< PreviousIssue #126 Volume 3 2022 16 ASEAN Construction Highlights 26 Q&A—On QLASSIC, Defect Inspectors and Vacant Possession 30 Webinar—Tax Considerations When Dealing with Creditors and Recent Tax Cases 31 Sustainable Financing for the Built Environment 32 MBAM CIPAA 2022 Conference 33 Meeting—Malaysia’s Participation in the Development of Nusantara, the New Capital City of Indonesia No 2/2022 34 Pre-Mission Meeting Between Members of MBAM and the Indonesia Contractors Association (ICA) 35 Technical Seminar—Navigating Social Security & Wellbeing Post COVID-19 in Asia 36 Construction Export & Investment Mission to Indonesia 38 Webinar—Reduce and Avoid Construction Disputes Revision and Improvement of CIS 24 IBS Manufacturer & Product Assessment & Certification (IMPACT) 39 Webinar—Digital Transformation Journey Session 2 40 High Level Meeting with the Minister of Human Resources on Foreign Workers Meeting on the Entry of Foreign Workers in the Construction Industry 41 Forum—Embracing Modern Technology in Building a Better Future for Malaysian Construction Industry 42 The 8 th MBAM Seminar on OSH & Workshop on OSHCIM – Accident Prevention by the Industry for the Industry 44 ACF Conference—Together Shaping the Future of Construction in ASEAN 46 52 nd ACF Council Meeting Webinar—Post COVID Act 829 47 55 th BIPC Meeting 48 MBAM Awarded the National Occupational Safety and Health 2020 & 2021 Award 49 2022 Report—MBAM Safety and Health Committee Key Activities 52 45 th IFAWPCA Convention 54 Discussion with Housing Industry Stakeholders Dialogue & Dinner with PKIM Dialogue with SBA & SBA 50 th Anniversary Ceremony 55 Dialogue with Penang Master Builders Dialogue with BMDAM Meeting—Bank Negara Malaysia Visits & Dialogues Industry & Practices 64411660 Cover Feature Special Feature ASEAN Construction HighlightsContents 56 Dialogue—Ministry of Works with Construction Industry Players 58 BEM Convention 2022 Dialogue Session Malaysia Glass Association (MGA) Networking Discussion 60 44 th —49 th Intakes Lifting Supervisor Training 62 MBAM Scholarship Award 2022 63 Workshop—Safe Management of Temporary Works Seminar—Construction Machinery Technologies – How to Optimize Machine Output, Efficiency and Control to Boost Production in Earthworks Mass Haul 64 Perak Contractors Association (PCA) 56 th Annual Dinner MBAM Fellowship 5/2022 JMBA 67 th & Youth 11 th Anniversary Dinner cum Swearing-In Ceremony for 39th Term JMBA Council & 6th Term Youth Committee 66 145th Anniversary Dinner of Penang Master Builders MBA 60th Anniversary Dinner & Swearing in of MBA 30th Term Council Selangor and Kuala Lumpur Plumbers Association (SKLPA) 63rd Anniversary Dinner BMDAM 44th Anniversary Dinner 67 MBAM Fellowship 7/2022 International Construction Week (ICW) Opening Ceremony 68 Opening Ceremony of CIDB-CIOB Youth Arena Convention & Industry Forum on Construction Revolution 4.0 (CR4.0) The Future of Construction 69 Inbrief 70 Digitalisation in the Construction Industry—How to Kickstart Your Journey 74 Matrade’s Insight – Opportunity for Building Materials in Macau 75 Matrade’s Insight – Opportunities Arises in the Development of NEOM in Jeddah 76 The State of Digital Construction in ASEAN 10 Editor’s Note 81 MBAM In the News 12 MBAM Council Members 84 MBJ Advertising Rates 13 MBAM New Members 86 MBJ Readership Survey 14 From the Desk of MBAM President 87 MBAM Membership Application Form Professional Development Community & Social Events CS 32704455 Features Regular Sections10 MASTER BUILDERS JOURNAL #126 Master Builders Journal Call for Articles Article contributions on topics relevant to the construction industry are highly encouraged. Contact ed@mbam.org.my for more information on requirements or to submit your article proposals for publishing consideration. is published quarterly by the Master Builders Association Malaysia (MBAM) No. 2, Jalan 2/109E, Desa Business Park, 58100 Kuala Lumpur. MBJ Editorial Board PRESIDENT Oliver HC Wee, KMN, AMN EDITOR & COMMITTEE CHAIRMAN Ong Teng Cheng COMMITTEE CO-CHAIRPERSON Tan Zi Ni COMMITTEE DEPUTY CHAIRMAN Ir Au Yong Yoke Lin EXECUTIVE