M

BAM Section

MEETING

Building Industry Presidents Council

BAM President Dato Ir. Goh Chye

Koon and Secretary-General Yap
Yoke Keong attended the
Building Industry Presidents Council
(BIPC) meeting held on May 18, 2005. Dato
Eddy Chen, Chairman of BIPC chaired the
meeting which was also attended by
representatives from REHDA, PAM, ACEM,
ISM, and IEM.

responsibilities including the Stage

Certification Forms (BSC) must not lead
to more complications and slow down
the delivery process. MBAM
highlighted the fact that builders are
liable to clients on quality of works
done under the supervision of the
Superintendent Officer (SO) as is the
current practice. Further more, builders
are adequately regulated by provisions
in conditions of contract including
performance bond and retention sum.

The meeting deliberated on the following

issues:

Certificate of Completion and

Compliance (CCC) MBAM agreed in
principle to support the proposed CCC
which is intended to make the delivery
process more efficient. However, as the
duties and responsibilities of the
Submitting Person (OMP) remains the
same, the proposed matrix of

Build & Sell and Sell & Build MBAM

reiterated that local financial system
need to be in place prior to consider
workability of Build & Sell including
the 10:90 variation as practiced in
Australia. MBAM is of the view that
market forces shall decide mode for
Build & Sell and Sell & Build.

Professional Fees MBAM remained

neutral with respect to payment of
professional fees upfront to
respective professional board, i.e.
BEM/BAM to ensure certainty of
payment. Scale of fees payable
should be based on agreed
contracted rates between vendor and
consultant, which in turn are guided
by the regulated scale of fees under
the respective bodies. There was
disagreement on the proposal by
MBAM on payment bond.

CIDB Construction Industry Master

Plan (CIMP) the meeting noted that
Ernst & Young, the consultant
appointed by CIDB to finalize
preparation of CIMP is inviting
comments
from
industry
stakeholders on the draft. MBJ

EAROPH Roundtable Meeting on Housing

B Dato Seri Ong Ka Ting, in his

capacity as President of Eastern
Regional Organization for Planning
and Housing (Earoph) Malaysia Chapter,
chaired the said roundtable meeting on
March 31, 2005. The roundtable was a
follow-up to a pre-roundtable meeting held
earlier on March 3 2005 and deliberated on
the following subject matters:
Self Certification
Quality (defects) and Licensing of
Contractor
Enforcement
Build and Sell (and Sell and Build)
Abandoned Housing Project
Rising Cost of Development
Lawyer and Representation on SPA
Strata Title
Gated Community
Privatized Utilities and Level of Services
On the issue of self certification, the Cabinet
has approved process of Certification of
Completion and Compliance (CCC) by
professionals, i.e. architects/engineers.
Ministry of Housing and Local Government,
Malaysia (MHLG) is gathering feedbacks
from stakeholders prior to organising road
show informing industry players,
stakeholders, local authorities on the

process involved. The road show will

highlight certification procedures;
confidence building; buyers be aware of
recourse in the event of wrongful/
fraudulent certification; and periodic review.
On the issue of quality (defects) and
regulating the contractor, it was noted that
there is mismatch of quality perception and
housing price and a proposal to set a
benchmark for housing standard was
accepted. CIDB was proposed to chair a
committee looking into regulating
contractors and sub-contractors.
The issue on build and sell was deliberated
at length and the concept of 10:90 was
mooted. A Task Force will be set up and will
consider the following factors:
Sustainable supply of houses to meet target
Sustainable cost/price structure vis--vis
affordable housing
Maintaining a competitive housing
industry
Eliminating abandoned housing
Economic role of the housing sector
Improving the delivery system
The meeting agreed that there is a need to
address the menace of abandoned housing

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projects. A proposal was made for market

information/feasibility studies to be made
compulsory to enable financial institutions to
review viability in financing housing projects.
The meeting noted that rising cost of
development attributed to building
materials cost; labour cost; increasing
planning requirement by Government
authorities and utilities agencies; over
regulation; transportation cost; and other
compliances to be addressed at Cabinet,
Mampu, or NEAC forum.
MHLG will take up issues on lawyer
representing developer and house buyers
as well as the Bar Council implemented a
no discount rule for lawyers to the relevant
Government authorities.
Due to the lack of transparent rules
governing Gated Community, a proposal
was made for a Community Land Act to be
enacted for orderly development of Gated
Community.
REHDA/PAM/ACEM will liaise with privatised
utilities to resolve issues on capital
contribution charges and level of services
agreement. MBJ

BAM Section

GUIDELINES

Guidelines on Certificate of Completion

and Compliance

r. Fong Tian Yong, Deputy DirectorGeneral II, Department of Local

Authority (JKT), Ministry of Housing
and Local Government, Malaysia (MHLG)
chaired a meeting on April 23, 2005 to
deliberate on the proposed Guidelines on
Certificate of Completion and Compliance
(CCC).
As background information, the Cabinet
at its meeting on March 9, 2005 has
agreed that the Certificate of Fitness for
Occupation (CFO) issued by local
authorities (PBT) be replaced by the CCC
to be approved by a Panel of
Professionals which is approved and
appointed by the Housing and Local
Government of the respective state.

Planning Permission
Application for Planning Permission
Approval still follows the same process
for approval by PBT.
Building Plans Approval
Application for Building Plans Approval
still follows the same process for
approval by PBT.
Certificate of Completion and
Compliance (CCC)
PBT will no longer issue the CFO. In its
place will be the CCC issued by the
Submitting Person (OMP) when the
application is in compliance with UBBL
1984 and PBT conditions.
Submitting Person

This practice is already in place for singly

built detached house when the qualified
person has certified in Form F that:

He has supervised the erection and

completion of the singly built
detached house and that to the best
of his knowledge and belief the singly
built detached house has been
constructed in accordance with
Uniform Buildings By-Laws (UBBL)
The conditions imposed by the local
authority have been satisfied
All essential services have been
provided, and
He accepts full responsibility for the
portions that he is concerned with

The proposed CCC is an extension to

cover all categories of building
construction.
Development Flow Chart
The Development Flow Chart by the
MHLG on Development Process
Guidelines and Building Plan Approval
Guidelines is still to be referred to except
the CFO issuance process.

