< Previous18 MASTER BUILDERS JOURNAL #132 From the Desk of Oliver HC Wee MBAM President As we reflect on the past year, it is clear that it has been both eventful and challenging for all of us in the construction industry. The highlight of our year was undoubtedly the celebration of MBAM’s 70 th anniversary. We commemorated this milestone with a successful dinner event, graced by the presence of the Deputy Prime Minister, YAB Dato’ Sri Haji Fadillah bin Haji Yusof, who honoured us as the Guest of Honour. During the event, we proudly launched our 70 th Anniversary Coffee Table Book, a testament to MBAM’s rich history and contributions to the industry. In addition to our anniversary celebrations, we achieved significant milestones in our efforts to improve the construction sector. Notably, we have helped to promote the CIDB Form of Contract for Building Works (2022), which was launched by the Minister of Works YB Dato Sri Alexander Nanta Linggi in 2023, providing an alternative contractual choice that emphasises collaboration. This new form of contract is designed to foster a more cooperative and efficient working environment among all parties involved in building projects. Our commitment to enhancing dispute resolution within the industry has also been a priority. We have actively promoted MBAM Mediation Services, which will soon have a dedicated space in the MBAM New Building, set to be completed in March 2025. This initiative aims to offer our members a reliable and effective means of resolving conflicts, ensuring smoother project execution, and fostering better relationships among stakeholders. As the returning president, I am acutely aware of the myriad challenges our members face. We are currently focusing on several key initiatives to support our members and advance the industry. One such initiative is the adaptation of the Digital Maturity Index (DMI) for the construction sector. This tool will help companies assess and enhance their digital capabilities, positioning them for greater success in an increasingly digital world. Looking ahead, we remain dedicated to addressing the issues raised by our members. We are actively pursuing the introduction of a price fluctuation clause for private contracts, aiming to provide fairer terms for contractors. This clause is intended to balance the risks and rewards between contracting parties, ensuring a more equitable distribution of financial responsibilities. In conclusion, while the past year has presented its share of challenges, but it has also been a period of significant progress and achievement for MBAM. We remain committed to supporting our members and driving positive change in the construction industry. Together, we will continue to build a stronger, more resilient future. Yours sincerely, Oliver HC Wee KMN, AMN MBAM President “ As the returning president, I am acutely aware of the myriad challenges our members face. We are currently focusing on several key initiatives to support our members and advance the industry. One such initiative is the adaptation of the Digital Maturity Index (DMI) for the construction sector ”Particularly 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.com20 MASTER BUILDERS JOURNAL #132 COVER FEATURE COVER FEATURE An Interview with the MBAM President Oliver HC Wee Trends and Outlook for the Construction Industry21 MASTER BUILDERS JOURNAL #132 COVER FEATURE COVER FEATURE Broadly, what are the current trends and future outlook for the construction industry in Malaysia? The construction industry in Malaysia is currently experiencing improvements, with construction contract volume for both private and public projects reaching RM89 billion as of the first half of 2024. We expect a stronger performance in the second half of the year, especially from the private sector. However, this estimation depends very much on the stability of material prices and the supply chain, as well as any future policies that may impact construction costs. How do you see the role of technology and digital transformation evolving in the construction industry, and what initiatives has MBAM taken in this regard? Technology and digital transformation are playing increasingly pivotal roles in the construction industry. The adoption of technologies like BIM, drones, and IoT devices is revolutionising how projects are designed, managed, and executed. These technologies enhance accuracy, reduce costs, and improve project timelines. Additionally, the use of prefabrication and modular construction methods is gaining traction, offering efficiencies in terms of time and labour. At MBAM, we recognise the critical importance of digital transformation. We have initiated several programmes aimed at fostering technological adoption among our members and exploring the feasibility of implementing a Digital Maturity Index (DMI) adoption amongst our members. We have established training sessions and workshops to educate builders on the benefits and implementation of BIM and digital transformation. Furthermore, we are collaborating with technology providers to offer our members access to the latest tools and software at competitive rates. By doing so, we aim to ensure that our members remain at the forefront of industry advancements. Transformation is taking place, but it is still slow. MBAM is still striving hard to convince other stakeholders to adopt Industrialised Building System (IBS). Macro policies will have to be improved for better and smoother implementation. Policy & Advocacy What are the key policy issues that MBAM is currently focusing on, and what steps are being taken to address these issues? MBAM is actively engaged in addressing several key policy issues that impact the construction industry. One of our primary concerns is the regulatory framework governing construction activities. We advocate for streamlined and transparent regulations that facilitate easier compliance and reduce bureaucratic hurdles for contractors. This includes pushing for reforms in the permitting process and advocating for policies that support industry growth. Our commitment to enhancing dispute resolution within the industry has also been a priority. We have actively promoted MBAM Mediation Services, which will soon have a dedicated space in the MBAM New Building, set to be completed in March 2025. This initiative aims to offer our members a reliable and effective means of resolving conflicts, ensuring smoother project execution, and fostering better relationships among stakeholders. There are plans to have more talks and seminars on mediation and related subject matter on contract administration