< PreviousDato’ Ir Soam Heng Choon President, REHDA Malaysia 2019 was a busy year for REHDA Malaysia and our branches. We stayed focussed on being a ‘Responsive, Respected, Responsible and Relevant’ NGO and a voice for property developers in Peninsular Malaysia to promote sustainable development. One of our roles is to be in constant engagement with the government and other industry-related stakeholders to discuss and find solutions on issues pertaining to the property market. From the beginning of this year, we have been tasked to manage the registration and certification process for the Home Ownership Campaign (HOC) 2019, a joint initiative with the government. It is a task that have kept us extremely busy, with the overwhelming response we received from both developers and buyers. The joint effort of the various branches in the certification process enabled us to achieve our goals. Siew Soon Thye President, TEEAM namely CIDB, Standards and Industrial Reserach Institute of Malaysia (SIRIM), Public Works Department (JKR), etc. Of course, we also embraced social events in the likes of dinners and golf events to build our network and ensure unity of our members. More importantly, dialogues with related Associations on issues and challenges faced by the in- dustry were held – including a dialogue with MBAM recently. Alec Chong President, MMCOA April 2019 was our election for a new committee. I was elected as the President for 2019-2021. We have new faces joining our committee, mostly younger or second-generations of family-owned businesses. With this new committee formed, we are undergoing transformation in our way of managing the associations. We also established a few key areas in to handle and solve previous and upcoming issues faced by members of the association. Our newly set up Training Committee managed to conduct our first safety talk for members of our association with support from CIDB, Department of Occupational Safety and Health (DOSH), MBAM and industry players. Our Communications Committee also organised dialogue sessions with other associations to understand the problems facing the industry and their respective sectors. Following these transformations, we shall be introducing more activities, interaction and information-sharing among our members and affiliate mem- bers – within the next few months, we Cover Feature 28 MASTER BUILDERS JOURNAL #117 How did your Association fare in 2019? What were your Association’s goals set for 2019 and did your Association achieve them? Foo Chek Lee President, MBAM MBAM had hoped that the construction industry would fare much better than the expected 1.7% growth for 2019. In terms of MBAM’s goal, we wanted to serve our members better despite the tough business environment and we did that through providing conferences and seminars with good content such as our Building and Construction Conference, MBAM Safety Conference and various other trainings and networking activities. Bill Lee President, BMDAM 2019 had been a challenging year. Nevertheless, we achieved what we set out to do in that year. Our ambitions were to steer the association towards education and training, industry visits, and reaching out to related NGOs and government authorities in the building and construction industry, Q&A with Master Builders Association Malaysia (MBAM), Building Materials Distributors Association of Malaysia (BMDAM), Malaysia Mobile Crane Owner’s Association (1987) (MMCOA), Real Estate and Housing Developers’ Association (REHDA) Malaysia and The Electrical and Electronics Association of Malaysia (TEEAM)29 MASTER BUILDERS JOURNAL #117 2019 has been an exciting year for TEEAM. We saw many enthusiastic members come forward to serve the organisation. In conjunction with the Malaysian new government to promote the E&E industry, along with the mandate from the members and trust from the council, the team has been actively participating in various government-NGO dialogues and meetings in order to escalate the wisdom accumulated since 1952 to the current government to improve the E&E trade and create opportunities for members. We have also made structural changes for committees and sub- committees to better promote electrical safety within the association and the general public, improve our engagements and interaction with relevant government bodies, authorities and NGOs especially MITI, Malaysian Investment Development Authority (MIDA), Malaysia External Trade Development Corporation (MATRADE), Malaysia Productivity Corporation (MPC), JKR, Tenaga Nasional Berhad (TNB), Energy Commission (ST), Institute of Engineers, Malaysia (IEM), etc on the matter of policies, industry standards, and to facilitate domestic and export business opportunities. Currently, TEEAM actively leads the NEXUS MEPN Work Group 4, which provides a specific channel for the machinery and electrical industry to escalate industry concerns to the relevant authorities and ministers. We saw many new faces organising major events. At the three recently completed sports events, we saw golf players capitalising on the opportunity to play against Malaysian professional golfers in our professionally organised golf competition at the IOI Palm Garden Golf Course; our badminton players having the chance to learn a few tips from former Malaysian shuttlers during the competition; and a very warm participation from various members at the bowling competition. A recently completed seminar at the New World Hotel on ‘Public Discourse on Electrical Safety Awareness’ drew great attention from the public and the authorities as well. This is witnessed through the overwhelming response and attention in social media as well as media reports. We will continue to drive the organisation towards the objective of specially focussing on facilitating trades, promoting safety and