GBI
Sarawak
• Brooke Dock
• PKK
• SHEDA
• State planning unit
Professional boards and associations
10 11 12 13 14 15 16• UTM
• UKM
• UPM
• USM
• IIUM
• ABM
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Streamline construction-related training programmes and
workforce accreditation in Malaysia
Objectives/ benefits
Centralise and coordinate training programmes and workforce accreditation
• Streamline fragmented training offered by various agencies
• Increase clarity on which agencies/institutes provide which training
• Centralise roles and responsibilities of training centres to ensure clear identification
• Provide better oversight and management of training programme development
• Streamline workforce accreditation across skilled workers, semi-skilled workers,
contractors, personnel, etc.
CIDB, EPU, MOHRKey agencies
JKR, MOW, MOE (including TVET1), MARA, Abm, Prof. Boards, Trade associationsSupporting
government agency
Accreditation agencies2Potential external partners
CIDB, IEM, EPU, BEM, MOHR (JTK), PAM, MOW, RISM, MOE, PKMM, MBAM,
trade-specific (e.g. SPAN, DOSH, ST, SKMM, MOCA etc.)Working Groups
Continued investment in human capital development in the construction industry
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Strengthen reach, effectiveness and comprehensiveness of
training
Objectives/ benefits
Leverage global partners to improve quality of training
• Industry involvement in training enhances content relevance
• World-class experts help develop scope and quality of training
Develop structured traineeship and apprenticeship programmes
CIDBKey agencies
MOW, EPU, MOF, KPKT, MOHR, MARASupporting
government agency
Industry players (global partners and large local players), Masers EnergyPotential external
partners
Continued investment in human capital development in the construction industry
CIDB, IEM, EPU, BEM, MOHR (JTK), PAM, MOW, RISM, MOE, PKMM, MBAM,
trade-specific (e.g., SPAN, DOSH, ST, SKMM, MOCA etc.), UEMBWorking Groups
Continued investment in human capital development in the construction industry
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Drive scale of IBS adoption via public sector projects
Accelerate adoption of IBS and mechanisation
Objectives/ benefits
Improve economies of scale for IBS supply in Malaysia
• Separate IBS procurement from the main contract for JKR (or other developing
agency) to directly supply IBS components
• Heighten enforcement for public sector project compliance to IBS adoption
mandate
• Build scale of selected standard IBS components via mandating use of Pre-
Approved Plans (PAP) for common public buildings
• Increase the number of public projects subject to IBS adoption mandate
CIDB, JKRKey agencies
MOF, ICUSupporting government agency
IBS manufacturers (e.g., UAC), FELDA, SPNB, PR1MA, Professional boards and
associationsPotential external
partners
CIDB, JKR, MOF, ICU, IBS Manufacturers, MBAM, REHDA, PR1MA, KPKT, UiTM,
RISM, PAM, BEM, IEMWorking Groups
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Facilitate economics for IBS adoption
Objectives/ benefits
Facilitate IBS adoption via economic mechanisms
• Lower net end-user price of IBS installation and manufacturing heavy equipment
• Facilitate economics for IBS suppliers
• Increase levy for less-skilled foreign general workforce to increase cost attractiveness of
IBS adoption
Enhance IBS ecosystem to drive IBS adoption at design stage
• Harmonise IBS components and BIM library
• Provide training on IBS and modular coordination drive design skill
CIDB, MITIKey agencies
MOW, MOF, MIDA, ICU, KASTAMSupporting
government agency
IBS manufacturers (e.g., UAC), MBAM, MEMA, FMM, etc.Potential external partners
CIDB, MITI, MOW, MOF, MIDA, ICU, KASTAM, RISM, UiTM, MEMA, PR1MAWorking Groups
Accelerate adoption of IBS and mechanisation
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Facilitate BIM adoption in construction industry via
regulations
Objectives/ benefits
Drive BIM adoption in Malaysia to increase productivity
• Increased information visibility, clarity and sharing throughout project lifecycle
• BIM enhances design management and construction visibility
• Allows for immediate detection and reaction should there be any problem
Devise a set of common BIM standards
• Better clarity as to how to use BIM through project lifecycle and across all
construction disciplines
National BIM Steerco, KPKTKey agencies
MOWSupporting
government agency
Professional associations (BEM, IEM, BQSM etc.), Autodesk, eMCRIS, Graphisoft,
buildingSMART, etc.Potential external
partners
CIDB, PAM, JKR, LAM, EPU, BEM, ICU, IEM, KPKT, RISM, MOW, UKM, UMP,
UiTM, PKK, REHDA, Sime Darby, BrunsfieldWorking Groups
Roll-out technology advantage for construction
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Reference centre to support the development and adoption of
BIM and modern methods
Objectives/ benefits
Enable and provide support to adopt new IT technology
• Develop industry-friendly programs that promotes BIM adoption and
other future, new construction IT technology in Malaysia
• Provide a platform for a centralised construction database
