You are on page 1of 27

Heights

Volume 3 | 2016

Sarawak’s
Construction
Industry Pledges
Volume 3 | 2016

Support for CITP


Careers in
Construction
Become an Industrialised
Building System Engineer

Money Matters
Budget 2016 and the
Construction Industry
PP18923/11/2015(034397)

Industrialised

Building System
www.cidb.gov.my

The Path to Enhanced Productivity


CONTENTS 34 Technology in Construction
Connecting Everything
A look at the role connected
devices and the Internet of Things
02 Editorial Board 22 Feature
Upskilling the Industry
play in the modernisation of the
construction sector.

06
In line with this issue’s theme of
03 Global Frontiers
News and highlights from the
productivity, the Heights team looks at
how IBS drives the enhancement of skills
38 Automation & the
Construction Industry
construction sector around the world. and competencies in the construction
Rising cost of migrant labour and slow
workforce.
domestic workforce participation has

06 ABM Column Malaysian construction players looking at


46 Going Global
Creating Opportunities
for Success
26 Prime Movers
Datuk Buhtamam Mahmum, Board
increased automation.
Kazakhstan’s
Construction Boom

42
Member of the Malaysian Productivity
Akademi Binaan Malaysia (ABM),
Council and CIDB, speaks to Heights
Money Matters The host for the 2017 World Expo,
Kazakhstan has been stepping up
Malaysia’s premier training institute for
about efforts to boost productivity in the Financing Development construction and infrastructure
the construction industry, has helped
construction industry. Strong emphasis on major infrastructure development in time to welcome the
enhanced the livelihoods of many
by giving them the skills needed to projects means Construction is a big world and create the foundation for
winner in the 2016 Budget. future economic growth.
30
succeed in the building sector.
Careers in Construction
IBS Expert
10 Events
Commitment to
IBS Engineer Ahmad Azhar Abdul
Wahab takes the Heights team behind
Excellence the scenes as we find out more about
RD
EDITORIAL BOA
his chosen vocation
Sarawak construction industry leaders
pledge their commitment to the
Construction Industry Transformation

14
Programme (CITP) in Kuching. Conceptualised, Produced, and
Honorary Advisor
Dato’ Ir Ahmad ‘Asri bin Abdul Hamid Published for CIDB Malaysia by

CIDB Publication Committee AMG Holdings International Sdn Bhd (356247-V)


Sariah Abdul Karib 10-3A, Jalan PJU 8/3
Damansara Perdana, 47820, Petaling Jaya

14 Cover Story Megat Kamil Azmi


Datuk Ir Elias Ismail Selangor Darul Ehsan, Malaysia
Benefitting from IBS Tel: 603-77294886
Fax: 603-77294887
Website: www.amginternational.net
Otherwise known as pre-fabrication, Publisher Editorial email: clientservice@amginternational.net
CIDB Malaysia
Industrialised Building Systems (IBS) Corporate Communication Unit
has been employed in some of Level 25, Menara Dato’ Onn Printed by:
Malaysia’s most iconic structures such Pusat Dagangan Dunia Putra
No 45, Jalan Tun Ismail Percetakan Skyline Sdn Bhd (135134_V)
as the Petronas Twin Towers and the 50480 Kuala Lumpur 35 & 37, Jalan 12/32B,
KL International Airport, and is an Jalan Kepong, 52100,
Tel: 03 4047 7000 Kuala Lumpur, Malaysia
important tool in boosting construction Fax: 034047 7020
productivity. Email: ukk@cidb.gov.my
FROM THE EDITORIAL BOARD

