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CONSTRUCTION (Part 1)

APRIL 2014

Malaysia Productivity Corporation

Recommendations Report

ii

PUBLISHED BY:

MALAYSIA PRODUCTIVITY CORPORATION

Lorong Produktiviti, Off Jalan Sultan

46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia.

Tel : 603 – 7955 7266 / 7955 7050 / 7955 7085

Faks : 603 – 7957 8068 / 7955 1824 / 7954 0795

Emel : [email protected]

Website : http://www.mpc.gov.my

Perbadanan Produktiviti Malaysia 2014

All right reserved

No part of this publication may be reproduced, stored in retrieval system or transmitted, in any form or

any means, electronics, mechanical, photocopying, recording, or otherwise, without prior permission

of Malaysia Productivity Corporation.

Disclaimer

This report has been prepared by Malaysia Productivity Corporation from sources believed to be

reliable but no responsibility is accepted by Malaysia Productivity Corporation, its employees,

consultants, contractors and/or agents in relation to the authenticity, origin, validity, accuracy or

completeness of, or for any errors in or omission form, the information, statements, forecasts,

misstatement of facts, opinion and comments contained here in.

ISBN NO 978-983-2786-23-8

PRODUCTIVITY AND REGULATION

Productivity is the only driver of income growth that is unlimited, as opposed to resource exploitation or increase in

population and labour force participation, each of which faces natural limits. The potential for productivity growth to generate

higher income for Malaysians makes it a natural and important consideration for decision makers. As such the continuing

need to stimulate productivity rightly remains at the forefront of government policies.

Regulation is the lifeblood of a modern, well-functioning economy. Almost all regulations have the potential to impact on

productivity, either through the incentives which they provide to businesses to change operating and investment decisions,

or more directly through their impacts on compliance costs. It is inconceivable to think of a modern economy functioning

without regulation. However, poor regulation can cause frustration and unintended consequences, or simply add red tape

that adds nothing useful to the economy, society or the environment.

mailto:[email protected]

http://www.mpc.gov.my/

iii

FOREWORD

Through regulation the government can leverage its policy interests on businesses.

Regulation can contribute to a range of social, environmental and economic goals.

However, in practice, many regulations are not implemented efficiently or cost-

effectively, and some regulations do not even adequately achieve the ends for which

they are designed. Poor regulatory regimes invariably result in unnecessary regulatory

burdens which will stifle business growth.

In the 10th Malaysia Plan, the Malaysia Productivity Corporation (MPC) is mandated to

review those regulations affecting the conduct of business in Malaysia with the view to

modernize business regulations. This is crucial in order for the country to move towards

its aspiration of becoming a high-income nation. Towards this, MPC has embarked on

review of existing business regulations with the focus on the 12 National Key Economic

Areas (NKEA) which have been identified as having high growth potential.

In this study, the review team has been tasked to examine specific regulatory regimes

of immediate concern in the construction industry with the aim of recommending options

to remove unnecessary regulatory burdens.

The study emulated the approach used by the Australian Government Productivity

Commission (AGPC) and the team was guided by a regulatory expert previously from

the AGPC, Ms. Sue Holmes. The team selected a sampling of construction cases and

carried out interviews and discussions with the relevant stakeholders affected by the

specific regulations. These interviews and discussions identified the issues of concern

imposed by the Construction Industry Development Board (CIDB). From these issues

and using principles of good regulatory practices, the team then formulated feasible

options for further deliberation. These issues and options will be subjected to public

consultation with relevant stakeholders in order to develop concrete recommendations

to reduce unnecessary regulatory burdens in the construction industry.

In the course of the study, MPC benefited greatly from the discussions with some

construction key players, government officials and business organizations. Invaluable

iv

input and feedback was attained from the AGPC expert, members of MPC and other

interested parties. MPC is grateful to all those who assisted in this study.

The study was conducted by the Regulatory Review Directorate led by Mr. Zahid Ismail

and overseen by me.

Dato’ Mohd Razali Hussain

Director General

Malaysia Productivity Corporation

v

CONTENTS Page

Foreword iii

Abbreviations ix

Terms of reference x

Summary terms of reference xi

1 Introduction 1

1.1 Construction Industry Development Board 2

1.2 Scope of “construction works” 3

1.3 Registration of foreign contractors 4

1.4 Public disclosure of “commercially sensitive information‟ 7

1.5 Regulatory burdens 7

1.6 Unnecessary Regulatory Burdens 8

2 Objective of study 8

3 Conduct of the study 9

4 Insufficient guidance on which construction works need to be

registered with CIDB

10

4.1 Findings 10

4.1.1 Views from business 10

4.1.2 Views of the regulators 10

4.2 Discourse 11

4.2.1 Impact on business 12

4.2.2 Impact on regulator 12

4.3 Options for resolution 13

4.4 Recommendations 14

5 Different registration requirements for foreign contractors 15

5.1 Findings 15



5.2 Discourse 16

5.2.1 Literature Review 17


vi




6 Public disclosure of commercially sensitive information 20

6.1 Findings 20



6.2 Discourse 21





7 References 26

Appendix A: Stakeholders interviewed 27

Appendix B: Requirements for foreign contractors in 19 countries 28

Appendix C: Number and value of projects awarded by status of contractors

and project category as of September 2013

30

Appendix D: Information provided in the monthly construction project register 31

vii

LIST OF BOXES

Box 1 Section 4 subsection (1) of the CIDB Act 1994 (Act 520) 3

Box 2 Interpretation of “construction works” in the CIDB Act 1994 (Act 520) 4

Box 3 Sections 25 and 26 of the CIDB Act 1994 (Act 520) 4

Box 4 Section 4 subsection (1) (h) of the CIDB Act 1994 (Act 520) 7

Box 5 Examples of unnecessary burdens 8

Box 6 Excerpts from Competition Act 2010: A Guide For Business Handbook 23

Box 7 Excerpts from Department Of Public Works standard contract form 24

LIST OF FIGURES

Page

Figure 1 Annual GDP contribution and percentage change 2005-2012 of the construction sector 2

Figure 2 Comparative number of projects awarded between local and foreign contractors 6

Figure 3 Comparative project value awarded between local and foreign contractors 6

Figure 4 Sample description provided in the registration requirements and procedures guideline 12

Figure 5 Example of contract details published in the monthly project register of CIDB 22

LIST OF TABLES

Table 1 GDP by kind of economic activity at constant 2005 prices - percentage

share to GDP 1

Table 2 Fees payable 5

Table 3 Local and foreign contractors participation 2011 to 2013 16

Table 4 Requirements that international contractors or construction

professionals must comply with when doing business 28

Table 5 Number and value of projects awarded by status of contractors and

project category as of September 2013 30

viii

Table 6 Part 1 (Summary of Projects and Total Project Value According To

States) 31

Table 7 Part 1 (Lists of Project and its Value According to Companies) 31

Table 8 Part 2 (Highest value projects) 32

Table 9 Part 2 (Project details) 33

Table 10 Part 3 (Highest value projects by contractors) 34

Table 11 Part 3 (Total project value by state) 34

Table 12 Part 3 (Project Details) 35

ix

ABBREVIATIONS

AELB Atomic Energy Licensing Board

AGC Attorney General’s Chambers

AGPC Australian Government Productivity Commission

BNM Bank Negara Malaysia (Malaysia Central Bank)

CA 2010 Competitive Act 2010

CIDB Construction Industry Development Board

DOS Department of Statistics

DOSH Department of Occupational Health and Safety

EPU Economic Planning Unit, Malaysia

ETP Economic Transformation Plan

GDP Gross Domestic Product

MIDA Malaysian Investment Development Authority

MITI Ministry of International Trade and Industry

MBAM Master Builders Association Malaysia

MOF Ministry of Finance

MRI Magnetic Resonance Imaging

MPC Malaysia Productivity Cooperation

MyCC Malaysia Competition Commission

NDA Non-disclosure Agreement

NGO Non-Governmental Organization

NIOSH National Institute of Occupational Safety & Health

NKEA New Key Economic Area

PLC Practical Law Company

REHDA Real Estate And Housing Developers' Association Malaysia

RIS Regulatory Impact Statement

RR Regulatory Review

RURB Reducing Unnecessary Regulatory Burden

SME Small and Medium Enterprises

ST Suruhanjaya Tenaga (Energy Commission)

WGLIF Working Group on Institutional and Legislative Framework

x

Terms of Reference

The 10th Malaysian Plan has mandated MPC to carry out regulatory review in view of

making it easy to do business in Malaysia. This review process will draw on the expertise

and perspectives of both the public and private sector communities who will help identify

key issues and the appropriate solutions.

