< Previous18 MASTER BUILDERS JOURNAL #134 COVER FEATURE As you mark your 100 th day as the Chief Executive of CIDB, what are some of the key achievements you have accomplished so far? The first 100 days have been a critical period of engagement and strategic alignment. One of my key priorities has been to strengthen collaboration with industry stakeholders, including government agencies, contractors, and professional bodies, to ensure CIDB’s initiatives align with the needs of the construction sector. During this time, CIDB has intensified efforts to accelerate the adoption of digitalisation and sustainable construction practices. We have initiated a review of key policies to streamline regulatory processes, making it easier for contractors to comply while ensuring quality and safety standards remain high. Additionally, we have launched targeted programmes to upskill the construction workforce, particularly in the areas of Industrialised Building System (IBS) and Building Information Modelling (BIM), to equip them with the skills needed in a rapidly evolving industry. We are also enhancing CIDB’s Construction 4.0 Strategic Plan (2021- 2025) to reflect current industry needs, ensuring that our strategic direction continues to support Malaysia’s construction sector in becoming more competitive and resilient. Keep on the lookout for our next roadmap for 2026-2030, which we will announce in due course. The roadmap outlines for the integration of 12 key emerging technologies across the construction supply chain. These technologies are categorised under three main clusters, namely Modelling and Simulation, Digitalisation and Virtualisation, as well as Smart Construction. What are the main focus areas you have identified as priorities in the near future? Moving forward, CIDB will focus on three key pillars: digitalisation, sustainability, and workforce development. Firstly, digitalisation will drive the construction industry towards adopting Modern Method of Construction (MMC). At this initial stage, CIDB will focus on four emerging technologies for the industry to adopt namely: 1. Building Information Modelling (BIM) BIM enable the process of producing a digital representation or a digital twin of a building or infrastructure project. BIM also enables the creation and management of data for the planning, design, construction, operation and maintenance of building or infrastructure project. 2. Prefabrication & Modular Construction Prefabrication or more commonly known as Industrialised Building System (IBS). As we are mostly aware, in Malaysia IBS is widely adopted in government building projects and also gaining adoption in private building projects. Modular Construction (MC) on the other hand, is a common construction method in developed countries such as the United Kingdom, the United States of America, Australia, Japan and many others. This method of construction has currently become a growing trend in the Malaysian construction industry. In Malaysia, Modular Construction is also known as Prefabricated Prefinished Volumetric Construction (PPVC). This method of construction offers more advantages compared to the IBS method of construction in relation to: a) improved build time, b) environmental benefits, and c) reduced on-site labour cost. The MC method of construction also incorporates a broad range of technologies and innovations to improve project delivery. Despite the many benefits of using this method of construction, the major challenge for the adoption of this technology relates to the issue of supply and demand that further translates into high initial cost. 3. Autonomous Construction This automation effort involves conventional cranes that are equipped with advanced sensors and guidance technology to undertake lifting of precast components and construction materials. This effort may further boost productivity and safer worksites. 4. Robotics In developed countries, robots are being used to undertake painting work, plastering work and other wet trades. This allows for workers to be trained to do higher skilled trades. A case study in Singapore has shown that by using two painting robots, a contractor has managed to improve productivity by more than three times. In another case study, one worker is able to manage up to three to four robots with a tablet, so this translates directly to reduced number of skilled workers and thus increasing productivity. Secondly, sustainability is no longer optional—it is a necessity. CIDB is committed to promoting green building practices and increasing the use of sustainable materials in construction. We are looking to introduce more incentives and guidelines to encourage the industry to embrace Environmental, Social, and Governance (ESG) principles. On a broader scale, CIDB has taken the initiative to guide construction industry towards sustainable and responsible practices in line with market trend and regulatory development by developing its inaugural Construction ESG Framework (cESG) and Guideline. cESG aims to enhance knowledge and awareness regarding ESG practices in the industry in line with global standard, remain competitive by integrating ESG principles into long term business development