GLOBAL FRONTIERS
PRODUCTIVITY
BOOST
L
ike all other sectors, the construction has to be increased. Our cover feature showcases
industry is not immune to the overall one of the means to achieve that – Industrialised
downward pressures on the economy. Building Systems (IBS).
However, we are fortunate as focus on
infrastructure development in the 11th Malaysia The CIDB champions IBS through various
Plan means that the sector will continue initiatives. These include accrediting IBS courses,
to enjoy the strongest support from the hosting seminars to promote IBS, providing
government. support for training, and encouraging its use
in construction
As we highlight in projects.
this issue, there
are a considerable The effects of
number of IBS on labour
projects that have cost and usage
been allocated are significant.
funds under the It is estimated
2016 Budget. that using IBS
These include can reduce the
RM80 million for number of workers
the construction
of Integrated
Villages, the
required by half
and expenses by
14%. It also allows
MALAYSIA
RM28 billion construction firms The revised Budget 2016 allocates RM40 million for the rehabilitation of abandoned public housing projects like this one in Pekan Baru Subang, Selangor.
MRT2 and to wean themselves
RM9 billion off low-skilled
LRT3 projects,
among others.
The successful
workers and hire
more skilled ones
who in turn help
Act Penalises
completion of
these projects
will enhance
boost efficiency
and productivity. Abandoned Projects
socioeconomic IBS is just one of The Housing Development (Control & Licensing) Act, fine which shall not be less than RM250,000 but
standards the means to do 1966 (HDA) has received a fresh set of amendments not exceed RM500,000, or imprisonment for a
and boost the so, although a very aiming to address the issue of developers abandoning term not exceeding 3 years, or both.
economy. They Construction is an integral part of the 11th Malaysia Plan, and this has resulted in the sector important one. Aside
housing projects partway into development.
are also expected receiving a massive boost in the 2016 Budget. from that, the CIDB
A developer is said to have abandoned a project
to help boost the is also encouraging
Abandoned housing projects can bring both by refusing to carry out, delaying, suspending,
sector’s growth to more than 8% this year. the use of technology and automation in the
construction process. Now more than ever is the time to environmental and socioeconomic consequences or ceasing work continuously for a period of six
Even so, the slowdown means that construction step-up efforts to boost the performance of the sector including a depreciation of value in the area, and months or more or beyond the stipulated period
firms need to keep a closer eye on their and make it a world-class one as per the Construction the loss of investment by buyers, as well as the of completion as agreed under the sale and
bottomline. They need to do more with less. Industry Transformation Programme (CITP). visual impact of leaving derelict buildings and half purchase agreement.
More speed, more efficiency with less manpower, completed earthworks behind.
costs, and delays. In other words, productivity The Editorial Team Another change made to the HDA is an
The new amendments would penalise developers who imposition of a 3% refundable deposit to be a
abandon housing projects. Penalties would include a housing developer.

2 3
GLOBAL FRONTIERS

CHINA
UNITED ARAB EMIRATES Protesting the Hike
The levy for foreign workers in the industry cannot operate without
manufacturing and construction foreign workers. A case study by the
sectors has been doubled from Construction Industry Transformation
RM1,250 to RM2,500, increasing their Programme (CITP) identified
cost of hiring as part of a deliberate that locals often have negative
policy to reduce over-reliance on low- perceptions of the construction
skilled foreign labour. industry as challenging to work in,
making them reluctant to take up
Deputy Prime Minister Datuk Seri Dr jobs in construction.
Ahmad Zahid Hamidi said that the
increase in the foreign worker’s levy He also cautioned that small
(starting February 2016), should be contractors were the ones most likely
seen as a positive move to reduce to suffer from the new levy, which
dependence on migrant labour. would drive their profitability down,
and eventually close them down. Shanghai
Tower
This will significantly impact the
domestic construction industry, which Speaking separately, MBAM deputy
has a labour composition comprising president Foo Chek Lee criticized the
25% registered foreign workers,
compared to an average of 13% in all
levy hike as being untimely, especially
with the Goods and Services Tax (GST) Breaks
Records
other sectors. and current economic conditions.
He projected the new levy would
Master Builders Association Malaysia mean an increase in house prices, as
(MBAM) vice president Tan Sri AK developers will be forced to pass on The 632 metre tall Shanghai Tower
Nathan said the government should the additional labour costs incurred to is finally complete after six years of
Despite rising construction costs, Doha is still a relatively stable location for developers.
understand that the construction the end users or buyers. construction, making it the second tallest
building in the world behind the Burj
Khalifa. Shanghai’s first ‘megatall’ tower

Expanding the MALAYSIA features 400,000 square metres of floor


space and 121 floors.

