< Previousspecifications or requirements. Purchasers have the right to complain about the defects of the products and the qualified person would then make his judgement call in the event of any disputes. Nonetheless, it would be advisable to seek views from the Housing Tribunal of the Ministry of Local Government Development (KPKT) to decide whether the so-called 3rd party assessment report can be used for tribunal cases, as sometimes, the complaints raised could be beyond the reasonable limit/tolerance (e.g. zero hollow tiles). Most construction works are carried out by manual labour, and as such, it is inevitable that the resulting workmanship can never achieve 100% perfection, such as zero hollowness in tiles, zero hairline cracks, and so forth. As long as safety is not compromised, variations should be expected. There must be some form of acceptable tolerances, which is recommended to be discussed with CIDB. Tang Juang Yew MBAM Council Member and Executive Director of Al-Ambia Sdn Bhd What is QLASSIC? QLASSIC is a quality system devised and adopted by the construction industry sector to systematically measure and evaluate the accomplishment of workmanship quality for building construction works. It has been devised to assess the workmanship quality of various construction elements by a scoring system, which awards marks for quality achieved based on accepted and approved Construction Industry Standards (CIS 7). The objectives of QLASSIC as developed by CIDB is to enable the quality of workmanship to be assessed objectively and serve as a benchmark within the construction industry. The assessment is through site inspections and primarily on the works that have been completed first and without any further remedies. Therefore, this system of evaluation of workmanship quality is not meant for the homeowners to use or apply during the stage of vacant possession to check for any defects. Can homeowners apply QLASSIC? The answer would be no. As explained in the previous question, it has also been confirmed by CIDB that homeowners should not use the QLASSIC (CIS 7) methods. This system was developed to be based on the sampling of 30% of the total number of units in a project for purposes of score calculation. I am not in a position to answer on behalf of the developer on the legality or contractual obligations between the developer and the house buyer. As for contractors, we are bound contractually by the contract provisions signed with the developer, and not the home buyer. What is your advice to contractors? My advice for contractors is: During the vacant possession stage, and if a home buyer employs a 3rd party inspector to check for defects based on QLASSIC (CIS 7), the matter should be referred to the project architect for an inspection, in order to confirm which defects actually require rectifications. In the event the home buyer refers this rectification of defects to the KPKT tribunal, you, as the contractor, would then be able to use the architect’s defect lists to defend your company. Ar. Anthony Lee Group Chief Operating Officer and Transformation Officer of Bina Puri Holdings Berhad and Managing Director of Architect Centre Sdn Bhd PAM recently issued a Practice Note to its members due to concerns over the misuse of the QLASSIC benchmarking by 3rd party inspectors for single dwellings for post-vacant possession handover defects inspection reports. Your comments? In a nutshell, the practice note was issued to clarify that the role of the architect in determining what constitutes a building defect is always based on the standards and specifications stipulated in the specifications of the building contract. When a dispute arises over an alleged defect, the architect is bound by professional code to act as an independent professional and shall make an assessment based on the building contract, prevailing laws, and the approved building plans. Property developers and homeowners should be clear about the objectives of the QLASSIC assessment to provide the construction industry with a benchmarking assessment rating tool for the quality of workmanship of building construction in Malaysia. When assessing individual projects, the QLASSIC score is given for the entire development through random sampling and does not pick up defects in every unit. It must be emphasised that QLASSIC benchmarking does not form any part of Schedules G and H of the Housing Development (Control and Licensing) Regulations 1989, and is not stipulated in the 4 th Schedule (Building Description) of the Housing Developer’s Sales and Purchase Agreement. As such, vacant possession is not