strategy. The guideline provides guidance for ESG actionable steps to assist players in embedding ESG principles into their day to day operation, in line with Malaysia’s net- zero ambitions. To support this, CIDB has developed tools such as the Malaysian Carbon Reduction and Environmental Sustainability Tool (MyCREST), which guides the construction industry towards greener building practices by measuring and reducing carbon emissions throughout the lifecycle of a building. Additionally, we have introduced INFRASTAR, a sustainability rating tool specifically for infrastructure projects, helping to ensure that environmental, economic, and social sustainability are embedded from the planning to the operational stages of 19 MASTER BUILDERS JOURNAL #134 COVER FEATURE COVER FEATURE infrastructure development. The industry is facing a skills gap, and CIDB is taking proactive steps to provide training and certification programmes that align with emerging industry trends. To strengthen this effort, we have introduced the Construction Skills Qualification Framework (CSQF), which provides a clear and structured pathway for skills development, assessment, and recognition across different trades and competencies in the construction sector. Through the CSQF, we aim to elevate the quality and professionalism of our workforce. We will also work closely with technical institutions, industry players and other stakeholders to ensure that our workforce is future-ready. What are the biggest challenges currently facing the Malaysian construction industry, and how does CIDB plan to address them? One of the most pressing challenges is rising costs due to fluctuations in raw material prices and labour shortages. This has impacted project feasibility and profit margins for many contractors. I want to say here, we hear you. CIDB is working closely with industry stakeholders to develop strategies that mitigate these cost pressures, including promoting alternative building materials and optimising construction processes through IBS and BIM. Another key challenge is project delays and quality assurance. The industry must improve efficiency in project execution while maintaining high safety and quality standards. CIDB is strengthening its enforcement and monitoring efforts to ensure compliance with construction regulations and best practices. Lastly, sustainability adoption remains a challenge due to a lack of awareness and initial investment costs. While green building techniques and materials are available, many contractors still hesitate to adopt them. CIDB is looking to address this by providing incentives and technical guidance to make sustainable construction more accessible and financially viable. In the context of post-pandemic recovery and global uncertainties, how does CIDB see opportunities for the local construction industry? Despite global uncertainties, there are several opportunities for Malaysia’s construction industry. The government’s commitment to infrastructure development, as outlined in Budget 2025, provides a strong pipeline of projects that can stimulate economic growth and create job opportunities. Additionally, Malaysia has the potential to position itself as a regional hub for sustainable construction. With increasing demand for green buildings and eco-friendly infrastructure, local contractors and developers who invest in sustainability and ESG practices will have a competitive advantage. Another key opportunity lies in expanding Malaysian expertise internationally. With the right support and collaboration, local contractors can explore projects in emerging markets within ASEAN and beyond. CIDB has and is still actively facilitating industry players to build international partnerships and improve their global competitiveness. How can CIDB assist small and medium-sized contractors in adopting digitalisation? CIDB recognises that small and medium- sized contractors (SMEs) face unique challenges in adopting digitalisation, such as limited financial resources, lack of technical expertise, and resistance to change. To address these challenges, we have introduced several initiatives to make digital adoption more accessible. Firstly, capacity-building programmes are essential. CIDB provides training and workshops on digital construction technologies, such as Building Information Modelling (BIM), Industrialised Building System (IBS), and project management software, to help SMEs understand and integrate these tools into their operations. Secondly, financial assistance and incentives are available to ease the transition. CIDB works closely with government agencies who offer grants and subsidies for SMEs adopting digital construction solutions. We also collaborate with technology providers to introduce affordable digital tools tailored to the needs of smaller contractors. Additionally, CIDB is simplifying the digitalisation process by developing industry-specific guidelines and best practices. By providing clear 20 MASTER BUILDERS JOURNAL #134 frameworks, we aim to help SMEs gradually transition towards more efficient and technology-driven operations. CIDB is also working with industry stakeholders in developing a Construction Digital Maturity Index or CDMI