Qatari Oasis Architect Marshall Straballa who worked


on the original design described the
Sheikh Tamin bin Hamad Al tower as “the greenest super high-rise
Doha has been named the most Thani, who announced that Thani is the eight and current building on Earth”. The spiralling form
expensive city in the Middle East the government would contain Emir of the state of Qatar
of the structure provides up to 22% in
for construction costs, and 12th inflation “by all available means energy savings compared to a rectangular
worldwide in the new annual and ways.” ports, as well as hospitality skyscraper of the same height, while the
ranking published by global design and social infrastructure, with double-skin glass façade helps insulate the
and consultancy firm Arcadis. Qatar continues to be an attractive further investments in transport building and reduce energy use. A ‘sky
investment destination, benefitting infrastructure, water and electricity garden’ concept will also be introduced,
A rapidly growing population and from access to inexpensive labour by 2020. However, falling oil planting 10 acres of greenery complete
preparations for the 2022 FIFA and energy. prices and a forecasted budget with trees, parks, and pathways.
World Cup has driven up inflation deficit means that the government
and construction costs. Addressing Over the next ten years, US$150 is set to cut spending to US$22.2 The Shanghai Tower also comes equipped
this has been a top priority for billion is expected to be spent billion in 2016, compared to with the world’s fastest elevator, reaching
Sheikh Tamin bin Hamad Al on roads, railways, stadiums and US$30 billion last year. 25% of Malaysia’s entire construction labour force comprises foreign workers. top speeds of 40 miles per hour.

4 5
ABM COLUMN

Platform for Growth


“It is an initiative to
expose the community to
the construction industry
CREATING OPPORTUNITIES FOR SUCCESS and for them to acquire
a valid license. Many in

A
kademi Binaan Malaysia (Malaysian Construction Academy-ABM) the sector do not own a
was established in 1997 as the Construction Industry Development valid license.”
Board’s (CIDB) training and accreditation arm. The institution aims
to become a leader in the training of workers in the domestic – Mohd Ridduwan Ahmad,
Professional Crane Operator
construction industry. Through the ABM’s youth programme, it ABM strongly
believes in a
strives to equip youths with skills in various fields in the construction industry practical, hands-
on approach in
and guide them towards successful careers. all their training Mohd Ridduwan Ahmad was invited to is in ABM’s best interest to assist the local
programmes. join the academy’s crane operator course youth gain skills that are much sought after
while working as a paddy farmer. While in today’s world,” said Ridduwan.
he was uninterested in joining the course
at first, the trainer who invited him was Ridduwan also noted that this was an
able to convince him of a better future initiative to provide young people in
by aiming to be a skilled personnel in communities around the country with
the specific field of crane operation. He exposure to the construction industry and
and a few of his friends enrolled into the for them to acquire valid industry licenses.
academy soon after, aiming to provide “Many of those in the sector do not own
a better future for themselves and their a valid license,” he explained. Unlicensed
families while helping to enhance the workers who have not undergone proper
country’s construction industry. training are a constant challenge for the
construction industry, being more prone
A Northern Region ABM alumnus and to making mistakes on-site, which can be
31 years old, Ridduwan earns a lucrative especially dangerous as crane operators. By
monthly income of RM12,000 at his providing adequate training and certification,
current job as a professional 300-tonne ABM is able to reduce the number of these
crane operator, which he was offered unwanted incidents.
after graduating from ABM. By providing
promising career opportunities for Practical Training
prospective construction workers, ABM
encourages greater domestic participation, As at December 2015, ABM has produced
reducing dependency on foreign labour. “It a total of 279,453 highly skilled technical

CONTINUING PROFESSIONAL DEVELOPMENT (CPD)


