President Message January 2014

President Message January 2014



The year 2014 will be a ‘Big’ year for the Association as we will be celebrating our 60th Anniversary. In conjunction with our 60th Anniversary, we are coming out with a coffee table book to commemorate the milestones, history and achievements of MBAM. Also, we will be organizing a mini inaugural Malaysian Construction Games to encourage and promote sporting and healthy activities for those within our industry. With this, we hope everybody will lend your full support behind the activities lined up.

As we enter the New Year, I would like to wish everyone a most Happy New Year in anticipation of another good year for the construction industry.



The Association is now known as Master Builders Association Malaysia (Persatuan Kontraktor Binaan Malaysia) with effect from 24th September 2013. (Note: English name takes precedence). MBAM is devoted to further promoting and developing the construction industry, and the name change will better reflect the Association’s present branding, image and visibility in the building and construction industry in Malaysia and internationally.



As we enter the year 2014, I would like to take this opportunity to reiterate our wish list.

  1. Find Solutions to Alleviate the Critical Shortage of Skilled Workers in the Construction Industry
  • MBAM hopes the Government can find ways to retain skilled foreign workers that have been here for more than 10 years. Their skills represent long and not to mention significant investment made by their employers and retaining them would increase productivity and efficiency in the construction industry. As we cannot be depending on foreign labour forever, MBAM would like to see greater cooperation between all the related Government Ministries, agencies as well as public and private higher education institutions to attract and develop more locals into skilled tradesmen and construction workers. We hope the Government can work with MBAM to attract more locals into the industry to reduce dependency on foreign workers.
  • MBAM will continue to pursue the request for contractors to be granted flexibility to transfer their foreign workers from one project site to another as long as the permit is valid and there is traceability of the said worker.
  • We will also continue to push for the establishment of a One Stop Centre for processing foreign workers to increase efficiency and minimize delays.
  1. Implementation of Construction Industry Payment and Adjudication Act (CIPAA)
  • Payment default is still a major problem in the construction industry. Immediate implementation of the CIPAA is essential to provide a mechanism for speedy dispute resolution through adjudication.
  1. High Import Duties and Sales Tax on Heavy Construction Machinery Limit the Growth of the Industry
  • MBAM will continue to pursue lower import duties and sales tax for heavy machinery as the current regime is considered high, with some import duties and sales tax on machinery totaling more than 30 percent.
  1. Stable Prices of Building Materials
  • Recent fuel hike, toll increase, increase in electricity tariff, and implementation of the GST in the near future will contribute to an increase in the cost for building materials.
  • We will continue to pursue the recommendation for the Government to look into granting rebates and tax deduction for companies supplying their products especially for key projects such as the MRT and other high impact projects that will benefit the rakyat. This will encourage the companies to absorb the impact of the increase in production cost and not pass on to the contractors.
  1. More Incentives for the Implementation of Industrialised Building System (IBS)
  • In view of the labour shortage and escalating labour cost affecting the construction industry the usage of IBS is appropriate.
  • We would like to see better incentives by the Government in terms of land, plant and machinery to produce IBS components and also to encourage contractors to use precast system. Developers are encouraged to adopt IBS for not just Government projects but also for private projects as well.

In the year 2013, we highlighted the above issues during my meetings with Chief Secretary to the Government of Malaysia, YBhg. Tan Sri Dr. Ali Hamsa; Minister of Works Malaysia, YB Datuk Haji Fadillah Bin Haji Yusof; Secretary-General, Ministry of Works Malaysia, YBhg. Datuk Himmat Singh; Chief Executive, CIDB Malaysia, Dato’ Sri Ir. Dr. Judin Bin Abdul Karim; as well as in our dialogues with representatives from Bank Negara Malaysia, Ministry of Works Malaysia, Ministry of Finance Malaysia and Ministry of Human Resources Malaysia. We also called a press conference chaired by myself in August 2013 to highlight to the general public through the mass media on critical human resource and foreign workers issues faced by MBAM members and the construction industry.

In line with our vision to be The Prime Mover and The Recognized Voice of the Malaysian Construction Industry, we will continue to vigorously pursue the matters highlighted above to protect the legitimate interests of our members.



