< PreviousCommunity & Social Events CS Perak Plumbers Association 49 th Anniversary Dinner 15 DECEMBER 2023 The above dinner was held at Shen Jai School in Ipoh on 15 December, 2023, and was attended by MBAM General Manager, Lenny Lim. The dinner marked a significant milestone in the association’s journey and drew a commendable attendance, including members and guests of the Perak Plumbers Association, notable figures from the plumbing industry, esteemed guests from various sectors, and representatives from related associations. The evening had a warm welcome address by the President of the Perak Plumbers Association, Lee Yee Kuan, who expressed his gratitude for the continuous support and dedication of members throughout the association’s journey. The event programme also featured recognition and appreciation awards for longstanding members and contributors to the association’s growth. Noteworthy achievements and contributions were acknowledged, underscoring the dedication and excellence prevalent within the association. The Bluescope Colorbond Night was a glitzy and fun affair that brought together esteemed figures in the construction industry, including MBAM President, Oliver HC Wee; Deputy President, Kenneth Liew; and Council Bluescope Colorbond Night 1 DECEMBER 2023 Member, Tang Juang Yew. Held at the Saujana Hotel in Kuala Lumpur, this event centred around the iconic brand offering high-quality roofing and cladding solutions renowned for their durability and aesthetics. EIK Engineering Chinese New Year Appreciation Dinner 26 JANUARY 2024 MBAM General Manager Lenny Lim attended the recent EIK Engineering Chinese New Year Appreciation Dinner held at the Oriental Pavilion in Petaling Jaya. The evening, centred around the Chinese New Year celebration, featured cultural elements that enhanced the festive atmosphere and showcased the industry’s commitment to cultural diversity. The occasion also served as an opportunity to express gratitude to industry partners, acknowledging their significant contributions and collaborative efforts. 68 MASTER BUILDERS JOURNAL #130Community & Social Events CS DJI 24 th Anniversary Celebration 19 JANUARY 2024 The commemoration of 15 years of Zoomlion cranes in Malaysia, held at Trans Elite, Berjaya Park, on 19 January 2024, drew a distinguished gathering from MBAM, solidifying the significance of this milestone. Among the notable attendees were MBAM President, Oliver HC Wee, Honorary Advisors, Dato’ Ng Kee Leen and Datuk Matthew Tee, Vice Presidents, Ong Teng Cheng, Dato’ Ubull Din Om and Dato’ Sri Eric Kuan, Secretary-General, Datuk Astaman Abdul Aziz, Council Members, Ong Ka Thiam, Alec Chong, Nalla Sundran, Au Yong, Ho Chee Leong, Lee Chee Wai and Ivan Choong, as well as Alternate Council Member, Ir Lee Han Woon. Also attending were MBAM’s Executive Director, Loh Mei Ling; General Managers, Lenny Lim and Lee Siew Mei; and Managers, Jess Lim and Mohamad Fadzley. The many representatives highlighted the association’s keen interest in this celebration. The occasion served as a tribute to the enduring partnership between Malaysia and Zoomlion Cranes, showcasing the company’s pivotal role in the portfolio catering to various sectors. Demonstrations and presentations showcased Pentens’ commitment to excellence, emphasising product quality, reliability, and their alignment with industry standards. The event not only celebrated DJI’s 24 th anniversary but also served as a platform for Pentens to showcase their cutting- edge products, foster networking opportunities, and highlight their commitment to delivering top-tier solutions within the market. 15 Years of Zoomlion Cranes in Malaysia 19 JANUARY 2024 nation’s construction landscape. The event encompassed reflections on past achievements, discussions on future collaborations, and a testament to Zoomlion’s commitment to innovation and excellence in the Malaysian construction sector. The invitation to the event was provided by MBAM Deputy Secretary General 1, Tan Zi Ni, who is a supplier for Zoomlion products in Malaysia. The above event took place at Sunway Resort Hotel on 19 January 2024 and was attended by MBAM President, Oliver HC Wee; Vice President, Dato’ Ubull Din Om; Deputy Secretary General 2, Fong Tet Yong; Council Member, Alec Chong; and General Manager, Lenny Lim. Amidst this celebratory occasion, a noteworthy focus was placed on Pentens products within the group market. Pentens, renowned for its innovative range, captured the attention of attendees with its diverse 69MBAM