The Submitting Person (OMP) is based on

the circular list issued by the Board of
Architect Malaysia (BAM) or Board of
Engineers Malaysia (BEM) or joint
declaration by BAM/BEM.

Scope of Works
Name of Form
Drainage
Irrigation
BSC1
Water
Water Reticulation
BSC2
Internal Piping
BSC3
Building Plan
Building
BSC4
Structural
BSC5
Mechanical
BSC6
Electrical
BSC7
Specialist
BSC8
Bomba
Active System
BSC9
Passive System
BSC10
Sewerage
Sewerage Reticulation
BSC11
Sanitary Plumbing
BSC12
Road and Drainage
Road & Drainage
BSC13
Lamp Posts
BSC14
Landscape
Landscape Plan
BSC15
Telecommunications
Telecommunications Plan
BSC16
Electricity
External Electricity Supply
BSC17
Lift
Lift Installation
BSC18
Earth Work
Earth Work
BSC19

Matrix of Responsibility

Site Inspection by PBT

In order to ensure quality of construction

works, the credibility, accountability and
responsibility of parties in implementing
and confirmation of works done must be
clear and transparent. As such, the
proposed guidelines will incorporate
stage certification process by
contractor, site supervisor (consultant),
and tradesman. The OMP who is
responsible for the overall construction
will confirm the CCC based on
certification by contractor, site
supervisor (consultant) and tradesman in
the prescribed Borang SC.

Under By-law 25(b), the local authority

may issue notice to submitting person to
withhold the issuance of CCC if its
authorized officer has noticed and issued
written statement of non-compliance
with UBBL to the submitting person
during the course of construction.

Stage Certification Forms Borang SC

Role of CIDB

Stage Certification Forms will follow

stage activities of construction works as
follows:

To ensure quality construction works,

CIDB will supervise contractors duly
registered with CIDB.

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Role of BAM and BEM

The Submitting Person shall forward copy
of duly completed CCC certificate to the
respective professional boards for
retention as database for future reference.

BAM Section

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BAM Section

MBJ

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BAM Section

GUIDELINES

CIDB Dialogue on Certificate of Completion

and Compliance

n. Abdul Latif Hitam, General

Manager, CIDB chaired a meeting
on May 19, 2005 with
representatives from MBAM, PKMM
and GBC and deliberated on the
proposed Certificate of Completion
a n d Co m p l i a n c e ( CCC ) . V i c e
President Dato Low Keng Kok led the
M B A M delegation compr ising
representatives from Road Builder (M)
Sdn Bhd, Sunway Construction Sdn
Bhd and Trans Resources Corporation
Sdn Bhd.

The meeting agreed in principle to support

the proposed CCC as it is intended to make
the delivery process more efficient.However,
the members present noted that duties and
responsibilities of the Submitting Person
(OMP) remains the same and that the
proposed matrix of responsibilities
including the Stage Certification Forms
(BSC) must not lead to more complication
and slow down the delivery process.
Members present generally agreed that
builders are adequately regulated by

provisions in conditions of contract

including performance bond, retention
sum etc. Builders are liable to clients on
quality of works done under the
supervision of the Superintendent Officer
(SO) as is the current practice.
CIDB noted views and comments from
members present and will consolidate
feedback to be forwarded to the
Department of Local Government (JKT),
Ministry of Housing and Local
Government, Malaysia (MHLG). MBJ

Certificate of Completion and Compliance

BAM Vice President Dato Low

Keng Kok chaired a pre-meeting
on May 18, 2005 to consolidate
views of MBAM prior to a dialogue among
stakeholders by CIDB on May 19. President
Dato Goh Chye Koon, Vice President Ng
Kee Leen, Council Member Dennis Tan,
representatives from Road Builder (M) Sdn
Bhd, Bina Puri Sdn Bhd and Kemas
Construction Sdn Bhd were also present.

involved. MBAM agreed to seek

clarifications of the following issues at the
CIDB meeting in respect of proposed CCC:
1.

When is the CCC to be issued? There

is no requirement for the CCC to be
issued within a set time frame.

2.

What is the purpose of the Stage

Certification Forms (BSC)?

The meeting noted the report on

Certificate of Completion and Compliance
(CCC) discussed at an earlier meeting
convened by the Department of Local
Government (JKT), Ministry of Housing
and Local Government, Malaysia (MHLG)
on April 23, 2005. The Cabinet at its
meeting held on March 9, 2005 has agreed
that the Certificate of Fitness for
Occupation (CFO) issued by Local
Authorities (PBT) to be replaced by the
proposed CCC. A panel of professionals to
be approved and appointed by the
Housing and Local Government of the
respective state shall be given the power
to issue CCC.

3.

To request JKT, MHLG to provide a

copy of each form, i.e. BSC1 to BSC19
in order to ascertain similarity or
differences in these forms

The meeting agreed that, in principle,

MBAM shall support the proposed CCC.
However, there are added responsibilities
to builders as a lot of procedures are

7.

4.

Under the draft BSC, who is intended

to be the tradesmen?

5.

What is the intended liability of the

persons signing the BSC? Are they to
be personally liable?

6.

Why is there a requirement for the

BSC? Is it not the current legal
position that the contractor is liable
for the works?
Who is to sign on the BSC for
contractor? Is it the Supervisor/
Project Manager (PM)/Managing
Director (MD)? If it is the

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individual, is it the intention that

the person is liable?
8.

If the individual is to sign, what is the

position if the person is no longer at
Site and the replacement is unwilling
to sign? Can a substitute sign?

9.

Persons authorized to sign BSC forms

only do so after the drawings
incorporating all amendments are
approved by the Local Authority, Is
this practical or possible?