Mandated in the 10th Malaysia Plan specifically, MPC will:

● Review existing regulations with a view to removing unnecessary rules and

compliance costs. Regulations affecting NKEAs will be prioritized;

● Undertake a cost-benefit analysis of new policies and regulations to assess the

impact on the economy;

● Provide detailed productivity statistics, at sector level, and benchmark against other

relevant countries;

● Undertake relevant productivity research (e.g. the impact of regulations on growth of

SMEs);

● Make recommendations to the Cabinet on policy and regulatory changes that will

enhance productivity; and

● Oversee the implementation of recommendations.

The Working Group on Institutional and Legislative Framework (WGILF) of the Malaysia

Services Development Council (MSDC) on the 11th of October 2013 requested that MPC

further review and assess concerns brought forward by several industry players in the

construction industry. The immediate concerns are:

insufficient guidance on which construction works need to be registered with CIDB

different registration requirements for foreign contractors; and

public disclosure of commercially sensitive information.

xi

Summary Terms of Reference

This report highlights three immediate concerns of the industry players in the construction

sector on several regulations and the feedback from the regulators. These regulations

seem burdensome to businesses in complying with the requirements. This report provides

some background to the concerns and their implications and recommends actions to be

taken for resolution.

1

1.0 Introduction

The construction industry is one of the major growth drivers to the economy of Malaysia.

The industry contributes on average 3.06% of the annual GDP (Table 1). In 2012, the

construction sector recorded an impressive growth of 18.1% (Figure 1), the highest

growth since 1996 (16.2%). The growth was reinforced by the sturdy performance of Civil

Engineering at 27.6% and Residential at 20.8%. Infrastructure projects as well as the oil

and gas activities have fuelled the Civil Engineering while the continuous constructions of

high-end housing projects have lifted the Residential (Department of Statistics Malaysia,

15 May 2013). In the latest quarter, i.e., 3rd quarter 2013, the construction sector posted a

double-digit growth of 10.1% (Department of Statistics, Malaysia, 15 Nov 2013).

The total value of construction work during the first half of 2013 rose 13.8% to RM 43.3

billion (January – June 2012: 24.6%; RM 38.1 billion) with the highest share contributed

by civil engineering at 36.1%, followed by the non-residential (31.9%) and residential

(27.5%) subsectors. The overall performance of the sector is expected to moderate to

10.6% in 2013 (2012: 18.1%) following the completion of some of the high-impact public

infrastructure projects (Ministry of Finance Malaysia, 2013).

Table 1: GDP by Kind of Economic Activity at Constant 2005 Prices - Percentage Share to GDP

Year

Kind of economic activity Plus

Import Duties Agriculture

Mining and quarrying

Manufacturing Construction Services

2005 8.3 13.3 27.5 3.0 46.8 1.2

2006 8.3 12.4 28.0 2.8 47.5 1.0

2007 7.9 11.9 27.2 2.9 49.2 1.0

2008 7.8 11.1 26.1 2.8 50.9 1.2

2009 7.9 10.5 24.2 3.1 53.2 1.1

2010 7.6 9.8 25.2 3.2 53.2 1.1

2011 7.6 8.8 25.1 3.2 54.1 1.2

2012 7.3 8.4 24.9 3.5 54.6 1.3

Source: Department of Statistics Malaysia

2

Figure 1: Annual GDP contribution and percentage change 2005-2012 of the Construction Sector

Source: Department of Statistics Malaysia

1.1 Construction Industry Development Board

The Construction Industry Development Board (CIDB) was established under the

Construction Industry Development Board Act 1994 (Act 520) to coordinate all activities in

the construction industry and increase its competitiveness. CIDB’s roles and

responsibilities are contained in Section 4 subsection (1) of the Act as shown in Box 1.

CIDB in its corporate objective strives “to develop the capacity and capability of the

Construction Industry through the enhancement of quality and productivity by placing

great emphasis on professionalism, innovation and knowledge, in the endeavour to

improve the quality of life”.

16107 16022 17391 18151 19270 21459 22464 26531

-0.5%

8.5%

4.4%

6.2%

11.4%

4.7%

18.1%

-0.05

0

0.05

0.1

0.15

0.2

0

5000

10000

15000

20000

25000

30000

2005 2006 2007 2008 2009 2010 2011 2012

Annual GDP contribution (RM million) and % change

GDP (RM million) % change

3

Source: Construction Industry Development Board Act 1994

Box 1: Section 4 subsection (1) of the Construction Industry Development

Board Act 1994 (Act 520)

ACT 520

CONSTRUCTION INDUSTRY DEVELOPMENT BOARD ACT 1994

Section 4. Functions of the Lembaga.

The functions of the Lembaga shall be:

to promote and stimulate the development, improvement and expansion of the

construction industry;

to advise and make recommendations to the Federal Government and the State

Government on matters affecting or connected with the construction industry;

to promote, stimulate and undertake research into any matter relating to the

construction industry;

to promote, stimulate and assist in the export of service relating to the construction

industry;

to provide consultancy and advisory services with respect to the construction

industry;

to promote quality assurance in the construction industry;

to encourage the standardization and improvement of construction techniques and

materials;

to initiate and maintain a construction industry information system;

to provide, promote, review and coordinate training programs organised by public

and private construction training centres for skilled construction workers and

construction site supervisors;

to accredit and register contractors and to cancel, suspend or reinstate the

registration of any registered contractor; and

to accredit and certify skilled construction workers and construction site

supervisors.

4

1.2 Scope of “construction works”

Box 2 shows the interpretation of “construction works” as defined in the Construction

Industry Development Board Act 1994 (Act 520).


The “Registration Requirements and Procedure Guidelines” Annexure 2C describes the

scoping of “construction works” as defined in the Act 520.

1.3 Registration of foreign contractors

As shown in Box 3, section 25 subsection (1) and section 26 of Act 520 requires that any

contractors – local or foreign – doing construction works or projects must register with

CIDB. And CIDB is to maintain a master register of contractors.

Box 2: Interpretation of “construction works” in the Construction Industry

Development Board Act 1994 (Act 520)

"construction works" means the construction, extension, installation, repair,

maintenance, renewal, removal, renovation, alteration, dismantling, or demolition of

any building, erection, edifice, structure, wall, fence or chimney, whether

constructed wholly or partly above or below ground level;

any road, harbour works, railway, cableway, canal or aerodrome;

any drainage, irrigation or river control works;

any electrical, mechanical, water, gas, petrochemical or telecommunication works;

or

any bridge, viaduct, dam, reservoir, earthworks, pipeline, sewer, aqueduct. culvert,

drive, shaft, tunnel or reclamation works, and

includes any works which form an integral part of, or are preparatory to or temporary for

the works described above, including site clearance, soil investigation and improvement,

earth-moving, excavation, laying of foundation, site restoration and landscaping.

