< PreviousTown Hall Session with Lembaga Hasil Dalam Negeri Malaysia (LHDN) 30 JANUARY 2023 MBAM President, Oliver HC Wee; Honorary Advisor (Taxation), Yee Wing Peng; and General Manager, Lenny Lim, attended a Town Hall Session with LHDN CEO, Datuk Dr Mohd Nizom bin Zairi in January 2023 at the Intercontinental Hotel Kuala Lumpur. In the Malaysian construction industry, disputes between and among contracting parties have become commonplace in recent years. With more than 1,000 cases related to construction contract disputes in various courts, the adjudication and arbitration contributes substantially to the disputed amounts, which comes up to billions of Ringgit. Many of these cases involve defaulted payments on work done and certified payments. However, contractors would have already paid the tax in accordance to the certified amount. With the current situation, where many more compliances are imposed on doing business as well as the industry experiencing upward fluctuations of material prices, contractors have no cushion in cash flow to pay the taxes in advance. Therefore, MBAM hopes to appeal to LHDN to consider such disputed amounts be exempted from tax temporarily, until the judgement is delivered. MBAM President, Oliver HC Wee having a pre- meeting with MBAM Honorary Advisor (Taxation), Yee Wing Peng Sectoral Training Committee (STC) Meeting 1/2023 21 FEBRUARY 2023 Launch of the KL Architectural Festival 2023 7 JANUARY 2023 MBAM President second from right MBAM President, Oliver HC Wee and General Manager, Lenny Lim, attended the above launch on Saturday, 7 January 2023 at the Pertubuhan Akitek Malaysia (PAM) Building in Jalan Tandok. Deputy Minister of Local Government Development, YB Akmal Nasrrullah Mohd Nasir, officiated the opening ceremony. The Kuala Lumpur Architecture Festival (KLAF) 2023 kicked off to a roaring start signalling the start of its NEXT100 theme – with KLAF’s diverse programmes designed to appeal to different segments of the public. More than 100 programmes are slated to take place throughout the year under the overarching NEXT100 theme, an ode to PAM’s centenary anniversary, which falls in 2023. The STC held its first meeting for the calendar year on 21 February 2023 at Wisma HRD Corp. Interim Chairman, Poobalan Murugesen chaired the meeting and discussed deliverables under the STC. The meeting was attended by MBAM Deputy Secretary General 1, Ir Anthony Teoh, and Technical Director, Andrew Lee. MBAM was recently appointed to be the chairman of STC. Industry & Practices IP 28 MASTER BUILDERS JOURNAL #127Presentation—Impact of Material Price Escalation & Labour Shortages to JACTIM 14 FEBRUARY 2023 Meeting—Technical Working Group on Paying Taxes (TWGPT) 1/2023 7 FEBRUARY 2023 The above online meeting was attended by MBAM Honorary Advisor (Taxation), Yee Wing Peng; Deloitte Malaysia Executive Director (Tax), Choy Mee Won; Buildtech Sdn Bhd Project Director, Dr Leong Kit Keong; MBAM Executive Director, Loh Mei Ling; and MBAM General Manager, Lenny Lim. MBAM raised the issue of recognising the Certificate of Making Good Defects (CMGD) instead of the Certificate of Practical Completion (CPC), as the Completed Project Ending Date. As per the construction industry norm, under contract provisions, the builder is normally given 12 to 18 months (varies based on the contract) after the CPC date, to finalise all Variation Orders (VO) and project final accounts before CMGD. Thus, during a completed project’s CPC accounts financial year, it is not possible for the builder to have an accurate estimation of the total value of VOs, and to finalise the completed project’s final accounts. Currently, LHDN is taking CPC as the official project ending date (accrual accounting), and thus requires builders to capture and finalise a project‘s accounting (all profits in estimation inclusive of profit that is yet to be received, with its related rate and quantity) by the year of when a project’s CPC has been issued. Because not all VOs can be finalised by this period, builders need to estimate a project’s VOs and come out with the final accounts by the CPC financial year for