10. If the owner is having a dispute with

the Submitting Person (OMP), what is
the position if the OMP refuses to sign?
11. The new system appears to allow for
automatic takeover by authorities of
the infrastructure after issuance of
the CCC. What is the position if the
authorities refuse to accept the
takeover?
12. Can the contractor refuse to sign the
BSC form if the employer defaults in
payment?
13. What is the impact of CCC on the
Contractors All Risks (CAR)
insurance? MBJ

BAM Section

MEETING

DOSH Consultative Panel Meeting

r. Hj Abu Bakar Che Man, DirectorGeneral, Department of Occupational

Safety and Health (DOSH) chaired
the DOSH Consultative Panel Meeting
No.1/05 on April 29, 2005. Phillip
Varughese of Sunway Construction Sdn
Bhd and Executive Officer, K.Maran
represented MBAM.
Among issues discussed were:Occupational Safety and Heath
(Notification of Accident, Dangerous
Occurrence, Occupational Poisoning,
and Occupational Disease) (NADOPOD)
Regulations 2004
Although MBAM has organized several
road shows/talks jointly with DOSH,
there are still many contractors found to
be unaware of NADOPOD. The current
roadshows conducted by DOSH are
merely to introduce NADOPOD. MBAM
proposes that DOSH to organise more
road shows on how to complete various
forms that are being formulated by
DOSH.
MBAM was requested to organise more
talks to members and write officially to
state officers or direct to DOSH
headquarter to solicit for speakers.
Continuous Education Programme
(CEP) for SHO
MBAM noted that DOSH plans to
introduce a point system on Continuous
Education Programme (CEP) to enable
SHO to renew their registration. MBAM
supports the said system and DOSH will
provide the proper guidelines.
DOSH will form a Committee to look into
the said matter and invite MBAM for the
meeting.
Guidelines on Occupational Safety and
Health (OSH)
MBAM noted that DOSH is in the process
of developing several guidelines on
Occupational Safety and Health for all
industries. MBAM proposes that industry
players be consulted and invited to

develop the guidelines. Industry players

must be given enough time to revert
comment (s) on the said guidelines.
Guidelines for Hoisting (Tower Cranes)
and Review The Existing Guidelines on
Excavation
MBAM noted that a guideline on hoisting
(tower cranes) is not available in the
construction industry. The existing
guidelines on excavation need to be
reviewed. MBAM urges DOSH to develop
a guideline for hoisting (tower cranes) and
to review the existing guideline on
excavation.
Checklist for Mobile Cranes
MBAM noted that mobile cranes, which
are certified with Certificate of Fitness (CF)

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are valid for 15 months. At the moment,

DOSH does not provide a checklist for
contractors to comply with the standards
to ensure it is seen and functioning on the
crane. There are conflicting views by the
suppliers and DOSH on the checklist and
the compulsory items on the crane. MBAM
proposes DOSH to provide a checklist to
enable suppliers to know the compulsory
items on the crane.
DOSH has forwarded a copy of the said
checklist for distribution to MBAM
members.
It has also requested MBAM to inform its
members: to register their worksite with DOSH
to display DOSH registration number
at their worksite for any projects
lasting more than six weeks MBJ

BAM Section

MEETING

Role of Engineers and Geologists on Hill Site

Development and Slope Stability

he

Practice

support services of the various building

tests could be specified by the engineer

Committee (PPC), Board of

Professional

requirements. When a building is located

for use in the analysis.

Engineers Malaysia (BEM) formed

on hill site, the service of a civil engineer

a Working Group (WG) to look into issue

who professes to have the special skill in

On the other hand, engineers can design

on role of engineers and geologists on hill

the analysis of stability of slopes and

and make unstable slopes stable using

site development and slope stability. This

foundation design on slope is engaged.

engineered solutions for the interest of

is to assist the construction industry to

This person is commonly referred to as

public safety. In the design of

define the role of these two professionals

geotechnical engineer. A report known as

geotechnical engineers, the engineer

to adhere with good practice in the

the geotechnical report is prepared by

needs to plan and carry out ground

interest of public safety.

this civil engineer who has the

investigations in relation to the structure

specialized geotechnical knowledge.

and

Ir. Dr. Gue See Sew chaired a meeting on

obtain

engineering

design

parameters to assess the stability of

April 29, 2005 with the objective to come

When a hill site is located on rock or

slope and the safe transfer of loads from

up with authoritative guidelines to assist

colluviums, the engineer normally calls

the structure to the ground in terms of

local authorities (PBT) to define the role

for a geotechnical report on the

settlement and ground bearing capacity

of engineers and geologists on hill site

characteristics of the rock slope, its

all in the interest of public interest of

development and slope stability. The WG

geological histories, joints of rocks etc.

safety and functionality. In this regard,

reviewed letter and press release from

The engineering geologist in this case acts

the engineer is responsible for planning

the Institution of Engineers Malaysia

like a radiographer who provides the x-

the collection of raw data, specifying the

(IEM) on the role of engineers and

ray for the use of medical doctor who in

necessary sampling, field tests as well as

geologists on hill site development

the case of hill site development is the

further laboratory tests to the need of an

outline as below:

engineer.

engineering project. The engineer would

For the development of a township, the

IEM clarified the role of geotechnical

after various analysis based on the

respective town planner would have the

engineer and engineering geologist by

interpretation of the data collected

structure plan of the town in place. This is

stating that geologists are scientists who

according to his specifications.

done after consultation with various

study the formation and structure of the

authorities and interested parties. In any

Earth. They are thus not qualified to deal

The meeting noted that local authorities

development scheme, there will always

with engineering aspects of hill site

require the Department of Minerals and

be a submitting person. For most

development such as the stability of

Geosciences Malaysia (JMGM) to give

buildings, the architect is the submitting

slope and foundation support system for

their comments involving slopes or near

person. In engineering works such as

the structure on slope or hill sites.

to slopes on hill sites development.

earthworks and buildings like factories

However, engineering geologists are

Comments given by JMGM are restricted

and structures like communication

particularly useful to assist geotechnical

to the field of geology

towers, roads, water supply schemes etc,

engineers in obtaining raw data on sub-

the submitting person is the engineer.

soil profile, properties of soil and rock,

The meeting concluded with agreement

geological formation of an unknown

on the proposal for draft guidelines on

The IEM paper explained that the public

location and providing information of

the role of engineers and geologists on

engages the services of engineers for

the exposed rock slope needed for the

hill sites development and slope stability

civil, structural, mechanical and electrical

geotechnical engineers interpretation,

to be drafted for deliberation at the next

component of the works so as to give the

analysis and design so that additional

meeting. MBJ

also have to decide on a design solution

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BAM Section

HUMAN RESOURCES

CIDB-CLAB Seminar on Application of Foreign

Workers for the Construction Sector

xecutive Director Chan Fook Cheong and Executive

Officer Chai Min Fung attended the CIDB-CLAB Seminar
on Application of Foreign Workers for the Construction
Sector on June 7, 2005 at CIDB.

in foreign workers, types of visa and application of

visa and related fee charges, issues related to foreign
workers and Immigration Acts involved in
employment of foreign workers.

