< Previous38 MASTER BUILDERS JOURNAL #117 Industry & Practices IP 29 TO 31 OCTOBER 2019 MBAM OneBuild 2019 Exhibition MBAM OneBuild is the only exhibition in Malaysia that focusses exclusively on the construction and infrastructure industry. The exhibition, held at the Kuala Lumpur Convention Centre provides a trade platform for local and international industry players to explore and gain business opportunities. This event also enables industry players to gain the latest market information and technology as well as learn the latest skills and knowledge that benefit construction management performance. The exhibition was endorsed by Malaysia External Trade Development Corporation (MATRADE) for its international trade fair status, and fully supported by the Construction Industry Development Board Malaysia (CIDB) and Malaysian Investment Development Authority (MIDA), as well as many other local and international construction-related organisations and associations. The opening ceremony was officiated by Chairman of CIDB Malaysia, Tan Sri Dr Ir Ahmad Tajuddin Ali who represented the Minister of Works, YB Tuan Baru Bian. MBAM OneBuild marked its third successful edition this year and managed to attract international participations from countries that included Singapore, People’s Republic of China, Cambodia and Germany. The exhibition programmes included free-admission industrial sharing sessions on Building Information Modelling (BIM) and Industrialised Building System (IBS) conducted by CIDB E-Construct Services Sdn Bhd and MIDA. Besides that, a ‘Concrete Clinic’ was set up during the three-day event to provide free consultancy on concrete- related issues by experts from American Concrete Institute Malaysia Chapter (ACI-Malaysia) as well as live demonstrations on drone and concrete technology. Other interesting activities included networking sessions, a seminar on ‘Concrete Construction towards Digitalisation’ by ACI- Malaysia, and various industrial sharing sessions by industry players. With the support from Malaysian government bodies as well as local and international associations, MBAM OneBuild successfully attracted more than 3800 construction industry players from both the government and private sectors. The majority of attendees were contractors followed by property developers, importers and exporters of building materials, project managers and government officials. Ribbon-cutting to officiate the exhibition39 MASTER BUILDERS JOURNAL #117 Industry & Practices IP An overview of the exhibition hall A networking session in the exhibition area Tan Sri Ahmad Tajuddin walking around the exhibition hallAn exhibitor explaining his products Lucky draw in progress at an exhibitor’s booth40 MASTER BUILDERS JOURNAL #117 29-31 OCTOBER 2019 MBAM Building & Construction Conference (BCC) 2019 The third since the inaugural edition in 2017, the conference was organised in conjunction with the MBAM OneBuild 2019 Exhibition & Conference, which was held from 29 to 31 October 2019 at the Kuala Lumpur Convention Centre. Officiated by the Chairman of Construction Industry Development Board Malaysia, Tan Sri Dr Ir Ahmad Tajuddin Ali on behalf of the Minister of Works, YB Tuan Baru Bian, the conference was attended by more than 230 participants. A special guest, President of the International Federation of Asian and Western Pacific Contractors’ Associations, Mohamed Ali Janah was invited to speak about the 45 th IFAWPCA Convention to be held in Maldives on 29 Jun to 3 July 2020 at BCC. Conference speakers shared their knowledge and experiences in their journey with regards to embracing new technologies. CEO of Ascension Technology Sdn Bhd, Dr Mohd Harris Ismail said adopting Building Information Modelling (BIM) is to increase productivity, reduce wastage, and to improve efficiency, coordination and design. He differentiated BIM ISO19650 with BIM level 2 and how to integrate BIM with ISO. Participants also had a glimpse of FINALCAD’s clients’ testimonies and experiences in adopting the technology during the construction stage when its Asia Pacific Regional Director, Boon Kiat Heng spoke about integrating and digitalising the built environment value chain. To further elaborate on the use of digital technologies at construction sites, Managing Director and Head of Country for Lendlease Malaysia, Stuart Mendel shared his experience in adopting technology during the entire