DIRECTOR Loh Mei Ling GENERAL MANAGER Lenny Lim Len Wei SENIOR ASSISTANT MANAGER Mohd Hanif Ismail PUBLIC RELATIONS EXECUTIVE Farah Alia Binti Zaizakrani Publishing Agency Memo Publishing Sdn Bhd ask@memo.com.my Printer Vivar Printing Sdn Bhd Lot 25 & 27, Rawang Integrated Industrial Park, Jalan Batu Arang, Rawang, 48000 Rawang, Selangor Darul Ehsan, Malaysia. Publication Disclaimer The publication has been compiled by Master Builders Association Malaysia (MBAM) with great care and we disclaim any duty to investigate any product, process, service, design and the like, which may be described in this publication. The appearance of any information in this publication does not necessarily constitute endorsement by MBAM. There is no guarantee that the information in this publication is free from errors. MBAM does not necessarily agree with statements or opinions expressed in this publication. Copyright Master Builders Journal is the official journal of and published four issues yearly by Master Builders Association Malaysia (MBAM), and distributed by Central Paper Agencies Sdn Bhd. The Publisher retains the copyright over all materials published in the magazine. No part of this magazine may be reproduced and transmitted in any form or stored in any retrieval system of any nature without the prior written permission from the publisher. Greetings dear readers, For many of us, each new year marks a chance for renewal, and 2023 is no exception. Every story in this issue speaks to challenge, opportunity, and the transformative power of hope. Whatever challenges we faced in 2022 be they unprecedented or otherwise, one thing remains constant: our commitment to you and the construction industry we share. We have always been eager to share our key cover stories with you since they all express our hope for the future. This issue of MBJ highlights the construction industry updates from our fellow members in the ASEAN Constructors Federation (ACF). The issues that we are facing are largely similar and we hope we can learn from each other on how best to tackle these issues. In this issue, we also feature a number of articles on diversified topics from our ardent contributors who have added dimension and strength to MBJ. One is on “The State of Digital Construction in ASEAN” from our good supporter Autodesk and “Digitalisation in the Construction Industry” from Novade. We also have “Opportunity for Building Materials in Macau” and “Opportunities Arises in the Development of NEOM in Jeddah” from our friends at MATRADE. We also have the usual reports on our activities for the past four months, to update our members on what we have done for you. To all our contributors we say thank you from the bottom of our hearts. We are indeed grateful for your support. I want to express my gratitude to everyone who has motivated and helped the editorial team in their quest for greatness. Involved as I am in the selection of what we print, in the editing and in the layout, and in the numerous decisions that shape the magazine, it’s impossible to keep everyone happy. As always, do contact the MBAM Secretariat at ed@mbam.org.my if you have any suggestions or comments for this publication. Please continue to keep your eyes on MBJ in the coming issues for other signs of resilience and renewal. HAPPY NEW YEAR! Yours sincerely, Ong Teng Cheng Editor, Master Builders Journal Editor’s Note12 MASTER BUILDERS JOURNAL #126 MBAM Council Members June 2022 – June 2024 President Oliver HC Wee, KMN, AMN / Tim Sekata Sdn Bhd Immediate Past President Tan Sri Dato’ Sri Sufri Haji Mhd Zin, PSM, SSAP, DPTJ / Trans Resources Corporation Sdn Bhd Deputy President Kenneth Liew Kiam Woon / LFE Engineering Sdn Bhd Vice Presidents Ong Teng Cheng / IJM Corporation Berhad Dato’ Ubull Din Om, DIMP / Gamuda Berhad Richard Wong Kwan Song / Sunway Construction Sdn Bhd Eric Yong Shang Ming / Crest Builder Sdn Bhd Dato’ Sri Eric Kuan Khian Leng, SSAP / Fajarbaru Builder Sdn Bhd Secretary-General Datuk Astaman Abdul Aziz, DMSM / Norwest Holdings Sdn Bhd Treasurer-General Yeoh Keong Yuan / Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd Deputy Secretary-General 1 Ir Anthony Teoh / Mudajaya Corporation Berhad Deputy Secretary-General 2 Fong Tet Yoong / Rooframes Resources Sdn Bhd Council Members Al-Ambia Sdn Bhd / Tang Juang Yew Aneka Jaringan Sdn Bhd / Pang Tse Fui Bauer (Malaysia) Sdn Bhd / Ir Au Yong Yoke Lin Bina Puri Sdn Bhd / Png Choon Yam Chong Lek Engineering Works Sdn Bhd / Ivan Chong Fu Seong MMC Corporation Berhad / Shafidz Iswandi Bin Azhar Pertama Crane & Engineering Sdn Bhd / Alec Chong Sun Park Satujaya Sdn Bhd / Michael Yap Kok Wai Setia Precast Sdn Bhd / Ng Han Seong Sime Darby Industrial Sdn Bhd / Liew Thiam Huat Sugu Construction Sdn Bhd / Dato’ Sri Sukumar Subrayalu, SSAP TCS Construction Sdn Bhd / Dato’ Ir Tee Chai Seng Trans Elite Group Sdn Bhd / Tan Zi Ni VSL Engineers (M) Sdn Bhd / Nalla Sundran WCT Berhad / Ong Ka Thiam, AMN Glocomp Systems (M) Sdn Bhd / Alex Liew Yoon Kit V-Cool Engineering (KL) Sdn Bhd / Dato’ Lim Chee Tong Gabungan Persatuan-Persatuan Pembina Malaysia (UMCA) / Sinn Fuh Ming Sabah Builders Association / Choo Wei Tak The Chartered Institute of Building Malaysia (CIOB) / Ts Ho Chee Leong Honorary Members HONORARY LIFE PRESIDENTS Datuk Lai Foot Kong, PJN, JSM Lai Moo Chan, JMN, KMN HONORARY BUILDERS Lau Mun Cheong, JMN, KMN Tan Sri Datuk Tee Hock Seng, PSM, PGDK, ASDK, JP Dato’ Ir Tan Kia Loke, DSNS, JMN, AMN, AMT, PJK HONORARY ADVISORS Dato’ Ng Kee Leen, DIMP, KMN Datuk Matthew Tee Kai Woon, DPSM Foo Chek Lee, JMW HONORARY ADVISOR (LEGAL) John Tong, AMN HONORARY ADVISOR (EDUCATION) Chua Siow Leng, KMN HONORARY ADVISOR (TAXATION) Yee Wing Peng 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)13 MASTER BUILDERS JOURNAL #126 New Members as at 9 th December 2022 Ordinary Members 1. Daikin Malaysia Sales & Services Sdn Bhd 2. Daya CMT Sdn Bhd 3. Eleaps Sdn Bhd 4. Kenco Construction Sdn Bhd 5. Mepspec Engineering & Services Sdn Bhd 6. MNS Work Sdn Bhd 7. Perbena Emas Sdn Bhd 8. Shinei Geotechnique (M) Sdn Bhd 9. Shinyou Elevator MFG Sdn Bhd 10. Wawasan Dengkil Sdn Bhd Associate Members 1. Cognitive Digital Sdn Bhd 2. HTL Industries Sdn Bhd 3. Lim Shin Fong 4. Messrs Caitlen, Nicholas Cheoh & Partners 5. Messrs J Nee & Azinuddin Karim 6. Messrs Jun Ling Advocates & Solicitors 7. SB Building Solutions Sdn Bhd 8. SIIX Malaysia Sdn Bhd 9. Sivdio Imaging Sdn Bhd 10. Software One Experts Sdn Bhd 11. Time dotCom Berhad 12. Wellspring Buildtrade Sdn Bhd Graduate Alumni Member 1. Rabiatul Adawiyah Binti Rosdan Graduate Alumni Life Member 1. Voo Vi Vien 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.14 MASTER BUILDERS JOURNAL #126 From the Desk of Oliver HC Wee MBAM President IFAWPCA The COVID-19 pandemic has put a halt to the Master Builders Association Malaysia (MBAM)’s active engagement with two regional constructors’ federations. After a lapse of four years, the International Federation of Asian and Western Pacific Contractors Associations (IFAWPCA) finally met in the Maldives in the Indian Ocean in November 2022. With myself attending, the IFAWPCA Presidents Conclave deliberated on how to improve the organising of future IFAWPCA conventions and I also chaired the Conditions of Contract Committee. The common challenge for contracting now is how to provide for a mechanism that will serve as a protective clause to shield contractors from materials price fluctuations. The war in Ukraine and China’s impending demand with its reopening from COVID lockdowns will exacerbate the situation with further energy price increases. Through discussion among members, it appeared that Singapore has more assistance in time and cost in its COVID-19 (Temporary Measures) Act for its people. ACF In October 2022, MBAM hosted the 52nd ASEAN Constructors’ Federation (ACF) council meeting and conference with the theme: ‘Together Shaping the Future of Construction in ASEAN’, attended by 150 delegates in Kuala Lumpur. The highlight of the conference was the conference and panel discussion session covering a myriad of technological advancements available to the ASEAN construction community, such as how technology can cut reporting times from days to