Acting General Manager of Construction Personnel

Development Division of CIDB, Ir. Sia Han See delivered the
opening remarks. The objectives of the seminar were:

Paper 3 Understand the Technical Basis in Application of

Foreign Workers by Contractors by Ir. Mukhtar Che
Ali of CIDB

to give information on current Governments policies on

employment of construction foreign workers
to explain Governments strategies on solving shortage of
foreign workers
to clarify the basic technical considerations in application
of foreign workers by contractor
to explain CLABs mechanism on transmission of foreign
workers and CLABs involvement in recruiting foreign
workers.

The speaker spoke on the background of

employment of foreign workers in the construction
industry. He stressed on the technical aspects for
evaluation of foreign worker application where the
number of foreign worker recommended through
the evaluation will be submitted to KHEDN for
approval. He also clarified on the common mistakes
made by contractors in their application.

Paper 4 Roles of CLAB in Assisting Contractors Getting

Foreign Workers by Captain (Rtr) Azlan Mohd Isa of
CLAB.

Five papers were presented during the seminar.

Paper 1 Current Government Policies and Rules on
Foreign Workers Application in Construction
Industry by Zalina Yusuf, Assistant Manager of
Ministry of Home Affairs, Malaysia (KHEDN)

Construction Labour Exchange Centre Berhad

(CLAB) was formed under CIDB. The speaker
touched on the background of forming CLAB,
organisation, functions, motives and objectives of
CLAB. He also explained CLABs involvement in
recruiting foreign workers and helping to optimize
manpower utilization in the construction industry.

The speaker informed that Pakistan have been

approved as one of the source countries for
employment of foreign workers. She gave a briefing
on the requirements and criteria required for work
permit application in the employment of foreign
workers, committees that are involved in foreign
workers policies, processes and procedures of
foreign worker application, issues and challenges
facing the country in dealing with the presence of
foreign workers.

Paper 5 CIDB Skill Training by Ir. Noraini Bahri of CIDB

The speaker elaborated on CIDBs functions in
accrediting and recognising skilled construction
workers and construction site supervisors. Among
the training programmes provided by CIDB are
training programmes for youth and skilled
construction workers, and construction
management courses such as management,
technical and ICT courses.

Paper 2 - Understand the Immigrations Requirements

and Rules in Foreign Workers Application in the
Construction Industry by Nik Ahmad Zahazli Nik
Yah of Department of Immigration, Malaysia (JIM)

For further information, copies of the above papers are

available at MBAM Library for members reference. MBJ

The speaker elaborated on the procedures of

foreign workers application, procedures of bringing

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BAM Section

PLANNING

Construction Industry Master Plan 2005-2015

Editors Note: CIDB is finalising the Final Report of Construction Industry Master Plan 2005-2015. An Executive summary is appended
below. Readers are invited to submit your inputs and constructive comments to MBAM for onward submission to CIDB.

uring the CEOs and Presidents

Roundtable Discussion in June
2003, ten Working Groups (WG)
were formed to facilitate development of
the Construction Industry Master Plan
(CIMP).
Construction
Industry
Development Board Malaysia (CIDB) was
entrusted with the role of coordinating
and establishing these WG which
include:

CIMP
Technology, Knowledge, Research &
Development
Local and Foreign Projects
Human Resource
Productivity and Quality
Safety and Health
Industrialized Building System (IBS)
Building Materials
Payment
Finance

Subsequently, the Building Industry

Presidents Council (BIPC) and CIDB
consolidated proposals of these 10 WG
and produced the first draft of the
consolidated master plan, the Malaysian
CIMP Framework 2005 2015.
CIDB in collaboration with Ernst & Young
(E&Y ) incorporated views of industry
participants, professional bodies, trade
associations, regulatory authorities,
academicians, and industry experts and
further enhanced the document into a
10-year Master Plan for the construction
industry that spans from 2005 to 2015
charting the strategic positioning and
future direction of the Malaysian
construction industry.
The plan is intended to provide industry
stakeholders with a clear direction of the
Malaysian construction industry through
its clearly defined vision, mission, critical
success factors, strategic thrusts,
recommendations and action plans. The
CIMP is also intended to ensure that the
Malaysian construction industry is well
positioned to support the nations overall
economic growth and in meeting future
challenges including the need to
enhance productivity and quality along
the entire construction value chain.

STRUCTURE OF THE CIMP

The CIMP is organised into six sections,
namely:

Section 1.0: Introduction discusses

the historical development of the
CIMP and formation of the 10 WG
Section 2.0: Overview of the
Malaysian Construction Industry
deliberates on performance of the
Malaysian construction industry todate as well as its importance to the
overall social and economic
development of Malaysia as a nation.
Section 3.0: Challenges Facing the
Malaysian Construction Industry
reviews the challenges facing the
construction industry in the domestic
market and global market
Section 4.0: Strategic Direction of
the Malaysian Construction
Industry outlines the vision, mission,
critical success factors, and strategic
thrusts
for
the
Malaysian
construction industry
Section
5.0:
Strategic
Recommendations
provides
detailed strategies aimed at
achieving vision of the Malaysian
construction industry
Section 6.0: Implementation
Framework and Plan sets out the
implementation
processes,
responsibilities,
performance
monitoring and communication
programme for the strategies.