CONSTRUCTION CERTIFICATION PROGRAM (CCP)
SEMINAR PROGRAM

*
TECHNICAL SERVICES
03-4042 8880
* points awarded are varied for each course

6 7
ABM COLUMN

MOBILE CRANE workers—94,272 of whom are from


the youth training programme—in the
OPERATION COURSE construction field since it was established,
offering more than 60 training courses
specifically related to the building and
Qualification & Recognition
Upon successful completion of this course, participants will be issued
construction industry. Coordinator of the
a Certificate of Competency recognised by CIDB and are eligible to register as Northern Region ABM, Mohd Norlizam Md
a Skilled Worker with CIDB. Ariff, said that the academy offers a youth
course for Mobile Crane Operation that
Course Contents is open to those between the ages of 21
Introduction to Cranes and 35. The course is conducted over two
Lifting Appliance
months, and accepts up to 20 trainees per
Signals and Communication
session. There is also a separate Personnel
Pre- and Post-operation Checks
Programme for individuals between 21
Slinging Method
Load Chart and 55 years old, which has an additional
Calculation of Mass prerequisite of six months’ minimum
Legislative Requirements of Crane Operation experience in a related field.
General Safety
All skills training courses focus on hands-
Assessment on experience, with 40% theory and 60%
At the end of the course the participants are assessed
emphasis on practical application. After
on their skill and knowledge
completing the ABM courses, trainees are
Application Pre-requisites given Skill Efficiency Certificates that are
Malaysian citizen officially recognised by CIDB and means
Physically fit that the trainees are eligible to register
Literate as a Skilled Workers, which significantly
Completed Standard 6/Form 3 increases their employment opportunities.
Aged 21–35 years old for Youth Programme They are then required to register with the
Aged 21–55 years old for Personnel Programme
Department of Occupational Safety and
Possesses a valid Green Card and 6 months minimum experience
Health (DOSH) to receive valid licenses as
in a related field for the Personnel Programme
accredited crane operators.
Minimum completion of Sijil Pelajaran Malaysia (SPM)
Possesses at least an ‘L’ class driving license

Duration ABM provides construction


Personnel Programme: 5 days | Youth Programme: 2 months
skills training to prospective
personnel in the construction
ABM Personnel Programme Youth Programme industry to produce
ABM Northern Region experienced and competent
ABM Central Region skilled manpower in Malaysia.
ABM Southern Region It aspires to support the
ABM Eastern Region county’s construction
ABM Sabah industry’s manpower needs
ABM Sarawak
through the creation of highly
The availability of programmes offered by ABM at their facilities around Malaysia. skilled workers while creating
many more success stories
like Ridduwan’s.

8
EVENTS

and the construction of the Sri Aman


Hospital and the airports in Mukah
and Lawas,” said Dato’ Sri Haji
Fadillah Bin Haji Yusof in his speech.

In October 2015, 80 organisations—


comprising 56 stakeholders from
Melaka and 24 industry captains
from Kuala Lumpur—pledged their
commitment to the CITP. CITP sponsors
from within the Construction Industry
Development Board (CIDB) Malaysia
and other agencies under the Ministry
of Works also signed pledges of
commitment to the CITP last year.

“The Sarawak government fully


supports the CITP and will work
30 Sarawak industry leaders in the process of signing pledges of commitment to the CITP. with CIDB to make every effort to
increase the state’s involvement in
the construction industry, in line with

A Commitment
the goals outlined in the plan,” said
Dato’ Sri Haji Fadillah.

to Excellence
The signing was also attended by Dato’
Sri Zohari Haji Akob, Secretary General
of the Ministry of Works; Sr Sariah
Abdul Karib, Acting Chief Executive
of CIDB Malaysia; Mohd Nazli Ahmad

SARAWAK INDUSTRY LEADERS Mahyadin, General Manager of the


Personnel & Contractor Sector, CIDB
PLEDGE COMMITMENT TO CITP The cooperation of agencies and players brings the CITP a step closer to realizing its objective of
Malaysia; Dato’ Sri Profesor Ir Dr Judin
transforming and improving the Malaysia construction industry.