submission to LHDN. A project normally involves many VOs in which the developer requires time to finalise. In fact, after a project’s CPC date, there may be additional VOs added to address different authorities’ compliance requirements in the process of obtaining CCC, which is after CPC. Additionally, during Vacant Possession (VP), a builder may encounter a situation where the client requires some additional add-ons which may require new VOs. MBAM Vice President, Eric Yong was recently invited by the Japanese Chamber of Trade & Industry, Malaysia (JACTIM), to present on the ‘Impact of Material Price Escalation & Labour Shortages in the Construction Industry and Way Forward’ to their members. Via an online presentation, Eric Yong shared details about Malaysia’s current economic performance, construction demand, updates on construction projects, construction materials demand & prices, employment in the construction sector, industry challenges, and the country’s construction outlook for 2023. He concluded his presentation on a positive note and expectation. Broadly, MBAM hopes that its voice is heard when the 2023 Budget is re-tabled, and that it will be a more favourable budget for the construction sector. A token of appreciation was presented to Eric Yong by the representative from JACTIM, Yasuhiro Taniuchi. Frank Fan, Eric Yong and Yasuhiro TaniuchiMBAM Vice President, Eric Yong Industry & Practices IP 29 MASTER BUILDERS JOURNAL #127MBAM and CECCM Seminar— Post COVID 19 Measures– CIPAA and Mediation 24 FEBRUARY 2023 MBAM collaborated with the China Enterprise Chamber of Commerce (CECCM) in Malaysia to conduct this seminar at the MBAM Training Centre. The topics and speakers were: 1. Construction Disputes in Malaysia: Contemporary Developments—by Managing Director of HsH Consult Sdn Bhd, Ir Harbans Singh KS 2. CIPAA and Mediation—by Partner of Yatiswara, Ng and Chan, Karen Ng Yueh Hing 3. Statutory Adjudication in Malaysia —by Partner of Yatiswara, Ng and Chan, Kenny Chan Yew Hoong MBAM also signed an MoU with CECCM to establish linkages and collaboration to promote and provide mediation services for their respective members. MBAM’s existing mediation service with its empanelled mediators will provide its services to CECCM members when required. The objective is to mitigate disputes to the minimum damage for any disputing parties with amicable solutions. MBAM was represented by MBAM President, Oliver HC Wee while CECCM was represented by CCIWC President, Lyu En for the signing ceremony. Also present were the CECCM Treasurer, Charles Yang Zhijun, and CCIWC Committee Member Rebecca Deng. In the Malaysian construction industry, disputes between and among contracting parties have unfortunately become common in recent years. At present, there are more than 1,000 cases in various courts related to construction contract disputes. Adjudication and arbitration contribute substantially to the disputed amounts. Many disputes involve work being done and payment being certified but defaulted on. MBAM hopes that by providing mediation services to its members and players in the construction industry, disputes can be settled quickly and as amicably as possible. CECCM Treasurer, Charles Yang giving his opening remarks Industry & Practices IP Sitting down from left: MBAM Honorary Advisor (Legal), John Tong, MBAM President, Oliver HC Wee, CCIWC President, Lyu En, CCIWC Committee Member, Rebecca Deng. Standing from left: Partner, Yatiswara, Ng and Chan, Advocates and Solicitor, Kenny Chan Yew Hoong, Partner, Yatiswara, Ng and Chan, Advocates and Solicitor, Karen Ng Yueh Ying, CECCM Treasurer, Charles Yang Zhijun, Managing Director, HSH Consult Sdn Bhd, Ir Harbans Singh K.S. 30 MASTER BUILDERS JOURNAL #127CIDB Standard Form of Building Works for Public Comments 2022 Edition 6 MARCH 2023 CIDB Seminar on Act 520: Mandatory Standard Requirements for Aluminium Windows and Sliding Doors MS832 & MS1017 2 MARCH 2023 The MBAM Contracts and Practices Committee Deputy Chairman, Steven Shee, Contracts and Practices Committee Member and General Manager, Lenny Lim, attended the CIDB Standard Form of Building Works