CHALLENGES FACING THE MALAYSIAN

CONSTRUCTION INDUSTRY
To continuously enhance the level of
productivity and quality, the Malaysian
construction industry will need to address
five key areas of concerns, namely:

Methods and Practices

- Open and transparent practices
- Mindset shift on quality
- Subcontracting
- Low barriers to entry
- Use
of
labour-intensive
construction methods
- Multiple local authorities and
technical agencies
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- Research and development (R&D)

- Design-bid-build method
Equipment and Building Materials
- Lack of standardisation
- Complementary industries
Human Resources
- Reliance on foreign workers
- Poor image of industry
Financing
- Securing timely and adequate
financing
- Pre-bidding and bidding stage
- Execution stage
- Remittance stage
Others Challenges
- Need to identify niche market
- Competition among Malaysian
builders for projects abroad
- Inability to provide total
solutions

The challenges as mentioned above

illustrated the need for the Malaysian
construction industry to continuously
enhance its value chain efficiency and
effectiveness to be a total solution
provider in the globalized environment.
Ultimately, the industry needs to
streamline its structure and ensure that
entry requirements are stringent enough
to admit only those players capable of
contributing value to the industry.
STRATEGIC DIRECTION OF THE
MALAYSIAN CONSTRUCTION INDUSTRY
The CIMP envisaged that Malaysia will
develop a construction industry that is
internationally competitive. Towards this
end, the industry will be seamless and
stakeholders will work in collaboration
with each other.
With this in mind, our Vision will be The
Malaysian construction industry shall be a
world class, innovative, and knowledgeable
global solution provider.
The Mission of the Malaysian construction
industry is to be a dynamic, productive and
resilient enabling sector, supporting
sustainable wealth generation and value
creation, driven by a technologicallypervasive, creative and cohesive
construction community.

BAM Section

Key elements of the vision and mission are

further illustrated below:
World class Malaysian construction
industry will be world class in terms of
excellence throughout the construction
industry value chain (from inception to
operation to maintenance) as well as
integrated contributing to economic
development of Malaysia
Innovative Malaysian construction
industry will be innovative in terms of
willingness to experiment and to adopt
new approaches and technologies. This
include inculcation of R&D culture to
generate sustainable, technologicallydriven, competitive and environmentfriendly practices
Knowledgeable

Malaysian
construction industry will be a balanced
industry with a pool of highly skilled and
productive workforce who are dynamic,
resilient, technologically proficient,
adaptable, creative, self-reliant, outward
looking and enterprising. Information and

communication technology (ICT) will play

a dominant role in facilitating knowledgesharing and enabling integration of the
construction community
Global solution provider Malaysian
construction industry will have to
understand the real needs of clients and
translating the needs to reality through
provision of total solutions throughout
the value chain.Total solutions will include
materials, tooling and equipment,
financing as well as designers

Productivity

continuous
improvement throughout the value
chain from inception to operation and
facilities management
Quality emphasis on quality in the
use of manpower, materials,
equipment and methods adopted
Human Resources creation of
competent workers through skills

STRATEGIC THRUSTS (ST),

KEY PERFORMANCE INDICATORS (KPIs)
AND RECOMMENDATIONS
In order to achieve the vision and mission,the
following strategic thrusts are identified and
key performance indicators are outlined to
gauge success of its strategic thrusts:

Key Performance Indicators

ST2: Strengthen the construction

industry image

ST5: Innovate through research and

development and adopt new
construction methods

Critical Success Factors identified include:

ST1: Integrate the construction

industry value chain to enhance
productivity and efficiency.

ST4: Develop human resource

capabilities and capacities in the
construction industry

CRITICAL SUCCESS FACTORS (CSFs)

Strategic Thrust

ST3: Strive for the highest standard

of quality, occupational safety and
health and environmental practices

upgrading
and
knowledge
enhancement
Knowledge sharing of best practices
to upgrade the level of knowledge of
the construction community
Innovation continuous search and
development is vital to introduce new
and creative methods, materials,
tooling and equipment
Environment Practices sustainable
practices are key for the well-being of
future generations
Industry Sustainability generating
new opportunities both in the
domestic and overseas market
Professionalism enhancement of
professionalism is key to improvement
of image of the industry

Recommendations

Value added per worker

Average time from inception to
manage facilities

1.
2.

Number of abandoned/uncompleted/
late projects as a % of total projects
awarded
Ringgit share (of projects) per
contractor
QLASSIC score

3.

Number of accidents (per million manhour) and fatality rate

Number of construction companies
with ISO9001, ISO14001, OHSAS18001
certification

6.

Labour productivity growth rate (%)

Employment rate of accredited
workers with certificate
Employment rate of professionals
Ratio of skilled to unskilled workers

9. Promote the use of skilled labour

10. Nurture the desire to work in the
construction industry amongst the
local workforce

Construction R&D as a % of
construction GDP or volume
Number of international awards won
(FIABCI, IFAWPCA)

11. Continuously innovate construction

processes and techniques

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Consolidate the industry

Standardize and integrate
administrative practices and
procedures

Enhanced professionalism of the

construction industry
4. Enhance the P2P strategy
5. Raise the sophistication level of
construction community

7.
8.

Foster a quality and environmentfriendly culture

Enhance occupational safety and
health
Adopt MS in the manufacture or
import of building materials

BAM Section

Strategic Thrust

Key Performance Indicators

ST5 (continue) :

ST6: Leverage on information and

communication technology in the
construction industry

ST7: Benefit from globalisation

including export of construction
products and services

Recommendations

% of IBS or precast used in

construction projects
Number of patents registered in the
construction industry
Number of commercialised valuerealised R&D output

12. Stimulate R&D activities through

resource-pooling
initiative
amongst key players and provision
of R&D infrastructure

Total IT spending as a % of GDP

Number of and revenue generated by
IT companies supporting the
construction industry

13. Encourage knowledge sharing for

continuous improvement
14. Develop local construction
software industry

Construction sector contribution to

GDP
Construction sector contribution to
GNP
Number and value of overseas
projects secured

15. Ensure industry sustainability in the

liberalized environment
16. Market the construction industry in
a focused, global manner
17. Ensure the financial services
sectors development is in line with
industrys needs
18. Develop complementary industries

Enabling Recommendations

19. Review and amend the tax, legal

and regulatory framework
20. Redefine the structure and role of
CIDB

IMPLEMENTATION FRAMEWORK AND PLAN

Implementation of CIMP consists of five key stages is shown in Figure 1.
Implementation structure of CIMP consisting of five key groups/entities is shown in Figure 2.

Approval of
CIMP

Implement
Recommendations

Monitor
progress

Update CIMP

CIDB

Ministry of
Works

Figure 1. Implementation Process

Report progress

Other relevant
Government agencies
Relevant stakeholders

Ministry of Works

Figure 2. Implementation Structure

Advisory Council

CIDB

Implementation Task Force

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Ministry of Works

BAM Section

The phasing for the implementation of the 20 recommendations is shown in Figure 3.