standards and also to propagate awareness on environmental protection, especially in the area of E-hazardous waste . How do you think the construction industry fared overall in 2019 compared to the last five years? MBAM: The construction industry experienced a depressing growth rate in 2019, largely due to the deferment of infrastructure projects. The downwards trend would have been more drastic if not for prompt actions by the Prime Minister Mahathir to cushion the slowdown after MBAM highlighted five pressing matters to him at his office in January 2019. This led to the announcement on the increase of local contents from 30% to 40% and meetings with Bank Negara Malaysia and officers from Ministry of Finance. For the past five years, our construction GDP has been dropping – from 11.8% in 2014, 8.2% in 2015, 7.4% in 2016, 6.7% in 2017 and 4.2% in 2018, to the expected 1.7% in 2019. BMDAM: My view is that 2019 has been a challenging year, given initial uncertainties over major infrastructural projects the likes of ECRL, HSR, and Bandar Malaysia, just to name a few. However, with the easing of these uncertainties, we believe that it’s time for our members to look forward. What was obvious was that the past five years had challenges of their own. We can only advise our members to be prepared for change as we witness geo political issues shape business circumstances and thus, business strategies. A point to mention is that we have seen consolidation in this sector with mergers and acquisitions in industries like cement and steel. On the distributive side, we have also seen our member companies shaping up to be leaner amidst the erosion of margins due to weak demand and rising debts. We need to manage debt prudently. MMCOA: Based on project value over the last five years, the slowdown in construction sectors are clear. Our sector depends heavily on infrastructure, building, power generation, oil and gas, chemical, ports and other construction sectors. Most members of the association had grown according to demand and the expansion of the construction sector the last few years. The sudden slowdown of projects is affecting most of us, causing issues such as the idling of machines and a surplus of staff. REHDA Malaysia: As a whole, the construction industry is growing moderately this year. According to the Ministry of Finance’s Economic Outlook 2020 that was released early last month, the sector recorded a slight increase of 0.4% during the first half of 2019, and is expected to expand to 1.7% due to activities in the civil engineering segment, despite the subdued growth of the residential and commercial segments. For 2020, the construction sector is expected to grow further to 3.7% on account of acceleration and revival of mega projects, as well as building of affordable homes. The National Property Information Centre’s (NAPIC) Property Market Report for the First Half of 2019 reported that there were 32,810 overhang units in the country, which is a 1.5% increase in volume compared to H2 2018 (32,313 units), while the value only decreased by a marginal 0.5% to RM19.76 billion (H2 2018: RM19.86 billion). In view of this overhang, the number of new launches could be reduced compared to the last five years. TEEAM: Overall, we witnessed a decline in the construction industry between 2014 and 2018. In 2014, GDP of the construction industry grew by a Compound Annual Growth Rate (CAGR) of 9.6% to reach RM70.11 billion, representing 4.8% of Malaysia’s total GDP. In 2018, the GDP of the construction industry registered a Cover Feature30 MASTER BUILDERS JOURNAL #117 moderated growth of 5.3% compared to 8.9% in 2017. This was mainly due to higher levels of over-supply of residential and commercial properties. In 2019, according to the mid-term review of the 11 th Malaysia Plan, the government is targetting to provide electricity supply to an additional 41,160 houses to achieve 99% electricity coverage in rural areas by 2020 – an increase of 2.9% in electricity coverage from 96.1% in 2017. Overall, the growth of the construction industry in 2019 is expected to record a lower growth compared to 2018. Nevertheless, the residential property market is expected to recover in the coming years, in light of several initiatives announced under Budget 2020 to encourage demand for residential properties, such as the National Home Ownership Campaign and the creation of ‘Property Crowdfunding’ platforms as an alternative source of financing for first-time home buyers. Further, the residential property market is also expected to be supported by government initiatives to develop more affordable housing units. Tell us about specific areas in your trade/industry that have done well and what contributed to their success. MBAM: Overall, the industry is facing very challenging times for many years already. For those who have done well despite the challenging times, have obviously built their credibility and capability over the years, and has a strong brand presence. BMDAM: On trade, I can’t speak for all member companies. However, we have seen prudent companies adjusting to the micro economic front whilst taking into account the larger macro environment that impacted our industry. Consolidation, painful as it is, helped position these companies so that they stayed afloat during periods of continued slowdown. Also, we have seen companies adopt strategies to backward integrate into potential manufacturing outfits – essentially to diversify. Overall, the industry had been able to sustain so far, despite these challenges. I believe its adaptability and agility will separate the wheat from the chaff, if you like. We noted the government’s push for construction quality and safety, and the IBS showing a positive trend. This will augur well for local companies to comply. Essentially, it will