for Public Comments 2022 Edition via Webex on 6 March 2023. The period for public comments was from 6 March 2023 to 31 March 2023. The session was moderated by Dr Zul Zakiyuddin bin Ahmad Rashid, School of Housing, Building and Planning, University Sains Malaysia. He encouraged attendees to submit suggestions for improvement. Some of the changes highlighted include the important role of SO and all the parties to work together, early warning systems, identifying compensation events, giving of notices and the handling of disputes. This CIDB seminar was jointly organised by JSM, CIDB & PIFM, and was attended by MBAM General Manager, Lenny Lim. The Opening Speech was delivered by Director General of the Malaysia Standards Department, Shaharul Sadri Alwi, while another speech was delivered by the General Manager of Standards and Building Materials, CIDB Sr Nazir Muhammad Nor. The following were the papers presented: 1. Background of MS 832 & MS 1017 – New Revision — By Khik Lap Fun of FMM – Aluminium Group 2. Are Architects and Developers ready for Mandatory Standards MS 832 & MS 1017? — By PIFM Advisor, Ar Anthony Lee Tee 3. Product Certification Process and Application for Aluminium Windows and Sliding Doors — By Norazli Mostafa of SIRI QAS International Sdn Bhd 4. Pematuhan Bahan Binaan di Bawah AKTA 520 CIDB — By Mohd Hafiz Zahar of CIDB 5. Component/Materials Compliance — By Lam Wye Hoe (Joe) of PIFM 6. Implementation of MS 832/1017 and Act 520 4th Schedule – Response and Readiness from the Industry Players — By Kong Kok Meng of PIFM Group photo of presenters at the event Moderator, Dr Zul Zakiyuddin Industry & Practices IP 31 MASTER BUILDERS JOURNAL #127Appointment as Panel of Experts & Meeting of Panel of Experts 1/2023—Ministry of Local Government Development 22 MARCH 2023 YB Tuan Nga Kor Ming presenting the letter of appointment to MBAM President, Oliver HC Wee MBAM President Oliver HC Wee has been appointed as a panel expert by the Minister of Local Government Development, YB Tuan Nga Kor Ming. The letter of appointment was given on 22 March 2023, at the JW Marriott Hotel, Kuala Lumpur. This panel of 28 experts from diverse backgrounds has been appointed by the Ministry of Local Government Development to advise on programmes and policies that will make for great urban environments and liveable cities. Its minister YB Tuan Nga Kor Ming, said the appointment is a strategic initiative to gather the knowledge, experience, and expertise of various parties to determine the best initiatives. The panel, led by former Public Service Department Director-General Tan Sri Khairul Adib Abd Rahman, will serve on a pro bono basis. This appointment provides MBAM a strategic platform to further highlight issues such as the defects raised by building checkers, variation of price in private contracts, and the eligibility for construction project managers and construction site supervisors to sign Form G, based on the Uniform Building By-laws (UBBL) 1984 (Amendment 2021). Webinar— Forced Labour in Malaysia 27 MARCH 2023 100 participants attended this recent webinar on the topic of forced labour in the country. MBAM Deputy President, Kenneth Liew, noted in his opening speech that forced labour is a critical issue, as Malaysia’s economy could suffer if investors pull out over a lack of business compliance with good environmental, social and governance practices. Hence, he hoped that participants would be able to gain a deeper understanding of the issue and identify ways to address it effectively. He then welcomed the speaker, Alex Tan, Partner of PwC Consulting Associates (M) Sdn Bhd, who shared his knowledge and experience in forced labour with the audience. Alex shared with participants the definition of forced labour, the 3 elements of forced labour, the comparison between forced labour and modern slavery, and explained the 11 International Labour Organisation (ILO) indicators of forced labour, such as abuse of vulnerability, restriction of movement, retention of identity documents, debt bondage, and others. He also shared details of the forced labour situation in Malaysia. According to the US