FEBRUARY 2025 PRESIDENT’S MESSAGE
MINIMUM WAGE
The implementation of the minimum wage is a double-edged sword. While it ensures fair compensation for workers and improves their livelihood, it also presents challenges for businesses, particularly in industries like construction, where labour costs form a significant portion of overall expenses. In addition, there is also the indirect labour cost from the manufacturing side which will have a knock-on impact on supply chain cost which will be passed on to the construction and building sector.
Labour cost has kept on rising and coupled with unskilled foreign workers, we do not see the engagement of technology widely. We believe contractors have to transform or else this issue will plague them for a long time. There will be a bigger gap as those who do not begin the journey may not even survive in the construction business.
EPF CONTRIBUTION FOR FOREIGN WORKERS
Many have understood that EPF will be based on RM1,700.00. The reality most foreign construction worker in construction is paid a on a daily wage rate so the calculation for their EPF is based on a gross salary rate which comes to about RM2,000.00 to RM3,000.00 a month. If the government intends to make EPF contributions compulsory for foreign workers, it should be done with clear guidelines and support mechanisms for employers to adapt to the additional cost burden. Moreover, the foreign workers may want to take their salary in full monthly. In addition, the foreign workers may not have plans or in fact cannot stay in the country for long term. EPF is also responsible to declare dividend for such savings yearly. Employers would incur extra cost. This initiative seems no positive impact for any parties.
MBAM NEW BUILDING PROJECT
We are pleased to inform that the construction and development of MBAM new building project at our own land at P.T. 35510 Persiaran Harmoni, Putra Heights Subang Jaya, Mukim Damansara, Daerah Petaling, Negeri Selangor is in good progress and expected to be fully completed by early May 2025. This new building will not only showcase an IBS project but also utilize the new revised CIDB Form of Contract 2022 as a pilot project. The building is fully designed and built by using digital construction (BIM and IBS). The main contractor is GAMUDA IBS Sdn Bhd. The new building will house the new secretariat office for MBAM, MBAM Centre of Excellence and CIDB Construction Mediation Centre under MBAM.
The building shall be used as a training centre for conducting all MBAM courses, skill training and also serve as our mediation service centre, fellowship, meeting and etc. It will also be opened to members to book for its own events or a platform for product talks, and advertisements.
The total construction cost for our new building is estimated in the region of RM8 million and the interior design cost is estimated in the region of RM1.6 million. MBAM has sold the existing secretariat office for RM4.4 million. We are still short of RM5.2 million for the development of our new building. As such, MBAM will embark on its fund-raising programme to raise fund to support the completion of our new building.
We will be seeking contributions through the naming rights to some of our building and training facilities and rooms. We will also be appealing to members for contributions to MBAM Building Fund. We look forward to your kind and generous donation as we begin the new year 2025 and also a new milestone for MBAM.
Please find a message from MBAM President, Mr. Oliver HC Wee via a video link: https://youtu.be/QDlJNEYSzRU which provides more information on this initiative.
You may channel your donation to MBAM Building Fund account number: MBB 514-114-433-378.
To help us keep track on the donations, please complete this form after making your contributions: https://bit.ly/4hoXM8j
Please share a copy of your donation or bank in transfer slip to MBAM Secretariat at ed@mbam.org.my in order for us to issue the official receipt to you.
Oliver HC Wee KMN AMN
President, MBAM