< Previous18 MASTER BUILDERS JOURNAL #125 MBAM Council Members June 2022 – June 2024 Honorary Life PresidentsHonorary Builders Datuk Lai Foot Kong PJN, JSM Lai Moo Chan JMN, KMN Tan Sri Datuk Tee Hock Seng PSM, PGDK, ASDK, JP Lau Mun Cheong JMN, KMN, FIEM Dato’ Ir Tan Kia Loke DSNS, JMN, AMN, AMT, PJK Honorary Advisors Dato’ Ng Kee Leen DIMP, KMN Datuk Matthew Tee Kai Woon, DPSM Honorary Advisor (Legal) John Tong, AMN Honorary Advisor (Education) Chua Siow Leng, KMN Honorary Advisor (Taxation) Yee Wing Peng Foo Chek Lee, JMW Affiliate Members 1. American Concrete Institute Malaysia Chapter 2. Building Materials Distributors Association of Malaysia 3. Gabungan Persatuan-Persatuan Pembina Malaysia 4. Institut Binabangunan Berkanun Malaysia (The Chartered Institute of Building Malaysia) (CIOB) 5. Kelab Sosial Lighthouse Kuala Lumpur (The Lighthouse Club Kuala Lumpur) 6. Malacca Builders Association 7. Malaysia Glass Association 8. Malaysia Mobile Crane Owners Association (1987) 9. Malaysia Quarries Association 10. Malaysian Occupational Scaffolding Association (MOSA) 11. Malaysian Photovoltaic Industry Association 12. National Ready-Mixed Concrete Association of Malaysia 13. Penang Master Builders 14. Perak Contractors Association 15. Perak Plumber’s Association 16. Persatuan Ampunya Jentera Pembinaan Berat Malaysia 17. Persatuan Industri Fasad Malaysia 18. Persatuan Industri Komputer Dan Multimedia Malaysia (PIKOM) 19. Persatuan Kilang Batu-Bata Malaysia 20. Persatuan Kontraktor India Malaysia 21. Persatuan Mesin Angkat & Kren Menara Malaysia 22. Persatuan Pembina Johor (The Johore Master Builders Association) 23. Persatuan Pembinaan Kelantan (Kin Cho Hong) 24. Persatuan Pembinaan Terengganu (Kin Cho Hong Builders’ Guild Terengganu) 25. Persatuan Pemborong-Pemborong Dan Pembekal-Pembekal Barang-Barang Bangunan Kedah 26. Persatuan Rakan-Industri Rekabentuk Dalaman Malaysia (Malaysian Interior Industry Partners) (MIIP) 27. Persatuan Tinsmith Wilayah Persekutuan Dan Selangor (Federal Territory And Selangor Tinsmith Association) 28. Persatuan Tukang Paip Kuala Lumpur Dan Selangor 29. Port Dickson Builders’ Association 30. Sabah Builders Association 31. Sarawak Building And Civil Engineering Contractors Association 32. Sarawak Sibu Division Building & Civil Engineering Contractors Association 33. Segamat Builders Association (1973) 34. Selangor And Federal Territory Builders Association 35. Selangor And Federal Territory of Kuala Lumpur Kin Cho Hong 36. The Electrical And Electronics Association of Malaysia (TEEAM) 37. The Malaysian Lift And Escalator Association (MALEA)19 MASTER BUILDERS JOURNAL #125 New Members as at 22 nd July 2022 Ordinary Members 1. Cergas Murni Sdn Bhd 2. Gagasan Nadi Cergas Berhad 3. Matlamat Anggun Sdn Bhd 4. Sricool Engineering Sdn Bhd 5. 1133 Cranes & Trading Sdn Bhd 6. 1133 Lorry Transport Sdn Bhd 7. Rfy Services Sdn Bhd 8. Phoenix Green Energy Sdn Bhd 9. Awikani Construction 10. Ylse Technologies (M) Sdn Bhd 11. Infocast Sdn Bhd 12. Ektech Systems Engineering Sdn Bhd Affiliate Members 1. Persatuan Kilang Batu-Bata Malaysia Associate Members 1. Space Products Sdn Bhd 2. Foremost Concept Sdn Bhd 3. Lumineux Consultancy 4. CRT Manufacturing Sdn Bhd 5. Zoomlion Heavy Industry (Malaysia) Sdn Bhd MBAM New Members About MBAM The Master Builders Association Malaysia (MBAM) plays an important role in the development and advancement of the construction industry. For the past few decades, we have represented Malaysia’s construction industry as its voice during various key phases. Dedicated towards promoting and developing the construction industry in Malaysia, MBAM has evolved into a cohesive umbrella organisation. We have earned international recognition through our affiliations with the International Federation of Asian and Western Pacific Contractors’ Associations (IFAWPCA) and the ASEAN Constructors Federation (ACF). We have also successfully hosted the 20 th , 29 th and 44 th IFAWPCA Conventions in 1983, 1998 and 2018 respectively. Through the memberships in IFAWPCA and ACF, the MBAM members are part of the international construction fraternity. MBAM is also a member of The Building Industry Presidents’ Council (BIPC), where members comprise of Presidents from Pertubuhan Akitek Malaysia (PAM), The Institution of Engineers Malaysia (IEM), Association of Consulting Engineers Malaysia (ACEM), Real Estate and Housing Developers’ Association (REHDA), Malaysian Institute of Planners (MIP) and Royal Institution of Surveyors Malaysia (RISM). The formation of BIPC is a quantum leap in terms of cooperation among the industry players in the country to look into the interest of the construction industry from a wide spectrum of trades. MBAM members are also from entities that are directly and indirectly linked to the construction industry. This includes specialist sub-contractors, building material suppliers, manufacturers and trading companies. With both local and international presence, MBAM is well poised to effectively represent the Malaysian construction industry as a single, unifying voice to the relevant government authorities as well as various organisations and bodies.20 MASTER BUILDERS JOURNAL #125 As I commence my term as President of MBAM for June 2022-June 2024, and penning my first message for Master