which we hoped will be ready soon. Are there any incentives or support programmes from CIDB to encourage adoption of ESG principles? Yes, CIDB is actively supporting the industry’s transition towards Environmental, Social, and Governance (ESG) compliance through a range of initiatives. One of our key efforts is capacity building and awareness programmes to educate construction firms— especially SMEs—on how ESG principles can enhance their business sustainability and competitiveness. We have conducted training sessions and workshops to help companies understand ESG reporting requirements and best practices. In terms of incentives, CIDB is working with government agencies to explore financial assistance and tax incentives for companies that incorporate green technology, renewable energy, and sustainable materials into their projects. Additionally, we encourage participation in MyCREST certification, which recognises and rewards sustainable building practices. To ensure ESG adoption is practical and achievable, CIDB is also developing guidelines and toolkits that simplify ESG compliance for industry players, helping them integrate sustainability measures without disrupting their business operations. Keep on the lookout for a new ESG Framework from CIDB which is specifically developed for the construction industry. How is CIDB addressing the shortage of skilled labour, particularly among the local workforce? The shortage of skilled labour is a long-standing challenge in Malaysia’s construction industry, exacerbated by the heavy reliance on foreign workers. CIDB is actively working to increase local workforce participation and enhance skills development through Akademi Binaan Malaysia (ABM) to reduce this dependency. One key initiative is promoting Technical and Vocational Education and Training (TVET) in construction- related fields. As a stakeholder, CIDB also collaborates with other vocational colleges and training institutions to equip young Malaysians with the skills required for the modern construction industry. We are also intensifying efforts to certify and upskill existing workers through CIDB’s Construction Skills Competency Certification (SKKP). This ensures that construction workers meet industry standards and have the necessary qualifications to perform their roles effectively. To make the sector more attractive to local workers, CIDB is advocating for better working conditions and career progression pathways, encouraging more Malaysians to view construction as a viable long-term profession rather than a temporary job. What initiatives does CIDB have in place to ensure that workers are equipped with skills that align with the industry’s evolving needs? As the construction industry evolves with the adoption of digitalisation, automation, and sustainable building practices, CIDB is continuously updating its training and certification programmes to ensure the workforce remains relevant and competitive. CIDB has established training academies and skills centres across the country to provide hands-on experience in key areas such as Industrialised Building System (IBS), Building Information Modelling (BIM), and renewable energy construction. These centres offer both entry-level training for new workers and upskilling programmes for experienced professionals. To address the industry’s growing demand for digital expertise, CIDB is looking to integrate smart construction technologies and data analytics into our training modules. This ensures that workers are well- versed in emerging construction methods, reducing reliance on traditional labour-intensive techniques. Furthermore, CIDB actively engages with industry stakeholders to ensure our training content aligns with current market demands. Through regular dialogue with contractors, developers, and technology providers, we refine our training curriculum to match the COVER FEATURE 21 MASTER BUILDERS JOURNAL #134 evolving needs of the sector. By continuously improving workforce training and certification, CIDB aims to future-proof Malaysia’s construction industry, ensuring that it remains competitive, productive, and capable of meeting future challenges. How does CIDB collaborate with industry associations such as MBAM to support local contractors? CIDB recognises the crucial role that industry associations like MBAM play in advocating for the needs of construction companies and shaping industry development. Our collaboration with MBAM is multi-faceted and aims to elevate the capabilities of Malaysian contractors both locally and globally. One key area of collaboration is capacity-building and skills development. CIDB works closely with MBAM to organise training programmes, workshops, and certification courses that align with the latest industry trends, ensuring that Malaysian contractors remain competitive in a rapidly evolving market. We also engage with MBAM in policy discussions and industry feedback sessions. By working together, we ensure that CIDB’s regulatory policies reflect the real challenges faced by contractors, allowing us to formulate effective solutions that benefit the industry. On an international level, CIDB and MBAM are actively involved in trade missions, business matching