international convention on melaka twin cities 2015 - · pdf fileinternational convention on...

International Convention on Melaka Twin Cities 2015

“Future Green Cities”

11 May 2015

240683-44 Presentation on G8 registration vf.pptx 1

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Construction industry is crucial to the economy

Overall economy

120 + industries rely on

construction industry1

• ~4% of GDP with 2x multiplier

• Strong backward and forward

linkages (e.g., consumes

15% of total manufacturing

output)

Critical to large-scale

infrastructure development

and nation building

Double-digit growth in past

few years

Investments and jobs

RM 0.5 Tn in project value

(2011 – 2014)2

• Increasing at rate of 8% per

annum

9.5% of workforce3

• 1.2 million registered workers

• ~75% are resident

Malaysians

• Includes professionals such

as engineers, architects,

surveyors

National agenda

Sizeable entrepreneurial

activity involving SMEs

• ~90% firms are SMEs

Inclusive and providing

opportunities for Bumiputera

• 56% of firms

1. Including non-metallic mineral products, basic metals, and fabricated metal products, financial services and insurance, petroleum, chemicals, rubber products, wholesale & retail, logistics, real estate, etc. 2. CIDB data 3. 2013 data, from DOSM

Construction will become even more critical as we

advance towards High Income nation


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Urgent issues across 4 thrusts in the construction industry

InternationalisationEnvironmental

Sustainability

Quality, Safety &

ProfessionalismProductivity

Reliance on low-skilled

workers

• 60% of local workers

and 93% of foreign

workers are unskilled

Low adoption on tech.

and modern methods

• Only 24% of public

projects2 adopted IBS

Fragmented industry

with sub-scale players

• SMEs are 87% of total

firms, but contribute only

24% value add

Recent natural disasters

expose limited resilience

Floods from Dec 2014 to

Jan 2015 resulted in:

• 21 people dead

• Nearly 400,000 people

affected

• Estimated RM 2.9 Bn

infra. damage

Globalisation affecting

many local players

• 10 %pt. increase in total

% domestic contract

value won by foreign

players (2014 vs. 2013)

Relatively low value of

overseas contracts

• In 2012, only RM 6.4 Bn

Safety standards need to be

enhanced

Limited demands for

quality workmanship

Regulatory burden in

approvals / permits

• #28th (2015) for construction

permit rank1, can be further

improved1. Dealing with Construction Permits is one of the 10 categories factored into 'Ease of doing business' ranking by World Bank; Only KL was measured in the ranking of Malaysia 2. For projects > RM 10 MnSource: "The Employment of Foreign Workers at Construction Sites, by UTM JB", Asia Construct Conference 2013 Country Report – Malaysia, China Statistics Yearbook 2010-2012, Korean Statistics Bureau, Ministry of Works Germany, Ministry of Economy Republic of Turkey, CIDB Review of Construction Industry, CIDB, World Bank, Press search

Sultan Mizan Stadium collapse, 2009

9 11

2110

0

100

+10

100

89

2012

100

91

100

79

2013 2014

Local Foreign

Total domestic contract value won,

% of total project value


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Initiatives to transform the construction industry across 4

strategic thrusts

ProductivityEnvironmental

SustainabilityInternationalisation

Quality, Safety &

Professionalism

Improve ease of doing

business by addressing

regulatory constraints

Improve image and public perception of construction industry

Improve workplace safety

and workers' amenities

Increase implementation of

QLASSIC and publish scores

Public projects to lead the

charge on sustainable practice

Drive innovation in

sustainable construction via Centre

of Excellence

Reduce irresponsible waste

in construction industry via

regulations

Facilitate industry adoption

of sustainable

developments/practices

Drive compliance to

environmental sustainability

ratings and certification

requirements

S.2

S.1

S.3

S.4

S.5

Q.2

Q.1

Q.3

Accelerate adoption of IBS

and mechanisation

Continued investment in

human capital development in the

construction industry

Roll-out technology

advantage for construction

Advance strategic info. provision

for policy formulation and

business planning

Enhance control and balance

of workforce supply

P.2

P.1

P.3

P.4

P.5

Accelerate Bumiputera / SME

capacity and capability-building

P.6

Provide privileged access to

financing for Malaysian champions

going abroad

Internationalise construction

processes and standards

Support consortia formation

and provide market intelligence for

overseas projects

I.2

I.1

I.3

Q.4

Note: Several initiatives may belong to more than one strategic thrust. In such instances, these initiatives have been placed under the strategic thrust where it is expected to have the highest impact (e.g., Initiatives 9 and 15)


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We have already engaged with a broad range of stakeholders

to co-develop the initiatives

1. Federation of Sabah Industries 2. Unit Perancang Ekonomi Negeri 3. Sabah Urban Development Corporation (SUDC) 4. Jabatan Pembangunan Sumber Manusia 5. MARA 6. Stanford University 7. Harvard University 8. Rosenheim University 9. Western Australia Skills Training 10. RISM 11. PAM 12. BQSM 13. IEM 14. MBAM Australia 15. BEM 16. LAM

Industry players Ministries and agencies

Ecosystem

• Eversendai Corp

• UEM Sunrise

• Binapuri

• TLC Architect

• Minconsult

• MKH

• Sime Darby

• Samsung

Sabah

• FSI1

• UPEN2

• SUDC3

• JPSM4

Global / regional cos.