Builders Journal (MBJ), I realise that embracing an experience where people feel included is more than just making our membership numbers more diverse. It’s about making our meetings, events and publication where we can speak openly and honestly with each other, where our members feel welcome and safe. This means removing barriers for entry and opening doors for inclusion. Our values remain our strength and our commitment to excellence requires us to maintain high standards for our members as well. I take this opportunity to highlight to our members regarding the Government’s intervention and support for the Malaysian construction industry, in regards to changes to the Variation of Price (VOP) and additional initiatives provided to help contractors post-pandemic for government contracts. MBAM is grateful for the Government’s intervention and support for the Malaysian construction industry with regards to changes to the VOP. The announcement made on 14th July 2022 by Prime Minister YAB Datuk Seri Ismail Sabri Yaakob on the addition of building materials will help to ease the burden of contractors handling public works projects, following the steep hike of almost every building material cost. The VOP material list which originally had 4 items, has been added with an extra 11 building materials. Under provision 9, Treasury Malaysia circular (PK 2.4), aside from the VOP and additional initiatives by the Government to assist contractors post COVID-19 for government contracts (Amendments on 15 July 2022), the Government has also agreed to implement additional initiatives for helping contractors such as the Extension of Time (EOT), subject to a maximum period of six months and the Superintendent Officer/Project Director’s evaluation on contractors application for EOT, as well as the early release of retention money of up to 50%; subject to progress-of-works exceeding 60%. We welcome such assistance from the Government, which would lighten the burden of contractors. Although the provision only applies to public contracts, we hope that private project owners will consider and implement the same to further facilitate the progress of projects. Pertaining to the issues of bringing in foreign workers, we have appealed to the Government for a shorter and simplified process, and are constantly monitoring developments for a final concrete process by the Government, as we know many contractors are having difficulties in getting foreign workers. In this edition of the MBJ, we have managed to get the assistance of several construction lawyers who are MBAM Contracts and Practices Committee Members to provide their legal opinions on EOT due to labour shortage issues currently facing the industry. We hope that this effort would also serve as a good reference to the industry. Looking forward to your feedback and happy reading! Yours sincerely, Oliver HC Wee KMN, AMN MBAM President From the Desk of Oliver HC Wee MBAM President “ Pertaining to the issues of bringing in foreign workers, we have appealed to the Government for a shorter and simplified process, and are constantly monitoring developments for a final concrete process by the government. ”Welcome to MBAM DIRECTORY ONLINE Reach out to potential clients and create awareness for your brand! www.mbamdirectory.comFirst of all, congratulations on being elected as the new President of MBAM for term 2022 – 2024. Can you share with us on your involvement with MBAM up to your recent election as President? I have been serving MBAM in various capacities and I am actively involved in MBAM committees since year 1994. I believe in the need to champion contractors’ rights during my many years of involvement with MBAM, and I have organised many educational events for the benefit of contractors and sub-contractors. Additionally, I have also been an active representative voice of contractors in industry initiatives such as the promulgation of the Construction Industry Payment Adjudication Act (CIPAA) and standard form of contracts. In the past 25 years, I have helped to organise a series of successful contract administration training since 2014. In 2018, MBAM managed to set up the mediation service to serve its members in resolving their contractual disputes. Currently, besides being the President of MBAM, I am also the Vice Chairman of the International Federation of Asian & Western Pacific Contractors Association (IFAWPCA) Conditions of Contracts Committee, and I am also the Ambassador of IFAWPCA to the International Federation of Consulting Engineers (FIDIC). I was also the Executive President for China ASEAN Construction Industry under the Belt & Road initiative from 2015 to 2016. During my terms as the Chairman of Contracts and Practices Committee, I assisted on the collaboration with the Institute of Civil Engineer and Surveyors, the United Kingdom (ICES), to endorse such series’ of training, of which exemption would be granted to those whom had attended the program. In addition, during my tenure as the Chairman for the ICT committee, I set up the MBAM app for mobile phones. The new MBAM President for term 2022-2024, Oliver HC Wee, takes on the role amidst a challenging post-pandemic period for the construction industry. MBJ spoke to the new MBAM President to find out his thoughts and plans for MBAM