make companies globally competitive. Our local companies need to transform. MMCOA: The advancement of safety standards and requirements within the construction sectors over the last few years influenced our players to invest into newer and advanced cranes. With these high standards of safety requirements, industry players were automatically required to update or upgrade themselves technology-wise, to comply with the standards. REHDA Malaysia: As there are various laws and regulations governing the property industry, we are in constant discussion with the government for the improvement of these Acts and policies. Currently, we are in various committees that were set up to review and improve these Acts. There are also initiatives that we are pursuing to enhance the industry, like having a centralised database for the housing industry. This will help various stakeholders in making informed decisions in future. In responding to the need for the provision of affordable housing, the volume has increased in the first half of 2019 compared to H1 2018. According to NAPIC’s Property Market Report for H1 2019, 83,311 residential units priced at RM500,000 and below were launched in H1 2019, compared to 78,895 units in H1 2018. New housing developments in Malaysia have also begun to truly embrace ‘green’ by incorporating green features in new home designs, such as rainwater harvesting, solar panels, as well as natural lighting and ventilation. Green elements play a major role in the design and master planning of modern townships, such as parks and gardens with green landscaping, and a focus on outdoor recreational facilities such as paths for cycling and jogging. REHDA, through GreenRE has been encouraging members to achieve green rating for their projects. TEEAM: Those members who are involved in providing specialised services, such as renewable energy and also data centres are seen to have had reasonable performance. The government policies on renewable energy also created some excitement in our E&E sector. The demand for big data and the digitalisation of the economy in our country has caused the information storage and data retrieval sectors to grow at an exponential rate. The distributive trade in our electrical and electronics industry had been doing reasonably well despite the challenging business environment. We believe our members’ years of track record, offering comprehensive product ranges, timely delivery as well as emerging young leaders are a few key success factors. In addition, we saw E&E manufacturers capitalising on the weak national currency as well as the trade war between the giants, to gain benefits. Which areas do you think requires attention/development to spur growth in your trade/industry? MBAM: Contractors are hungry for projects and there must be enough to go around for contractors. We also need to resolve once and for all, the shortage of workers in the construction industry and upskill our workers to be competitive in light of Industry 4.0. The industry will also be thankful if the Government can help Malaysian contractors and builders venture more prominently overseas. More importantly, the Government should not add more regulatory burden if possible, as this will increase the cost of doing business. BMDAM: Whilst we see disruptive technologies shape most industries, the building and construction industry has seen relatively less radical structural changes. The role of middlemen – distributors like us will continue to contribute with much relevance to the supply chain. We are indeed an essential Cover Feature31 MASTER BUILDERS JOURNAL #117 component to the industry – the inevitable link between manufacturers and customers, if I may say so. We provide value-added services and are better able to achieve efficient logistics in the supply chain. Like all industries, we need entrepreneurs to shape this industry. Education to prepare potential students in the distributive trade is one area. We are partnering with CIDB to see how we can exploit this industry gap. The next phase of growth will obviously be radically different. Only companies with the ability to foresee the next trend will ride through this new growth phase. I am of the view that we will eventually see the distributive trade managed by young professionals with competence and integrity. A point to mention is debt management. Perhaps at some point in time we will need to find a mechanism that will help companies better manage debt, perhaps through some form of market regulation. On our part, we have partnered with RAMCI as an effective debt management tool, and to ensure better financial health for our member companies. MMCOA: I believe that our government’s direction, initiatives and drive are important regardless of any industry or sector, to grow and be aligned in order to achieve our goals. As we are all aware, accidents are costly. Hence, educating and influencing organisations and their workforce to practice safety for a safe work environment is important to avoid unnecessary accidents. Providing the right training to the right group and creating awareness are important too in order to change mindset and improve skill set. REHDA Malaysia: Despite the attention given by the government towards the housing sector and the construction industry in general, there is still a lot of room for improvement in certain aspects that will help to further the industry’s growth. We have on numerous occasions expressed to various stakeholders and the government on the need to reduce the cost of doing business. There is a need to review various policies or abolish unnecessary charges so that the savings can be passed on to house buyers in the form of cheaper property prices. REHDA understands the need for the rakyat to have easy access to public transportation, particularly for those