Council Member Dato’ Sri Sukumar, held a Deepavali Open House which was attended by various MBAM members. Deepavali Open House 13 NOVEMBER 2023 InBrief The above dinner was held at the Double Tree Hilton, Shah Alam and was attended by MBAM President, Oliver HC Wee. MISIF 2023 Steel Industry 42 nd Annual Dinner 3 NOVEMBER 2023 5 DECEMBER 2023 The above programme was attended by MBAM President, Oliver HC Wee at the CIDB head office. CIDB Audit Committee Meeting 4/2023 15 JANUARY 2024 The above dinner was held at Restoran AS Chew Loong, Alor Star, and MBAM was represented by Council Member Dato’ Lim Chee Tong. Kedah Builders and Building Materials Suppliers Association 52 nd Anniversary Dinner 70 MASTER BUILDERS JOURNAL #130FOKUS PADA PERNIAGAAN ANDA, SERAHKAN PENGAMBILAN tenaga kerja BINAAN KEpada kami SOLUSI TENAGA KERJA BINAAN ANDA Membekal pekerja binaan asing dalam sektor binaan di malaysia Subsidiary Of: 03-2095 9599FEATURE By Ng Wei Wei, Partner, e-Invoicing Tax Partner Lead, KPMG in Malaysia The MADANI 2024 Budget announced by the Prime Minister, YAB Dato’ Seri Anwar Bin Ibrahim themed "Economic Reforms, Empowering the People" continues to showcase the Unity Government’s commitment in raising the living standards of the Rakyat in the current economy. Emphasising on the importance of addressing tax leakages, the Government has introduced a myriad of measures including e-Invoicing during the re-tabling of 2023 Budget. e-Invoicing Is Two Months the Answer? DEFERRED 72 MASTER BUILDERS JOURNAL #130e-Invoicing: Is Two Months the Answer? e-Invoicing is an initiative introduced by the Government to enhance the efficiency of Malaysia’s tax administration by digitalization and allows for near real-time validation of transactions between a supplier and a buyer, which aims to replace the traditional paper or electronic documents such as invoices, credit notes and debit notes. Albeit the encouraging response from the Rakyat, many have expressed their woes on the tight implementation timeline including a need for more time to assess the business’ readiness to adopt e-Invoicing as well as the resources and costs involved. Acknowledging the Rakyat’s pleas on the e-Invoicing timeline, the Government had announced a two- month deferment on the implementation of e-Invoicing for taxpayers with annual turnover exceeding RM100 million from 1 June 2024 to 1 August 2024. On 9 February 2024, the Inland Revenue Board (“IRB”) issued the e-Invoice Guideline (Version 2.2) which replaced the e-Invoice Guideline (Version 2.1). Additionally, the latest e-Invoice Specific Guideline (Version 2.0) also outlined further guidance on various key aspects, including e-Invoice treatment for the e-Commerce industry, concessions to individual buyers, clarification on the consolidation of e-Invoices, among others. Simultaneously, the highly anticipated Software Development Kit (“SDK”) was also released, featuring two main types of Application Programming Interface (“APIs”): Platform APIs and e-Invoice APIs, which are designed to facilitate interaction between taxpayer systems and the MyInvois System. Notwithstanding the many dialogues held with the IRB and the issuance of the abovementioned guidelines and SDK, there remains hesitation and questions surrounding e-Invoicing. It would thus be worthwhile to consider some of the following feedback that may be anticipated: i. Further detailed guidance on the e-Invoicing requirements for the other specific industries (for example insurance, banking, and financial institutions) due to the uniqueness of the nature of the taxpayers’ businesses; and ii. Clarifications on the recently updated e-Invoice Guidelines as well as the full release of the SDK, currently in beta version. Although a two-month deferment has been announced on the mandatory adoption of e-Invoicing for the first annual turnover threshold category, the deferment may prove too short due to the considerations of many factors. Hence, taxpayers would be wise to look into the implementation of e-Invoicing if they have not already done so, covering: i. Brainstorming and assessing the existing sales scenarios which may be subject to different e-Invoicing requirements; ii. Initiating communication on the collection of data for the e-Invoicing required fields; iii. Managing internal stakeholders on their changes in roles and responsibilities; iv. Identifying external stakeholders for compliance of e-Invoicing requirements, for example, determining the scenarios for self- billed e-Invoices; v. Consideration