construction/procurement stage. He considered data as an asset and over time, additional technologies are developed to improve customer experiences by splitting the data collected. When Director of VDC Integrated Tech Sdn Bhd, Ajith Menon spoke on ‘Technology Ready to Digitalise Construction Industry: Building a Sustainable Digital World: Policy, Economy, Challenges and the Revolution in the Construction Industry’, he told participants that the purpose of digitalisation in the construction industry is to improve profitability and quality/satisfaction by reducing the risk. During the afternoon session, Chief Executive and Founder of Cinnotek International Group, Ir Dr Julian Lee spoke on ‘Holistic Approaches to Increase Competitiveness Through Digitalisation for Construction Industry’ in his welcome remarks. The Chairman of the Hong Kong Institute of Directors, Professor Christopher To who is also a Barrister and International Arbitrator spoke about policy, economy, challenges and the revolution in the construction industry in building a sustainable digital world. Head of Project Information Management at Gamuda, Ir Ronan Collin gave an insight into Gamuda’s experiences of adopting technology such as big data and analytics in their projects that led to an increase in productivity and safety, thereby reducing risks at site, when he shared about digital transformation of Malaysian construction in Industry 4.0. The experience of digitalisation in construction using BIM Modelling for projects was also shared by Executive Director of Hip Hing Construction, Ir Derek So in ‘Best Practices of Transforming into Digital Construction in Hong Kong from a Contractor’s Perspective’. Suggestions were furnished on how IoT would facilitate the construction industry when CEO of E-Business Solutions Limited, Johnson Yim, spoke on ‘Enhancing Competitiveness and Performance in Construction Industry with Leveraging IoT Technologies Effectively’. There was also a panel discussion with the theme ‘Embracing Digitalisation to Ameliorate Competitiveness in Construction Industry Focusing on Time, Financial & Sustainability’, moderated by Ir Dr Julian. Organising Chairman of BCC 2019, Steven Shee, in his closing remarks, thanked all the speakers for their interesting presentations and summarised key takeaways for the participants. BCC 2019 was organised in collaboration with Cinnotek International Group, and supported by CIDB. MBAM would like to express its appreciation to all sponsors and speakers for the conference and Building Industry Presidents’ Council and MBAM affiliate members for endorsing the conference. Launching of MEWP training programme Industry & Practices IP42 MASTER BUILDERS JOURNAL #117 Industry & Practices IP 1 OCTOBER 2019 official opening held at MATIC, Kuala Lumpur was attended by MBAM Vice President Dennis Tan. He also attended the 31 st Annual Dinner & Awards Night 2019 of Malaysia Water Association held at the same venue. Malaysia International Water Convention 2019’s Inaugural AIAC-Bar Council-CIArb Joint Conference 2019 – Developing A Career in International Arbitration 4 OCTOBER 2019 held at AIAC was attended by Council Member cum Deputy Chairman of Contracts & Practices, Ir Anthony Teoh and General Manager Lenny Lim. Malaysia-China Trade Expo 2019 7 NOVEMBER 2019 themed ‘From Traditional to Intelligent’, featuring a range of high-tech products in laser technology, smart home appliances and 5G services was held at Putra World Trade Centre and attended by MBAM Vice President Dennis Tan and General Manager Lenny Lim. Malaysia Sustainable Development Goals (SDG) Summit 2019 7 NOVEMBER 2019 was attended by MBAM Vice President Dennis Tan and Senior PR Executive Chew Chee Yan. Fire Safety for Building & Infrastructure in Malaysia 17 OCTOBER 2019 for The Japanese Chamber of Trade & Industry (JACTIM) members by NIOSH and DOSH was held at its premises. Chairman of Safety & Health cum Council Member Michael Yap introduced MBAM to JACTIM members. InBrief44 MASTER BUILDERS JOURNAL #117 PEMUDAH TWGEW Meeting Visits & Dialogues VD 3 SEPTEMBER 2019 Meeting No. 1/2019 A meeting with The Technical Working Group on Employing Workers (TWGEW), one of the technical groups of The Special Task Force to Facilitate Business (PEMUDAH), was held at the Ministry of Human Resources (MOHR) at Putrajaya. It was chaired by Deputy Secretary General President Foo at the TWGEW meeting 26 SEPTEMBER 