incumbent on the QLASSIC assessment benchmarking score. Upon vacant possession under Schedules G and H, there is a 24-month defect liability period. During this time, the homebuyer of individual housing units may continue to report on defects, as some latent defects may only become apparent over a period of time. SPECIAL FEATURE 28 MASTER BUILDERS JOURNAL #126Particularly high versatility Due to its suitability for walls, columns and foundations Simplified material management Due to its integrated brace connectors and multifunctional panels Lean and efficient portfolio With only three panel heights and widths in each case, with inside and outside corners Formwork Scaffolding Engineering www.perimalaysia.com HANDSET Alpha Panel Formwork Less weight, more flexibility, better handling Contact Form SCAN ME! + 60(03) 7969 1088 info@perimalaysia.comIndustry & Practices IP Webinar—Tax Considerations When Dealing with Creditors and Recent Tax Cases 9 AUGUST 2022 This webinar was held on 9 August 2022 via Zoom, and was organised by the MBAM Finance Committee in collaboration with Crowe Malaysia. It was attended by 32 participants. Chong Mun Yew and Michael Cheah Liat Sheng from Crowe Malaysia were the two speakers, and they spoke about the potential tax implications on the possible workout solutions with creditors, as well as sharing some examples of tax cases that are related to the construction industry. MBAM Deputy Chairperson of the Finance Committee Tan Zi Ni kicked off the webinar, before Michael Cheah spoke on the topic of ‘Present Challenges of the Property Sector’. These challenges include the oversupply of properties in the market, price affordability and end-financing. He also elaborated on some informal rescue measures for distressed companies to overcome their financial issues, with tax implications on the possible workout solutions with creditors explored by looking at some precedent tax cases. The second speaker, Chong Mun Yew, spoke on the planning for minimisation of tax liabilities, schemes that are tax efficient such as selling company shares vs selling land or property, and transfers within the group or outside the group. The webinar ended with a Q&A session hosted by MBAM PR Executive, Farah Alia. Overall the webinar was very informative and MBAM hopes that members will continue to support such events in the future to further elevate the professionalism of the construction industry. 30 MASTER BUILDERS JOURNAL #126Industry & Practices IP Sustainable Financing for the Built Environment 11 AUGUST 2022 A talk on sustainable financing for the built environment was organised by MBAM Environment, Green Technology & Sustainability Committee on 11 August 2022 at Co-labs Coworking Shah Alam. The objective of this event was to highlight current developments and trends in sustainable financing, especially for the construction sector, and sustainable financing opportunities for developers and contractors, as well as how to be eligible for them. Around 52 participants attended the talk. MBAM Deputy President cum the Chairman of Environment, Green Technology & Sustainability Committee, Kenneth Liew Kiam Woon, noted in his welcome speech that sustainable financing has increased in popularity over the years, and has today become a driving force behind many sustainable and green development projects. A total of eight speakers from CIMB presented their viewpoints and shared their knowledge at the event. The first speaker was the CIMB Head of Group Sustainability, Luanne Sieh, who espoused the importance of sustainability and the impact of human activity to the planet. She also shared how CIMB implements sustainable finance. The second speaker was the CIMB Assistant Vice President of Group Sustainability, Ting Yik Boh, who spoke on the topic of the Malaysian Code on Corporate Governance (MCCG). In her presentation, she elaborated on the best practices for boards and management of a company, and how they affect the sustainability of the company. She also shared with the audience what City Developments Limited (CDL) and CapitaLand Integrated Commercial Trust (CICT) is. The third speaker was the CIMB Director of Group Sustainability, Gabriel Chong. His topic was ‘Human Rights in Supply Chain’. He began with sharing international news related to the misfortune of workers and the inhumane treatment of workers, before delving into the principles of business and human rights, and the human rights issue in the construction industry, steps taken to address forced labour in Malaysia, and CIMB Group’s human rights policy. The fourth speaker was the CIMB Assistant Vice