President Message January 2018 |

PRESIDENT MESSAGE- JANUARY

I would like to take a moment and thank our secretariat staff, MBAM members and the Government agencies who have made 2017 another fruitful year for MBAM. I am proud of our accomplishments and very appreciative of the support that we have received, as we would not have been as successful without it. MBAM is truly privileged to be in a position to continuously grow despite the uncertainty in the economic climate.

As we close out 2017 and start 2018, it is appropriate for me to reflect upon our successes and highlight our accomplishments and growth for 2017. MBAM have successfully achieved our target to reach out to 14,594 members for this year and have held numerous activities throughout the year. One of the highlight was the successful organization of the inaugural edition of the MBAM Building and Construction Exhibition and Conference which will become a permanent marker in our calendar starting this year.

Thank you for helping MBAM to live up to our tagline as the “Prime Mover and Recognised Voice of the Malaysian Construction Industry” through your support and dedication. With that, I wish you a happy New Year and may this New Year bring more prosperity to you and your family!

TALK ON FEDERAL COURT JUDGEMENT RELATING TO CIPAA AT MBAM TRAINING CENTRE

From left to right: Mr Chan Kheng Hoe, Ir. Harbans Singh and Mr Oliver Wee

Among the participants at the talk

MBAM Contracts and Practices Committee organised the Talk on Federal Court Judgement Relating to CIPAA on 2^nd December 2017 at MBAM training centre. The talk was held as part of the committee’s effort to educate members on the new developments involving the Construction Industry Payment and Adjudication Act. The talk attracted 65 attendees.

MBAM Vice President cum Chairman of Contracts & Practices Committee, Mr Oliver Wee welcomed both the speakers namely Mr Chan Kheng Hoe, Partner, Kheng Hoe and Associates and Ir. Harbans Singh, Founder, HSKS Dispute Resolution Chambers and thanked them for setting time aside to deliver their view points on the case study. The C & P Committee hopes the knowledge gained at the talk will help members in planning ahead with regards to the new developments learnt from the case sharing.

TALK ON CONSTRUCTION INDUSTRY PAYMENT AND ADJUDICATION ACT (CIPAA) & SOCIAL SECURITY ORGANISATION (SOCSO)

Presenting a souvenir to Mr Ben Lee

Full house attendance at MBAM training centre

On 7^th December 2017, the MBAM Membership Committee organized the Talk on Construction Industry Payment and Adjudication ACT (CIPAA) & Social Security Organisation (SOCSO). The talk was conducted in Mandarin and facilitated by Principal Legal Consultant of CIPAA Construction Claim Sdn Bhd, Mr Ben Lee.

His presentation were divided into two sessions. In the first session, the speaker talked on the legal significance of Letter of Award, Letter of Intent, Letter of Appointment and Conditions of Contract as well as an Overview of Legal Certificates. In the second session, he presented on the effective way of making claim for deposit, interim payment, penultimate claim and handling final account.

In the afternoon session, Mr Zurich Chong, Social Welfare Advisor presented on SOCSO (also known as Pertubuhan Keselamatan Sosial (PERKESO). SOCSO was established to provide social security protections to all employees / workers in Malaysia. SOCSO is able to provide free medical treatment, facility for physical or vocational rehabilitation, and financial assistance to employees, if they have lost their ability due to accidents or diseases that have reduced their abilities to work or rendered them incapacitated through the Act and Regulations. SOCSO was entrusted with the administration of two social security schemes, which are the Employment Injury Scheme and the Invalidity Scheme.

Overall the participants stated that the talk was educational and had enhanced their knowledge on the subject matters.

TALK ON CONSTRUCTION SITE’S BEST GREEN PRACTICES

Presentation of souvenir to Mr S. Ramesh V. Subramaniam

Group photo with the speaker

On 12^th December 2017, Environment & Green Technology Committee organized a talk on “Construction Site’s Best Green Practices”. The talk was attended by 16 participants and led by the Quality System Senior Manager for IJM Construction Sdn Bhd, Mr S. Ramesh V. Subramaniam. The objectives of the talk were:-

Overview on construction activities and its effect to environment
Policy and regulation on environmental issues related to construction activity
Planning and implementing green practices at site
Sustainable construction practices

The participants stated that they have benefited through the organisation of this talk.