• Daelim

• IHRDC

• Maybank

Industry associations

• REHDA

• MGBC

• PKMM

• ACEM

9876

5

Universities and training institutes

International

• World Bank

• UN BSEEP

• GBI

Sarawak

• Brooke Dock

• PKK

• SHEDA

• State planning unit

Professional boards and associations

10 11 12 13 14 15 16• UTM

• UKM

• UPM

• USM

• IIUM

• ABM


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Streamline construction-related training programmes and

workforce accreditation in Malaysia

Objectives/ benefits

Centralise and coordinate training programmes and workforce accreditation

• Streamline fragmented training offered by various agencies

• Increase clarity on which agencies/institutes provide which training

• Centralise roles and responsibilities of training centres to ensure clear identification

• Provide better oversight and management of training programme development

• Streamline workforce accreditation across skilled workers, semi-skilled workers,

contractors, personnel, etc.

CIDB, EPU, MOHRKey agencies

JKR, MOW, MOE (including TVET1), MARA, Abm, Prof. Boards, Trade associationsSupporting

government agency

Accreditation agencies2Potential external partners

CIDB, IEM, EPU, BEM, MOHR (JTK), PAM, MOW, RISM, MOE, PKMM, MBAM,

trade-specific (e.g. SPAN, DOSH, ST, SKMM, MOCA etc.)Working Groups

Continued investment in human capital development in the construction industry


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Strengthen reach, effectiveness and comprehensiveness of

training


Leverage global partners to improve quality of training

• Industry involvement in training enhances content relevance

• World-class experts help develop scope and quality of training

Develop structured traineeship and apprenticeship programmes

CIDBKey agencies

MOW, EPU, MOF, KPKT, MOHR, MARASupporting

government agency

Industry players (global partners and large local players), Masers EnergyPotential external

partners


CIDB, IEM, EPU, BEM, MOHR (JTK), PAM, MOW, RISM, MOE, PKMM, MBAM,

trade-specific (e.g., SPAN, DOSH, ST, SKMM, MOCA etc.), UEMBWorking Groups



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Drive scale of IBS adoption via public sector projects

Accelerate adoption of IBS and mechanisation


Improve economies of scale for IBS supply in Malaysia

• Separate IBS procurement from the main contract for JKR (or other developing

agency) to directly supply IBS components

• Heighten enforcement for public sector project compliance to IBS adoption

mandate

• Build scale of selected standard IBS components via mandating use of Pre-

Approved Plans (PAP) for common public buildings

• Increase the number of public projects subject to IBS adoption mandate

CIDB, JKRKey agencies

MOF, ICUSupporting government agency

IBS manufacturers (e.g., UAC), FELDA, SPNB, PR1MA, Professional boards and

associationsPotential external

partners

CIDB, JKR, MOF, ICU, IBS Manufacturers, MBAM, REHDA, PR1MA, KPKT, UiTM,

RISM, PAM, BEM, IEMWorking Groups


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Facilitate economics for IBS adoption


Facilitate IBS adoption via economic mechanisms

• Lower net end-user price of IBS installation and manufacturing heavy equipment

• Facilitate economics for IBS suppliers

• Increase levy for less-skilled foreign general workforce to increase cost attractiveness of

IBS adoption

Enhance IBS ecosystem to drive IBS adoption at design stage

• Harmonise IBS components and BIM library

• Provide training on IBS and modular coordination drive design skill

CIDB, MITIKey agencies

MOW, MOF, MIDA, ICU, KASTAMSupporting

government agency

IBS manufacturers (e.g., UAC), MBAM, MEMA, FMM, etc.Potential external partners

CIDB, MITI, MOW, MOF, MIDA, ICU, KASTAM, RISM, UiTM, MEMA, PR1MAWorking Groups

Accelerate adoption of IBS and mechanisation


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Facilitate BIM adoption in construction industry via

regulations


Drive BIM adoption in Malaysia to increase productivity

• Increased information visibility, clarity and sharing throughout project lifecycle

• BIM enhances design management and construction visibility

• Allows for immediate detection and reaction should there be any problem

Devise a set of common BIM standards

• Better clarity as to how to use BIM through project lifecycle and across all

construction disciplines

National BIM Steerco, KPKTKey agencies

MOWSupporting

government agency

Professional associations (BEM, IEM, BQSM etc.), Autodesk, eMCRIS, Graphisoft,

buildingSMART, etc.Potential external

partners

CIDB, PAM, JKR, LAM, EPU, BEM, ICU, IEM, KPKT, RISM, MOW, UKM, UMP,

UiTM, PKK, REHDA, Sime Darby, BrunsfieldWorking Groups

Roll-out technology advantage for construction


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Reference centre to support the development and adoption of