Department of State, Malaysia does not fully meet the minimum standards for the elimination of trafficking, and is not making significant efforts to do so. Malaysia has remained at Tier 3 of the US Trafficking in Person (TIP) report for 2022. He also explained the laws in Malaysia that deal with most of the ILO indicators of forced labour, as well as global enforcement. Before the end of his presentation, Alex provided advice on how to improve the forced labour situation for the betterment of both employers and employees. Industry & Practices IP 32Meeting—Condition to Obtain the Certificate of Competency for Tendering JKR Projects on Health Facilities 29 MARCH 2023 56 th BIPC Meeting 28 MARCH 2023 Oliver HC Wee and Kenneth Liew The 56 th Building Industry Presidents’ Council (BIPC) Meeting was held on 28 March 2023 at Bangunan Ingeniur, Petaling Jaya. The opening remarks was by Sr Dainna Baharuddin, Chairman of BIPC cum President of the Royal Institution of Surveyors Malaysia (RISM). The other BIPC members present were representatives from ACEM, IEM, MBAM, PAM and REHDA. Sr Dainna Baharuddin, RISM President handed over the BIPC Chairmanship to Ir Prof Dr Norlida Buniyamin, IEM President. The 56 th BIPC meeting was chaired by Ir Prof Dr Norlida Buniyamin, IEM President. Among the issues raised and discussed were on the increase of building material prices due to increase of labour cost, energy cost and logistic enforcement on the weight limit allowed to be carried by each lorry. Overall the material prices have not stabilised yet. The issue of the potential misapplication of QLASSIC for building defects and building inspectors was also discussed. The reports were accepted by Tribunal. The meeting agreed that building checkers must be properly qualified and regulated, and for BIPC to take up this matter to the next level. RISM was requested to take the lead for the amendments of the Construction Industry Payment and Adjudication Act (CIPAA). MBAM is to come up with a paper on the building material price increase and on workers issues. A meeting was held at the JKR head office on 29 March to announce the intended implementation of the above- mentioned Certificate of Competency. It was attended by MBAM Chairman of Contracts and Practices Committee, Ir Anthony Teoh; and General Manager, Lenny Lim. The implementation will take effect on 1 Jan 2024, to allow contractors bidding for health facilities the time to obtain the Sijil Kompetensi Kontraktor Kesihatan (SKKK), specialist code B29 and minimum CIDB 3 Score Star. The meeting was chaired by Deputy Director General of Works, Specialist Sector Sr Amran bin Haji Mohd Majid. This certificate of competency intends to reduce the incidence of sick projects and undelivered projects concerning health facilities. The training programme will cost RM2,000 for a 4-day programme, and the exam fee is RM500. Ir Anthony Teoh enquired if this course can be claimed from HRDF, to which JKR will be confirming at a later date. The meeting in progress Industry & Practices IP Sr Dainna Baharuddin (RISM) handover the BIPC Chairmanship to Ir Prof Dr Norlida Buniyamin (IEM) 33Industry & Practices IP 53 rd ACF Council Meeting & ACF Conference 2023 31 MARCH 2023 ACF Chairman and MBAM President Oliver HC Wee led a 7-person delegation to attend the 53 rd ASEAN Constructors’ Federation (ACF) Council Meeting and ACF Conference 2023, on 31 March 2023 in Clark, Manila. With the theme of ‘ASEAN: Resilient Growth’, the event was hosted by the Philippines Constructors’ Association Inc. (PCA), in conjunction with Philconstruct Luzon, which was held from 30 March to 1 April 2023 at the SMX Convention Centre. President Oliver was one the main speakers of the CEO Forum on 30 March 2023, and he gave an overview of the Malaysian construction industry and the role and responsibilities of the Construction Industry Development Board Malaysia (CIDB) as the custodian of the industry. He then shared MBAM’s role as one of the strategic partners of CIDB Malaysia, working closely on matters such as training, industry standards, industry guidelines, accreditation and more. This was followed