sessions, and global construction forums through various platforms such as MBAM OneBuild and International Construction Week (BuildXpo). These initiatives help Malaysian contractors explore new opportunities beyond local markets, particularly in infrastructure and development projects across ASEAN, the Middle East, and Africa. Through continued partnership, we aim to strengthen the capabilities of local contractors, improve industry standards, and position Malaysia as a leader in the global construction sector. What is CIDB’s long-term vision for shaping a resilient and sustainable construction industry? CIDB’s long-term vision is to build a highly resilient, sustainable, and globally competitive construction industry that contributes significantly to Malaysia’s economic growth and environmental goals. Our vision is anchored on three key pillars: 1. Digitalisation and Technology Integration The future of construction lies in automation, data-driven decision- making, and smart construction technologies. CIDB is committed to accelerating the adoption of IBS, BIM, robotics, and AI-driven construction management. These technologies will enhance efficiency, reduce reliance on manual labour, and improve overall project delivery. 2. Sustainability and Green Construction As global climate concerns grow, the construction industry must transition towards low-carbon and energy-efficient building solutions. CIDB is reinforcing MyCREST guidelines, sustainable material adoption, and waste reduction strategies to ensure that Malaysia meets its environmental targets. This commitment is strongly aligned with the Environmental, Social and Governance (ESG) Framework: i. Environmental (E): Emphasising green building practices such as energy efficiency, carbon footprint reduction, responsible sourcing of materials, and sustainable waste management to minimise environmental impact. ii. Social (S): Promoting healthier living environments and inclusive access to sustainable infrastructure for all communities, particularly through public and affordable housing initiatives that integrate green features. iii. Governance (G): Strengthening institutional accountability through compliance with sustainability standard like MyCREST, as well as enhancing policy support, transparent monitoring and regulatory enforcement to guide the industry toward long-term environmental stewardship. Through the ESG-aligned approach, CIDB aims to future- proof the construction sector by embedding sustainability at every stage-from planning and design to execution and maintenance. 3. Workforce Development and Industry Excellence A skilled workforce is the backbone of a resilient industry. CIDB is investing heavily in vocational training, upskilling programmes, and construction certification schemes to ensure that local workers are equipped with the right skills for the industry’s future demands. By focusing on these pillars, CIDB aims to create an adaptive, innovative, and responsible construction sector that is prepared for future challenges while ensuring long-term sustainability. What is your message to stakeholders and players in Malaysia’s construction industry? To all stakeholders, industry players, and construction professionals, I want to express my appreciation for your dedication and resilience in driving Malaysia’s construction sector forward. Despite the challenges we face—whether it be economic fluctuations, labour shortages, or sustainability pressures—I believe that we have the strength and innovation to overcome them. As CIDB celebrates its 30 th anniversary, we are taking stock of how far the industry has come and, more importantly, looking ahead to the future. I encourage all industry players to embrace change and innovation. The future of construction is digital, sustainable, and skill-driven. I urge you to explore new technologies, invest in workforce development, and adopt green building practices to enhance your competitiveness. CIDB remains committed to supporting you every step of the way. We will continue to enhance policies, provide financial assistance, and develop training programmes to ensure that Malaysia’s construction industry thrives. Let us work together to build an industry that is not only strong and competitive but also sustainable and future-proof. With collaboration, innovation, and commitment, we can elevate Malaysia’s construction sector to new heights. COVER FEATURE COVER FEATURE 24 MASTER BUILDERS JOURNAL #134 SPECIAL FEATURE The Malaysian construction industry stands at the cusp of a transformative period, with the industry is set to maintain its positive momentum, driven by key developments across public infrastructure, residential, and non-residential subsectors. Sustained Growth Projections The construction sector has demonstrated remarkable resilience and growth in 2024. In the first half of the year, the industry grew by an impressive 14.6%, with projections indicating a continued growth rate of 13.7% in the second half. This steady upward trend suggests a robust recovery from the challenges posed by the pandemic and economic uncertainties. Moving into 2025, this positive trajectory is expected to continue, laying a strong foundation for