5


The procedures and requirements for registration is described in detail in the Registration

of Contractors (Construction Industry) Regulations 1995. The regulation makes a

differentiation of the registration procedures and requirements between local and foreign

contractors.

As stated in the “Registration Requirements and Procedure Guidelines” contractors are

categorized and defined as follows:

Local contractor – a company incorporated in Malaysia which has a local equity

holding of not less than seventy per cent (70%). Foreign equity from citizens of

ASEAN countries are permitted but shall not exceed fifty-one per cent (51%) of

the total paid up capital or accumulated capital;

Foreign contractor – a company incorporated in Malaysia or in a foreign country

which has a foreigners’ equity holding of thirty-one per cent (31%) or more.

Table 2 shows the registration fees imposed on local and foreign contractors.

Table 2: Fees Payable

Registration Local Foreign

Term / Frequency 1 – 3 years Per project basis

Fee RM20 – RM1,400/annum RM5,000/project

Levy 0.125% 0.125%

Source: Construction Industry Development Board

Box 3: Sections 25 and 26 of the Construction Industry Development Board Act 1994 (Act 520)

25. (1) No person shall undertake to carry out and complete any construction

works unless he is registered with the Lembaga and holds a valid certificate of

registration issued by the Lembaga.

(2) Every certificate of registration shall be in the prescribed manner and form.

26. The Lembaga shall keep and maintain a Register which shall contain the

names, business addresses and other particulars of contractors who are

registered as registered contractors.

6

Local contractors register once with CIDB and the registration can be renewed for a

period between one to three years. Whereas, foreign contractors are required to register

for every project they bid and undertake.

There are two types of registration for foreign contractors. The Provisional Registration

Certificate requires the foreign contractor to seek permission to participate in any

construction tender bid. And this registration is only for a specific tender bid.

Before a foreign contractor undertakes any construction work in which they have been

awarded, they are required to apply for a Registration Certificate for Foreign Contractor.

And this registration is for the specific project only. And if the foreign contractor bids for a

tender and eventually awarded the tender, they have to apply for two registrations, i.e.,

the Provisional Registration Certificate and the Registration Certificate.

Figure 2 and Figure 3 show the number of projects and project value undertaken by

foreign contractors as compared to local contractors for both government and private

projects from year 2011 to September 2013.

Figure 2: Comparative Number of Projects Awarded between Local and Foreign

Contractors


98.4% 98.1%

98.9%

1.6% 1.9%

1.1%

2011 2012 2013 (till Sept)

Local Contractors Foreign Contractors

Number of Projects (%)

7

Figure 3: Comparative Project Value Awarded between Local and Foreign

Contractors


1.4 Public disclosure of ‘commercially sensitive information’

Section 4 subsection (1) (h) of the Construction Industry Development Board Act 1994

(Act 520) describes one of the functions of CIDB (Box 4). CIDB publishes a monthly

“Construction Project Register” and a quarterly bulletin, namely “Construction Statistics

Quarterly Bulletin”.


81.4% 88.5% 86.6%

18.6% 11.5% 13.4%

2011 2012 2013


Value of Projects (%)

Box 4: Section 4 subsection (1) (H) of the Construction Industry Development Board Act 1994 (Act 520)

ACT 520

CONSTRUCTION INDUSTRY DEVELOPMENT BOARD ACT 1994

Section 4. Functions of the Lembaga.

(1) The functions of the Lembaga shall be-

(a) … (g)

(h) to initiate and maintain a construction industry information system;

(i) … (k)

8

The “Construction Statistics Quarterly Bulletin” provides aggregated and summarized

projects information undertaken within the quarter. Whereas, the “Construction Project

Register” provides for both aggregated and details of projects awarded and undertaken in

the month concerned. Details of the information published in the monthly Construction

Project Register are produced in Appendix D.

1.5 Regulatory burdens (Malaysia Productivity Corporation, 2013)

Regulatory burdens arise from the costs imposed by regulation and enforcement that

would otherwise not arise for businesses. Where requirements from regulation create a

change in business behaviour and practices, a regulatory burden can be said to exist.

Regulations can adversely impact on businesses in a variety of ways. Most can usually

be grouped under the following four categories of cost impacts:

administrative and operational costs such as:

- reporting, record keeping;

- getting legal advice, training

changes to the way goods are produced or services supplied;

changing the characteristics of what is produced; and

lost production and marketing opportunities.

1.6 Unnecessary Regulatory Burdens (Malaysia Productivity Corporation, 2013)

While it is usually necessary that some burden is placed on business for regulation to

achieve its objectives, where it is poorly designed, or its enforcement and administration

is not implemented well, it may impose greater burdens than necessary. It is those

regulatory burdens which can be considered ‘unnecessary’ that are of primary interest

(Box 5).

9

Source: Malaysia Productivity Corporation

Box 5: Examples of Unnecessary Burdens

excessive coverage of the regulations, including ‘regulatory creep’ — that is,

regulations that encompass more activity than was intended or is to achieve

their objective

subject-specific regulations that cover much the same ground as other generic

regulation

prescriptive regulation that unduly limits flexibility, such as preventing:

- businesses from meeting the underlying objectives of regulation in different

ways

- use of the best technology

- product changes to better meet consumer demand

overly complex regulation

unwieldy license application and approval processes

excessive time delays in obtaining responses and decisions from regulators

rules or enforcement approaches that inadvertently provide incentives to

operate in less efficient ways

unnecessarily invasive regulator behavior, such as overly frequent inspections

or information requests

an overlap or conflict in regulations and or the activities of different regulators;

and

inconsistent application or interpretation of regulation by regulators.

10

2.0 Objective of Study

The objective of the study focuses on three immediate concerns of the industry, i.e.,

insufficient guidance on which construction works need to be registered with CIDB;

different registration requirements for foreign contractors; and

public disclosure of commercially sensitive information.

MPC’s task is to identify and recommend improvements to these concerns that will lower

or eliminate the burdens for the industry without compromising the underlying policy

objectives.

3.0 Conduct of the Study

The Malaysian Productivity Corporation received the terms of reference for this study in

October 2013. In preparing this report, MPC has consulted widely to ensure input was

sought from a broad range of stakeholders.

Business meetings were conducted with business associations and local and foreign

companies involved in the construction industry to understand their concerns with

regulations that seems to burden them. Engagement with regulators (Ministry of Works

Malaysia, Construction Industry Development Board, Attorney General’s Chambers,

Malaysia Investment Development Authority, Bank Negara Malaysia, and the Malaysia

Competition Commission) was organised to acquire their feedback on the concerns

raised. Review from different sources (literature and internet) was assess to provide

additional inputs.

A report highlighting the findings from both industry players and the regulators has been

compiled and consolidated and recommendations for improvement were ascertained.

This report will be presented to the WGLIF for endorsement of the proposed action plan.

11

4.0 Insufficient guidance on which construction works need

to be registered with CIDB

4.1 Findings

4.1.1 Views from business

1. Lack of clarity in the definition of the meaning of “construction works” in the CIDB

Act 520:

Interpretation of current definition is very broad and not limited to construction

industry e.g., fixtures;

- Magnetic Resonance Imaging (MRI) equipment, hand-held ultrasound

machines installation in a hospital is considered as construction works

under this definition.

Inconsistent interpretation between regulators on the same piece of definition

causes confusion and potentially increases the compliance costs;

Duplication in registration activities of different regulators e.g. SPAN (National

Water Services Commission), AELB (Atomic Energy Licensing Board), DOSH

(Department of Occupational Safety and Health), and ST (Energy Commission)

4.1.2 Views of the regulators

1. CIDB commented that supply of equipment with installation and cabling or fixing

equipment to the building falls under construction work, and the supplier is required to

register as a contractor. CIDB provided example of the same practice in Australia and

Singapore, whereas Hong Kong categorised this as separate scope of business.