in the second half of this year. As the returning president, I am acutely aware of the myriad challenges our members face. We are currently focusing on several key initiatives to support our members and advance the industry. One such initiative is the adaptation of the Digital Maturity Index (DMI) for the construction sector. This tool will help companies assess and enhance their digital capabilities, positioning them for greater success in an increasingly digital world. Looking ahead, we remain dedicated to addressing the issues raised by our members. We are actively pursuing the introduction of a price fluctuation clause for private contracts, aiming to provide fairer terms for contractors. This clause is intended to balance the risks and rewards between contracting parties, ensuring a more equitable distribution of financial responsibilities. How does MBAM collaborate with the government and other stakeholders to ensure the interests of building contractors are represented? MBAM takes a proactive approach to collaborating with the government and other stakeholders to represent the interests of building contractors. We regularly participate in dialogue sessions with government agencies to provide feedback on proposed regulations and policies. Through these engagements, we ensure that the voice of the construction industry is heard and considered in policy- making processes. Additionally, MBAM forms strategic alliances with other industry associations and professional bodies to present a unified front on critical issues. We also organise industry forums and conferences where stakeholders can discuss challenges 22 MASTER BUILDERS JOURNAL #132 COVER FEATURE and opportunities, fostering a collaborative environment for problem-solving. By maintaining open lines of communication and building strong relationships with key stakeholders, we effectively advocate for the needs and interests of our members. What innovative approaches or new technologies in construction are you most excited about, and how is MBAM encouraging their adoption? There are several innovative approaches and new technologies in construction that I find particularly exciting. One such technology is the use of augmented reality (AR) and virtual reality (VR) in project visualisation and planning. These tools enable stakeholders to experience and interact with virtual models of projects before construction begins, improving design accuracy and client satisfaction. Another promising innovation is the use of robotics and automation in construction fabrication for IBS, which can significantly enhance productivity and safety on job sites. However, the level of IBS and BIM adoption is still in need of improvement. MBAM is committed to promoting the adoption of these technologies among our members. We organise regular training sessions and seminars to showcase the latest innovations and their practical applications in the construction industry. Additionally, we have established partnerships with technology providers to facilitate access to these cutting-edge tools and solutions. By fostering an environment of continuous learning and innovation, we aim to empower our members to embrace new technologies and improve their competitive edge. Future Plans & Vision What are your top priorities for MBAM in your second term as president? In my second term as President of MBAM, my top four priorities are as follows: i. Enhancing Practical Industry Standards and Practices: To continue our efforts to raise the standards of the construction industry in Malaysia. This includes advocating for better safety practices and ensuring adherence to high-quality standards. Doing so will can enhance the reputation of the industry and ensure long- term growth. ii. Strengthening Workforce Development: Addressing the upskilling of our workforce remains a critical priority. We will focus on developing comprehensive training programmes, promoting apprenticeship opportunities, and collaborating with educational institutions to ensure a steady pipeline of skilled workers for the construction industry and to reduce dependence on foreign construction labour. iii. Promoting Technological Advancement: I am committed to driving the adoption of advanced technologies and putting them in place within the construction industry. This includes continuing our initiatives to educate members about the benefits of digital transformation, facilitating access to new technologies, and encouraging innovation. By staying ahead of technological trends, we can improve efficiency, reduce costs, and enhance the overall competitiveness. iv. Sustainability: In order to ensure sustainability, practicality must be ensured in the usage of technologies and costs, policies and regulations to be implemented after sufficient notice is given and in compliance with market demands. In reality, our industry needs the will to commit to and adopt necessary changes to see new and better results. 26 MASTER BUILDERS JOURNAL #132 SPECIAL FEATURE MBJ: The Malaysian construction industry is experiencing both challenges and opportunities. How is PERI adapting its services and offerings to meet the growing demand for innovative formwork solutions? Theunis Visser: Malaysia’s construction industry is experiencing a mix of progressive recovery and notable challenges. Overall construction progress, particularly in infrastructure is slow, with challenges such as regulatory hurdles, shifts in political priorities, budget constraints, rising material costs, and skilled labour shortages leading to project delays. However, on the positive side, government support and incentives, along with a relatively favourable business environment, are attracting foreign direct investment in industrial projects such as semiconductor, logistics, and data centre development and expansion. At PERI, everything we do is focused on making construction more efficient, faster, and safer. PERI Formwork Malaysia is one of the 12 subsidiaries of PERI Asia Pacific. Our services extend beyond Malaysia and include the export business. For our customers, we always strive to be their reliable partner, fostering long-term business relationships, not just in providing equipment but also in engineering services, pre-assembly and training, to help them meet the challenges of the market across the entire length of their projects, by focusing on efficient solutions that minimise labour requirements and speed up productivity. Alongside our extensive service offerings, PERI’s flexible financing options, including sales, rental, and buy-back models, position us as the ideal and