STUDY VISIT TO MYBIM CENTRE, SUNWAY PUTRA TOWER

During the briefing session

At the myBIM centre

Thirty three MBAM members led by MBAM Treasurer-General and Chairman of Mechanical & Electrical (M&E) Committee, Mr Kenneth Liew paid a visit to myBIM Centre on 13^th December 2017 at Sunway Putra Tower, Kuala Lumpur. The training was conducted to create awareness and enhance our members’ knowledge on Building Information Modelling (BIM).

General Manager CIDB E-Construct Services Sdn Bhd, En Mohammad Farid Hamid welcomed MBAM Members and started his presentation by introducing the centre. The centre is Malaysia’s first BIM centre. BIM is modelling technology and associated set of processes to produce, communicate and analyse digital information models for construction project life cycle. It allows for collaboration, optimisation, higher productivity, predictability and completeness. At the second part of the visit, all the members moved to myBIM Studio where Mr Rajesh Sunkari, ME Product Expert & Senior Service Consultant – Cubicost by Glodon Software Sdn Bhd demonstrated and introduce BIM application “MagiCAD” on M&E works.

WORKSHOP ON OCCUPATIONAL SAFETY & HEALTH COMMITTEE (OSHC), KUALA LUMPUR

En Mazlan Bin Ismail facilitating the workshop

Among the participants that attended the workshop

MBAM together with Construction Industry Development Board Malaysia (CIDB) Wilayah Persekutuan Kuala Lumpur jointly organised a 2-day Workshop on Occupational Safety & Health Committee (OSHC) on 14^th and 15^th December 2017 at Vivatel Hotel, Cheras, Kuala Lumpur. The keynote address was delivered by the Deputy Director of CIDB WP Kuala Lumpur, En Ibrahim Mohd Yusoff. The full day workshop was facilitated by En Mazlan Bin Ismail and was attended by 45 participants. These 2-days workshop was held to enhance knowledge of the OSHC and members of the committee in order for them to discharge their legal responsibilities respectively.

Among the key elements highlighted by En Mazlan during this workshop was the reason behind the establishment of a safety and health committee in the workplace. He added on the importance of appointment of an elected health and safety representative to foster employee participation and consultation in the workplace. However, implementation of this practice in the workplace is still minimum especially in terms of access to reports provided by external experts, access to safety audits, collecting general information on safety and health issues, assisting employer in safety and health competitions, carrying out studies on safety and health at the place of work, forming sub-committee to assist in function, as well as access to internal and external experts in determining safety and health issues. Malaysia in its path towards becoming an industrialised nation is not free from such issues and the importance of occupational safety and health must be continuously highlighted.

CENTRALISED INFORMATION MANAGEMENT SYSTEM (CIMS) TRAINING

from left to right: MBAM Council member, Mr Michael Yap, MBAM Executive Director, Ms Loh Mei Ling and Director of CIDB Wilayah Persekutuan Kuala Lumpur, Puan Zainora Zainal

Group photo of the participants

MBAM together with the Construction Industry Development Board Malaysia (CIDB) Wilayah Persekutuan Kuala Lumpur jointly organised the Centralised Information Management System (CIMS) Training on 18^th to 19^th December 2017 at Vivatel Kuala Lumpur. The course was held with the aim to provide an exposure and opportunity for technical hands on to attendees on CIDB Centralised Information Management System (CIMS). The system is related to the existing on-line services provided by CIDB which includes services to contractors and construction personnel, as well as CIDB training and payment. The opening ceremony was officiated by the Director of CIDB Wilayah Persekutuan Kuala Lumpur, Puan Zainora Zainal.

A total of 46 participants attended the programme, and 5 panel speakers from CIDB HQ presented their CIMS training modules on Registration of Construction Personnel and Green Card Renewal, Registration of Contractor and Contractor Compliance Assurance (CCA).