President of Group Sustainability, Rubern Chandran. He presented on current developments and trends, in particular the construction sector. He also talked about Greenhouse gas (GHG) emissions in the built environment, the initiatives taken by Malaysia to reduce carbon emissions in the construction industry, and the efforts to establish low carbon cities to create a more sustainable environment. He shared with the audience the way forward for sustainable construction in Malaysia, CIMB’s sustainable financing policy, and the importance of sustainable financing to contractors. The fifth speaker was the CIMB Managing Director of Regional Debt Capital Markets, Cindy Soo, with the topic ‘Financing Sustainable Projects via Debt Capital Markets (Bonds/Sukuk)’. Noting that sustainable investments are getting more attention from investors around the world, she introduced the Green, Social and Sustainability Bonds/ Sukuk, and shared the overview of market frameworks for GSS Bonds/ Sukuk for ASEAN issuers and the positive impact of sustainable financing. The sixth and seventh speaker were the CIMB Managing Director of Head, Real Estate and Construction, Hueye Lin Kah Fun and the CIMB Director of Real Estate and Construction, Henry Lew Kah Seng, respectively. The both delved into the topic of Sustainability Linked Loans (SLL). The speakers deliberated on the definition and importance of Sustainability Linked Loans, how CIMB structures SLL, the principles of sustainability performance targets (SPTs), and a case study on the process flow for sustainability linked loans. The last speaker was the CIMB Director of Islamic Commercial Banking, Azmir Abdullah. He introduced the CIMB GreenBizReady Proposition & Low Carbon Transition Facility for SMEs – a one-stop sustainability solution for local small and medium enterprises (SME). A lively session during the talk 31 MASTER BUILDERS JOURNAL #126Industry & Practices IP MBAM CIPAA 2022 Conference 12 AUGUST 2022 Organised by the MBAM Contracts and Practices Committee, the MBAM CIPAA 2022 Conference was held on 12 August 2022 at the Nippon Paint Forward Expo at Shah Alam. The event was sponsored by IJM Corporation Berhad as the Titanium Sponsor, and Nippon Paint (Malaysia) Sdn Bhd as Platinum Sponsor. The guest of honour was Kuala Lumpur High Court Judge, Construction Court 1, the Honorable Dato’ Lim Chong Fong. General Manager of Nippon Paint (Malaysia) Sdn Bhd, Tay Tze Tuck, welcomed everyone to the conference while Marketing Manager of Nippon Paint (Malaysia) Sdn Bhd, Irene Teo, provided an overview of the products and services of Nippon Paint (Malaysia) Sdn Bhd. MBAM President, Oliver HC Wee in his opening speech, said that statistically, based on data from 2014 to 2021 for adjudication cases from the Asian International Arbitration Centre (AIAC), there has been a total of 4,016 registered cases. “I invite you to imagine how much money has been spent on legal costs over the years. Estimating RM100,000 for both parties per case, the overall cost is estimated at an astounding RM401,600,000, without taking into consideration the expenses of engaging other experts into the case and subsequent appeals,” he said. Not only does this not serve the original purpose of CIPAA, this cost is not budgeted for by the contractors and is in fact, transacted from our industry to the law economy. The process of adjudication is lengthy due to the allowance on appeals of which the industry did not expect. This has cost more time and money. Thus, the levels of appeal should be reviewed. The High Court Judge of Kuala Lumpur Construction Court 1, Yang Arif Dato’ Lim Chong Fong, in his keynote surmised that the Malaysian construction industry is presently better with the CIPAA than without. “In fact, it is the buzz-phrase nowadays for unpaid contractors to utter ‘Saya akan CIPAA kamu!’,” he said. The reality is that only those construction players that do not have a genuine reason to dispute payment should fear the CIPAA, as the status quo that had served them well all this while would no longer be the same. The judge acknowledged that many payment respondents are presently unhappy because they perceive that the adjudicators are generally sympathetic to the payment claimants. The topics and speakers who presented at the conference were: 1. CIPAA 2012 - What’s your take? — By Partner, Yatiswara, Ng and Chan, Karen Ng Yueh Ying and Partner, Karen Mak and Partners, Karen Ng Gek Suan 2. CIPAA tomorrow-Where are we heading? — By Partner, Messrs. Azman Davidson & Co., Datin Chu Ai Li Presenting a token of appreciation to Tay Tze Tuck, General Manager of Nippon