of the timelines and data fields required for the consolidated e-Invoice; and vi. Assessing the system changes to accommodate the 72-hour timeframe for cancellation / rejection of e-Invoice. Ng Wei Wei, Partner, e-Invoicing Tax Partner Lead, KPMG in Malaysia Reprinted with permission by KPMG Tax Services Sdn. Bhd. The views expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG in Malaysia. KPMG Tax Services Sdn. Bhd. KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively. KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. The history of KPMG in Malaysia can be traced back to 1928. KPMG Tax Services Sdn. Bhd. is a company incorporated under Malaysian law and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited. For more detail about our structure, please visit www.kpmg.com/governance 73 MASTER BUILDERS JOURNAL #130FEATURE By Chu Ai Li, Partner of Azman Davidson & Co. M ediation is a dispute resolution process that involves an external party (the mediator) helping to facilitate settlement negotiations between two or more disputing parties. The object of mediation is for the disputing parties to try to reach an agreement to settle their disputes without the need for the parties to resort to formal dispute resolution processes such as arbitration and the AIAC Standard Form of Building Contracts 2024 2 , and clause 48.6 of the CIDB Standard Form of Contract for Building Works 2022 3 . It is also becoming increasingly common for bespoke construction contracts to include mediation clauses. Despite the inclusion of mediation clauses in construction contracts, it is not a common practice in the Malaysian construction industry for litigation. Mediation has a clear advantage over formal dispute resolution processes in that mediation takes up significantly less time and a fraction of the costs as compared to formal dispute resolution processes. A number of modern standard-form construction contracts have included provisions for mediation. These provisions include clause 34.0 of the PAM Contract 2018 1 , clause 35.0 of Can the Courts Order a Party to go for Mediation? 74 MASTER BUILDERS JOURNAL #130Can the Courts Order a Party to go for Mediation? project owners and their contractors to mediate their disputes. This is because the contract provisions for mediation are commonly worded in a non-mandatory or permissive way (for example, the parties “may” refer their disputes to mediation) and usually state that the reference of disputes to mediation shall not be a condition precedent for arbitration (see, for example, clause 34.2 of the PAM Contract 2018 4 and clause 35.2 of the AIAC Standard Form of Building Contracts 2024 5 . In the event that a project owner and a contractor have entered into a construction contract containing a mediation clause and the contractor is keen to refer their dispute to mediation but the project owner is not keen to do so, do the courts have the power to order the project owner to comply with the mediation clause? The decision of the Singapore High Court in the recent case of Maxx Engineering Works Pte Ltd v PQ Builders Pte Ltd [2023] SGHC 71 has paved the way for a party to a construction contract containing a mandatory mediation clause to seek a court order to compel the other party to refer their disputes to mediation in accordance with the mediation clause. The Maxx Engineering Works Pte Ltd v PQ Builders Pte Ltd case involved a sub-contract between a main contractor and its sub-contractor. The sub-contract contained this mediation clause: 54. If a dispute arises between the parties under or out of or in connection with this Sub Contract [sic] or under or out of or in connection with the Sub-Contract works, the parties shall endeavour to resolve the dispute through negotiations. If negotiations fail, the parties shall refer the dispute for mediation at the Singapore Mediation Centre in accordance with the Mediation Rules for the time being in force. For the avoidance of doubt, prior reference of the dispute to mediation under this clause shall not be a condition precedent for its reference to arbitration by either party, nor shall it affect either party’s rights to refer the dispute to arbitration under Clause 55 below. Without referring the dispute to mediation, PQ Builders Pte Ltd (“PQB”) referred the dispute between the parties to arbitration in accordance with the arbitration clause found in the sub-contract. Maxx Engineering Works Pte Ltd. (“MEW”) filed a court action seeking an order to compel PQB to refer the