T
Bin Karim, Chairman of ABM; and
Sr Abdul Latif Hitam, Chief Executive
he Construction Industry Transformation Programme (CITP)— The CITP was launched by Prime realisation of the CITP, listing specific Officer of CIDB Holdings.
Malaysia’s national plan to transform the construction industry— Minister Datuk Seri Najib Tun Razak in initiatives that the organisation
received another boost on the 29th of February 2016 when late 2015 and comprises four thrusts: pledges to undertake under the four Dato’ Sri Haji Fadillah expressed his
30 Sarawak industry leaders signed pledges of commitment to Quality, Safety and Professionalism; thrusts of the CITP. hope that the pledge would serve as
the initiative. The pledge signing, which was held at the Ranyai Environmental Sustainability; an example and motivation to agencies
Productivity; and Internationalisation. “Among the development projects and players in the construction
Ballroom at the Waterfront Hotel in Kuching, was attended by a number
18 initiatives are spread across these identified by the 11th Malaysian industry that the CITP’s objectives
of construction industry players and stakeholders including Dato’ Sri Haji four thrusts, each of which addresses Plan (11MP) for the state of Sarawak and targets cannot be achieved
Fadillah Bin Haji Yusof, Minister of Works Malaysia. specific challenges in the construction are the Pan Borneo Highway, the without cooperation between industry
industry. Each organisation’s pledge Sarawak Renewable Energy Corridor, players and relevant agencies in the
outlines its commitment to the the upgrade to the Miri Hospital, construction industry.

10 11
EVENTS

Professionals “ABM works closely with more than


50 partners in the construction
of the Future agency to provide training relevant
to the needs of the industry.”
A HUNDRED ABM TRAINEES CELEBRATED

O
- Dato’ Sri Haji Fadillah Bin Haji Yusof, jobs that will be created by the 11th
n the 29th of February 2016, a graduation ceremony to Minister of Works Malaysia Malaysia Plan (11MP) will require
congratulate and welcome recent alumnus of the Sarawak Region relevant technical and vocational
Akademi Binaan Malaysia (Malaysian Construction Academy - education and training (TVET)
ABM)—the Construction Industry Development Board’s (CIDB) To date, ABM has provided training and accreditation to 250,000
qualifications.
premier training and accreditation institution—to the industry youths and workers in the construction industry
The construction industry is one
was held at the Ranyai Ballroom at the Waterfront Hotel in Kuching.
of the key drivers of the Malaysian
economy. Between 2011 and 2014,
the construction sector grew at
a rate of 8% annually, or RM0.5
trillion in terms of value generated.

Construction also makes up about


15% of the country’s manufacturing
output, accounting for 9.5% of the
workforce with a total of 1.2 million
registered workers. According to
official statistics, 75% of these
workers are Malaysians, including
professionals such as engineers,
architects and surveyors.

ABM Sarawak Region’s Chief


Operating Officer, Abdul Rahman
Ahmad, said that “the country’s
infrastructure sector is booming
which will in turn push for
greater demand for skilled labour.
However, we should not ignore
the fact that less attractive pay and
According to CIDB Chairman, Tan Sri Dr Ahmad Tajuddin (left), the CITP encapsulates the national benefits offered also leads to loss
collaborative efforts required for the continued growth and success of the Malaysian construction industry. of skilled workers.”

ABM Sarawak is one of the six


At the ceremony, some 100 Abedi, Law Hui Yew, Rahmat Sidek, ABM centres in Malaysia that
graduates received their certificates Nicholas Munyau, Mohd Nor Azizie offers vocational and management
from ABM. Minister of Works Musa, Freymio Olando Edmund Dato’ Sri Haji training. The campus covers a 60-
Fadillah awarded
Malaysia, Dato’ Sri Haji Fadillah Bin James and Sylvester Juing. acre area with a trainee capacity
seven ABM trainers
Haji Yusof also handed out awards for their excellent of 1,000. Other ABM centres are
to seven trainers for excellent According to Dato’ Sri Haji Fadillah, service to the located in Sabah, Johor, Kuala
service; namely Mohd Amirul Farid many as 60% of the 1.5 million academy Lumpur, Terengganu and Kedah.