Paint (Malaysia) Sdn Bhd 3. Alternative dispute resolution other from CIPAA Partner — By HSKS Dispute Resolution Chambers, Ir Harbans Singh KS Executive Chairman Benchrisda Associates Sdn Bhd, Sr Dr Ong See Lian was the moderator, alongside three panelists: Group Procurement Deputy Director Gamuda Berhad, Hong Kok Siong; Head of Contract Department IJM Construction Berhad, Chia Moh Cheang; and Head of Commercial Mudajaya Corporation Berhad, Max Chew Choon Hong. A lively question and answer session also took place. MBAM Deputy Secretary-General 1 Cum MBAM Contracts and Practices Chairman, Ir Anthony Teoh wrapped up the conference by delivering the closing address. Overall, it was a successful conference that was attended by 140 participants for the seminar, while 94 participants attended the networking session that was held after the event. 32 MASTER BUILDERS JOURNAL #126Industry & Practices IP Meeting—Malaysia’s Participation in the Development of Nusantara, the New Capital City of Indonesia No 2/2022 19 AUGUST 2022 MITI Deputy Secretary General (Industry) YBhg Dato’ Sri Norazman Ayob chaired a meeting to update participants on the latest project opportunities available in the development of Nusantara, the new capital city of Indonesia; as well as to seek updates from the private sector, stakeholders and associations of their participation in Nusantara. MBAM Committee Members Tan Kim Yoke (Sunway Construction), Annuar Khairi bin Mohd Razali (IJM Construction), Ts Dr Ong Chong Yong (Experiva Solutions), Alternate Council Member Tony Kok and Assistant General Manager Lee Siew Mei attended the meeting on behalf of MBAM. MITI Director on Service Sector Development Division, Sumathi Balakrishnan, briefed attendees on Indonesia’s plan to relocate the national capital, as based on “Kementerian Perencanaan Pembangunan Nasional/ Badan Pembangunan Nasional (BAPPENAS)–31 March 2022.” The list of potential projects in the new capital of Indonesia covered: A. Economic Clusters – sustainable agriculture industries, integrated pharmaceuticals, smart cities & digital hubs, inclusive-tourism & wellness, 21st century education, next generation renewable manufacturing and advanced chemicals. B. Regional Infrastructure – new capital city access toll roads and airport line (express line). C. Government Core Infrastructure – basic infrastructure such as water supply, wastewater management, solid waste management & solar power development; transportation covering BRT systems, intelligent transport systems and urban freight transportation; development of housing. Dato’ Sri Norazman highlighted that the Malaysian business community should take advantage of the vast opportunities in Nusantara due to its close proximity to Malaysia and our strong bilateral ties with the Indonesian Government. MITI is also working closely with some government linked companies such as Khazanah to strategise business arrangements. Private sectors and other stakeholders are welcome to submit their proposals to MITI for consideration or for any necessary assistance. MBAM Committee Member Tan Kim Yoke concurred with the view that construction players will need the backing of the Malaysian Government to smoothen any processes via Government-to- Government arrangements. He also highlighted that MBAM will be organising a ‘Construction Export and Business Mission to Indonesia’ on 4 to 7 September 2022, with the aim of exploring project opportunities in Indonesia, in particularly the development of Nusantara. The mission is assisted by MITI Jakarta, Minister Counsellor (Economy), Mohd Najeeb Abdullah. Dato’ Sri Norazman announced that a working group will be following-up closely on the initiative to be involved in the development of the proposed new capital Nusantara. Engaging the industry on the sidelines of the meetingMBAM with MITI Director on Service Sector Dev. Division, Sumathi Balakrishnan 33 MASTER BUILDERS JOURNAL #126Industry & Practices IP Pre-Mission Meeting Between Members of MBAM and the Indonesia Contractors Association (ICA) 2 SEPTEMBER 2022 Group photo at the end of the pre-mission meeting One of ICA Members, PT Adhi Karya (Persero) Tbk shared their company expertise and experiences A pre-mission online meeting between MBAM and ICA was held on 2 September 2022. The aim was to create a platform for members of MBAM to get to know members of the Indonesia Contractors Association (ICA) who would like to work with members of MBAM. Approximately 34 participants signed-in to attend the pre-meeting. ICA Chairman of International Affairs Relations, Andi Purwana Sutjipto, welcomed all to the said session and introduced major ICA members by sharing their presentations and company profiles. He later presented on specific up-coming project opportunities in Indonesia. The major ICA members that were introduced were PT PP (Pesero) Tbk, PT Brantas Abipraya (Persero), PT Tripatra Engineers & Constructors, PT Adhi Karya (Pesero) Tbk, PT. Karya Intertek Kencana and PT Wasco. 