2. CIDB commented that to ensure consistency of the definition of “functionality”, the

work details have to be listed clearly;

3. CIDB commented there is no overlapping of registration with different regulators. Data

of contractors registered with the other regulators (e.g. SPAN) is consolidated in

CIDB’s Master Register of Contractors.

4. CIDB commented on the intent of Act 520;

12

To consolidate the industry under a central monitoring body;

The intention is not focused directly on integrity or safety of the building

infrastructure but to provide a listing of competent contractors – i.e. Master

Registration of Contractors in Malaysia. Indirectly the list of capable and competent

contractors ensures the integrity and safety of the building;

To ensure contractor’s competency (areas of specialty) – this records quality,

safety, cost, capability of the contractors.

5. Regulators suggested that it depends on the scope of work, examples;

If repair is a small part of the contract , it only requires Ministry of Finance

registration;

If major work is civil and/or mechanical in nature, then its “construction works”

(requires registered contractor);

If specialist work e.g. installation of medical equipment; then requires registered

contractor.

If the work changes or effects the original functionality of a building (e.g. hospital),

then it is “construction works”;

If installation of computers involves change in the functionality of a building,

addition of power points, insufficient power, then it is considered “construction

works”.

6. AGC recommend considering using terms used or interpreted (defined) in courts to

maintain consistency of the definition.

4.2 Discourse

As the construction industry has moved from a very labour intensive, low technology and

craft-based industry to a more technological highly mechanized industry, the current

definition of “construction works” may not apply. Businesses have a view that the supply

and installation of equipment and machinery is not part of “construction works” especially

equipment which are “plug-and-play” or hand-held. This view differs from the regulator.

This has lead businesses, especially equipment suppliers, to be uncertain of their status

and the status of the job undertaken.

13

CIDB’s “Registration Requirements and Procedures Guideline” outlines in detail the

requirements and procedures for registration of local and foreign contractors. Annexure

2C (Registration Category and Specialisation) of the said guidelines describes in detail

the category of “construction works” and its corresponding specialisation. The confusion

stems from a part of its description of the specialisation, example shown in Figure 4.

Figure 4: Sample description provided in the Registration Requirements and

Procedures Guideline

Source: Construction Industry Development Board of Malaysia

Etc. or et cetera which means and others; and so forth; and so on (used to indicate that

more of the same sort or class might have been mentioned, but for brevity have been

omitted) – have caused confusion and misinterpretation among businesses and

regulators.

4.2.1 Impact on business

Due to the different interpretation of the meaning of “construction works”, businesses

involve in the construction industry are not certain of their status and the status of the job

undertaken. This leads to these businesses having “arm’s length” relations with the

contractors.

14

4.2.2 Impact on regulator

Government agencies are also uncertain about what constitute “construction works”.

Some agencies may disregard the need to have registered contractors as they assume

the work required does not require it. This assumption may compromise the safety and

integrity of the job undertaken.

4.3 Options for resolution

1. Provide a full list of all items included in each category and delete “etc”.

Provide a full list of type of works in the specialisation description of the “Registration

Requirements and Procedure Guideline” and not use the word “etc.”

2. Provide a clear definition and functional description of construction works

A much more clearly defined definition and functional description of “construction

works” must be described taking into consideration the type of work to be done. The

safety and integrity of the building could be provided. As an example, the description

in “specialisation description” in the “Registration Requirements and Procedure

Guideline” Annexure 2C may be amended as

“Installation, commissioning and maintenance of medical equipment

that affect the electrical, plumbing, gas, compress air infrastructures

and does not compromise the integrity of the building.”

3. Explicitly exclude jobs and items deemed lowest risk

Explicitly exclude jobs and items deemed lowest risk and which do not compromise

the integrity and safety of the building or infrastructure.

4. Educate the relevant stakeholders

Educating both government agencies and the businesses what constitutes

“construction works” by way of, as to discussion sessions and other platforms online

or “offline” to ensure that all involved stakeholders have the same understanding. As

part of the education, establish a FAQ that is easily accessible on what is not within

the scope of “construction works”.

15

5. Periodic review of policies and guidelines

Regulators are obliged to review policies and guidelines regularly as changes to the

environment may affect the meaning and intent of “construction works” ensuring the

intent is up to date

6. Establish an expert oversight committee

CIDB to establish an expert oversight committee to resolve any issues on the scope of

“construction works”. The decision of the expert committee will be able to provide

further clarity.

4.4 Recommendations

All of the options provided will be able to address the issue concerned. But it is

recommended that Option 2 (Provide a clear definition and functional description of

construction works) and Option 6 (Establish an expert oversight committee) be

implemented in the immediate as it is within the ambit of CIDB. These options will quickly

dispel the confusion and uncertainty of the type works that constitute “construction works”.

Note: CIDB is in the midst of reviewing the specialisation description in the Guidelines but

it has to be noted that the review should be further enhanced using Regulatory Impact

Analysis (RIA) methodology.

16

5.0 Different Registration Requirements for Foreign

Contractors

5.1 Findings


1. The registration fees for foreign contractors are regarded as unnecessary burden as

they imposed direct cost to the business;

2. As foreign contractors are required to apply registrations for every project bids and

project works, it becomes tedious and time-consuming;

3. The same documents must be submitted, it costs the businesses for preparing the

same documents for every application

4. Businesses have commented that CIDB’s adherence to its definition of local and

foreign contractors has caused locally-owned public listed construction company

becoming a foreign company at one time or another when its equity structure changes

due to investors buying and selling of its shares.


1. CIDB commented that the renewal of licenses for foreign contractors is by project

basis (it could last up to 10 years if the project duration is lengthy), whereas renewal of

license by local contractor is on an annual basis,

2. CIDB clarified that a company that was setup before 1994 is regarded as local

company if there has been no change in the equity structure.

3. CIDB is not entirely certain as to objective the requirement for foreign contractors to

register for every tender bids and works undertaken;

4. MIDA stated concern on the loss of investment by giving an example of a US

company facing equity issues in a joint-venture with a local company. As a result, the

investor moved to Singapore to open its office.

5. AGC commented if the intention is to benefit local contractors on technology transfers,

then the requirement may not serve its intention, and may have succeeded in

restricting foreign participation if the intention of the requirement is as such.

17

6. AGC commented that making changes to regulations requires time and discussions

among relevant regulators or agencies/ministries (CIDB, MOF, AGC, etc.) and local

chambers of commerce to come out with specific and objective recommendations.

5.2 Discourse

Table 3 summarizes the number of contractors registered, the total projects undertaken

and the total project values for both local and foreign contractors.

Table 3: Local and Foreign Contractors Participation 2011 to 2013 (as of Sept

2013)

Year Nationality No. of

Contractors No. of

Projects Project Value

(RM mil)

2011 Foreign 88 123 18,531.49

Local 3,203 4,205 57,806.66

2012 Foreign 100 141 14,133.17

Local 5,306 7,401 108,587.43

2013 (as of Sept)

Foreign 38 48 8,982.11

Local 5,217 7,462 81,208.52

Source: Construction Industry Development Board of Malaysia

In the Registration of Contractors (Construction Industry) Regulations 1995 (Regulation 2.

Interpretation) states that

“In these Regulations, "foreign contractor" means a foreign company as

defined in the Companies Act 1965 [Act 125].”