and the industry as a whole. COVER FEATURE Q&A with the New MBAM President Steering Toward Strength & Resiliency 22 MASTER BUILDERS JOURNAL #125Oliver HC Wee, MBAM President & Business Development Director of Tim Sekata Sdn BhdCOVER FEATURE You have been with MBAM for a long time, and have seen the Association grow from what it was then to what it is now. Can you share with us what is your vision as the new MBAM President? My vision is to establish a strong framework in order to gain feedback and research through surveys, so that we have an evidence-based approach as a formula or framework that we can analyse and share with the Government, its agencies, industry players and members, on the issues faced by the members and the construction industry. This will entail support from the whole supply chain of the construction industry, and will help the construction sector as a whole to fight for better conditions for the industry. What are your plans to take the Association and the construction industry to the next level? I hope we can continue to engage more actively with the various Government Ministries and Agencies in order to extend our outreach to all relevant parties, to discuss and be involved in policy making and move the industry forward, and if need be, support or recommend alternative policies that are a better fit for construction industry stakeholders. More importantly, to move to the next level, our contractors must adopt digitalisation in order to transform the industry. The way forward for our members and contractors to be more productive and competitive in general, is to invest in technologies and innovative ideas, constructability in terms of alternative material usage, modern construction methods and design as well as robotics and automation. How can the industry move forward despite the challenges? We can only mitigate these challenges by engaging the government of the day to request for assistance. However, as an association, we will also promote more training that will emphasise on technology and efficiency so that we can lessen the impact of the lack of manpower on productivity. We urge the private sector to take the example of the Variation of Price Clause in government contracts as a benchmark to be similarly implemented in private contracts, so as to have a balance of risk and rewards. I also have in mind to continue to educate members to understand contractual terms before they commit to a project, and to dissuade them to avoid pricing low to get tenders, as by doing so they may eventually price themselves out of their businesses when they cannot deliver. The construction industry as a whole must digest this reality and find a new equilibrium by pricing right for a project and not competing unsustainably. In your opinion, how can the Government assist contractors in these trying times? The Government should not only cut down on the cost of doing business, but the Government and professionals must standardise tender processes so that all bidders are on a level playing field. An example is the preliminary items for all tenders’ provisions for compliance should be priced in accordance to provisional sum or prime cost. This will allow fairer competition amongst tenderers for both public and private projects. We hope Government can take the lead and private sector will follow, so that the risk and reward for each project will be fairer and balanced. As to assistance, the industry and MBAM are not looking for handouts. What we want is for more projects to put on the ground so that the construction capacity that we have is fully utilised to build the infrastructure and continue the development we need as a nation. As such we urge the Government to push out new jobs more quickly and in greater volume. The deferment of future jobs will only delay our industry’s recovery and also may cause contractors to give up and leave the industry eventually. The Government should also assist the industry with subsidies and incentives to accelerate digital transformation and promote innovation which will help our industry move into a new era of construction growth. Last but not least, the Government must simplify and shorten the process of bringing in the foreign workers at an affordable cost. The Government must also bring more investors to benefit the private sector as this is critical to have more projects. MBAM is a member in a number of international level groupings such as the ACF and IFAWPCA. Can you share with us what is your plan with regards to MBAM’s contribution towards these groupings? What do we get from joining these groupings as members? International affiliations are critical, as it is our means to network on a regional and international level to keep abreast of the latest developments in terms of building materials, contract and practices related updates, as well as a yardstick to measure our growth with other members from these international groupings. Historically, we have worked very closely with them even during the pandemic, through webinars and online events to promote and gain better knowledge and understanding on how to improve our regional construction markets as a whole. In fact, I presented a paper at the online Official International Federation of Consulting Engineers (FIDIC) Contract