sustainable development in the coming years. The projected market size of USD 41.85 billion in 2025 is a testament to the sector’s expanding opportunities. With a compound annual growth rate (CAGR) of 8.55% forecasted from 2025 to 2030, the construction industry is poised to become a key driver of Malaysia’s economic growth. Public Infrastructure Projects as a Growth Catalyst A significant contributor to the construction sector’s growth is the acceleration of public infrastructure projects. As we approach the final year of the 12th Malaysia Plan (2021– 2025), the government’s commitment to enhancing the country’s infrastructure will provide a much- needed boost to the civil engineering subsector. Projects such as road upgrades, bridges, public transportation systems, and flood mitigation initiatives are essential not only for improving connectivity but also for enhancing the quality of life for Malaysians. The government’s focus on infrastructure development underscores its recognition of the construction industry’s vital role in nation-building. Residential Buildings: Meeting the Demand for Affordable Housing The residential buildings subsector is another area of expected growth. With rising demand for affordable housing, government initiatives such as the Program Perumahan Rakyat By Oliver HC Wee, MBAM President25 MASTER BUILDERS JOURNAL #134 SPECIAL FEATURE and Program Rumah Mesra Rakyat will play a pivotal role in addressing the housing needs of the rakyat. These programmes aim to provide quality homes at affordable prices, ensuring that more Malaysians have access to safe and comfortable living conditions. In addition to government initiatives, private developers are also stepping up to meet the demand for housing. The combined efforts of the public and private sectors will strengthen the residential subsector, creating jobs and stimulating economic activity across the construction value chain. Non-Residential Buildings: A Focus on Data Centres and Industrial Projects The non-residential buildings subsector is poised for substantial growth, particularly in the construction of data centres and industrial buildings. Johor and Selangor are emerging as key hubs for these developments, driven by increasing demand from global technology firms and manufacturing companies. Data centres have become essential infrastructure in the digital age, supporting the rapid growth of cloud computing, e-commerce, and digital services. The construction of these facilities will not only create job opportunities but also position Malaysia as a competitive player in the digital economy. Similarly, industrial projects such as factories, warehouses, and logistics hubs are gaining traction, particularly in regions with strong industrial bases. These developments will further diversify the construction sector and contribute to the country’s economic resilience. The Role of Private Sector Projects While public sector projects provide a solid foundation for growth, private sector-led projects continue to play a crucial role in supporting the construction industry. Investments in commercial properties, residential developments, and mixed-use projects by private developers add dynamism to the sector, fostering innovation and competitiveness. Private sector participation is vital in ensuring that the construction industry remains adaptable to changing market demands. By embracing new technologies and sustainable practices, private developers can drive the industry towards a more resilient and future- ready state. Strategic Initiatives from MBAM As we step into 2025, MBAM remains committed to supporting our industry through strategic initiatives aligned with the nation’s current development plans. Although Budget 2025 did not include any new mega infrastructure projects, we see significant opportunities in the government’s focus on sustainable growth, urban rejuvenation, and digital transformation. In 2024 alone, RM199 billion worth of construction jobs were awarded in Malaysia across both government and private sectors. This remarkable figure reflects the bustling activity within the industry, and 2025 is expected to be another busy year. The emphasis on sustainability and digital transformation will open new avenues for growth, ensuring that the construction sector remains relevant and competitive in a rapidly evolving landscape. Navigating Geopolitical and Economic Challenges Potential challenges ahead are not insignificant, with geopolitical tensions, such as the ongoing Russia- Ukraine war and trade disputes between the United States and China, which have the potential to disrupt global supply chains. Additionally, policy changes, including the anticipated moratorium on RON 95 fuel prices, may impact material costs and overall project budgets. These factors necessitate caution from industry players. Contractors must be prepared to navigate potential supply chain disruptions and rising material prices. We encourage our members to engage in proactive planning and contract management to avoid costly disputes. By fostering open communication with clients and stakeholders, contractors can mitigate risks and ensure the smooth execution of projects. Embracing Challenges with