dispute to mediation on the basis that the parties were legally obligated under clause 54 of the sub- contract to do so. In the court action, PQB argued that the parties were not under a contractual obligation to refer their dispute to mediation first before resorting to arbitration, relying on the part of the provision that expressly stated that reference of a dispute to mediation shall not be a condition precedent for reference of a dispute to arbitration. In response, MEW argued that the use of the wording “shall refer” in clause 54 (“the parties shall refer the dispute for mediation"), which was in a similar vein as the arbitration clause (“the parties shall refer the dispute to arbitration"), meant that the parties must refer their dispute to both mediation and arbitration. MEW’s submission was not that the parties must mediate before proceeding with arbitration but that the parties must refer the dispute to mediation even if the parties had commenced arbitration. The High Court judge accepted MEW’s argument and held that clause 54 imposed a legal obligation on the parties to refer their dispute to mediation if negotiation had failed. Applying the general principles and considerations for specific performance, the High Court judge granted an order for specific performance to compel PQB to perform its contractual obligation to refer the dispute to mediation. In summary, the question whether the courts have the power to compel a party to a construction contract containing a mandatory mediation clause to go for mediation has been answered with a rousing “yes” in the Singapore High Court decision of Maxx Engineering Works Pte Ltd v. PQ Builders Pte Ltd. However, it is uncertain whether the courts would exercise such power to compel a party to mediate in a case involving a non- mandatory mediation clause such as the mediation clauses found in the Malaysian standard form construction contracts. 1 34.1 Upon the written agreement of both the Employer and Contractor, the parties may refer any dispute for mediation. If the parties fail to agree on a mediator after twenty-one (21) days from the date of the written agreement to refer the dispute to mediation, any party can apply to the President of Pertubuhan Akitek Malaysia to appoint a mediator. Upon appointment, the mediator shall initiate the mediation in accordance with the PAM Mediation Rules or any modification or revision to such rules. 2 35.1 Notwithstanding Clause 34.1, the Employer and the Contractor, or either of them, may refer their dispute as to any matter arising under or out of or in connection with the carrying out of the Works and whether in contract or in tort, or as to any direction or instruction or certificate of the CA or as to the contents of or granting or refusal of or reasons for any such direction, instruction or certificate, for mediation in accordance with the AIAC Mediation Rules. 3 (a) Parties may refer disputes or differences of whatsoever kind between the Employer or the Superintending Officer and the Contractor in connection with or arising out of the Contract or, whether during the execution of the Works or after their completion, and whether before or after any determination of the Contractor’s employment, to mediation by way of notice to the other party with a copy to the Superintending Officer of his intention to refer disputes or differences to mediation (hereinafter referred to as “Request for Mediation”). 4 34.2 Prior reference of the dispute to mediation under Clause 34.1 shall not be a condition precedent for its reference to adjudication or arbitration by either the Contractor or the Employer, nor shall any of their tights to refer the dispute to adjudication or arbitration under Clause 37.0 of these Conditions be in any way prejudiced or affected by this clause. 5 35.2 For the avoidance of doubt, prior reference of the dispute to mediation under Clause 35.1 shall not be a condition precedent for its reference to arbitration by either the Contractor or the Employer, nor shall any of their rights to refer the dispute to arbitration pursuant to Clause 34.0 be in any way prejudiced or affected by this Clause. Azman Davidson & Co. is a full service legal firm practicising in nearly all areas of civil law, with extensive expertise in dispute resolution, construction, engineering, arbitration, adjudication, and more. Chu Ai Li was called to the Malaysian Bar in 1996. She joined Azman Davidson & Co in 2001 and became a Partner in 2004. 