reliable partner for construction companies of all scales. The Asia-Pacific market has been dynamic, experiencing shifts in construction trends and needs varying across different regions and market landscapes. Many may not realise that PERI has been dedicated to and has excelled in continuous innovation and R&D tailored to meet the needs of each market, beyond just the European market. Our latest innovations include a new shoring system, PERI UP MD (formerly known as PS100). This was a system developed in Asia and is the best combination of strength-to-weight ratio with minimal components and a highly simplistic assembly system. A typical tower might need around 25% less weight of material compared to other systems to provide the same load capacity, which saves handling time, space on site, fewer logistics, and ultimately helps control costs. Another example of our innovations would be the HANDSET Alpha, a robust entry-level steel formwork system designed for walls, foundations, and columns. This multi-functional panel system offers high performance at a competitive price and features a minimal number of sophisticated components, making handling intuitive. This design reduces the need for extensive on-site training and minimises the reliance on skilled labour, ultimately saving valuable time, and costs and reducing the risk of errors on-site. In addition to this, PERI is also focusing on innovations that align with the growing emphasis on sustainability and greener construction practices. The DUO system, made from technopolymer material, is designed to be 100% recyclable at the end of its extensive life as a formwork panel. Beyond products, we also offer 3D engineering with integration into BIM models to help the concept, design and execution of projects run more smoothly than ever. And we have a range of self-service, semi-automated formwork design tools now available to all customers called Quicksolve. “Not commonly known; special steel design and fabrication offered by PERI Malaysia and Singapore, where we offer special steel solutions together with standardised components to maximise price, usability and efficiency,” says Theunis Visser. PERI’s special steel is complemented by integrated formwork and any Theunis Visser, Managing Director of PERI Malaysia and Singapore Interview with Theunis Visser Managing Director of PERI Malaysia & Singapore27 MASTER BUILDERS JOURNAL #132 and ensuring the life of those products lasts for decades. Beyond that, we have clever products like DUO, which we mentioned before. It is a 100% recyclable formwork system that can form walls, columns, foundations and slabs. So, one system for four applications results in fewer raw material requirements, and cost savings for our customers. It’s also about the little things that make a big difference, and at the same time, we streamline our own operations too. Across PERI, we use electric forklifts and vehicles as much as possible, solar panels to power some of our depots and offices, and in our German production centre, we even burn all of the offcuts of wood to generate heat and power for the site itself. So, a large part of your steel formwork has been manufactured using biomass energy. Safety is paramount in construction. How does PERI prioritise safety in its formwork solutions and training programmes for Malaysian workers? Safety is a key pillar of our organisation’s culture and is integral to our products, design, and services. What is not often realised, is that a highly efficient system, which reduces the need for workers on site, can significantly lower operational risk and enhance overall safety. At PERI, our commitment begins in the R&D phase, with the integration of safety control gates into product designs. We will always build safety into our products where possible, which automatically reduces the risk for both skilled and unskilled workers. For example, our PERI UP scaffolding uses a unique gravity lock so that the ledger connects to the standard instantly when being dropped in place and cannot be disconnected until the dismantling stage. And the scaffolding decks also lock in place to prevent uplift from wind and create a gap-free surface. This is a great example of built-in safety measures in superior systems like PERI UP, if compared to SPECIAL FEATURE RAPID Pengerang, Johor (System: PERI UP) number of shoring and access solutions from our highly capable system scaffolding, PERI UP Flex. It is all about providing the customer with the right, flexible, and technically advanced solution for them to succeed, regardless of the complexity and size of the project. In other words, temporary works are related - you name it, we have it, and we are good at it. We are a competent and reliable formwork and scaffolding solutions provider. PERI has been a key player in the Malaysian construction industry for many years. What are some of the most iconic local projects where PERI’s formwork solutions have played a vital role? We have been delighted to be involved in different types of projects all over Malaysia. Some of them include: • Infrastructure projects such as RTS Link, ECRL, MRT, Tun Sardon Link, and Sungai Bintangor Bridge; • Building projects such as TRX Exchange Tower and KLCC; • Industrial projects like Pengerang RAPID and large-scale warehouse developments such as ALP warehouse. We don’t just provide equipment to site, we ensure these iconic projects are a success for our customers by supporting them throughout the lifecycle of a project. Examples include our dedicated customer services team, experienced, highly capable and skilled project managers, and product specialists who deeply understand the construction processes to support on site. No matter how complex a project, we help our customers optimise material usage and streamline construction, significantly increasing their productivity and profitability while ensuring costs are kept controlled. Sustainability is a major focus for modern construction projects. How is PERI incorporating sustainable practices into its formwork solutions and operations? We have a high focus on sustainability right across our organisation because we know we have to provide a solution for our customers that helps us all operate in a responsible manner. Since 2021, PERI has been a climate-neutral company when measured by our scope 1 and 2 emissions. Our company ethos is about minimising material use, reducing weight, and using fewer components and parts with the highest build quality on the market. It is one of the most environmentally responsible ways we can act by using fewer raw materials Next >