Figure 3. Action Plan Timeline
WHEN
ACTION PLAN

WHO

Encourage partnering approach to provide total solutions:

Raise awareness and benefits of partnering methods
Identify public sector projects that can implement strategic partnering
Encourage partnering approach to provide total solutions.

CIDB
JKR

1. Consolidate the industry

Encourage specialisation of sub-contractors

Identify priority areas of specialisation.
Tighten contractors registration process for specialist sub-contractors

CIDB
CIDB

2. Standardise and integrate adminstative processes and procedures

Standardise policies and procedures at all State Local Authorities
through the OSC initiative
Implement OSC initiatives in all State
Tighten contractors registration process for specialist sub-contractors

Ministry of
Housing & Local
Government

Digitise planning and building plan approval process

Scope technical requirements of digitisation process
Implement System

Ministry of
Housing & Local
Government

Introduce online submission for consultants

Develop technical requirements for online submission system
Conduct pilot test-run at selected Local Authorities
Implement e-submission system
Roll-out to Local Authorities and consultants

Ministry
of
Housing
& Local
Government

Develop standardised data exchange to digitally link with:

Technical Agencies
Evaluate technical requirements
Conduct pilot test-run at selected Local Authorities
Roll-out to Local Authorities and consultants

Ministry
of
Housing
& Local
Government

3. Enhance the professionism in the construction industry

Consolidate and standardise the Contractor Registration Scheme
Review and merge CIDB and PKK requirements
Develop standard registration scheme and new process flow
Roll-out new Contractor Registration Scheme

CIDB

Tighten the requirements for Contractor Registration Scheme

Review and tighten current registration requirements
Develop registration requirements for G 8 contractors
Monitor performance of registered contractors

CIDB

Emphasis on self-regulation by association and professional bodies

Develop code of ethics
Introduce CPD for contractors
Introduce performance assesment framework

CIDB

Implement performance assesment framework

Develop performance assessment framework
Conduct benchmarking of key performance areas

CIDB

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Phase 1
(2005-2007)

Phase 2
(2008-2010)

Phase 3
(2011-2015)

BAM Section

WHEN
ACTION PLAN

WHO

4. Enhance the P2P strategy

Enhance the tender evaluation and monitoring procedures
Incorporate best practices in procurement strategy
Carry out moinitoring of all public sector projects
Disseminate good practices on procurement to both public and private sector

JKR
JKR
CIDB

Encourage use of standard contracts that distribute the risks equitably and
appropriately to all parties according to the circumstances of projects
Develop standard contract terms for domestic sub-contractors

CIDB

Introduce a Construction Contracts Act to resolve non-payment issues.

Draft the Construction Contracts Act for Malaysia.

CIDB

5. Raise the knowledge level of construction community

Introduce and share best practices
Research and monitor global best practices in construction
Disseminate best practices to local constrcution community

CIDB

Introduce education and awareness programme to enhance consumers knowledge

Organise awareness programmes and seminars

CIDB

6. Foster a quality and environment-friendly culture

Encourage external accredition in quality and environmental management
Incorporate ISO certification requirements as part of the Contractors
Registration Scheme (G7 & G8)
Organise communication plan to promote ISO certification

CIDB

Promote environment-friendly practices

Recommend to Ministry of Housing and Local Government to develop
guidelines on stage construction
Propose to DOE to review conditional approval provision for EIA reports
Enforce Tree Preservation Order (Act 1972)
Encourage Green Reporting by public listed companies
Introduce Tax incentives for the adoption of ISO 14001

CIDB

7. Enhance occupational safety and health

Create awareness through Occupational Safety and Health promotions
Promote through various media
Promote DIY concept
Form MCSHA to pool the industry stakeholders resources under
one umbrella body
Introduce recognition awards

CIDB,DOSH

Enhance Safety and Health education and training

Increase and improve education and training programmes on
occupational safety and health
Extend training to all levels of workers
Develop clear guidelines to accredit training providers/individual trainers
Incorporate safety and health content into the cource curriculum
Train enforcement officers (inspectors) in matters relating to enforcing
safety and health, and welfare related legislations.

CIDB
DOSH
Academic
Institutions

Tighten Occupational Safety and Health Enforcement

Strenthen enforcement agencies
Review exisitng regulations that govern safety and helath in the
construction industry

CIDB
DOSH

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Phase 1
(2005-2007)

Phase 2
(2008-2010)

Phase 3
(2011-2015)

BAM Section

WHEN
ACTION PLAN

WHO

Consider financial incentives for undertaking certain activities to improve

occupational safety and health
Encourage corporate sponsorship of training programmes by CIDB,
SOCSO, insurance companies
Evaluate tax exemption on personal protective equiptment used for
the purpose of securing occupational safety and health of construction workers
Reduce fee for Occupational Safety and Health Management System Certification
Develop Safety & Heatlh standards, guidelines and code of pracice for the
construction industry
Develop comprehensive set of standards to guide industry players
Accredit relevant agencies e.g. CIDB to carry out certification exercises on
Construction Occupational & Health Management System

CIDB
DOSH

CIDB, regulatory
bodies (including
DOSH, NIOSH)
& industry
players

8. Adopt Malaysan Standards in the manufacture of building materials

Continuously evaluate MS to eventually evolve into environment-friendly standards
for building materials.
Develop mechanism and process to continuously evaluate MS adequacy
Implement evaluation process
Organise international forums in relation to building materials standards
Develop set of building materials selection criteria for the local building
materials producers

DSM/SIRIM

Emphasise importance of MS amongst the manufacturers

Spearhead marketing initiatives to promote MS & create awareness of
the benefits of M

CIDB
SIRIM
DOSH

Update UBBL 1984

Update references to international standards
Develop a set of Malaysian codes which is equivalent to the Eurocodes
which is equivalent to Eurocodes for use in UBBL

Ministry of
Housing & Local
Government
DSM/SIRIM

Tighten enforcement on use of MS building materials

Require adherence to MS by local manufacturers

SIRIM/DSM

9. Promote the use of skilled labour

Acess skills needs
Implement tracking mechanism to provide ongoing information of the status
of skills needs and development
Create awareness on the role of CLAB as a matchmaker and promote
skills development
Initiate service levels agreements with training bodies
Conduct promotional programme to increase awareness of training and development
Expand on exisitng couse offerings by CIDB
Introduce point accvumulation system-for diploma and higher education
Promote continuous professional development of professionals,
semi-professionals, and support personnel
Introduce mandatory ratio of skilled:unskilled workers
Promote lifelong learning , CPD

