PRESIDENT WEBSITE MESSAGE – OCTOBER 2011
MBAM welcomes the balanced growth budget tabled on 7th October 2011, taking into consideration both prevailing external and internal factors. Construction industry and the services sector are expected to play a vital role by contribution of 7% and 6.5% respectively to the GDP growth in 2012. In order to achieve this encouraging but challenging target, the Government and the private sector must work closely together to ensure projects under the Economic Transformation Programme (ETP), the Entry Point Projects (EPP), projects under the 5 corridors and the Greater Kuala Lumpur and Klang Valley are implemented in a timely manner as the projects will cost more if delayed. MBAM hopes that the Government will continue to attract investments on all ETP and EPP projects to ensure ample funds for growth.
In tandem with the ETP, MBAM wishes to see the Government facilitating the construction industry to be more productive with enhanced skill sets by increasing the productivity of its workers through a 2-pronged approach namely via effective skills training programmes and also through higher mechanization in the construction industry. There is an urgent need to replenish the pool of skilled construction manpower, as a majority of the workers in it are already ageing. Thus, MBAM welcomes the extension of retirement age from 58 to 60. In fact, MBAM is also embarking on a “Train the Trade Foremen” programme with the Construction Industry Development Board (CIDB). MBAM is also taking steps by collaborating with the Institute of Professional Development-Open University Malaysia (IPD-OUM) to develop and design courses for working adults. The courses developed will incorporate knowledge and entrepreneurship skills which would be industry oriented. MBAM continues to appeal to the Government to consider reducing duties for heavy construction machineries to further enhance productivity in the construction industry in tandem to achieve higher income economy. The Association is also working with other contractor associations in ASEAN to standardize a construction skills standard to ensure competency and minimum skills qualification for construction workers.
In order to achieve the sustainable growth of the construction industry under Budget 2012, MBAM also sincerely hopes that with the effective implementation of the Competition Act in 2012, there will be no excessive increases in building material prices and the Association looks forward to a more level playing field through strict enforcement to curb over-profiteering and thus ensure more fair prices and business continuity. Furthermore, to ensure financial health of the construction industry, there is an urgent need to enact the long awaited Construction Industry Payment and Adjudication Act (CIPAA) to guarantee security of payment for contractors, suppliers and other stakeholders.
MBAM also supports the fine tuning measure on the imposition of 10% Real Property Gain Tax for properties sold within a period of 2 years after purchase. With a stable and sustainable property market, it is hoped that more medium cost houses will be built across the country to meet the demand of house buyers. This will benefit more small and medium sized contractors as well as the 140 supply chains of the construction industry.
MBAM ANNUAL GOLF TOURNAMENT 2011
MBAM would like to announce that MBAM Golf Tournament 2011 will be held on 29th October 2011 (Saturday), @ 8.00 a.m. at the prestigious Kuala Lumpur Golf and Country Club (KLGCC). For further information, please contact Executive Officer Ms Chai Min Fung at 03-79848636.
INVITATION FOR PARTICIPATION: CHINA-ASEAN INFRASTRUCTURE INVESTMENT AND FINANCING COOPERATION FORUM, 21ST-24TH OCTOBER 2011, NANNING, CHINA
MBAM will be organizing a delegation to attend the China-ASEAN Infrastructure Investment and Financing Cooperation Forum which is scheduled to be held on 22nd October 2011 in Nanning, People’s Republic of China. The theme of this forum is to “Build Financial Cooperation Platform and Serve Regional Economic Development”.
This forum, to be held during the 8th China-ASEAN Expo, is a complement to the “Exhibition of International Economic Cooperation” undertaken by China International Contractors Association (CHINCA). The main objective of the forum is to enable participants to discuss how to build sound financial platform for cooperation between China and ASEAN countries especially the cooperation and communication in project financing, risk control, and financial derivatives.
On behalf of MBAM, we cordially invite members to join MBAM delegation to the said event. The programme and estimated costing are enclosed for your attention. For enquiries, kindly contact assigned MBAM Senior Executive Officer Ms Lee Siew Mei at 03-79848636 or email: mbam05@mbam.org.my.
KWAN FOH KWAI JMN
MBAM President