34 MASTER BUILDERS JOURNAL #126Industry & Practices IP Technical Seminar—Navigating Social Security & Wellbeing Post COVID-19 in Asia 6-8 SEPTEMBER 2022 Ketenagakerjaan, Indonesia — Psychological Safety in Disability Management, — By Mark Lester R. Flores, Employees’ Compensation Commission, Philippines — Enhancing Work Flexibility in Disability Management — By Abhinandan Mookherjee, Asia HRM — Supporting Early Return to Work of Industrially Injured Workers using the Data-based Scientific Rehabilitation Administration, — By Zhang Shangyil, COMWEL — The Portability of Social Security Rights between ASEAN States — By Dr Bonnwara Sumano Chenphuengpawn, Thailand Development Research Institute (TDRI) 3. Thematic Session 3: Social Security Protection for Migrant Workers — Social Security Protection for Migrant Workers in Malaysia — By John R. Marin, SOCSO — Social Security Protection for Thai Migrant Workers Abroad — By Tanodom Jariyapan, Social Security Office (SSO) of Thailand — Pandemic-caused Service Transformation for All Domestic & Migrant Workers — By Indrajid Nurmukti, BPJS Ketenagakarjaan, Indonesia — Way Forward in Securing Filipino Migrant Workers: Philippine SSS Experience, — By Joy A. Villacorta, Social Security System (SSS) of Philippines — Closing the Gap: Extending Social Security Protection Coverage to Migrant Workers — By Markus Ruck, ILO Decent Work Technical Support Team for East and South East Asia and the Pacific Jointly organised by the Asian Workers’ Compensation Association (AWCA) and Social Security Organisation of Malaysia (SOCSO), this three-day technical seminar was held on 6 to 8 September 2022 at the Intercontinental, Kuala Lumpur. The seminar was officiated by Deputy Minister of Ministry of Human Resource, YB Haji Awang bin Hashim. The main objective of the seminar is to promote a better understanding of social security trends that would not only help workers, but the regional economy collectively. The seminar also aimed to communicate and discuss specific strategies and case studies to strengthen social security systems in the region. The first two days are reserved for the seminar, while the third day involves a visit to the SOCSO Rehabilitation Centre at Melaka. For the seminar, three thematic sessions and the topics were presented for each session: 1. Thematic Session 1: Vision Zero in the Digital Era — Addressing the Safety & Health of Delivery Riders in Korea via Workers’ Compensation Insurance — By Dr Kang Soonhie, Korea Workers’ Compensation and Welfare Service (COMWEL) — Getting the Community on Board, Malaysia — By Dr Azlan bin Darus, SOCSO — Vision Zero Experience in Thailand — By Dr Chaiyuth Chavalitnitikul, Safety and Health at Work Promotion Association (SHAWPAT), Thailand — Implementation of Vision Zero Initiatives Among Small and Medium Enterprises — By Dr Kamarizan Kidam, Universiti Teknologi Malaysia — Promoting Vision Zero in Singapore through Industry & Community Outreach — By Mr Christopher Koh, Workplace Safety and Health Council, Singapore 2. Thematic Session 2: Rehabilitation and Return to Work — CDMP Certification as Universal Language in Disability Management — By Azirruan Arifin, SOCSO — Return to Work Program for Migrant Worker — By Roswita Nilakurnia, BPJS A lively discussion during the panel discussion 35 MASTER BUILDERS JOURNAL #126Construction Export & Investment Mission to Indonesia Industry & Practices IP 4-6 SEPTEMBER 2022, BALIKPAPAN6-7 SEPTEMBER 2022, JAKARTA Indonesia’s developing public infrastructure remains a major national challenge and presents opportunities in aviation, rail, ports and land transport; as well as in municipal infrastructure projects such as water supplies, wastewater systems and waste management facilities. From 2020 to 2024, Indonesia plans to develop its transportation infrastructure including toll roads, new roads, and bridges. Projects to build mass transportation systems are planned for the six metropolitan areas of Jakarta, Surabaya, Bandung, Semarang, Medan and Makassar, with the goal of reducing economic losses due to traffic jams. On 18 January 2022, Indonesia’s Parliament passed the Capital City Bill into law, which meant that the construction of the country’s new capital can begin, ahead of the