Caution and Optimism While the outlook for 2025 is undeniably positive, it is essential to approach this growth with a sense of caution. Challenges such as rising material costs, labour shortages, and regulatory hurdles must be addressed to ensure the industry’s sustainability. The industry should continue to adopt innovative construction methods, embrace digital transformation, and prioritise sustainability in our projects. These efforts will not only enhance efficiency but also reduce the environmental impact of construction activities. In conclusion, the Malaysian construction industry is entering an exciting phase of growth and transformation. By capitalising on the opportunities ahead and addressing challenges proactively, we can build a resilient and sustainable future for the sector. As we look to 2025 and beyond, let us remain optimistic yet cautious, ensuring that our growth benefits not only the industry but also the nation as a whole. Data centres have become essential infrastructure in the digital age, supporting the rapid growth of cloud computing, e-commerce, and digital services. Industry & Practices IP 1 OCTOBER 2024 MITI Open Day 2024 MBAM Secretary-General Datuk Astaman Abdul Aziz and General Manager Lenny Lim attended MITI Open Day 2024, which was officiated by the Minister of Investment, Trade & Industry Malaysia, YB Senator Datuk Seri Utama Tengku Zafrul Aziz. Organised by the Ministry of International Trade and Industry (MITI), the event served to foster greater collaboration between industry stakeholders and the government, providing a platform for discussions on trade policies, industry developments, and initiatives to strengthen the Malaysian economy, particularly in the construction sector. 14 th Malaysia-China Entrepreneurs Conference 2024 17 OCTOBER 2024 MBAM Deputy President Kenneth Liew at the event, held at the Kuala Lumpur Convention Centre 14 OCTOBER 2024 CIDBH-I ENTRY Launch Event MBAM Secretary-General Datuk Astaman Abdul Aziz and General Manager Lenny Lim attended the launch of the CIDBH-I ENTRY System at Bangunan Moccis, Kuala Lumpur. The event marked the collaboration between CIDB Holdings Sdn Bhd and I-Entry Malaysia Sdn Bhd to introduce an integrated system for the registration, management, and monitoring of employers and foreign workers in the construction industry. Designed to enhance data management, transparency, and compliance, the system aims to provide a more efficient and holistic approach to managing foreign workforce affairs. The launch was attended by Deputy Minister of Human Resources YB Dato’ Sri Abdul Rahman bin Haji Mohamad, Minister in the Prime Minister’s Department YB Dr Zaliha Mustafa, and Minister of Works YB Dato Sri Alexander Nanta Linggi. A presentation outlined the system’s purpose and functionality, highlighting its role in streamlining foreign worker management in the construction sector. This was followed by a video demonstration showcasing the system’s capabilities and the signing of a Memorandum of Agreement (MOA) between CIDB Holdings and I-Entry Malaysia. The event concluded with a site visit to a Centralised Labour Quarters (CLQ) facility, a media session, and refreshments. Sitting, from left, Minister of Works, YB Dato Sri Alexander Nanta Linggi, Minister in Prime Minister's Department, YB Dr Zaliha Mustafa, with Datuk Astaman Abdul Aziz (standing) 26 MASTER BUILDERS JOURNAL #134Industry & Practices IP 3 OCTOBER 2024 ASEAN Skills Forum 2024 The ASEAN Skills Forum 2024 was jointly organised by the Ministry of Human Resources (KESUMA), through its agency the Human Resource Development Corporation (HRD Corp), in collaboration with the International Labour Organisation (ILO) and ASEAN. Held at M Resort & Hotel, the forum was attended by MBAM Secretary-General and Chairman of the Human Resource Development (HRD) Committee, Datuk Astaman Abdul Aziz, along with HRD Committee Member Khairatul Akhmam. Human Resources Minister YB Steven Sim officiated the event, joined by Ministry Secretary-General Azman Yusof, ILO Chief of Skills and Employability Srivinas B Reddy, HRD Corp Chairman Abu Huraira Abu Yazid, and HRD Corp CEO Datuk Shahul Dawood. The forum brought together 200 delegates from 16 countries, including the Philippines, Thailand, and Cambodia. Discussions focused on the challenges, priorities, and interests of governments, social partners, and civil society in ASEAN, particularly in shaping policies for skills development. The forum also noted Malaysia’s upcoming ASEAN chairmanship in 2025, with the ASEAN Year of Skills (AYOS) set to launch in January. During the event, YB Steven Sim announced enhancements to the HRD Corp Allowable Cost Matrix, including the introduction of hourly rate claims for training, allowing employers to claim course fees for shorter programmes. The ceiling for claimable course fees was also raised from RM6,000 per day to up to RM10,500 per day, enabling employers to invest in higher-quality training. The forum served as a platform for regional collaboration, reinforcing the importance of skills development in strengthening ASEAN’s workforce. Minister of Human Resources, YB Steven Sim (centre) officiating the event with other officials 27Next >