who are in the B40 and M40 groups. REHDA opines that affordable housing should be developed in transit-oriented developments (TODs) where public transport is easily accessible not only for connectivity purposes, but also to bring about economic spin- off and improved growth as well as productivity in these locations. This is especially significant in anticipation of the Greater Klang Valley conurbation to house about 10 million residents by 2020; thus, we are clearly in dire need of an efficient public transportation system. With easy access to transportation, new developments may no longer need to provide excessive car parks for each strata unit and the cost savings in the reduced number of car parks will reduce the construction cost per unit significantly. This would enable developers to reduce prices of houses accordingly. Developers need to work closely with the relevant players and adopt a holistic approach by giving priority to affordable housing in TOD areas. Another aspect of property development that we believe need to be paid more attention to is the concept of a retirement village and aged care. REHDA has volunteered to be included in the Private Aged Healthcare Facilities and Services Act (Act 802) Regulations drafting committee. Earlier this year, Universiti Malaya’s Social Wellbeing Research Centre reported that the number of people aged 60 and above is expected to reach 3.5 million next year, and is expected to significantly increase to 6.3 million by 2040, or 20% of the population. As such, there is a need for a viable and systematic implementation of retirement villages or aged care centres, and we believe that developers and related industry players alike need to play an active role for it to be a success. TEEAM: Talent to spur research and development. This is the core of producing marketable and cutting-edge products to consumers. However, many companies are reluctant to invest in R&D due to lack of talent as well as unclear ROI. In line with this, we also believe that there is a need for product testing facilities to ensure electrical products manufactured are of the best quality and safety. We hope to see the government’s strong support in the procurement policy to support the local industry. TEEAM has highlighted on many occasions, the importance of the Malaysian Brand programme that could raise Malaysian product quality and also increase export. We also hope that the government would place a high priority in ensuring that we have a comprehensive ecosystem, especially in the areas of tax and financing. The E&E industry (which consists mostly of SMEs) had always been considered an undesirable segment, as bankers preferred to go after the more sizeable corporate business segment. Also, electrical SMEs, just like other SMEs, were viewed as a risky segment. There is a need to accelerate industry adoption of Industry 4.0-related technologies, thereby increasing the contribution of the E&E manufacturing sector to the national economy. Why do you think those areas are important and how can industry players, related trade or governing bodies and other stakeholders contribute/nurture its development? MBAM: Creating demand for projects is critical to ensure enough projects for all existing active players. Manpower is also an area that requires attention, especially with regards to shortage of workers as well as keeping recruitment cost and time down. Stability of building material prices is also another key factor to ensure growth opportunities. More assistance should be given to SME-level industry players so that they can continue to not only survive but grow further. Rising cost is also a great Cover Feature32 MASTER BUILDERS JOURNAL #117 concern and we must be able to do more with less in terms of the cost of doing business. BMDAM: These will ensure that as stakeholders ourselves, our members supply good, high-quality building materials to the industry. We envision to educate member companies on compliance to local regulations governed by our local bodies like SIRIM, CIDB, etc. Obviously, we cannot achieve this on our own. The industry has to have the will to transform. And this would apply to manufacturers, contractors, and stakeholders to ensure that we are determined to build better, if I may say so. We had dialogues with MISIF, dialogues with MBAM. In fact, we recently worked with CIDB on Act 520 and the PPS seminar to ensure that our member companies ensure compliance by carrying products that are registered. We also participated in a white paper on iron and steel, organised by MITI. We support ‘buy Malaysian’. However, we are also of the general view that protectionism stifles a local company’s capability to compete in a flat world. MMCOA: With the advanced technology and better education system today, relevant authorities should look into ways of developing our youths and encourage the adoption of right practices, like many developed countries. Relevant authorities and agents should look into ways to influence, guide and attract youths into our industry. The role of our industry tradesmen, such as crane operators, lifting supervisors, signalmen and riggers are as important as aircraft pilots or surgeons because it involves the human life. Learn the right practice and practice the right way! REHDA Malaysia: We believe all stakeholders have a role in reducing the cost of doing business, improving efficiency. And improving the income of the rakyat to uplift their living standards and quality of lives. The provision of retirement homes and aged care facilities will reduce the burden on the government and it is the social responsibility of all stakeholders to ensure the aged population are well taken care of. TEEAM: If innovative funding is available in this area, we might see companies more willing to invest part of their