minutes, and how to reduce construction days and delays with digital transformation. The integration of various technologies in construction projects would enable the industry to future-proof itself. Thus, the ASEAN construction industry has to embrace and adopt these latest technological advances in line with the Fourth Industrial Revolution in order to remain competitive and on par with other industries in the international arena. The industry’s failure to change with the wave of digitalisation and transformation of technology will increase its risk of being left behind. MBAM supported by the Construction Industry Development Board (CIDB) have been active in forging regional cohesion and upholding the principles of open regionalism amid crises on the regional and global stage. ACF and IFAWPCA are platforms for MBAM members to grow and explore international opportunities. Calls to Bank Negara Malaysia to intervene MBAM is concerned contractors are finding it hard to service their loans after the moratorium on payment had expired. They need seed capital to restart and to get more business to recover post-pandemic. Many small players are looking forward to restructuring their loans into longer payment terms to manage the impact of the pandemic on their businesses. Presently, contractors have little money to bid for new projects and are also cautious due to the uncertain supply of foreign workers while recruitment costs has also increased with a higher levy. Incentives should be provided to projects that utilise Industrialised Building System and Building Information Modelling, as the government is promoting the industry to move into the digital construction era. MBAM is heartened to know that Bank Negara has various types of funds amounting to RM11.2 billion that contractors can apply to for relief. Courtesy visit to see Minister of Ministry of Works, YB Dato’ Sri Alexander Nanta Linggi The above meeting took place on Thursday, 29 December 2022 at the Ministry of Works, Malaysia office in Jalan Sultan Salahuddin, Kuala Lumpur. The meeting gave MBAM an opportunity to brief the YB Minister on the impact left by COVID-19, namely the issues of disputes and liabilities, fluctuation of material prices and proposed solutions, manpower and labour issues, shortage of projects and the rising cost of compliance. MBAM sought the Minister’s and the Government’s intervention to help the Malaysian construction industry face all the challenges mentioned earlier. The much-needed assistance from the Government will help contractors complete projects in a timely manner and avoid termination or abandoned projects. Full support of the government of the day MBAM hopes that our new government will relook its economic strategy and grant the industry a better path of recovery to return it to its heyday of double-digit annual growth. Construction is the engine of growth much needed currently as many foreign economies are expected to be hit by recession triggered by rising energy prices and supply chain disruption caused by the war in Ukraine. Yours sincerely, Oliver HC Wee KMN, AMN MBAM PresidentDelivering Excellence, Embracing Sustainability SUNWAY CONSTRUCTION GROUP BERHAD (201401032422 (1108506-W)) A member of Sunway Group Level 8, Menara Sunway, Jalan Lagoon Timur, Bandar Sunway, 47500 Selangor Darul Ehsan, Malaysia. W www.sunwayconstruction.com.my E enquirysuncon@sunway.com.my T 603 5639 9696 | F 603 5639 9601 Sustainable Energy ServicesVirtual Design & Construction Building Construction ServicesCivil & Infrastructure ServicesFoundation & Geotechnical Engineering Services Mechanical, Electrical & Plumbing ServicesManufacturing & Sale of Precast Concrete ProductsCOVER FEATURE ASEAN Construction Highlights Extracts from the ASEAN Constructors Federation 52 nd Council Meeting 16 MASTER BUILDERS JOURNAL #126areas, leading to more economic activity, from tourism to food and beverage to retail. These other industries can help support economic growth in the country in the way that the construction market outlook in Cambodia also looks more favourable for investment. As the