2019 Building Industry Presidents’ Council Meeting The Building Industry Presidents’ Council (BIPC) meeting held at the Association of Consulting Engineers Malaysia (ACEM) office discussed various issues, one of which was regarding the difficulties of employing foreign workers due to technical compliance with labour law. The shortage of foreign workers was compounded by the termination of rehiring programmes, though companies can still apply for the Replacement Programme. Foreigners who committed any offence under the Immigration Act 1959/63 and who wish to return home voluntarily can participate in the Back For Good programme that started on 1 August 2019. However, a compound payment of RM700 will be charged and this programme will expire on 31 December 2019. Participants were informed that the employment of Bangladeshi workers will be re-opened. However, it has yet to be announced by the government. The Multi-tier Levy System will be implemented by 1 January 2021. MBAM informed that it is represented in several of the TVET Empowerment Committee – Governance Cluster, Quality Cluster, Industry Cluster, Funding Cluster and Branding Cluster. BIPC explored the idea of having a single TVET governance body. President Foo briefed on TVET Empowerment Strategies, such widening the scope and use of industry standards in the teaching methodology, and developing a policy and guidelines on the TVET Certification such as Code of Practice for the TVET Programme Accreditation (COPTPA). MBAM President, Foo Chek Lee attended the meeting with Executive Director, Loh Mei Ling. Datuk Astaman (left) in a discussion with Mazlan 10 OCTOBER 2019 Meeting No. 2/2019 The meeting was chaired by Datuk Kua Abun, Deputy Secretary General (Policy & International) of Ministry of Human Resources (MOHR) with a discussion on the survey findings received from industry. During the discussion, an idea on legalising the illegals was mooted. In view of this, an in-depth study is required for a proposal on how to legalise the illegals before submitting a proposal to the MOHR for consideration. MBAM Deputy Chairman of HR Committee Datuk Astaman Abdul Aziz and HR Committee Member Mazlan Haron represented MBAM in the meeting with Manager, Mohd Farhan in attendance. Datuk Kua Abun and attended by President Foo Chek Lee and Manager, Mohd Farhan. As the foreign workers issue had been on-going for years, PEMUDAH had tasked TWGEW to look into the foreign worker management system in Malaysia. The scope was widened to cover the employment of workers in general. TWGEW is to propose a process to move the issue forward. 45 MASTER BUILDERS JOURNAL #117 8 SEPTEMBER 2019 PIBG: The Way Forward Talk Hosted by PIBG of Malaysia Vocational College & School at Hotel Royal Kuala Lumpur Hosted by the Institute of Labour Market Information and Analysis (ILMIA), the HR Convention and Focus Group Discussion (FGD) at Shaftsbury Asteria Cyberjaya was attended by Council Member cum Deputy Chairman of HR Committee, Datuk Astaman Abdul Aziz and Manager, Mohd Farhan Mohammad Din. The Secretary General of the Ministry of Human Resources, Dato’ Amir Omar, presented a paper on ‘Labour Market Dynamics & Future of Work’, which covered the national policy in empowering human capital, the labour market on the outlook and prospects, challenges of future work, the impact of Industrial Revolution 4.0, and Future of Work on ‘A Human Centered Agenda’. Visits & Dialogues VD The Parents Teachers’ Association (PIBG - abbreviation in Bahasa Malaysia) of the Malaysian vocational colleges and schools hosted the talk at Hotel Royal Bukit Bintang. MBAM Council Member cum Deputy Chairman of Human Resources Committee, Datuk Astaman Abdul Aziz was invited to present a paper to the PIBG – The Way Forward. Attended by the Yang Dipertuas of the PIBG for Malaysian Vocational Colleges and Schools, the objective of the talk was to obtain views from the industry with regards to the graduates, lecturers, equipment and the institutions of the vocational colleges and schools, as well as the needs of industrial engagement in producing sufficient and right talents for the industry. Datuk Astaman presenting his paper 10 SEPTEMBER 2019 HR Convention and Focus Group Discussion Hosted by ILMIA Luqman Ahmad from the Ministry of Economic Affairs’ paper on the Labour Market Strategic Twelfth Malaysia Plan covered a mid-term review of the 11 th Malaysia Plan that