earnings in research and development, as the risk would be reduced. With better products that cater to the needs of consumers, Malaysian manufacturing in E&E can improve and hence, contribute to the overall GDP growth. The prerequisite to export is to have ISO certification. We hope the government would help the SMIs & SMEs in this area. At the same time, a policy to nurture local talents to incubate local experts and establish a local centre of excellence must be promoted. We hope that MITI will support our call to “buy made-in-Malaysia products” and influence all government agencies and GLC companies to buy local-made goods in their procurements. TEEAM has also proposed promoting Malaysian brands in-line with this, to uplift the quality and reputation of Malaysian brands. We have also outlined that these SMIs and SMEs should be given help with basic ISO and international certification, as this is the pre-requisite for export. We also urge MITI to not only concentrate on the promoted industries but across all industries, especially industries like cable, switchboard, busduct, and others. To assist SMEs so they have better cash flow, we appeal to the government to consider waiving the stamp duty on additional trade lines. Currently, the stamp duty plus legal fees total about 1% for additional trade lines and this poses a great burden on the SMEs. In addition, we would like to appeal to make applications for SME loan, business trade line and other facilities to be more flexible. Another reason the SMEs need more funds is because of the long credit culture in Malaysia. We would like to urge the government to look into the possibility of instituting shorter payment terms and also convert the retention sum in the form of a bank guarantee. The industry needs easier and hassle-free yet proper access to funding of the transformation of Malaysia’s E&E industrial capabilities by supporting the right ecosystem for Industry 4.0, to make Malaysia a preferred high- technology manufacturing location for the E&E industry. The ministry should work hand-in-hand with the association and our E&E industry to support the adoption of digital transformation across the three main sectors in the E&E industry, i.e. engineering construction and services, trading and manufacturing, to develop a successful digital economy for the nation. TEEAM urges the government to also look into speeding up digitalisation by enabling the companies, which are already showing active initiatives, regardless of whether they are listed entities or not. What’s on your wish list for the next year and in the next five years with regards to your Association and the construction industry? MBAM: The main wish is for a targetted growth of 3.7% for the construction industry, to be achieved in 2020 with several mega projects that were previously on hold could now be continued. MBAM appeals to the government to expedite the tenders and implementation of the projects for the multiplier effects to ignite the country economy upwards. The government’s announcement to reduce foreign workers to 15% is alarming without a corresponding increase in local labour in the market as this will affect the existing business operations. MBAM hopes that the government will conduct an in-depth study on workforce requirements before capping foreign workers at 15% in year 2020. MBAM welcomed the news of budget allocation of RM5.9 billion for TVET programmes as we feel that it is an effective step to resolve the local manpower shortage and the dependency on foreign workers in the long term. We also hope that any changes to Cover Feature33 MASTER BUILDERS JOURNAL #117 Government policies will go through proper consultation with industry stakeholders to keep itself abreast with the industry needs, including TVET programmes, as changes will impact cost and timeliness of delivery of projects. BMDAM: As President of the day, BMDAM must be a voice in the industry. We have to be relevant for our views to be heard by the industry and goverment. In this respect, we expect representation in government-led initiatives that impact the building and construction industry. We need to keep abreast with technology and move towards being data-informed with regards to project information. We need to go regional, pursue partnerships with related distributor associations in the region and enlarge our role. In addition, we need to work with the government to shape policies that is beneficial to the industry which, by extension, contribute to nation-building. More importantly, we have an abled and a committed team that is more than willing to work towards transforming BMDAM into an effective association. MMCOA: We hope to work closely with related associations, industry players and relevant government agencies for improvements regardless of regulations, systems or certain policies, in order to be more competitive in or out of the country. REHDA Malaysia: We have several items on our wish list: Facilitative Loan Acquisitions Home buyers’ ability to secure financing have been negatively impacted by the various cooling measures and financing guidelines introduced since 2014. These guideline and measures are contrary to the efforts to promote homeownership whereas the Government should instead provide more incentives to help first time house buyers. Feedback from the market continues to reveal that while there is strong interest in new launches,with many cases of end-financing rejection especially first time house buyers has led to cancellation of purchase. Proposals by REHDA: (a) Financing to eligible house buyers and innovative financing packages should be made available to help buyers, especially first-time house buyers, who should be accorded more flexible criteria. (b) Banks should introduce more new house buyer-friendly schemes, especially for