In the Companies Act 1965 Section 4 subsection (1) states “foreign company” means —

(a) a company, corporation, society, association or other body incorporated outside

Malaysia; or

18

(b) an unincorporated society, association, or other body which under the law of its

place of origin may sue or be sued, or hold property in the name of the secretary

or other officer of the body or association duly appointed for that purpose and

which does not have its head office or principal place of business in Malaysia.

In the “Registration Requirements and Procedures Guideline” it is stated that:

“Foreign contractor means a company incorporated in Malaysia or in a

foreign country which has a foreigners’ equity holding of thirty-one per

cent (31%) or more.”

5.2.1 Literature Review

Practical Law Company Limited UK has compiled and shared the specific requirements

for foreign contractors and contractor professionals must comply with across 19 countries

in its website (PLC UK, 2011). Appendix B presents the requirements for foreign

contractors to do business in 19 countries. None of the countries require foreign

contractors to register for every tender bid and job awarded. Most of these countries

require that foreign contractors comply with the same regulations as the local contractors.

In Singapore, companies are required to register if they wish to participate in construction

tenders for the public sector or as sub-contractors in public sector projects. Singapore’s

Building and Construction Authority which serves the construction and construction-

related procurement needs of the public sector provides an online system -The Contractor

Registration System – to ease the registration process.


Foreign contractors having to apply for a registration certificate for each and every tender

bid and construction work is quite tedious and time consuming. This creates unnecessary

burden in applying for the certificates and may delay the implementation of the works.

This also increases the cost of doing business as for every certificate a fee is imposed.

The contractors are further burdened by having to provide the same documents for each

and every for a certificate. This costs the business.

19

As the documentation requirements for the issuance of a Provisional Certificate and/or a

Certificate of Registration is the same, the contractors have to provide the same

documents to the regulators.

In the case of foreign companies intending to have joint venture with local companies,

these companies are shying away as they are not comfortable with the equity

requirements. This may lead to Malaysian companies losing out in terms of acquiring the

latest relevant technology.


Same contractors bidding for and implementing projects may lead to oversights in

evaluating certificate applications. CIDB is also burdened by having to keep and store all

the documents (duplicate documents) submitted as the documents are to be kept for 7

years.


1. CIDB to revert to the interpretation of foreign companies as stated in The

Companies Act 1965

It is suggested that CIDB reverts to the meaning of foreign companies as stated in the

Companies Act 1965. This will allow all companies incorporated in Malaysia whether

the majority is foreign-owned treated similarly.

2. Remove the requirement of applying for registration for every tender bids and

work awarded by adopting time-based registration

Remove the requirement for foreign contractors to apply for registration for every

tender bid and work to be undertaken. This will enable the contractors to reduce their

cost and indirectly may reduce the works cost. A time-based registration should be

adopted.

3. Common registration procedures

No differentiation between the local and foreign contractors. The registration of foreign

contractors should follow the same procedures and requirements of local contractors.

20

A probationary period of 2-3 years for monitoring the performance of the foreign

contractors to ensure that the foreign contractors are competent could be put into

place.

4. Enhancement of current online registration system

Presently, CIDB provides for online registration through its SMB Online Registration

System. Currently, the system provides for the registration and registration renewal for

local contractors. It is suggested that the system be enhanced to include the

registration process for foreign contractors. This would provide a seamless registration

process and ease the administrative burdens for foreign contractors.

5.4 Recommendations

As a “low-hanging fruit”, Option 4 (Enhancement of current online registration system) will

greatly alleviate the onerous and time-consuming procedures for foreign contractors in

applying the Provisional Registration Certificate and the Registration Certificate for

Foreign Contractor. For the medium and long-term view, it is recommended that a time-

based registration for foreign contractors be considered for adoption.

Note: CIDB has agreed to develop an online registration system for foreign contractors.

21

6.0 Public Disclosure of Commercially Sensitive Information

6.1 Findings


1. Details of construction projects are published on a monthly basis and made available

to public, including “Commercially Sensitive Information” (particular reference to

monetary figures or values, i.e., project value). Disclosure of such information may

compromise competitiveness of contractors;

2. The sharing of information with third party breaches the contractor’s non-disclosure

agreement (NDA).


1. CIDB informs that the information published in CIDB’s “Monthly Construction Project

Register” and the “Construction Statistics Quarterly Bulletin” is to assist sub-

contractors, building material suppliers, and professionals. The information shown in

the Register provides opportunities for sub-contractors, suppliers, engineers to find

new jobs. Sub-contractors will be able to offer their expertise to the master contractors

for future projects.

2. CIDB informs that the value shown in the Construction Project Register is not the final

contract value as the final contract value will be determined after negotiations;

3. AGC views the disclosure of project value as part of the government’s transformation

program to strike a balance between government and the private sector on

transparency of government projects and in combating corruption;

4. AGC added as the government is promoting transparency, if the information is non-

sensitive and does not contravene the contract’s Non-Disclosure Agreement (NDA),

and then there should not be any issue to publish the information.

Regulators suggested to identify what is defined as sensitive information in the

context of the NDA;

5. AGC informs that any terms in the NDA which conflict with the provision in the relevant

Act, then the Act prevails;

22

6. Regulators believe that in general, information sharing benefits consumers. There

should not be issues in publishing information to the public domain;

7. MyCC suggested that the publication of a total contract sum (aggregated amount)

should not be regarded as a cartel issue, even there is an indirect cartel, if the benefits

outweighs the disadvantages, then there should be no issue to share the information;

8. BNM finds the data collected by CIDB useful as it uses the data for its economic

review;

9. MyCC (Malaysia Competition Commission) views that:

information transparency increases competitiveness, better pricing for consumers

on the other hand, disclosure of information could also be perceived as

promoting price fixing practices (members of a cartel would not dare to deviate

from an agreed price range);

If information is aggregated, it may not be regarded as commercially sensitive;

and

elements of information sensitivity may differ from industry to industry, i.e. public

disclosure of information on the price of specialized equipment may be seen as

commercially sensitive in the construction sector but in other industries it may

readily be accepted.

6.2 Discourse

Companies in the construction industry have raised concerns with regards to the

information published in the “Construction Project Register”. Part of the information

published may constitute “commercially sensitive information”. Disclosure of commercially

sensitive information especially pricing and cost of a project may compromise

competitiveness of contractors. The basis for competitiveness is the uncertainty of pricing.

23

Figure 5: Example of contract details published in the monthly Project Register of

CIDB


An undesirable impact of this disclosure of the value of projects is that in future the real

cost of projects may be undervalued and may result in contractors using lower quality

products which may be detrimental to the general public.

And as the Competitive Act 2010 (CA 2010) has been enforced, the information provided

may contravene the CA 2010. MyCC in its Competition Act 2010: A Guide for Business

handbook states:

24

Source: Malaysia Competition Commission

But MyCC views that generally the disclosure or sharing of information enhances

transparency which promotes competitiveness providing better pricing to consumers.

MyCC opined that “commercially sensitive information” differs from one industry to

another.

Box 6: Excerpts from Competition Act 2010: A Guide for Business

handbook

Exchanges of commercially sensitive information between competitors commonly

give rise to competition concerns. The exchange of information may take place

in many forms and could be communicated directly or indirectly through a

third party, such as a trade association or manufacturer. The element of

uncertainty that normally exists between competitors may be removed by the

exchange of information.

If the information exchanged relates to pricing, it is likely to infringe the CA

2010. Examples of the types of pricing information that will infringe the law if

exchanged include:

● Future intended prices

● Costs

● Discounts, rebates or allowances

Where the information relates to non-pricing matters, it may still infringe the CA

2010. Examples of the types of non-pricing information which may infringe the law

if exchanged include:

● Sales data

● Capacity information

● Demand data

● Market shares

● Investment plans

Information that is unlikely to give rise to competition concerns if exchanged

includes:

● Historical data (that is no longer relevant);

● Aggregated data (provided it cannot be broken down to identify data

belonging to an individual enterprise).”