by a panel discussion moderated by Atty. Jean De Castro which featured CIAP Alternate Chairman, Ireneo Vizmonte; Department of Transportation Undersecretary, Timothy Batan; Philippine Constructors Association President, Ronaldo Elepaño; Construction Manpower Development Foundation Board Member, Morris Agoncillo; and Procore Vice President of Asia, Bruce Wells. For the ACF Conference 2023, newly elected PCA President Ronaldo Elepaño delivered the welcome speech which was followed by ACF Chairman Oliver’s opening remarks. He highlighted that most ASEAN economies are working on accelerating public infrastructure projects to get their economies back on recovery. The construction industry plays a vital role in the development of the ASEAN region, and its continued growth and resilience in the face of various challenges is crucial. The past few years have seen significant changes and challenges in the construction industry in the ASEAN region. The COVID-19 pandemic had disrupted supply chains, halted projects, and caused financial difficulties for many construction firms. Climate change has also had an impact on the industry, with rising sea levels and extreme weather events leading to infrastructure damage and project delays. However, despite these challenges, there is still much potential for growth in the construction industry in ASEAN. The region’s rapidly growing population and urbanisation, coupled with infrastructure needs, provide significant opportunities for construction firms to expand and innovate. This is consistent with the theme of the 53 rd ACF Council Meeting – “ASEAN: Resilient Growth”. The invited topics and speakers for the event were: “Expanding Global Trade in Construction and Related Services” by Marie Sherylyn Aquia, Director III of Bureau of International Trade Relations, Department of Trade and Industry; and “Getting Construction Data Together to Future-Proof Your Business” by Aileen Anunciacion Zosa, President and Chief Executive of the Bases Conversion and Development Authority (BCDA) and Bruce Wells, Vice President of Procure Asia. A Q&A session was held thereafter, moderated by the PCA Executive Director, Barry Paulino. 53 rd ACF Council Meeting After the ACF conference in the morning, all ACF Council members met again in the afternoon for the 53 rd ACF Council meeting. Present for the meeting were members representing the Cambodia Constructors Association (CCA), Indonesian Contractors Association (ICA), Master Builders Association Malaysia (MBAM), Myanmar Construction Entrepreneurs Federation (MCEF), Philippine Constructors Association Inc. (PCA), Singapore Contractors Association Ltd (SCAL) and Thai Contractors Association (TCA). ACF Chairman Oliver welcomed all for their attendance and support, and noted that it has still been a very challenging year for all members notably with the increasing costs of building materials and labour being a constant problem. Despite that, and on a more positive note, most ASEAN economies are working on accelerating public infrastructure projects to get their economies back on recovery. ACF Secretary-General Dato’ Sri Eric Kuan then continued with the meeting proper. At the close of the meeting, Chairman Oliver officially handed over the ACF Chairmanship to PCA, under the leadership of Augusto Manalo, alongside Gerardo Pancho as the new ACF Secretary-General. Group photo after the 53 rd ACF Council Meeting 34 MASTER BUILDERS JOURNAL #127Courtesy Visit by China Enterprise Chamber of Commerce in Malaysia (CECCM) 7 DECEMBER 2022 CECCM was represented by Group Managing Director of Zhongtian Holdings, Rebecca Deng; and Chief Economist, Malaysia Main Branch, China State Construction Engineering Sdn Bhd, Huang Yi Dong. MBAM was represented by MBAM President, Oliver HC Wee; Contracts and Practices Committee Member, Karen Ng Yueh Ying; Executive Director, Loh Mei Ling; and General Manager, Lenny Lim. Courtesy Visit by Representatives from the UK FCDO 1 DECEMBER 2022 Abdul Aziz; Honorary Advisor cum ILO-MBAM Pilot Apprenticeship Project Leader, Foo Chek Lee; and Deputy Chairman of Education & SI Committee, Andrew Ong. The purpose