first-time house buyers for houses priced up to RM500,000. (c) Criteria for loan approval should be more accommodative with higher margin of financing (e.g. loan up to 100%), especially for young graduates and professionals. (d) Flexible/accelerated tiered payments: Longer loan tenure, pay less now and pay more later when salary has increased, not merely focusing on net income at the current time. (e) Lower yearly financing rate (e.g. 3.5% per year) with a maximum tenure of 40 years or up to 70 years of the applicants’ age, whichever is shorter. (f) Accessibility to credit: reduce/restrict number of personal loan/credit card approvals; cut down loans for depreciating assets. At the same time, one of the biggest barriers to house purchase is the payment of deposits. Whilst first-time house buyers, especially the younger population, may be able to service the monthly repayment instalments, they would be hard-pressed to come up with the initial 10% down-payment upon signing the SPA. It proposed: Employees Provident Fund (EPF) Although EPF contributors are allowed to access the funds in their Account II to cover the 10% down-payment, buyers are still required to use their own money first for the down-payment. REHDA suggests that the disbursement of the 10% down-payment from EPF to be channelled directly from EPF to the developer concerned without buyers having to pay the amount from their own savings or other sources. The percentage of contribution to be credited to Account II is proposed to be increased from 30% to 50%. Reducing the Cost of Doing Business Developers have been experiencing significant increase in the cost of doing business, with higher construction costs due to higher labour costs and escalating material prices, increased professional fees like the recent hike in surveyor fees, high premiums for land conversions and development charges, lesser buildable areas due to various planning requirements where we have to surrender quite a huge portion of land. Our industry involves cross subsidy for the affordable segment and bumiputra quota, which will indirectly inflate the open market product prices. Hence, REHDA has been constantly advocating for the revision or elimination of some of these repetitive/ unnecessary charges/requirements. New policies may be required to overcome some of these challenges and will ultimately benefit all stakeholders and especially home buyers with better affordability. TEEAM: Within the next year: (a) SMEs and SMIs will be motivated to elevate their profiles and also innovate to be competitive locally and subsequently be ready for export. (b) For larger GLCs and LLCs that invest overseas to bring Malaysian companies with them when they are working on their projects in foreign countries. This would also help promote Malaysian brands. (c) Product electrical safety and concerns, especially on the End of Life will continue to be pushed as a policy by the government. Within the next 5 years: (a) That the government take stern action on sub-standard product producers. (b) Industry self-regulation with strong government enforcement support. (c) An active role to be played in the world on emerging concerns on the technological changes, climate change and also humanity. (d) The industry to have incorporated Industry 4.0 or at least partially, to take the industry to greater heights. Cover Feature34 MASTER BUILDERS JOURNAL #117 Industry & Practices IP 20 SEPTEMBER 2019 Mainland China-Macao Joint Investment Promotion Mission to Malaysia Universiti Tun Hussein Onn Malaysia (UTHM) and MBAM Signs Memorandum of Understanding The event was held at Intercontinental Hotel Kuala Lumpur and attended by some 150 attendees comprising of Malaysians and visiting delegations from the People’s Republic of China and Macao SAR. MBAM President, Foo Chek Lee delivered the welcome remarks followed by Chairman of China International Contractors Association (CHINCA), Fang QiuChen and First Secretary, Economic and MBAM and UTHM has established a mutually beneficial collaboration for the placement of internship students on two university degree programmes, namely Bachelor of Civil Engineering Technology (Environmental) with Honours and Bachelor of Engineering Technology in Rail Transportation with Honours. UTHM appointed MBAM Council Member cum Deputy Chairman of Education & Special Institutions Committee, Datuk Astaman Abdul Aziz as the Industrial Advisory Panel Stakeholder for Faculty of Engineering Technology (FTK) to provide input and advice on current market requirements, provide insights to the programme curriculum, and as a conduit for faculty relations with the industry. YB Tuan Baru Bian delivering the opening address and later officiated the event Commercial Counsellor’s Office of the Embassy of the People’s Republic of China in Malaysia, Li YaBin. The Guest of Honour, YB Tuan Baru Bian then delivered the opening address and officiated the event. There were four speakers from Malaysia who presented during the project investment opportunity briefing. The topics were on construction industry prospects, various projects that are expected to go on-stream and investment opportunities, including those of Penang Transport Master Plan and Greater KL. Two speakers from the visiting delegation were on hand to deliver their presentations, namely Chairman of CRSC International Co. Ltd, Wang MingZhi and Vice President of Macao Construction Association, De Assis Emilio Vicente. A business 22 SEPTEMBER 2019 JOHOR UTHM Vice Chancellor Prof. Datuk Ts Dr Wahid Razzaly (second from right) with President Foo (second from left), Tan Sri Sufri (far left) and Datuk Astaman (far right) The signing of the Memorandum of Understanding (MoU) between UTHM and MBAM was held at Dewan Sultan Ibrahim, Universiti Tun Hussein Onn (UTHM), Johor. The signing ceremony was