BIM and modern methods


Enable and provide support to adopt new IT technology

• Develop industry-friendly programs that promotes BIM adoption and

other future, new construction IT technology in Malaysia

• Provide a platform for a centralised construction database

• Provide a place to showcase and experience new technology

CIDB, BIM Steerco, MoWKey agencies

MOSTI, GPEs4 , EPU, UKAS, MOE, MARASupporting

government agency

buildingSMART, UTM, UKM, UPM, CIFE Stanford University,

Developers, Prof. boards, Tech. providers, Bayer

Potential external partners

CIDB, BIM SteercoWorking Groups

Roll-out technology advantage for construction


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Drive innovation in sustainable construction via Centre of

Excellence

Objectives

/ benefits

Establish a research platform in Malaysia to drive sustainability excellence

in the construction industry

• Uplift sustainability standards in Malaysia

• Initial focus (I) Sust. infrastructure, (II) Geotech. engineering

Establish Centre of Excellence for Sustainable Construction

• Develop a tool to rate and improve sustainability

• Lower long-term cost of infrastructure developments

• Become a topic leader and pioneer in the region

• Conserve environment and resources

• Improve structural quality of construction in areas with soft soil

CIDBKey agencies

MOW, UKAS, EPU, MOF, KeTTHA, JPA, MOE, NRESupporting

government agency

USM, Harvard University, UniKL, ISI, BRE, local universities, industry

players/projects4Potential external partners

CIDB, USM, MOF, JKR, MOW, IPTA, IIPTSWorking Groups

Drive innovation in sustainable construction via Centre of Excellence1


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Public projects to lead the charge on sustainable practices

Public projects to lead the charge on sustainable practices


Leverage Malaysia government's position as the construction sector's key

client to influence development of sustainable construction

Raise sustainability standards for construction with focus on public projects

• Improve resource management performance of public buildings and

infrastructure as they comprise a significant portion of Malaysia's built

environment

MOF, EPU, JKRKey agencies

CIDB, UKAS, JPS, MOW, KeTTHA, SPAD, SPAN, Local authorities, NRESupporting

government agency

Local academies, JKR, Client ministries with upcoming projects, CoEPotential external

partners

MOF, JKR, CIDB, Local academiesWorking Groups


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Reduce irresponsible waste in construction industry via

regulations

Reduce irresponsible waste in construction industry via regulations


Drive adoption of site waste management practices by the industry to

reduce excessive waste and illegal dumping

• Drive know-how in the industry to reduce "cost" of waste management through

site waste management plans / practices

• Leverage tax instrument (landfill tax) to embed environmental costs of existing

practices (polluter pays principle)

• Ensure sufficient infrastructure for recycling (from waste separation at source to

waste disposal services and facilities)

KPKT, JPSPN, SW CorpKey agencies

NRE, Jabatan Alam Sekitar, CIDB, JKR, MOF, EPU, Local authoritiesSupporting

government agency

Global organisations with waste management expertise (e.g., Bayer, Lafarge),

Professional associations, MILT

Potential external partners

KPKT, KeTTHA, JPSPN, Jabatan Alam Sekitar, CIDB, MOF, JKR, SW CorpWorking Groups


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Facilitate industry adoption of sustainable

developments/practices

Facilitate industry adoption of sustainable developments/practices


Use financial and non-financial incentives to support stakeholders to invest

into sustainable construction

• Split incentives, where structural investments are covered by owners while

tenants benefits from lower energy bills

• Ensure incentives are performance-linked, outcome based, tiered

Improve awareness of energy / electricity usage with large construction

players and guide efforts to reduce usage

• Educate construction players on source of energy consumption as well as easy

to implement, high impact actions to reduce energy

• Pilot Energy and Carbon Reduction scheme with selected large construction

players as a joint commitment

MOF, KeTTHA, MIDA, CIDB Key agencies

KPKT, Local authorities, ICU, NRE, JKR, MGTC, SEDA, ST,Supporting

government agency

E.g., Lend Lease, Capital Land, IRDA, PETRONAS, KEN Holdings, SP SetiaPotential external

partners

CIDB, MOF, KeTTHA, KPKT, Local authorities, COE4 , ST, TNBWorking Groups


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Drive compliance to environmental sustainability ratings and

certification requirements

Drive compliance to environmental sustainability ratings and certification

requirements


Ensure comprehensive suite of sustainability ratings systems available in

Malaysia and in line with industry needs

• Critical as sustainability a market driver and platform for growth in Malaysia e.g.,

office rental for MNCs linked to sustainability ratings

Ensure environmental management capacity of contractors on large-scale

project

CIDB, MOF, EPU, BNMKey agencies

BURSA, Securities Commission (SC), KeTTHASupporting

government agency

Professional associationsPotential external

partners

CIDB, Professional associations, EPU, BursaWorking Groups

Thank you

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