• Provide a place to showcase and experience new technology
CIDB, BIM Steerco, MoWKey agencies
MOSTI, GPEs4 , EPU, UKAS, MOE, MARASupporting
government agency
buildingSMART, UTM, UKM, UPM, CIFE Stanford University,
Developers, Prof. boards, Tech. providers, Bayer
Potential external partners
CIDB, BIM SteercoWorking Groups
Roll-out technology advantage for construction
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Drive innovation in sustainable construction via Centre of
Excellence
Objectives
/ benefits
Establish a research platform in Malaysia to drive sustainability excellence
in the construction industry
• Uplift sustainability standards in Malaysia
• Initial focus (I) Sust. infrastructure, (II) Geotech. engineering
Establish Centre of Excellence for Sustainable Construction
• Develop a tool to rate and improve sustainability
• Lower long-term cost of infrastructure developments
• Become a topic leader and pioneer in the region
• Conserve environment and resources
• Improve structural quality of construction in areas with soft soil
CIDBKey agencies
MOW, UKAS, EPU, MOF, KeTTHA, JPA, MOE, NRESupporting
government agency
USM, Harvard University, UniKL, ISI, BRE, local universities, industry
players/projects4Potential external partners
CIDB, USM, MOF, JKR, MOW, IPTA, IIPTSWorking Groups
Drive innovation in sustainable construction via Centre of Excellence1
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Public projects to lead the charge on sustainable practices
Public projects to lead the charge on sustainable practices
Objectives/ benefits
Leverage Malaysia government's position as the construction sector's key
client to influence development of sustainable construction
Raise sustainability standards for construction with focus on public projects
• Improve resource management performance of public buildings and
infrastructure as they comprise a significant portion of Malaysia's built
environment
MOF, EPU, JKRKey agencies
CIDB, UKAS, JPS, MOW, KeTTHA, SPAD, SPAN, Local authorities, NRESupporting
government agency
Local academies, JKR, Client ministries with upcoming projects, CoEPotential external
partners
MOF, JKR, CIDB, Local academiesWorking Groups
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Reduce irresponsible waste in construction industry via
regulations
Reduce irresponsible waste in construction industry via regulations
Objectives/ benefits
Drive adoption of site waste management practices by the industry to
reduce excessive waste and illegal dumping
• Drive know-how in the industry to reduce "cost" of waste management through
site waste management plans / practices
• Leverage tax instrument (landfill tax) to embed environmental costs of existing
practices (polluter pays principle)
• Ensure sufficient infrastructure for recycling (from waste separation at source to
waste disposal services and facilities)
KPKT, JPSPN, SW CorpKey agencies
NRE, Jabatan Alam Sekitar, CIDB, JKR, MOF, EPU, Local authoritiesSupporting
government agency
Global organisations with waste management expertise (e.g., Bayer, Lafarge),
Professional associations, MILT
Potential external partners
KPKT, KeTTHA, JPSPN, Jabatan Alam Sekitar, CIDB, MOF, JKR, SW CorpWorking Groups
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Facilitate industry adoption of sustainable
developments/practices
Facilitate industry adoption of sustainable developments/practices
Objectives/ benefits
Use financial and non-financial incentives to support stakeholders to invest
into sustainable construction
• Split incentives, where structural investments are covered by owners while
tenants benefits from lower energy bills
• Ensure incentives are performance-linked, outcome based, tiered
Improve awareness of energy / electricity usage with large construction
players and guide efforts to reduce usage
• Educate construction players on source of energy consumption as well as easy
to implement, high impact actions to reduce energy
• Pilot Energy and Carbon Reduction scheme with selected large construction
players as a joint commitment
MOF, KeTTHA, MIDA, CIDB Key agencies
KPKT, Local authorities, ICU, NRE, JKR, MGTC, SEDA, ST,Supporting
government agency
E.g., Lend Lease, Capital Land, IRDA, PETRONAS, KEN Holdings, SP SetiaPotential external
partners
CIDB, MOF, KeTTHA, KPKT, Local authorities, COE4 , ST, TNBWorking Groups
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Drive compliance to environmental sustainability ratings and
certification requirements
Drive compliance to environmental sustainability ratings and certification
requirements
Objectives/ benefits
Ensure comprehensive suite of sustainability ratings systems available in
Malaysia and in line with industry needs
• Critical as sustainability a market driver and platform for growth in Malaysia e.g.,
office rental for MNCs linked to sustainability ratings
Ensure environmental management capacity of contractors on large-scale
project
CIDB, MOF, EPU, BNMKey agencies
BURSA, Securities Commission (SC), KeTTHASupporting
government agency
Professional associationsPotential external
partners
CIDB, Professional associations, EPU, BursaWorking Groups