held in conjunction with the International Conference and Exposition on Inventions by Institutions of Higher Learning (PECIPTA 2019) Gala Dinner and was graced by Member of the Council of the Government of Johor (AMMK) cum Chairman of the Education, Human Resources, Science and Technology, Government of Johor, YB Tuan Haji Aminolhuda Haji Hassan. MBAM President, Foo Chek Lee; Deputy President, Tan Sri Sufri Hj Mhd Zin; Council Member, Datuk Astaman Abd Aziz; Executive Director, Loh Mei Ling, Manager, Mohd Farhan Mohammad Din and Admin Officer, Nur Fatin Shahira Ramlee attended the gala dinner. matching session was held after the briefing. The welcome remarks for the business matching session was delivered by Executive Director of the Macao Trade and Investment Promotion Institute, U U Sang. Welcome remarks were also delivered by Director-General of the Department of Taiwan, Hong Kong and Macao Affairs, Ministry of Commerce, Sung Tong and Chief of Cabinet, Cabinet of the Secretary for Economy and Finance, Macao SAR Government, Teng Nga Kan during lunch. The day before the event, Construction Industry Development Board Malaysia hosted a welcome dinner for the visiting delegation at the Ritz-Carlton Hotel Kuala Lumpur. The pre-dinner networking session was sponsored by YTL Group.35 MASTER BUILDERS JOURNAL #117 Industry & Practices IP 12 NOVEMBER 2019 Briefing by the Sustainable Energy Development Authority Malaysia Organised by MAJECA (Malaysia-Japan Economic Association), Senior Director of Strategic Planning, Sustainable Energy Development Authority (SEDA), Azah Ahmad gave an overview of the renewable energy/solar PV programmes in Malaysia and the way forward. The briefing is to educate participants about SEDA’s organisation, policies, objectives and the programmes SEDA is promoting to develop sustainable energy measures as part of the implementation of the national policy for renewable energy. At the briefing were MBAM Committee Member (Environment & Green Technology), Gan Wah Lien and Assistant General Manager, Lee Siew Mei. In brief, SEDA Malaysia is a statutory body under the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC), which was formed on 1 September 2011 under the Sustainable Energy Development Authority (SEDA) Act 2011 (Act 726) with the aim to administer and manage the implementation of the feed-in tariff mechanism in Malaysia. Azah also mentioned several functions of SEDA and the government’s targets on renewing energy (RE) as of 2019 that included increased renewable energy through renewable resources from the current 4% to 20% by 2025 and to focus on green technology development and RE. The RE/PV (solar photo voltaic) programmes under SEDA includes Feed-in Tariff (FiT), Net Energy Metering (NEM), Self Consumption (SelCo) and Large Scale Solar (LSS). Effective from 1 January 2019, the NEM scheme was improved. NEM allows consumers to self-consume first solar PV energy, while exports will be offset on a one-on-one basis. The total quota offered to all consumers is 500MW until year 2020. The NEM is one of the Solar Photo Voltaic (PV) initiatives to encourage entities of four categories, i.e. residential, commercial, industrial and agriculture, to partake in Peninsula Malaysia’s Renewal Energy uptake. Entities who hold a Feed-In Tariff (FIT) Approval Certificate issued by SEDA Malaysia will be eligible to sell renewable energy at the FIT rate. Meanwhile, the SelCo allow consumers to self-consume 100% from solar PV energy, while reducing energy import from TNB/ SESB. As a result, it will reduce overall electricity bill (Less energy import from TNB/SESB). Other incentives offered by the Government include: GTFS 2.0 (Green Tech Financing Scheme) • The Government will bear up to 2% of the total in- terest rate or the profit charged by private financial institutions, limited to the first seven years only. • Financing size of up to RM100mil (US24mil) per company, with a financing tenure of up to 15 years. • Applicable until 2020 or up to RM2bil upon approv- al of funding, whichever comes first. More information on GTFS 2.0 can be obtained from www.gtfs.my Green Investment Tax Allowance & Green Income Tax Exemption (GITA/GITE) • GITA of 100% of qualifying capex until YA 2020. It can be utilised to offset up to 70% of statutory income. It is applicable for companies only. • GITE of 100% of statutory income of certified com- panies providing ‘services’ in the green sector until year 2020. • New: Under Budget 2020, both GITA and GITE is now extended until 2023; however, GITE exemption is granted up to 70% of statutory income. For more information regarding GITA and GITE incentives, please go to www.seda.gov.my/policies/ other-related-fiscal-incentives/36 MASTER BUILDERS JOURNAL #117 Industry & Practices IP 4 OCTOBER 2019 Malaysian Construction Industry Excellence Awards (MCIEA) 2019 The MCIEA, now in its 19 th year, was held at W Hotel Kuala Lumpur. The prestigious award is a recognition from the Construction Industry Development Board Malaysia (CIDB) on the achievements of industry players who have demonstrated the elements of quality, safety and health, productivity and sustainability in their operations. The judging criteria was revised to reflect a more holistic approach to encourage industry players to continue raising the standard of Malaysian construction, in line with the ultimate goal of the Construction Industry Transformation Programme. The awards ceremony was graced by the Minister of Works, YB Tuan Minister of Works, Tuan Haji Mohd Annuar Mohd Tahir and Chairman of CIDB, Tan Sri Dr Ir Ahmad Tajuddin Ali. The night saw a majority of MBAM Council Members, including President Foo Chek Lee, Deputy President Tan Sri Sufri Mohd Zin and Immediate Past President Datuk Matthew Tee present to witness the award presentations. This