25

The information provided may also be a breach of the confidentiality clause of the

standard Department of Public Works construction works contract or any other private

construction works. The box below shows an excerpt of the Standard Form of Design and

Build Contract PWD Form DB (Rev. 2007) and Standard Form of Contract to Be Used

Where Bills of Quantities Form Part of the Contract.

Source: Public Works Department

Box 7: Excerpts from Department of Public Works Standard Contract

Form

68.0 CONFIDENTIALITY

68.1 This Contract and all such drawings, records, data, books, reports and all

matters pertaining hereto shall be considered as confidential matter and

shall not be disclosed to any third party without prior written mutual

agreement, save and except where

(a) disclosure of such information is necessary for the purposes of raising

finance to undertake the obligations of the Contractor under this

Contract;

(b) disclosure of such information is made to the Contractor's consultants,

auditors or advisers;

(c) disclosure of such information is required by law or by any

government agency or for the performance of any obligations

under this Contract; or

(d) the information has entered public domain.

68.2 Where information has been disclosed to third parties pursuant to

clause 68.1, the Contractor undertakes to ensure that such third

parties shall not disclose the information to any other third party.

68.3 The restrictions contained in this clause shall survive the termination of this

Contract and shall continue to bind both Parties without limit in point of

time.

26

As CIDB is a government agency, clause 68.1 (c) is in effect and the contractor is obliged

to provide the relevant information. But clause 68.2 essentially prohibits any third party to

disclose or publish the information that was provided.


Businesses lose out as it affects their competitiveness when competing companies are

privy to their costing. Businesses are contravening their non-disclosure agreement or

confidentiality clause of their contract. This may cause their clients to lose confidence in

the contractor.


Government agencies involved in the construction of buildings and infrastructure may

lose out by not getting value for money for the construction job as contractors may under-

cut each other and this may result in contractors using lower quality materials products.


1. No change to current practice

The publication of contract details in the monthly “Construction Project Register” does

not help meet the intention of assisting subcontractors, professionals, material

suppliers and manufacturers to identify potential projects. The published contract

detail also has the potential to facilitate price fixing.

While aggregated and disaggregated data contribute to transparency, the

disaggregated data also reveals commercially sensitive information. In most foreign

countries, it is not a normal practice to reveal commercially sensitive information

because of the adverse effects on the successful tenderer.

2. Determine “Commercially Sensitive Information”

Determine what constitutes “commercially sensitive information” in the construction

industry and not publish publicly this type of information. However, aggregated data

27

could continue to be published. This would provide useful information for researchers

and policy makers without revealing sensitive commercial information.

3. Contract details can only be accessible to paying customer

Information of contract details is not to be published publicly but information may

be accessible for a fee. But this may still have an adverse effect on price fixing.

6.4 Recommendations

It is in the best interest of all stakeholders in the construction industry, that “commercially

sensitive information” is clearly determined and this type of information not publically

published. Thus, Option 2 (Determine “Commercially Sensitive Information”) is

recommended.

28

7.0 References

Department of Statistics Malaysia. (15 May 2013). Annual Gross Domestic Product 2005 -2012.

Putrajaya.

Department of Statistics, Malaysia. (15 Nov 2013). Quarterly Gross Domestic Product, 3rd Quarter

2013. Putrajaya.

Kamal, E. M., & Flanagan, R. (2012). Understanding absorptive capacity in Malaysian small and

medium sized (SME) construction companies. Journal of Engineering, Design and

Technology, 10(2), 180-198.

Kamal, E. M., Haron, S. H., Md Ulang, N., & Baharum, F. (2012). The Critical Review on the

Malaysian Construction Industry. Journal of Economics and Sustainable Development,

3(13), 81-87.

Malaysia Competitive Commission. (September 2013). Competition Act 2010 - A Guide for

Business.

Malaysia Productivity Corporation. (2013). Guide to Reducing Unnecessary Regulatory Burdens:

Core Concepts. Petaling Jaya.

Ministry of Finance Malaysia. (2013). Economic Report 2013/2014. Putrajaya.

PLC UK. (29 June, 2011). Requirements for international contractors or construction professionals:

construction and projects multi-jurisdictional guide 2011/12. Retrieved from Practical Law

Company Limited UK Web site: http://uk.practicallaw.com/4-506-5027

29

Appendix A: Stakeholders interviewed

i) America Malaysia Chamber of Commerce

ii) GE Malaysia

iii) Siemens Malaysia Sdn. Bhd.

iv) Master Builders Association Malaysia (MBAM)

v) Real Estate And Housing Developers' Association Malaysia (REHDA)

vi) Ministry of Works (Kementerian Kerja Raya)

vii) Construction Industry Development Board (CIDB)

viii) Attorney General’s Chambers

ix) Malaysian Investment Development Authority (MIDA)

x) Bank Negara Malaysia

xi) Malaysia Competition Commission (MyCC)

30

Appendix B: Requirements for Foreign Contractors in 19

Countries

Requirements That International Contractors or Construction Professionals Must

Comply with When Doing Business in 19 Key Jurisdictions (PLC UK, 2011)

Table 4: Requirements That International Contractors or Construction Professionals Must Comply With When Doing Business in 19 Key Jurisdictions [1]

Specific requirements that international contractors or construction professionals must comply with

Austria Various restrictions on property dealings in the federal provinces applying to foreign natural persons.

Persons from EU states are often accorded the same treatment as Austrian citizens.

The applicable labour law and social law framework regarding the employment of foreigners must be taken into account.

Belgium No special licensing or legal requirements directed at foreign contractors.

Foreign contractors should be aware that companies that carry out activities in the construction sector must register with the social security administration and obtain an enterprise number.

Brazil Foreign contractors are free to do business in Brazil without the need to incorporate a Brazilian company or enter into joint ventures with local contractors and designers.

Foreign contractors must be aware of Brazilian labour and tax laws; the strict need to follow the requirements of competent authorities and councils to comply with specific rules for the remittance of profits and investments; the need to have executives qualified to ensure cultural transition to Brazilian industry practices; and the need to be careful with their choice of local partners in the construction industry.

Canada If a foreign company creates a Canadian subsidiary or branch, withholding tax on payments or branch tax may apply.

Statutory restrictions apply to distributions by a Canadian subsidiary to its foreign parent if the subsidiary fails to meet certain solvency requirements.

Chile International contractors are free to contract with other private parties in Chile.

International contractors can submit tenders for public works projects if they have the expertise and ability to complete the project. To execute a public works project in Chile, a contractor must register with the Ministry of Public Works' (MOP) Contractors Registry. Registration will only be granted if the contractor meets certain requirements (for example, if it can prove that it has the relevant experience to undertake the project).

Foreign professionals can only work in Chile if they have a work visa authorising them to undertake paid employment. Professional qualifications are only valid in Chile if they have been validated by the Universidad de Chile.

Czech Republic

There are no specific legal requirements applicable to foreign contractors operating in the Czech Republic.

However, foreign contractors must fulfil relevant licensing obligations. If a contractor does work of a type for which there are special qualification requirements (for example, architecture), the contractor must fulfil these requirements. If a contractor from an EU or EEA country fulfils the relevant qualification criteria for his profession in his home country, that qualification is recognised by the Czech authorities.

France There are no additional, specific, requirements that international contractors must comply with.

Germany Non-EU enterprises often face difficulties arising from German labour law.

Construction-related challenges can result from the very detailed public law requirements and regulations. German public law contains further legal requirements and procedures that a contractor must comply with.

To avoid additional costs and delay, contractors should be advised by domestic planners and advisors.