MBAM held an On-The-Job Technical Training to Pahang-Selangor Raw Water Transfer Project at the Hulu Langat Outlet on 3rd December 2013. The study visit saw the participation of 13 participants. The objective of the study visit was to create awareness and to enhance our members’ knowledge on water transfer tunnel excavation and boring technology as well as on other related design and construction work. The participants were brought into the TBM tunnel using a locomotive in a journey that took one hour. Pahang-Selangor Raw Water Transfer Project are being built to cater to the increasing water demands in the commercial and industrial development centres in Selangor/ Kuala Lumpur region (Klang Valley), which is the political, commercial and industrial centre of the nation. This project is therefore vital to sustain the region’s rapid growth into the 21st century. I was given the honour to say a few words of welcome before we continue with the safety briefing prior to the study visit to the TBM tunnel.



MBAM Mechanical and Electrical Committee organized a talk entitled “Efficiency Grading of Fans: Latest Development” on 5th December 2013 at MBAM Training Centre.

Managing Director of Kruvent Industries (Malaysia) Sdn Bhd, Mr Teoh Kee Hin started his presentation on the Definition of Fan with and without drives. According to him, in essence the difference is the presence of an impeller.  He moved on to discuss the Fan Efficiency Grades (FEG) which are commonly adopted in the United States and the Fan Motor Efficiency Grades (FMEG) which are adopted by European Union countries. He explained on the various types of fan for different function: such as Fans for Air-conditioning Ventilation (AHU), Smoke Sill Fan, Roof Fan, Commercial Ventilation, Kitchen Ventilation Fan as well as General Ventilation and Domestic Fan. He then elaborated on the advantages of each type of fans. He said, beside efficiency grading, factors such as noise control, system effect, design and installation need to be considered when choosing the right type of fan for the right application. System effect is termed as air flow loss. With the aid of graphs and video presentation, he projected the efficiency of the FMEG and the system effect and expressed it in monetary value loss.

The talk concluded with the presentation of memento of appreciation by MBAM Chairman of Mechanical and Electrical Committee, Mr Kenneth Liew to Mr Teoh Kee Hin for the interesting presentation. The feedbacks from all the participants indicated that the presentation was good and educational.



MBAM held the Competency Certificate Presentation Ceremony for the Construction Occupational Competency Development (COCD) programme for Construction Trade Supervisors (Foreman) 2nd Intake on 18th December 2013 at MBAM Conference Room. The programme was once again sponsored by CIDB Malaysia.

The objective of this programme was to certify and register all construction personnel in compliance with the revised CIDB Act 520 under Section 33 (1). The COCD recognizes the Recognition of Prior Learning (RPL) and training of relevant construction personnel for Certification and Registration purposes required by the Act.

We have successfully accredited 18 trainees since we started the programme on 13th November 2013. During the ceremony, CIDB and MBAM also presented The Best Achiever and The Most Improved Achiever for our top 3 trainees for each categories. Also in attendance during the ceremony was the General Manager of Construction Personnel Department of CIDB Malaysia, YBhg Dato’ Ir. Rohaizi Mohd Jusoh.



MBAM received a courtesy visit from the Development Bank of Japan (DBJ) delegation on 19th December 2013 at MBAM Conference Room. DBJ, a leading Japanese financial institution with total assets exceeding USD 150 billion, is wholly owned by the Japanese Government. The objective of the visit was to discuss about the ways and methods to help Japanese corporates to expand their businesses in South East Asia, whether by setting up Joint Venture with local companies or through acquiring existing businesses.

The representatives of DBJ are currently working for a close client of theirs which is one of the largest business groups in Japan. Their client is interested in expanding their business into the Malaysian market in the field of power tools distribution. Hence, they scheduled the meeting in order to find out about the potential partners they can work with in Malaysia. The representatives from DBJ consist of:

  • Mr Toshiyuki Okubo – Deputy Chief Executive Officer and Head of Investment Banking, Development Bank of Japan
  • Mr Yamaguchi Takashi – Vice President, Business Development Division
  • Mr Neau Ker Wee – Assistant Vice President, Investment Banking
  • Mr Yuki Nagayasu – Analyst, Business Development Division

The challenges faced by the construction industry are ever increasing. Every bit of assistance as outlined in the Wish List above will definitely help the industry to move forward to fulfill the needs of the nation as it progress towards the status of a fully develop nation by 2020.

Last but not least, as we celebrate our 60th Anniversary in 2014, the Association has circulated some great packages for sponsorship and participation in the 60th MBAM Anniversary celebrations and the 60th MBAM Anniversary Commemorative Coffee Table Book.

For more details, kindly contact MBAM Secretariat staff at 03-7984 8636 or email / . I sincerely hope everyone can give their full support for the programmes that we have prepared in conjunction with this auspicious event. We look to forward to your kind consideration and assistance to make our events merrier.

Thank you and best regards.


Yours faithfully,


 Matthew Tee


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