CIDB

CLAB
CIDB
CIDB
CIDB
CIDB
CIDB

10. Nurture the desire to work in the construction industry amongst

the local workforce
Target potential workers during tenure in schools and universities
Participate in career fairs
Initiate advertsing campaign
Highlight the increasing importance of professional skills and the trend
towards greater use of technology in constuction

Construction
companies

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Phase 1
(2005-2007)

Phase 2
(2008-2010)

Phase 3
(2011-2015)

BAM Section

WHEN
ACTION PLAN

WHO

Enhance curriculum for construction-related fields

Collaborate to revitalise interest in the construction related courses
Update course materials and structure

CIDB, industry
associations
and academic
institutions

Provide industrial placements at construction companies and consulting firms

Reinstate industrial placement programmes

Construction
companies

11. Continuously innovate construction techniques and technology

Encourage the adoption of new construction terchniques and technology
Encourage development of manpower to support adoption of iBS/MC
Continue to develop materials (component and machines) to support
adoption of IBS
Continue to enhance management processes and methods to encourage
adoption of IBS
Provide monetary (economic and financial) support to encourage iBS adoption.
Market and promote IBS/MC

CIDB

12. Stimulate R & B activites throguh resouce-pooling initiative

amongst key players
Leverage on CIDBs CREAM to spur constrcution R & D
CREAM to undertake research on specific themes within the construction industry
Act as a facilitator between the industry, Government and academia.
Benchmark with international construction research institiutes

CREAM

Collaborate with other CORE for construction R & D

CREAM

Establishing funding requireents and sources for funding

GOM

Strengthen IPR for R & D

CIDB

13. Encourage knowledge sharing for continuous improvement

User-friendly construction knowledge and information portal for all stakeholders
Benchmark with other construction industry portals.
Develop information portal.

CIDB

14. Develop local construction software industry

Promote the use of technology in the construction community
Implement online Planning and Building Plan submission and appoval
Implement online tendering system for public sector projects
Form joint Working Group to raise awareness of IT construcion industry

Leverage on the MSC infrastructure and incentives

Ministry of
Housing & Local
Government
JKR
CIDB
Construction
companies

15. Ensure industry sustainability in a liberalised environment

Continue to develop and maintain social economic infrastructure
Maintain a flow of national development projects
Create opportunities through compulsory maintenance requirements
Create a National Land Development Policy

GOM

Seek and develop G2G arrangements to provide international construction opportunities

Secure G2G opportunties with OIC and Nam countries
MATRADE/CIDB
Provide overseas development assistance funding
EPU

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Phase 1
(2005-2007)

Phase 2
(2008-2010)

Phase 3
(2011-2015)

BAM Section

WHEN
ACTION PLAN

WHO

Phase 1
(2005-2007)

Phase 2
(2008-2010)

Phase 3
(2011-2015)

16. Market the construction industry in a focused global manner.

Identify markets for Malaysia to penetrate
Develop detailed market selction criteria
Create database for overseas projects

CIDB

Establish branding of Malaysian contractors.

Participate in international conferences overseas
Host international conferences in Malaysia

MATRADE/CIDB

Conduct overseas mission trips for promotion/marketing in the prefered

markets identified
Develop annual plans for overseas mission trips with clear idea of destination
Initiate and negotiate for overseas mission opportunities to foreign countires
Develop country-specific promotional plans

MATRADE/CIDB

Continuously evaluate performance of Malaysian contractors venturing overseas.

CIDB

Encourage the teaming of contractors (consortium) going overseas to

minimise/eliminate competition amongst Malaysian contractors

CIDB

17. Ensure the financial services sectors development is in line with

industrys needs.
Work together with financial services industry (banking and capital market)
including the Labuan offshore market.
Become OSC for information and performance of contractors
Create awareness of the types of banking and capital market products

Leverage on selected DFIs for funding

CIDB
Financial
Institutions
Construction
companies

Seek Government funding support

EPU

Provide incentives to encourage repatriation of profits and dividends for

overseas projects

IRB

18. Develop complementary industries

Develop complementary industries in line with national IMP

MITI

Encourage partnership between construction and complementary industies while

venturing overseas

CIDB

19. Review amend the tax, legal and regulatory framework

Review and amend the relevant tax,and legislation

CIDB, IRB,
Attorney
General

20. Redefine the structure and role of CIDB

Revisit the strategic direction of CIDB

CIDB

Review the organisation structure and manpower requirements

CIDB

Enhance/introduce new processes and procedures

CIDB

Enhance the IT infrastructure

CIDB

MBJ
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BAM Section

TALK

High Quality Shaped Aggregates

talk on High Quality Shaped

Aggregates (HIQSA) was held on
April 27, 2005 at MBAM Seminar
Hall. A total of 33 participants from
member companies attended the said
talk. to enhance their knowledge on the
benefits of using HIQSA in concrete mixes.
Mr. Patrick Wong, Deputy President MBAM
chaired the session.
Dr. Khairun Azizi Mohd Azizli, Associate
Professor in Mineral Processing and
Technology at the School of Materials and
Mineral Resources Engineering, Universiti
Sains Malaysia (USM) was invited to present
the said talk. She was a recipient of the
prestigious Malaysian Construction
Industry Excellent Awards 2004 Category
R&D Project of the year: 1st Runner-up for
her work on value adding of aggregates.
She remarked that the current trend in
aggregate production worldwide is
moving towards producing higher value
added aggregates through improvement
in aggregate shape and surface texture.
She added that size grading or
specification alone would not maximize
the properties and performance of
aggregates in concrete. More cubical or
equidimensional shape aggregates which
are more superior in terms of shape and
surface texture have been proven to
improve the concrete properties such as
its strength and minimize the usage of
cement in concrete mixes.
According to Dr. Khairun, the benefit of
HIQSA are as follows: Shape
grading and textural
improvement in aggregates are being
given more importance globally apart
from the size grading of aggregates
Production of superior quality
aggregates in terms of shape and
texture are restricted due to
mineralogical properties and crusher
performance which tend to produce
more flaky and elongated type
particles with non-homogenous
texture and less in aggregate strength
(Aggregate Crushing Value, Aggregate
Impact Value, & Point Load Strength
Index)
Quarrying industry is facing more
competition in selling the aggregate
products to the end users.