Hong Kong Most international contractors are permitted to operate in Hong Kong, provided they can gain entry to one of the government's approved lists of contractors for infrastructure projects.

International contractors can also work in the private sector provided they have the necessary licences to operate from the Building Authority.

Ireland There are no specific licensing requirements or restrictions for foreign contractors, although foreign companies operating in Ireland must be registered for tax purposes.

There are three principal options for setting up a presence in Ireland: branch; Irish company; or partnership.

The Netherlands

There are no specific requirements for international contractors or construction professionals.

31

Specific requirements that international contractors or construction professionals must comply with

Poland Contractors from the EU, EEA and Switzerland are treated in the same way as Polish contractors, and must comply with certain basic formalities that apply to any entity operating in Poland.

Contractors from other countries must first establish a corporate presence. They can establish a: limited partnership; limited joint-stock partnership; limited liability company; joint stock company; branch office.

Licensing requirements for specific trades are usually met by employing local, properly licensed staff. Obtaining a local licence is usually a formality if the contractor holds a relevant licence in another EU member state.

Romania Foreign contractors are governed by the same rules as national contractors.

Foreign contractors must also comply with compulsory Romanian construction standards and legal provisions regarding the quality of construction works.

Foreign contractors normally have at least a permanent establishment in Romania, given that construction projects usually last at least six months and they require a construction site for their performance.

Russian Federation

There are no requirements for foreign contractors other than those also applicable to Russian contractors.

Slovak Republic

There are no special legal conditions for EU or EEA contractors. They are bound by the same technical standards and norms as Slovak contractors.

Contractors from third countries must meet certain requirements, for example: permitting requirements under the labour law and social security law.

In general, contractors from third states can conduct business in the Slovak Republic under the same conditions and to the same extent as Slovak residents, but only from the date of registration of their business (or an organisational unit of their business) in the Slovak Commercial Register.

Contractors from third states can establish a Slovak legal entity or participate as a partner, member or shareholder in an already incorporated Slovak legal entity.

South Africa Any enterprise (including foreign contractors) that tenders or enters into a contract for construction works with the public sector, must be registered with the Construction Industry Development Board (CIDB). A foreign contractor can apply for registration with the CIDB.

Further visa and permit requirements apply to foreign nationals working in South Africa.

Any company (including a foreign contractor) wishing to do business in South Africa must consider and develop its Broad-Based Black Economic Empowerment (B-BBEE) position.

Exchange controls have limited application to non-residents (although some rules do apply). A non-resident can operate a non-resident bank account with a South African bank, which allows it to freely receive foreign currency and convert Rand amounts received into foreign currency. The limited exchange control rules that apply to expatriate individuals generally do not result in significant restrictions, provided they confirm their status as temporary workers with an authorised dealer, such as any of the commercial banks.

Sweden Foreign contractors have previously faced problems regarding labour law issues. Following Laval un Partneri Ltd v Svenska Byggnadsarbetareforbundet and Others (C-341/05) [2007] ECR I-11767, the possible barriers to entry have in this respect been erased.

There is still a need for a work and/or residence permit and/or visa in certain circumstances.

UK (England and Wales)

Before taking on any sub-contractors, all contractors must register with the Her Majesty's Revenue & Customs' (HMRC) Construction Industry Scheme (CIS), which applies to non-resident contractors in the same way as UK-based contractors. The scheme applies to a contractor who pays sub-contractors for construction work they do in the UK or a sub-contractor who gets paid by contractors for doing construction work in the UK. Under the scheme, contractors ensure that all their sub-contractors are registered with HMRC and make appropriate tax deductions from sub-contractor pay.

US Each state has its own scheme of licensing for foreign businesses (that is, entities not domiciled within the relevant state). Before doing business in any particular state, a business entity must review (preferably with an attorney licensed in that state) the requirements of the relevant state.

Source: Practical Law Company Limited UK http://uk.practicallaw.com/4-506-5027

32

Appendix C: Number and Value of Projects Awarded By Status of Contractors and Project Category

as Of September 2013

Table 5: Number and Value of Projects Awarded By Status of Contractors and Project Category as of September 2013

Project Category Total

Number of Projects

Total Project Value (RM

million)


Government Projects Private Projects Government Projects Private Projects

Number Value (RM

million) Number

Value (RM million)

Number Value (RM

million) Number

Value (RM million)

2011 7,585 99,739.13 1,906 21,439.91 5,556 59,767.73 6 1,610.73 117 16,920.76

Residential 2,245 24,599.63 139 820.31 2,100 23,127.77 - - 6 651.55

Non Residential 2,561 36,046.97 255 2,752.72 2,218 25,010.46 - - 88 8,283.79

Social Amenities 838 6,901.11 576 4,172.16 259 2,719.63 - - 3 9.32

Infrastructure 1,941 32,191.42 936 13,694.72 979 8,909.87 6 1,610.73 20 7,976.10

2012 7,542 122,720.57 1,933 17,901.70 5,468 90,685.70 1 144.86 140 13,988.31

Residential 2,202 32,325.89 215 1,566.94 1,973 30,149.08 - - 14 609.87

Non Residential 2,531 38,515.21 286 2,792.14 2,146 30,330.53 1 144.86 98 5,247.68


Infrastructure 1,918 44,460.30 769 9,468.73 1,124 26,874.14 - - 25 8,117.43

2013 4,253 66,787.61 1,017 14,026 3,188 43,780 0 0 48 8,982

Residential 1,146 18,194.90 62 1,231.07 1,078 16,890.32 - - 6 73.51

Non Residential 1,563 28,850.49 175 4,020.61 1,359 16,943.72 - - 29 7,886.16


Infrastructure 1,139 14,662.70 513 6,283.23 615 7,535.43 - - 11 844.04


33

Appendix D: Information Provided in the Monthly Construction

Project Register

Table 6: Part 1 (Summary of Projects and Total Project Value According To States) Bil Lokasi Projek Nilai Projek (RM) Bil. Projek

1 Johor 1,715,884,880.30 78

2 Kedah 228,849,907.19 15

3 Kelantan 88,788,866.58 8

4 Melaka 361,724,357.26 17

5 Negeri Sembilan 287,251,927.54 21

6 Pahang 124,391,719.40 29

7 Perak 132,739,450.03 23

8 Perlis 1,778,100.00 1

9 Pulau Pinang 655,011,433.02 39

10 Sabah 396,005,243.67 21

11 Sarawak 215,416,146.23 24

12 Selangor 1,356,714,043.91 68

13 Terengganu 105,173,851.06 11

14 WP Kuala Lumpur 507,493,579.25 25

15 WP Labuan 926,300.00 1

16 WP Putrajaya


Table 7: Part 1 (Lists of Project and its Value According to Companies)

Bil Lokasi Sektor Kategori Nama Kontraktor Bil Projek

Nilai Projek (Rm)

1 Johor Swasta Perdagangan Al-Ambia Sdn. Bhd. 1 3,972,000.00

2 Johor Swasta Kediaman Sunway Construction Sdn. Bhd.

1 282,908,000.00

3 Johor Perbadanan Awam Bukan

Kewangan (Pabk)

Infrastruktur Lr Heavy Engineering & Construction Sdn. Bhd.

1 2,750,485.00

4 Johor Kerajaan Infrastruktur Lilin Enterprise 1 3,188,105.00

5 Johor Kerajaan Kediaman Menara Azhar Construction

1 531,700.00

6 Johor Swasta Kemudahan Sosial

Mohmed Reesah Berkat Sdn. Bhd.