focussed on Pillar 4: Empowering Human Capital. He also cited issues and challenges faced in the labour market, TVET, lifelong learning and education. He mentioned that the 12 th Malaysia Plan - 2021-2025: Development Dimensions will emphasise three main criteria, which will be on economic empowerment, environment enhancement, and social re-engineering. The session continued with a focus group discussion. Datuk Astaman was part of the TVET group while Mohd Farhan was in the Social Safety Net/Security Protection group. Datuk Astaman with several participants President Foo at the meeting 1 OCTOBER 2019 Technical Working Group (TWG)/IAPG Services Sector (Construction) Meeting No. 2/2019 Chaired by Secretary General, Ministry of Works (MOW), Dato’ Dr. Syed Omar Sharifuddin Syed Ikhsan, the ministry presented a strategy paper for the construction industry that covered five thrusts, namely; Quality, Safety & Professionalism, Environmental Sustainability, Productivity, Internationalisation and Facility Management. This was following the feedback received from each thrust where six main issues and challenges were identified at a previous workshop. During the meeting, it was agreed that the TWG/IAPG secretariat will forward a copy of the feedback to all members for their review and comments, which will 46 MASTER BUILDERS JOURNAL #117 9 NOVEMBER 2019 MBAM Dialogue with United Malaysia Contractors Association Visits & Dialogues VD United Malaysia Contractors Association (UMCA) initiated a dialogue with MBAM to discuss issues affecting its members. Other than President Foo Chek Lee, MBAM was also represented by MBAM Secretary-General, Eric Yong; MBAM Human Resources Committee Member, Mazlan Haron along with General Manager, Lenny Lim and Senior Assistant Manager, Leon Leong from MBAM secretariat. In his speech, President Foo shared that the construction industry is facing many challenges and issues, such as shortage of labour, escalation of construction costs, low productivity and new rules and regulations introduced by the government. MBAM strongly believe that as contractors, we need to change our mindset, to review business strategies so that they are in-line with economic needs, be constantly equipped with new knowledge and be abreast with the latest construction technologies in facing challenges. Some key issues discussed during the dialogue included difficulties in employing foreign workers and increased cost from complying with the new human resources requirements that will commence in the year 2020. One of these requirements is full insurance coverage for 2 million legal foreign workers in Malaysia under the Social Security Organisation (SOCSO) Act 1969, for any employment-related injuries regardless of whether they are still covered under Foreign Workers Compensation Scheme (previous insurance scheme). The other one relates to the increase of minimum wage to RM1,200 per month in major cities, starting in year 2020. Another requirement that will increase the cost of doing business is the extension of overtime eligibility to those earning less than RM4,000 per month as announced at the recent budget 2020. The other issue discussed was the influx of the People’s Republic of China (PRC) contractors in the country. Over the past two years, PRC contractors have carried out projects totalling RM30.34 billion in Malaysia’s construction sector. As reported in the media, the government has assured that at least 40% of contracts will be awarded to local parties. This request for local content was reiterated to the China International Contractors Association during the Malaysia China Investment Promotion 2019 organised by MBAM in September 2019. President Foo thanked UMCA for initiating the dialogue and encouraged more dialogues to be held for the exchange of views and ideas for the betterment of the construction industry. 