country also begins to open up to foreign tourists, investments in tourism hubs like Phnom Penh, Siem Reap, and Sihanoukville are also expected to contribute to the favourable outlook of the construction market in Cambodia. Developments in the country’s busy areas, especially in real estate, will also help the local labour force looking to invest in property for profit down the line. With both government policies and foreign investments contributing to the growth of the construction industry in Cambodia in 2022, the country can look forward to more favourable conditions that support the growth of the industry and its contribution to the national economy in the years to come. Indonesia Indonesia’s GDP growth was 5.02% in 2019 before hitting -2.07% in 2020 due to the COVID-19 pandemic. It bounced back to 3.69% in 2021. The Indonesian economy expanded by 5.44% year-on- year in the second quarter of the year Cambodia Cambodia’s GDP growth was 7.1% in 2019 before hitting -3.1% in 2020 due to the COVID-19 pandemic. It bounced back to 3.0% in 2021 and 5.6% in 2022. The construction investment and project numbers saw a similar decline due to COVID-19, from USD11,437 million in 2019 to USD7,000 million in 2020, USD5,333 million in 2021 to USD1,963 million in 2022 (up to September). The investment for the construction sector in Cambodia up to the third quarter of 2022 was USD1,963 million (up to September), of which USD416 million is foreign investment. China was the biggest foreign investor with USD256 million, with Taiwan in second at USD82.7 million. In terms of foreign construction companies registered in Cambodia: 703 are from China, 187 from South Korea, 80 from Vietnam, 60 from Japan, 48 from Thailand and 40 from Malaysia. However, perhaps due to the COVID-19 pandemic, the majority of these companies have let their licenses lapse. Only 346 companies from China, 37 from South Korea, 30 from Vietnam, 29 from Japan, 7 from Thailand, and 14 from Malaysia still have valid licences. With more infrastructure underway across the country, the country might see the development of more urbanised 2022, which is above the forecast of 4.5% year-on-year and even above the general consensus, which averaged around 5.3% year-on-year. The better-than-expected economic activity in the second quarter of 2022 has allowed for a more optimistic attitude toward economic expansion for the remainder of the year, although a number of significant challenges persist that could undermine growth. The construction sector was the 5 th largest contributor to the country’s Gross Domestic Product (GDP) for the first quarter of 2022, coming in at 10.42%. The value of construction work completed index increased by 8.51% in the first quarter of 2022, compared to the first quarter of 2021. The value of construction works completed in the first quarter of 2021 was 130.15, and 141.22 for the first quarter of 2022. The value of construction works completed index during the first quarter of 2022 contracted by 2.63% quarter to quarter, in comparison to a 2.10% contraction for the first quarter of 2021. During the pandemic, most construction works slowed down. Now, as the Indonesian construction sector is getting back to normal, the number of projects is still low. Private projects are limited; hence contractors are heavily reliant on government projects, which are mostly offered under the PPP scheme. The situation has also worsened with the war in Ukraine, which caused an increase in fuel and other materials prices. Project opportunities include: 1) Semanan – Balaraja Toll Road The Semanan- Balaraja Toll Road Plan is part of the Jabodetabek Toll Road Network which stretches 32.715 km. The starting point of the project is the end of the Serpong- Balaraja COVER FEATURE The recently concluded 52 nd Council Meeting of the ASEAN Constructors Federation (ACF) in Kuala Lumpur, on 17 October 2022, saw a wealth of information being shared by its members across the ASEAN construction fraternity. Master Builders Journal has prepared the following summary of key updates for the respective countries. 17Next >