COURTESY VISIT TO SHAH ALAM CONSTRUCTION COURT

Group photo with the Honorable Puan See Mee Chun

I led a small delegation consisting of MBAM Vice President cum Contracts & Practices Committee Chairman, Mr Oliver Wee, MBAM Secretary General, Mr Dennis Tan, MBAM Executive Director, Ms Loh Mei Ling and MBAM Contracts & Practices Committee Member, Mr Chan Kheng Hoe to pay a courtesy visit to the Honorable Puan See Mee Chun. The visit was held on 20^th December 2017 at the Shah Alam Construction Court. The meeting discussed on the latest updates on the Construction Industry Payment and Adjudication Act (CIPAA), arbitration and nominated sub- contractors issues.

MBAM took the opportunity to thank the Honorable Puan See Mee Chun for her services and contribution to the Shah Alam Construction Court as she will be commencing her new appointment at the Mahkamah Tinggi Johor Bahru with effect from 1^st January 2018.

INDUSTRY ASSOCIATIONS AND CHAMBERS MEETING ON THE ISSUE OF EMPLOYMENT OF FOREIGN WORKERS

MBAM Secretary General, Mr Dennis Tan at the Press Conference

The representatives from various key industries

MBAM Secretary General, Mr Dennis Tan attended the Industry Associations and Chambers meeting on 26^th December 2017 at the Malaysia Employers Federation (MEF) Secretariat to deliberate on the rising cost of the employment of foreign workers and its implication to business community and Malaysian economy as a whole. After the discussion the Industry Associations and Chambers hold a press conference and highlighted on the following issues:

Notwithstanding this, the Industry Associations and Chambers are also deeply concerned to learn of the following proposals of the government which will further increase the cost of recruitment and employment of foreign workers and erodes the competitiveness of industries in Malaysia:
The costs to employers is further compounded as source countries demand that employers bear all costs with ‘zero cost’ to the foreign workers, for example the cost of document processing in Indonesia and Nepal is from RM3,000.00 per foreign worker.
Effective 1^st January 2018, the payment of foreign workers levy payment is now a shifted to Employer. Employers employing foreign workers are required to pay, among others – accommodation, transportation, utility bills (water and electricity), levy, PLKS (Pas Lawatan Kerja Sementara), VLN (Visa Luar Negeri), Omni Sarana Cipta (third party vendor to manage visa processing in Indonesia), Immigration Security Clearance (OSC), FOMEMA medical examinations, doctor’s consultation, insurance guarantee, Foreign Worker Centralized Management System (FWCMS – third party vendor) fees, and hospitalization insurance (SKIKPA) which amounts up to RM6,240.00 per foreign worker.
A total of 22 Industry Associations and Chambers will be submitting a memorandum to the Prime Minister to highlight our concern on the rising cost of the employment of foreign workers.
To extend FOMEMA medical examination beyond the first three years to include additional medical examinations in years five, seven and nine.
- To implement proposed centralized housing system for foreign workers.
- To implement insurance for outpatient treatment for foreign workers.
- To review national minimum wages in July 2018.
- To shift the burden of paying levy from foreign worker to employer.
On the issue of foreign worker levy, the rationale of implementing levy should not be shifted to employers as levy is a form of income tax for foreign workers to utilise public utilities. Levy should not be used as mechanism to increase the Government’s revenue or to reduce dependency on foreign workers. Shifting the levy payment to employers leads to higher cost of doing business and increases in remittances by foreign workers to their home country.

Recommendations by the Industry Associations and Chambers are as follows:

The policy of shifting levy payment to the employers should be put on hold and reviewed pending implementation of transparent eco-system on recruitment and employment of foreign workers.
It is proposed that the Government set up a Joint Consultative Council on Recruitment and Employment of Foreign Workers comprising the relevant stakeholders to formulate policies on foreign workers and expatriates prior to implementation.
It is proposed that the Government incentivize industries to contain costs and improve efficiency to control inflation and enhance competitiveness, and also revisit the rationale of imposing levy.

We have come to the final President message for this year, once again I would like to wish everyone a Happy New Year! And I am looking forward to a New Year full of possibilities.

Foo Chek Lee

President