of the visit was to learn more about industry engagement in skills development and the implementation of SfP-Malaysia, including the implementation for the “Enhancement of a sector skills body and industry-led TVET modalities in the construction sector”. MBAM presented the status of the “ILO-MBAM- UK Partnership for the Enhancement of A Sector Skills Body and Industry-Led TVET Modalities in the Construction Sector” to the delegates. MBAM also detailed the pilot apprenticeship programme with a total of 24 trainees taking part in the 15-day Site Safety Supervisor (SSS) & Lifting Supervisor (LS) Training, followed by a 3-month site practical attachment at MBAM Members’ job sites. The delegates also met up with the 2 trainees who joined the pilot quality apprenticeship programme for site safety supervisors and lifting supervisors. The trainees shared their first-hand experiences and provided constructive feedback on this pilot programme. Overall, the representatives were very impressed with the progress of the pilot programme under the SfP-SEA Programme in Malaysia. MBAM received delegates from the UK Foreign, Commonwealth and Development Office (FCDO) on 1 December 2022. The delegates from FCDO were Nicolette (Nikki) Stoddart, Deputy Director for Education, Gender, and Equality Directorate (EdGE) in UK FCDO, and Roomana Mahmud, Deputy Head of Development Office, Department for Education, Gender, and Equality Directorate (EdGE) in UK FCDO. Joining the delegates were also Izza Ismail from the British High Commission KL, and Dr Junichi Mori, Chief Technical Advisor, Skills for Prosperity Southeast Asia Programme (SfP-SEA) – Malaysia. On hand to receive the visitors were MBAM President Oliver HC Wee; Secretary General cum ILO-MBAM Pilot Apprenticeship Project Director, Datuk Astaman The meeting ended with an agreement to collaborate on a talk for CECCM members at MBAM Training Centre on 17 February 2022, with more details to be finalised accordingly. The talk, which will be in Mandarin, will cover issues related to the COVID Act 829 and the impact post pandemic, as well as MBAM Mediation Services followed by a dialogue between CECCM and MBAM. Visits & Dialogues VD 36 MASTER BUILDERS JOURNAL #127Meeting— Verification and Issue Analysis under MYMUDAH with ACCCIM and Industry Stakeholders 5 DECEMBER 2022 MBAM attended a meeting on the above topic on 5 December 2022 at Armada Hotel. Representing MBAM were Deputy Secretary General 1, Ir Anthony Teoh and General Manager, Lenny Lim. The Deputy Director of MPC, Mahadi Hasbullah, delivered the welcome speech. The meeting briefed attendees on the current CIDB levy imposed, which has been at 0.125% since 2003, when in actual fact the original Act provides for 0.25%. On the stamp duty, the current charges as per Goverment Circular PUA428, the duty is 0.1% and not 0.5% ad valorem. The meeting allowed for private sector stakeholders to better engage representatives from Government agencies and ministries. Technical Visit— Serdang Depot 1 DECEMBER 2022 MBAM organised a technical visit to the Serdang Depot to learn more about the RSMO maintenance, Traction Power Substation, and other features and facilities available at the facility. MBAM Deputy President cum Chairman of the Mechanical & Electrical (M&E) committee thanked MMC Gamuda KVMRT (PDP SSP) Sdn Bhd and Gamuda M&E Sdn Bhd, Director, Looi Hong Weei for their assistance in organising the technical visit. The visit was kicked off with an overview of the SSP project, which was presented by Mohd Noor Syabani bin Jamaludin, Deputy Head of Power Supply & Distribution System, MMC Gamuda KVMRT (PDP SSP) Sdn Bhd. Next, Assistant Systems Manager Ir Ali Akbar bin Ahmad Jasmi presented on the power distribution of the metro system, Traction Power Substation (TPSS), and also the stinger switchgear panel and stinger rail system. Project Manager PMD Putrajaya, Alan Conrad Cheong, next gave a briefing on the facilities available at the Serdang Depot, such as the Maintenance Pit, Depot Control Center, Depot Signaling Equipment Room (DSER), and others. Visits & Dialogues VD 37 MASTER BUILDERS JOURNAL #127Next >