12 13
COVER STORY

Benefitting
from IBS
INDUSTRIALISED BUILDING
Manufacturing building components
off-site to be transported to a project
is nothing new. Freshly felled timber
has been cut to size for easier
transportation for centuries. We know
and standardised, reducing defects.
In projects with a high degree of
repeatability, cost benefits appear
as high-quality components can be
replicated numerous times, reducing

SYSTEMS (IBS) MEANS HIGHER that the ‘bluestones’ for England’s


Stonehenge were shaped in the
the price per unit.

QUALITY, FASTER JOBS, AND quarries of South Wales before being A Proven Track Record
INCREASED PROFITABILITY dragged 160 miles to their current site
(though given that 4,000 years ago the IBS solutions for contractors have

I
ancient Britons had yet to invent the been used in Malaysia for almost
wheel, we can only marvel at how they half a century. In the 1960s, at
ndustrialised Building Systems managed it). the start of Malaysia’s population
(IBS), also known as pre- boom, parliament sent government
fabrication, involves the The difference between the masons ministers, architects and engineers
manufacture of components of Neolithic Europe and the builders to Europe to study pre-fabricated
of today is the wealth of materials, building processes. Modern ‘pre-fab’
off-site ready for installation. manufacturing processes and had begun in Europe as a reaction to
The benefits of IBS in construction transportation options available to us. the destruction of World War 2 and
has been well-documented, but We also have far greater demand for the massive numbers of displaced
fast, cheap construction than at any persons who were in desperate need
despite high-profile projects such time in history. of housing. With the first and second
as the Petronas Twin Towers and Malaysia Plans providing the legislative
Putrajaya, both of which include Industrialised Building System (IBS) is impetus, early projects planned for
pre-fabricated components, uptake a home-grown term to describe the Malaysia were largely for affordable
use of automation, mechanisation housing with a focus on function over
of IBS solutions in the Malaysian and prefabrication of components form. They also featured a high degree
construction industry has been for the building industry in Malaysia. of repetition in their design, making
slower than expected. Heights looks IBS components are manufactured the methods learned in Europe ideal
off-site, and require little additional for the purpose. By the late sixties the
at how IBS can save time and money
site work once installed. This first apartment blocks using pre-cast
for contractors, and examines why means faster completion times, walls had been built in Kuala Lumpur’s
some are reluctant to adopt this greater productivity, less waste, city centre, with a casting plant a few
efficient building method. fewer accidents and lower overall kilometres away in Jalan Damansara.
construction costs for the industry.
Unfortunately, while early attempts
Because components are custom- fulfilled their primary purpose of
built to exact requirements in a reducing the housing shortage, the
controlled, factory environment, imported materials and methods
quality can be closely monitored used were sometimes found to be

14 15
COVER STORY

inappropriate for Malaysia’s climate. “Not only can IBS shorten the of CO2 national governments have
pledged to eliminate. In order to get
As issues including roof leaks and
gaps in walls came to light, IBS fell construction period, but also cut anywhere near meeting these targets,
governments will have to introduce
out of favour with both the public
and the industry. costs on building materials and legislation reining in the largest
polluters. The search for greener