planned relocation from Jakarta starting in early 2024 to the East Kalimantan province. Indonesia’s new capital, which was first announced in 2019, is estimated to cost over US$35 billion to construct. The government has also just announced the name ‘Nusantara’, meaning archipelago – to be the new capital’s name. Indonesia’s plans to move its capital presents ample opportunities for foreign investors in the region in particular for Malaysian investors, given that Malaysia is a strategically close neighbour to Indonesia. In brief, Indonesia’s growth rebounded to 3.7% in 2021 after a contraction of -2.7% in 2020. Economic growth is expected to reach 5.1% in 2022, accelerating into 2023 with pent- up demand as a driver. According to the World Bank, Indonesia is a middle- income country with growing income levels and is expected to rise to upper- income status by 2030. In view of the vast opportunities in Indonesia, MBAM had led a delegation of 24 construction industry representatives for an export and investment business mission to Indonesia from 4 to 7 September 2022. The mission aims to conduct engagement activities in Balikpapan and Jakarta, in order to obtain first- hand the latest information on potential investments and business opportunities relating to the development of Nusantara. This mission is fully supported by the Embassy of Malaysia in Indonesia, Malaysia External Trade Development Corporation (MATRADE) and the Construction Industry Development Board Malaysia (CIDB). It will also be MBAM’s first in-person trade visit since the onset of the global pandemic. Organised by the International Affairs & Business Development Committee of MBAM and led by MBAM Immediate Past President, Tan Sri Sufri Haji Mhd Zin, the visit is designed to assist and facilitate Malaysian construction businesses seeking to expand into new markets. Participating company representatives had a unique opportunity to meet face-to-face with relevant Indonesian government representatives and market experts, in addition to prospective and existing local business contacts. The four-day visit also featured a focus group discussion with the Ibu Kota Negara (IKN) stakeholders, namely the Otorita IKN Nusantara, Ministry of Investment Indonesia, Badan Perencanaan dan Pembangunan Daerah Kalimantan Timur (BAPPEDA), and Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) Kalimantan Timur; a meeting discussion with representatives from the Ministry of Public Works and Housing and Perusahaan Umum Daerah (Perumda) Pembangunan Sarana Jaya; networking sessions with members of the Indonesia Contractors Association (ICA) and the Indonesian Chamber of Commerce and Industry (KADIN) in Jakarta, Balikpapan and East Kalimantan; a B2B Meeting and networking session with members of Himpunan Pengusaha Muda Indonesia (HIPMI) as well as a sharing session with the local Malaysian business community. The Nusantara national capital project is a major potential catalyst for significant growth in the region, with immense opportunities for collaboration with Malaysian companies in terms of capital investment and construction works. MBAM Secretary- General, Datuk Astaman Abdul Aziz in his press statement dated 4 September 2022, said “MBAM’s primary objective is to help Malaysian construction companies, including small and medium sized firms, compete and succeed globally. This mission is a vital manifestation of that objective, and we look forward to paving the way for Malaysian construction industry players to meaningfully participate in the IKN Nusantara project, especially in the long term”. 36 MASTER BUILDERS JOURNAL #126Industry & Practices IP Networking Dinner with KADIN Balikpapan and East Kalimantan 4 September 2022 @ Grand Jatra Hotel, Balikpapan B2b Meeting & Networking Dinner with Himpunan Pengusaha Muda Indonesia (HIPMI) 5 September 2022 @ Grand Jatra Hotel, Balikpapan & Restaurant Seafood 4 Networking Dinner with Bpk. Dhony Rahajoe, Deputy Head Of Nusantara Capital City Authority 6 September 2022 @ Double Tree By Hilton Hotel, Jakarta Discussion Meeting with Ministry of Public Works and Housing (PUPR) and Perusahaan Umum Daerah (Perumda) Pembangunan Sarana Jaya 6 September 2022 @ Double Tree by Hilton Hotel, Jakarta Networking Lunch with KADIN Indonesia 7 September 2022 @ Double Tree By Hilton Hotel, Jakarta Focus Group Discussion on Indonesia’s New Capital City Nusantara and East Kalimantan/IKN Stakeholders 5 September 2022 @ Grand Jatra Hotel, Balikpapan Networking Lunch with Malaysian Business Community 6 September 2022 @ Double Tree By Hilton Hotel, Jakarta 37 MASTER BUILDERS JOURNAL #126Next >