75 MASTER BUILDERS JOURNAL #130MATRADE’S INSIGHT BUSINESS & TRADE INFORMATION FEATURE AUSTRALIA Construction Material Market in Australia Prices for materials and commodities in the Australian construction sector remain volatile amidst high housing prices. Rising interest rates, unresolved supply chain issues, and increasing labour costs have led to slowing sector growth, but there is still demand in Australia for specific construction materials that Malaysia can export. are dominated by a large number of established competitors, while the country’s markets for rolled steel sheets as well as structural steel and reinforcing steel for reinforced concrete are dominated by singular suppliers. With this in mind, Malaysian companies should exercise caution if they are interested in exporting construction materials to the Australian market and take advantage of the Australian government’s commitment to solving the country’s housing issues. Apart from building materials, items such as fixtures, fittings, doors and windows, tiles and flooring, stainless steel sinks, paints, and coatings, as well as toilet systems will also see increased demand as new homes in the country are planned and built. The opportunity and potential for export to Australia remain high, but following consumer trends closely as well as offering a variety of options, particularly for the increased interest in prefabricated buildings, low-carbon construction materials, and luxury commodities, will be crucial for Malaysian companies to succeed in Australia. This article is based on an update to a Market Alert (MA) prepared by MATRADE Melbourne, and the information is correct at the time of the writing. MAs are available in MyExport, which can be accessed at www.matrade.gov.my For further information and enquiries, please contact MATRADE Melbourne at melbourne@matrade.gov.my. The Australian construction sector as a whole has recently been in a state of caution and uncertainty, with the Australian government either pausing or cancelling large infrastructure projects due to a recent string of insolvencies in the sector. At the same time, a downward trend in the distribution of building permits likewise indicates slow growth for the sector alongside rising labour costs that continue to plague the country. Construction Material Outlook These issues have made construction material prices in Australia rather volatile, with certain commodities still seeing high demand while others have begun to stabilise or fall entirely. Structural steel and rebar, for example, have stabilised due to an oversupply of low-grade steel in Australia sourced from Chinese mills. Likewise, structural timber prices in the country have moderated back as COVID-related supply chain issues were resolved earlier in the year. On the flip side, materials such as concrete have seen continual demand and supply chain issues that have led to increasing prices. The Australian market for plasterboard has also seen steady growth over the course of 2023, while the supply of bricks in the country remains relatively small, resulting in rising prices for both markets. At the same time, copper has seen a price increase due to a significant rise in electrical, plumbing, and rail projects in the country. The Way Forward The Australian government has recently announced plans to build a million new homes as the country continues to face housing issues brought on by a lack of affordability and supply. This will no doubt put considerable pressure on the construction sector, including in the supply of materials and commodities, which will further increase prices. It is important to note that certain sections of the Australian construction sector are dominated by duopolies and oligopolies, which may result in an increased proportion of price movements caused by supply. For example, the plasterboard and ready- mixed concrete markets in Australia DISCLAIMER: WHILE EVERY EFFORT HAS BEEN TAKEN TO ENSURE THAT THE CONTENTS OF THE ARTICLE (MATRADE’S INSIGHT) ARE ACCURATE AND CURRENT, MATRADE CANNOT BE HELD RESPONSIBLE FOR ANY INCLUSION, OMISSION OR ERROR AND IS NOT LIABLE FOR ANY LOSS OR DISPUTE ARISING FROM THE USE OF THE INFORMATION PROVIDED. 76 MASTER BUILDERS JOURNAL #130N O W A V AIL A BLE N O W A V AIL A BLE O N L I NE ! O N L I NE ! MASTER BUILDERS JOURNAL www.mbam.org.my Master Builders Journal is now available online and in print at the same time! Visit MBAM website at mbam.org.my and click Publications to read the latest Master Builders Journal For advertising enquiries, please contact Mr HanifNext >