Dr Khairun Azizi (2nd from R) delivered a talk on HIQSA

To obtain good properties from

concrete, the shape of coarse and fine
aggregates should be cubical
Particles that are flaky or elongated
have higher voids content than well
shaped particles, thus increasing initial
water requirements to make them
workable
The addition of extra water will lower
the ultimate strength of concrete.
Significantly, concrete was found to
perform better with the usage of
HIQSA

According to Dr. Khairun, the shape and

surface texture of aggregates depend
greatly on the crushing method, and also
the nature of rock source. Through normal
compression type of crushers, crushed
stones tend to be more elongated and
flaky or irregular. By contrast, impact type
of crushers produced more favourable
geometry crushed stones with improved
shape and surface texture properties
regardless of its source. Thus, to improve
aggregate properties, there is a need to

Participants listened attentively to the presentation

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BAM Section

Shape aggregates with improvement its

shape and surface texture are highly
capable in enhancing the strength and
quality of the concrete cubes of any mix
design, depending on the characteristics
of the feed aggregates such as its flakiness
and elongation indices (FIs and EIs)
strength, chemical composition,
percentage of cubical shape particles
cubicity and etc. Shape aggregates, which
are highly cubical in shape and
homogeneous in texture tends to enhance
the physical and mechanical interlocking
between the aggregate and cement paste
and thus increase the bonding strength
and the concretes compressive strength.
By having shape aggregates in concrete,
the total cement consumption could be
reduced averagely by up to 2%.

Deputy President Patrick Wong (R) presenting memento to Dr Khairun Azizi

optimize quarry operation and to develop
a more environmentally and economically
efficient system in aggregate production.
Aggregates occupy 70-80% of the volume
of concrete and have considerable
influence on strength, dimensional stability
and durability of concrete. Aggregates are
relatively inexpensive and do not enter into

complex chemical reactions with water

and thus considered as inert mineral filler.
Thus, aggregates are considered as the
backbone in concrete and determine the
important properties of concrete. The
considerable influence that the aggregates
can exercise on concrete leads towards the
requirement of aggregates of suitable high
quality and superior in shape.

As mineral resources such as granites are

non-renewable resources, aggregates
should be fully utilized for maximum
benefit. Optimum utilization of aggregates
by improving the quality of aggregates will
contribute towards the sustainability of the
construction industry, as rocks such as
granites are the major ingredients in
concrete mixes.
At the end of the session, Deputy President
Patrick Wong presented a souvenir to Dr.
Khairun as a token of appreciation. MBJ

Environmental Impact Assessment And

Alam Sekitar 9 Forms

talk on Environmental Impact

Assessment (EIA) and Alam Sekitar
(AS) 9 Forms was held on May 14,
2005 at MBAM Seminar Hall. A total of 42
participants from member companies
attended the said talk. Mr. Dennis Tan,
Chairman, Environment and Quality
Committee of MBAM chaired the session.
Ms. Tan Kim Fong, Manager in Perunding
Utama Sdn Bhd was invited to present the
talk. In her opening remarks, Ms. Tan
mentioned that EIA is becoming
increasingly more relevant in ensuring
sustainable development, given the
prevailing rapid pace of construction and
development in Malaysia. Interestingly,
EIAs are viewed differently by different
parties, depending on whose interest they

Ms Tan Kim Fong delivered her talk on EIA and AS 9 Forms

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BAM Section

represent. There are two types of EIA

studies namely preliminary EIA study and
detailed EIA study.
A preliminary EIA study involves::

No public participation, review

Scope less extensive, qualitative
Timeframe study (2-3 months),
approval (2-3 months)
15-20 sets of reports

A detailed EIA study involves:

Public participation, review and

comments
Confirmation of Terms of Reference
(TOR), prior to study
Advertisement in newspapers (2
languages) - TOR and report
Scope more detailed, extensive,
quantitative
Timeframe study (3-5 months),
public review and approval (3-4
months)
Reports 50-60 sets

Participants at the talk

Under the Environmental Quality

(Prescribed Activities) (EIA) Order 1987, 19
activities are complied with EIA namely
agriculture, drainage and irrigation, land
reclamation, housing, infrastructure etc.
Contravention of this section will be
penalized a maximum of RM100,000 or a
maximum of five years imprisonment or
both. A penalty of RM1,000 per day will
be imposed if the offence is continued.
The scope of EIA is as follows: Project Need
Project Location
Project Description
Existing Environment baseline
monitoring and surveys need to be
carried out on:- Physical noise, soil and geology,
drainage
- Chemical air, water
- Ecological flora, fauna, aquatic
- Social socio-economy, land use,
infrastructure, utilities, health
Potential Impacts
Mitigating Measures
Residual Impacts
Recommendations
Conclusion
EIA is often regarded by the authorities
as a tool to ensure developers pay
sufficient attention to mitigate and

President Dato Ir. Goh Chye Koon (R) presenting a memento to Ms Tan Kim Fong (centre)
witnessed by Dennis Tan (L)
control the potential impacts from their
proposed projects.
Conversely,
developers regard EIAs to be a burden
and at times, a hindrance to their project
implementation. The latter occurs when
this milestone is overlooked or given
insufficient time priority in the project
schedule.
Many developers stop at obtaining
approval from the Department of
Environment (DOE) for the EIA study. Most
are unaware that the conditions attached
to the EIA approval entail a fair amount of
follow-up work in the form of various
notifications and submissions.
The Alam Sekitar (AS 9) form for
application of written permission to

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construct sewage and industrial

wastewater treatment systems, is
arguably one of the most complex form
which contractors are required to
submitted to DOE. It covers nine parts
namely identification, operational
information, water supply and
consumption, energy consumption,
sewage disposal, effluent treatment and
disposal, sludge production and disposal,
miscellaneous, and declaration. Delays are
commonly encountered due to
inadequate information submitted to
DOE.
At the end of the session, Dato Ir. Goh
Chye Koon, President of MBAM presented
a souvenir to Ms. Tan Kim Fong as a token
of appreciation. MBJ