User’s Conference on 14 July 2022, as IFAWPCA Vice Chairman of the Contracts Committee. I also 24 MASTER BUILDERS JOURNAL #125COVER FEATURE moderated an ACF Webinar on COVID-19 (Temporary Measures) Act- Issues, Challenges and Way Forward in the Singapore Construction Industry on 5 November 2021. If we look at the trade performance of our country for June 2022, it increased by 43.4% [year-on-year] to RM270.39 billion. As for our trade with China, which is also a member of the RCEP, Malaysia recorded a double-digit growth for 19 consecutive months (as quoted in The Star, 27 July 2022). It is hoped that trade with RCEP can increase, especially amongst ACF and IFAWPCA members, and these two platforms can be the way to better boost construction trade regionally. In your opinion, what is the value proposition for companies to join MBAM as members? The reality is now is the best time to join MBAM as we have waived the entrance fees for 2022. Members just have to pay the membership fees for the year. In fact, it is in this difficult business environment that the construction community should huddle together and compare notes on how to meet the business challenges post COVID-19. In addition, even in slow or challenging times, the upskilling of workers via training is still much needed, and this is where MBAM plays a continuous role to provide training for its members in the construction industry. We have many industry driven trainings such as our MBAM Lifting Supervisor Training, which is designed to provide participants with adequate knowledge, as well as to enhance their supervisory skills and competency level to ensure every aspect to lifting operations at site is executed and managed in a safe manner, while in compliance with authority requirements. We also have our certified Site Safety Supervisor training programme, and the International Labour Organisation (ILO)-MBAM- United Kingdom Partnership for Enhancement of a Sector Skills Body and Industry-Led TVET Modalities in the Construction Sector Pilot Apprenticeship Programme, just to name a few, which are relevant and of benefit to our members. The requirement of CIDB Act 520, Part VII, Section 3(1)A and Part II, Section 4(1)(k), which stipulates that by 2023, all construction projects with a minimum value of RM50 million are to be managed by Certified Construction Managers (CCM), has led MBAM to help prepare existing construction managers to be Certified Construction Managers (CCM). MBAM has called on participation for the above training through the CIDB CCM Method 3 Certification through interview based on Recognition Prior Learning and Experience (RPLE). We also continue to produce various publications, such as the MBAM Bulletin, Master Builders Journal (MBJ) and MBAM Members Directory (which is now available online), which I believe are key to ensure members are kept informed and have the knowledge to understand, excel and grow in the construction industry. Last but not least we are the recognised voice of the construction industry, and by members joining us we can echo their concerns and represent them in championing for contractors’ interests and protection. Any other points that you want to share with our readers? Industry trade associations such as MBAM play important roles in providing input to policy makers, providing networking opportunities to its members, giving a voice to the industry when it comes to new legislation, and providing relevant tools such as best practices to that particular industry. Industry associations have members at every stage of their career, from junior employees just getting started to industry veterans who have built thriving, successful businesses. No matter where you are in your business, chances are your industry association will have members that are both not as far and much further in their career journey than you are. And with such a wide spectrum of talent represented, industry associations offer an excellent chance for mentorship – either as a mentor or as a mentee. So, for those who have not joined us as a member, do join us at the soonest opportunity and for those who are members, do participate more actively to get the benefit of membership. How can MBAM collaborate with Affiliates and the industry? It is my hope that MBAM will work very closely with our Affiliate Members and construction industry players. We hope that our Affiliate members will join our activities and support MBAM, especially with regards to sharing of data via surveys or feedback forms on critical issues affecting members. Further to this, we hope our affiliates can disseminate data or communication from the Government through MBAM to their members so that they are well informed about current developments. Likewise we also want to work with industry players through the Building Industry Presidents’ Council and any other platforms available, including PEMUDAH, to ensure the voice of the construction industry continue to echo for positive changes. “The way forward for our members and contractors in general to be more productive and competitive is to invest in technologies and innovative ideas, constructability in terms of alternative material usage, modern construction methods and design as well as robotics and automation.” 25 MASTER BUILDERS JOURNAL #125Next >