16 OCTOBER 2019 Meeting with Representatives of Malaysian Senators’ Council Malaysian Senators’ Council (MSC) represented by its President, Dato’ Sri Khairuddin Samad, Special Officer to President, Chew Yoon Ee and Advisor to President, Yong Yee Coi met with MBAM representatives led by Immediate Past President, Datuk Matthew Tee. Vice President, Oliver Wee; Council Member, Datuk Astaman Abdul Aziz; Executive Director, Loh Mei Ling; General Manager, Lenny Lim and Senior Assistant Manager, Mohd Hanif Ismail were present at the meeting. The meeting discussed ways to improve efficiency in the construction industry and to minimise wastage of valuable resources, especially on processes that raise the costs of doing business unnecessarily. The discussion also covered long term unresolved issues such as unfair contract terms, improvements to the Construction Industry Payment and Adjudication Act (CIPAA) 2012, recruitment of workers and issues related to GST. From left: Chew, Dato’ Sri Khairuddin and Yong President Foo exchanging mementos with UMCA President, Leong Kien Keong47 MASTER BUILDERS JOURNAL #117 11 NOVEMBER 2019 Courtesy Visit to Secretary-General of the Ministry of Works, Malaysia Led by Deputy President Tan Sri Sufri Hj Mohd Zin with Vice President Dennis Tan, Council Member Datuk Astaman Abdul Aziz, Executive Director Loh Mei Ling and Assistant General Manager Lee Siew Mei, MBAM paid a courtesy visit to the Secretary-General, Ministry of Works, Malaysia Dato’ Dr Syed Omar Sharifuddin Syed Ikhsan. Several impending human resource issues were raised in the discussion: Multi-tier Levy MBAM is concerned about the impending multi-tier levy, which will be implemented by the government on 1 January 2021. To-date, there is no clear ruling except that the more a contractor hire foreign workers, the more levy they are required to pay. MBAM hopes that the Government will share the details with industry players for further discussion and to allow the necessary time frame for the industry players to cater for this increased cost of doing business. Foreign Workers a) Proposal to legalise existing undocumented or illegal foreign workers in the country The ‘Back for Good’ programme, which runs from 1 August until 31 December 2019 does not attract undocumented foreign workers to come forward currently, as they will be compounded RM700.00 and blacklisted. The proposal to legalise the illegal is more relevant, as the Government can collect levy while the industry can secure foreign workers and the foreign workers themselves can obtain employment. b) Difficulties in getting foreign workers for smaller contractors Although a contractor may apply for foreign workers through CLAB for a period of up to six months of Vice President cum Chairman of HR Committee, Dennis Tan and Council Member cum Deputy Chairman of HR Committee, Datuk Astaman Abdul Aziz at the dialogue 26 SEPTEMBER 2019 TVET Empowerment Industry Dialogue The TVET Empowerment Industry Dialogue, held at Putrajaya and hosted by the Ministry of Education (MOE), was led by Chairman of Technical Working Group, TVET Empowerment Committee, Tan Sri Dato’ Soh Thian Lai. Minister of Education, YB Dr Maszlee Malik, Minister of Human Resources, YB M. Kulasegaran and Secretary-General of Minister of Education, Dato’ Dr Mohd Ghazali Abas were also present at the dialogue. The objective of the session was to strengthen the collaboration between the government and industry players towards empowering the workforce with industry-based skills to drive the nation’s economy. YB Dr Maszlee also launched the National TVET Logo and Slogan competition, TVET Influencer Nomination and TVET Valued Industry Partners (VIP) Awards campaign, which ended on 11 November 2019. employment but to-date, there is still no news from CLAB when the foreign workers will be available. As of today, the Foreign Worker Application System (SPPA) has yet to recommence since its suspension in December 2018. c) Foreign Workers Replacement System via Check Out Memo (COM) Most contractors failed the audit process by the Labour Department due to a few technical issues with the labour law. It was suggested that these non-compliance issues to be separately administered while an application is being processed. Amendment to Employment Act 1955 At the recent announcement in the Budget 2020, it was mentioned that the Government will review the Employment Act 1955 that extends the overtime eligibility to those earning less than RM4,000. The proposed amendments will increase the cost of doing business. MBAM proposed that the Ministry of Works chaired a meeting with other agencies such as CIDB, Jabatan Tenaga Kerja, Institute of Labour Market Information and Analysis and Immigration Department of Malaysia together with MBAM and other construction-related associations to provide further input, in particular, the multi-tier levy and shortage of Visits & Dialogues VD Tan Sri Sufri presenting MBJ to Dato’ Dr OmarNext >