year, MBAM members bagged several top awards. Sunway Construction Sdn Bhd took home the coveted ‘Contractor of the Year Award’, in recognition of their continuous outstanding achievements within the industry. Construction industry captains honoured for their leadership and exemplary contributions were Dato’ Hashimah Hashim, Executive Director of KLCC Projeks Sdn. Bhd., who was awarded the ‘Construction Leading Lady Award’ and Vice President, Dennis Tan Soo Huang who is the Managing Director of OCNED Water Technology Sdn Bhd was awarded the ‘CEO of the Year Award’. The highest accolade of the evening, the ‘Prominent Player Award’, was given to Dato’ Sri Ir Dr Judin Abdul Karim, Executive Vice President of Malaysian Resources Corporation Berhad (MRCB). Notable projects that received MCIEA accolades included the Equatorial Plaza by IJM Construction Sdn Bhd, which won the ‘Best Project Award – Building (Major Category)’, and The Klang Valley Mass Rapid Transit Project: Sungai Buloh – Kajang Line by Tran Resources Corporation Sdn Bhd, which won the ‘Best Project Award – Infrastructure (Major Category)’. For the medium project category, MBAM member Technofit Sdn Bhd bagged the ‘Best Project Award – Infrastructure’ for their Mechanical Works Package 2 for Fast Track 3A, Manjung 5 Power Plant. Our heartiest congratulations to all winners of the MCIEA 2019! Several past and present council members at the Awards 17 SEPTEMBER 2019 Sharing Session to Introduce Employment Insurance Scheme (EIS) Job Portal and Additional Services The sharing session to introduce the EIS Job Portal and its additional services was hosted by SOCSO at Wisma PERKESO, Kuala Lumpur. Employment Enhancement Officer, Dianhazri Rafie introduced the Public Employment Services (PES). Among the services provided are job search and matching service, employability programmes, individual placement support and disability employment support. He emphasised that the EIS helps those who have lost their jobs in the Re- Employment Placement Programme by providing financial assistance for a maximum period of six months. A presentation by Employment Enhancement Officer, Mohd Sazuan Abdul Hadi focussed on the newly established SOCSO Job Portal and the advantages of using the portal. Mohd Sazuan further explained the objective, function and methods of EIS. The session was attended by MBAM Vice President cum Chairman of HR Committee, Dennis Tan and Admin Officer, Sung Suet Yee. Dennis during the sharing session37 MASTER BUILDERS JOURNAL #117 Industry & Practices IP 18 NOVEMBER 2019 Transportation Investment Forum: Public-Private Partnership (PPP) Infrastructure Projects in Indonesia President Foo Chek Lee and Council Member Datuk Astaman Abdul Aziz attended the Transportation Investment Forum: Public Private Partnership (PPP) Infrastructure Projects in Indonesia, hosted by the Embassy of the Republic of Indonesia in Kuala Lumpur at the Sheraton Imperial Hotel Kuala Lumpur. The event aimed to promote investment infrastructure in Indonesia, especially the transportation sector, to prospective Malaysian investors. The Ambassador of Indonesia in Malaysia, H.E. Rusdi Kirana graced the event and encouraged Malaysian investors to invest in Indonesian capital. In H.E’s opening remarks, it was highlighted that one of the main pillars to achieve Vision of Indonesia 2045 is the development of integrated and inclusive infrastructure to create equitable distribution of benefits from the development and is encouraging public-private partnership. To achieve the development target and to provide infrastructure in Indonesia, the Indonesian government is entering into public-private partnership for alternative financing. Four main speakers were invited to share the various topics related to the vast infrastructure opportunities From right to left: President Foo, H.E. Rusdi Kirana, Ahmad Farrin and Datuk Astaman in Indonesia, namely the Indonesia Investment Coordinating Board (BKPM), Ministry of National Development Planning, Ministry of Transportation and Indonesia Infrastructure Guarantee Fund. Each presented the undermentioned papers respectively, moderated by the Director of Indonesian Investment Promotion Centre (IIPC), Robby Kurniawan. • Climate Investment Procedure in Indonesia (BKPM) • Regulation and Development of PPPs in Indonesia (BAPPENAS) • PPPs Projects in Transportation Sector (KEMENHUB) • Government Guarantees on Infrastructure Development in Indonesia (PII) Various projects were highlighted during the presentation, including the construction of the Trans Sumatera toll road from Aceh to Bandar Lampung as well as various commercial seaports and airport developments. The session was followed by a consultation clinic and networking lunch. Copies of the speakers’ presentations are available at MBAM Secretariat. The new Kuala Lumpur City Hall (DBKL) guidelines were officially launched by Kuala Lumpur mayor Datuk Nor Hisham Ahmad Dahlan at its headquarters in Jalan Raja Laut, Kuala Lumpur. Developers for newly approved high-rise developments must adhere to the guidelines on providing temporary hostel accommodation to construction workers on-site specifically for construction sites which are limited in site size. Implementation of guidelines on current developments will be in stages. The guidelines formulated by the Innovative and Creative Group (KIK), under DBKL’s Building Control Unit included separate areas for lavatory, kitchen, bedroom and dining. This will address the issue of cleanliness in the area and emphasised on safety in construction areas. Council Member cum Deputy Chairman of HR Committee, Datuk Astaman Abdul Aziz and Manager, Mohd Farhan were present at the launch. Launching Ceremony: Guidelines on Temporary Hostels at High Rise Buildings 25 OCTOBER 2019 Datuk Astaman (Right) during the launch Next >