1 53,348,825.00

7 Johor Swasta Kediaman Lu Chin Poh Construction Sdn. Bhd.

1 2,850,000.00

8 Johor Kerajaan Infrastruktur Shazas Enterprise Sdn. Bhd.

1 4,481,769.00

9 Johor Kerajaan Infrastruktur Rafa Maju (M) Sdn Bhd 1 4,497,450.00

10 Johor Kerajaan Infrastruktur Duraka Sdn. Bhd. 1 3,117,210.00


34

Table 8: Part 2 Highest Value Projects (Recorded from 1 September until 15 November 2013)

Bil Nama Kontraktor Lokasi Projek Nilai Projek (RM)

1 Bina Puri Holdings Sdn Bhd Selangor 441,008,000.00

2 Kerjaya Prospek (M) Sdn Bhd Johor 298,368,000.00

3 Sunway Construction Sdn Bhd Johor 282,908,000.00

4 Target Resources Sdn Bhd Selangor 252,500,000.00

5 Ireka Engineering & Construction Sdn Bhd W.P kuala Lumpur 249,500,000.00

6 Musyati Sdn Bhd Sabah 155,500,000.00

7 BS Singapore-BSC Construction Malaysia JV W.P Kuala Lumpur 152,399,994.00

8 Sara-Timur Sdn Bhd Pulau Pinang 145,800,000.00

9 Tay Hup Brothers Construction Sdn Bhd Johor 136,388,000.00

10 Redmax Sdn Bhd Kedah 132,000,000.00


Table 9: Part 2 (Project Details) (Recorded from 1 September until 15 November 2013)

35

Bil Butiran Kontraktor Gred Butiran Projek Kategori

1 Nama : Al-Ambia Sdn. Bhd.

No Pendaftaran : 1970421-

Wp029284

Alamat : No. 5, Level 2-02 Jalan

Semangat 46200 Petaling Jaya

Selangor

Telefon : 03-79656888/79543510

Fak : 03-79656999/79543520

Alamat Emel : al-ambia@al-

ambia.com.my

G7 Tajuk Projek : Proposed Construction

and Completion of Sewerage Treatment

Plant At Parcel A5 on Ptd 153805, Johor

Bahru, Johor.

Sektor : Swasta

Tarikh Awad : 30-09-2013

Tarikh Mula : 01-11-2013

Tarikh Siap : 31-01-2014

Nilai Projek : Rm1,791,090.00

Nama Klien : Danga Bay Sdn Bhd

Bukan

Kediaman

2 Nama : Sunway Construction

Sdn. Bhd.

No Pendaftaran : 1960319-

Wp000698

Alamat : Level 8, Menara Sunway

Jalan Lagoon Timur Bandar

Sunway 46150 Petaling Jaya

Selangor

Telefon : 03-56399696

Fak : 03-56399530

Alamat Emel :

[email protected]

G7 Tajuk Projek : Cadangan pembangunan

mengikut Seksyen 70, Akta 133, bagi

pembangunan bercampur, Urban

Wellness, yang mengandungi:

1) Fasa 1 (Ptd170678), 1 Blok Bangunan

Pusat Latihan Korporat- 5 tingkat serta 1

unit ruang perniagaan pada aras tanah,

1 Blok Bangunan Pusat Kesihatan- 4

tingkat, Podium tempat letak kereta- 1

tingkat serta 5 ruang perniagaan pada

aras bawah tanah, basemen tempat

letak kereta- 2 aras (P1 & P2),

2) Fasa 2 (Ptd 170679), 1 Blok

Bangunan Apartmen Servis A- 23

Tingkat (147 Unit- secara berstata), 1

Blok Bangunan Apartmen Servis B-33

Tingkat (310 Unit) serta 2 unit ruang

perniagaan pada aras tanah, 1 Block

Bangunan Perniagaan- 1 tingkat, podium

tempat letak kereta - 2 Tingkat Serta 4

Ruang Perniagaan Pada Aras Bawah

Tanah 1, Basemen Letak Kereta- 2 Aras

(P1 & P2),

3) Tempat Letak Kereta- 4 Aras Di

Bawah Rizab Kawasan Lapang (Tanah

Kerajaan), di atas Lot Ptd 170678, Ptd

170679 dan di bawah Rizab Kawasan

Lapang (Tanah Kerajaan), Mukim Pulai

Sektor : Swasta




Nilai Projek : Rm282,908,000.00

Nama Klien : Pulau Indah Ventures Sdn

Bhd

Kediaman


Table 10: Highest Value Projects by Contractors (Recorded from 1 July until 15 November

36

2013)

Bil Nama Kontraktor Lokasi Projek Nilai Projek (RM)

1 Vinci Construction Grands Projecs Sdn Bhd Sabah 249,400,000.00

2 Kamalbina Sd Bhd Perak 237,000,000.00

3 Obayashi Corporation Johor 177,200,000.00

4 Ahmad Zaki Sdn Bhd W.P. Kuala Lumpur 171,500,000.00

5 Bumimetro Construction Sdn Bhd W.P. Kuala Lumpur 165,509,816.00

6 Intrasegi Sdn Bhd/Tegas Setuju Sdn Bhd Johor 160,000,000.00

7 Prinsiptek (M) Sdn Bhd Selangor 142,800,000.00

8 IJM Construction Sdn Bhd Johor 123,687,522.00

9 LCS Venture Sdn Bhd Pulau Pinang 123,585,000.00

10 Pekerjaan Piasau Konkerit Sdn Bhd Sarawak 120,130,000.00


Table 11: Part 3 (Total Project Value by State)

Bil Lokasi Projek Nilai Projek (RM) Bil. Projek

1 Johor 1,642,084,429.13 115

2 Kedah 124,825,849.45 21

3 Kelantan 19,118,397.72 9

4 Melaka 154,031,940.61 25

5 Negeri Sembilan 313,774,696.34 34

6 Pahang 235,277,714.01 37

7 Perak 469,249,610.93 46

8 Perlis 70,150,513.40 9

9 Pulau Pinang 421,258,308.31 44

10 Sabah 615,606,234.73 39

11 Sarawak 395,195,423.81 30

12 Selangor 1,328,295,719.82 93

13 Terengganu 156,624,255.50 19

14 WP Kuala Lumpur 749,185,728.36 55

15 WP Labuan

16 WP Putrajaya

Jumlah 6,694,678,822.12 576


Table 12: Part 3 (Project Details)

37

Bil. Butiran Kontraktor Gred Butiran Projek Kategori

1 Nama : HONG YANG BUILDERS SDN BHD

No Pendaftaran : 0120091209-JH127060

Alamat : NO.29-01, JALAN SETIA 3/2 TAMAN SETIA

INDAH 81100 JOHOR BAHRU JOHOR

Telefon : 07-3556515

Fak : 07-3550240

Alamat Emel :

G3 Tajuk Projek : Infrastructure Works For Show Houses At Neighbourhood 15, Bandar

Dato, Onn

Sektor : SWASTA




Nilai Projek : RM4,205,362.40

Nama Klien :

Kediaman

2 Nama : ECONPILE (M) SDN. BHD.

No Pendaftaran : 1970430-WP030390

Alamat : NO. 55C, JALAN SUNGAI BESI 57100

KUALA LUMPUR WILAYAH PERSEKUTUAN

Telefon : 03-92223333

Fak : 03-92223888

Alamat Emel : [email protected]

G7 Tajuk Projek : Piling Works For Proposed 6 Blocks Of 35 Storey Serviced Apartments

And Retail Unis Development (Total 1477 Units) With One Basement Carpark And 6

Elevated Carparks On Ptd 216427 HSD 520197, Mukim Plentong, Johor Bahru

Sektor : SWASTA




Nilai Projek : RM20,000,000.00

Nama Klien : ADAWAN DEVELOPMENT SDN BHD

Kediaman


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