President Message January 2012


Dear MBAM Members,

The year 2011 is coming to and end. Before we welcome 2012, lets us review our industry in 2011. According to the Construction Industry Development Board (CIDB) statistics, the total value of projects up to third quarter of 2011 is roughly RM49, 365.41 billion while the total value of projects up to third quarter of 2010 was RM57,344.93 billion. Furthermore, the construction quarter growth for 2011 is 3.8%, 0.6% and 3.0% for Quarter 1, 2011, Quarter 2, 2011 and Quarter 3, 2011 respectively. MBAM is concerned that if the trend is not checked, construction industry may record negative growth for the following quarters. Furthermore, major building material producers like cement and steel have been reporting lesser demands for the year to date. Much has to be done now, especially when the Malaysian construction industry is set to grow by a bullish RM92 billion in 2012 from RM85 billion this year. Timely awards and implementation of projects as per the 10th Malaysia Plan (10MP) and the Economic Transformation Programme (ETP) from now will contribute positively to the growth in 2012 as the projects require gestation period in order to generate impact to the economy.



The Association signed a Memorandum of Understanding with the Institute of Professional Development-Open University Malaysia on 4th January 2011. The following courses have been developed which would be industry oriented:

  1. Industrial Executive Diploma in Construction Management
    2. Industrial Executive Diploma in Construction Contract Administration
    3. Executive Bachelor in Construction Management and
    4. Executive Bachelor in Construction Contract Administration.

We hope member can send staff to enroll for these courses for their career development and up skilling of their manpower resources.

During the year in review, MBAM met with several agencies, representatives of Government and trade associations in order to discuss and resolve issues faced by MBAM members. These activities include MBAM Dialogue with Dato’ Ir. Hamzah Hasan, Chairman of CIDB on 21st April 2011 MBAM Affiliate Dialogue Meeting 2011 on 17th June 2011, Meeting with Ministry of Domestic Trade, Co-Operatives and Consumerism (MDTCC) on 5th July 2011 on the subject matter of “Rising Prices of Building Materials Will Hamper the Growth of the Malaysian Construction Industry” and Courtesy Visit to see Dato’ Sri Ir. Dr. Judin bin Abdul Karim, Chief Executive of Construction Industry Development Board (CIDB) on 16th August 2011. MBAM also met with Persatuan Kontraktor Melayu Malaysia (PKMM), Gabungan Bumiputera Contractors (GBC), and Persatuan Kontraktor India Malaysia (PKIM) on amendment of CIDB Act 520 on 3rd August 2011, held a dialogue with Malaysian Iron and Steel Industry Federation (MISIF) on 18th August 2011, hosted the Building Industry Presidents’ Council (BIPC) Meeting on 22nd August 2011 at MBAM Conference Room, attended the KSN’s Engagement Session with Private Sector on the Construction Industry Payment and Adjudication (CIPAA) Bill 2011 on 13th October 2011 and organized a dialogue between MBAM, Machinery Resources Committee, Malaysian Mobile Crane Owners Association (MMCOA), Persatuan Mesin Angkat Dan Kren Menara Malaysia (PMADKMM) and Machinery and Equipment Manufacturers Association (MEMA) on 14th October 2011 to help overcome key issues pertaining to the use of heavy machinery and equipment in the construction industry.

The Association successfully organized several major events such as MBAM’s Open House 2011 on 25th February 2011 at Sime Darby Convention Centre, Kuala Lumpur, the MBAM 57th Anniversary Dinner in Aid of New MBAM Building Fund where the Minister in the Prime Minister’s Department and Chief Executive Officer, Performance Management and Delivery Unit (PEMANDU), YB Senator Datuk Seri Idris Jala, officiated the event on 17th June 2011 at Sunway Hotel Resort and Spa, the MBAM Annual Safety and Health Conference and Signing Ceremony of Memorandum of Understanding Between MBAM and KLIA College where Minister Of Human Resources, Malaysia Yang Berhormat Datuk Seri Dr. S. Subramaniam, officially launched the MBAM Annual Safety and Health Conference 2011 and witnessed the signing of MOU between MBAM and KLIA Professional Management and College (KLIA College) to conduct the MBAM Site Safety and Health Supervisors course for the construction industry on 21st June 2011 at Sime Darby Convention Centre. In addition, MBAM Raya Nite 2011 held at Kuala Lumpur Golf and Country Club. the MBAM Annual Golf Tournament 2011 was successfully held in Kuala Lumpur Golf and Country Club on on 29th September 2011 and 29th October 2011 respectively as well as the .Forum on Roles and Prospects of Safety and Health Officers, CEO Luncheon and Talk on Workers Welfare at Construction Site at Sunway Hotel Resort and Spa where YB Datuk Seri Dr. S. Subramaniam, Minister of Human Resources, Malaysia delivered the Keynote Address during MBAM’s CEO Luncheon at Sunway Hotel Resort and Spa on 13th December 2011.

On the international front, MBAM hosted a visit from the ASEAN Constructors’ Federation Chairman Mr Jorge A. Consunji on 8th March 2011 and participated in the Malaysian Services Exhibition (MSE) 2011 which was organized by The Malaysia External Trade Development Corporation (MATRADE) at the Abu Dhabi National Exhibition Centre, the United Arab Emirates (UAE), from 17th – 20th April 2011. MBAM also sent an overseas delegation to attend the “Symposium of Differentiated Innovation in Construction Machinery Design for Diversified Market Requirements in conjunction with the 3rd Xiamen International Construction Machinery Exhibition 2011 (8th to 11th April 2011) held in Xiamen on 9th April 2011. Besides hosting a courtesy visit by Overseas Construction Association of Japan Inc. (OCAJI) on 9th September 2011 in conjunction with Malaysia-Japan Conference on Construction held on 12th September 2011, MBAM also received the Minister of Economic Development of the Republic of Maldives, Hon Mr Mahmood Razee who led a 8-Maldivian delegation which includes Mr Mohammad Janah, President of Maldives Association of Construction Industry (MACI) on 13th September 2011. The purpose of the meeting was to explore further cooperation between MBAM members and the Maldivian related Associations. MBAM also was represented at the China-ASEAN Infrastructure Investment and Financing Cooperation Forum which was held in conjunction with the 8th China-ASEAN Expo from 20th to 23rd October in Nanning, China. The forum was organized by our counterpart, the China International Contractors Association (CHINCA). MBAM also sent a delegation to the 39th IFAWPCA Convention held in Hong Kong on 15th to 18th November 2011. During the convention, MBAM Deputy Secretary-General 1 and MBAM IFAWPCA Chief Delegate Ir. Chuan Yeong Ming delivered a speech on the theme of “Built on Collaboration and Fair Contract Terms”.


MBAM hopes that 2012 will see the continued stabilization of prices of building materials with the enforcement of the Competition Act 2011. The Association also wishes for the CIPAA Act to be quickly enacted and our recommendations for the Amendments to CIDB Act 520 taken into consideration. We also hope members will continue to provide feedback to surveys for 2012, as these are much needed to strengthen our arguments when we are submitting memorandums to the relevant authorities. Though 2012 could be a challenging year for the construction industry in view of the global economy, MBAM will continue to provide the services we are known for to our members in the hope that we can continue to bring positive changes to the construction industry in this country for 2012 and beyond.

Here’s wishing you a very Happy and Prosperous 2012!


Mr Kwan Foh Kwai JMN

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