By the 1990s however, new manpower, especially during this materials in construction will become
a regulatory (and therefore financial)
approaches to IBS played an important
role in Southeast Asia’s building period of labour shortage.” issue for contractors, rather than a
purely environmental one.
boom. Kuala Lumpur’s Sentral
station, the LRT system, and KL’s – Dato’ Ir Ahmad ‘Asri bin Abdul Hamid, Malaysian IBS suppliers have
new international airport all used CEO of CIDB Malaysia demonstrated increasing innovation,
prefabricated components in their and private companies, sometimes in
construction. Very large projects conjunction with foreign players, have
including Putrajaya and Cyberjaya, successfully created a local knowledge
were heavily reliant on IBS. IBS steel base for the industry. Construction
beams and floor decking were used companies themselves have also driven
in the construction of the Petronas The cost savings of IBS are also investment and innovation in IBS by
Twin Towers. The fact that at the well-documented. Pre-casting off- creating their own in-house teams for
time of its opening it was the world’s site means faster installation and the purpose of increasing suitability of
tallest building offered a further boost reduced labour costs. Down-time IBS to their own projects.
to IBS’s reputation among property due to adverse weather conditions is
development companies. reduced as workers spend less time Recent developments in 3D printing
exposed to the elements on-site. A also allow for precise customisation
Since the turn of the century, IBS has controlled factory environment also of components. In recent years 3D
been used in private residences and reduces waste, lowering material costs, printing has gone through two key
in the construction of much smaller and allows for far closer monitoring transformations which make it ideal
projects, but its main use has still been of energy usage. Taken together, for the construction industry. Firstly,
in the building of projects with a high particularly if building in large volume, it has become cheaper. Home 3D
degree of repeatability in components the financial savings can be significant. printers can be bought for US$500
such as student accommodation, meaning individual, custom-made
schools, public housing and hotels. One driver for IBS in recent years components from bathroom fittings to
has been the call for more green ornate bannisters can be manufactured
Promoting Quality building materials. Following the Paris directly from downloadable Computer-
climate talks last year, contractors aided Drawing (CAD) files. Secondly,
Some of Malaysia’s
Dato’ Ir Ahmad Asri bin Abdul Hamid, most iconic will be keeping a close eye on for the construction industry, 3D
CEO of CIDB Malaysia, is a keen structures such as parliamentary bills which call for printers have become far, far larger.
advocate of the time which can be the Petronas Twin more environmentally responsible Printers with a ‘build volume’ of 1
Towers (above), the
saved by employing IBS techniques. LRT system (right) building methods and materials. The cubic metre are common, allowing
“The advantage of IBS is that projects and the KL Tower manufacture of cement is one of for ‘printed’ coffee-tables and other
are faster,” he says. “You have faster (far right) were the largest emitters of CO2. Kilns are furniture. At the extreme end of the
constructed using
delivery, and the quality is much better IBS technology.
heated to 1500 degrees centigrade. build volume wars, companies are
because you are making components Limestone releases CO2 as a by- currently engaged in is China’s Winsun
in a controlled environment so the product, and coal is used to heat the printer with a build volume of 2,466
quality is much easier to monitor. kilns. By 2050, cement production cubic metres. In 2014 it was used to
Productivity also goes up. A project will be responsible for emitting 5 ‘print’ a five-story apartment block and
that normally takes a year can take billion tonnes of CO2 a year. This a 1,100 square metre villa in Jiangsu
only 6 months using IBS.” is many multiples of the amount Province. The villa’s components

16 17
COVER STORY

The long-term cost benefits of IBS modelling and IBS. Universities also
are clear, but the initial outlay on have an important role to play. 5 IBS Groups
equipment and training deters some Student architects and engineers need (Structural
developers. High interest rates and to be introduced to the potential of
low profit margins mean developers IBS before they join the job market.
Classifications):
keep a close eye on every penny. The With around 400,000 foreign workers
construction industry is in good health in the Malaysian construction industry,
currently, growing at 10.3% in 2015, the government is keen to encourage
and with foreign labour is so cheap, greater use of IBS with skilled
investing in retraining your workforce Malaysian workers using superior
or buying large-scale 3D printing technology. Pre-cast Concrete Framing,
equipment may seem extravagant, Panel and Box Systems
despite reduced labour costs and The general public has yet to make Pre-cast columns, beams, slabs,
other future savings. up its mind on IBS. When IBS is 3-D components (balconies,
described as ‘pre-fabricated’, the staircases, toilets, lift chambers),
Following the success of government stigma of the post-war European permanent concrete formwork
initiatives in the past, further experience leads some to think
drivers can again aid the industry. that components are more likely
Standardised training programmes to leak or – for those with an eye
will create a skilled, local workforce, to property as an investment –
3D printing is the latest technology utilised in IBS. Andrey Rudenko of Minnesota in the United States for instance has managed
to build a castle measuring 15 square metres using this technology and aims to ‘print’ a full-live-scale home in the near future. and investment in automation (and that they cannot be renovated
even robotics), will reduce the need as easily as conventionally built Steel Formwork Systems
for foreign labour. The Construction houses. With IBS so ubiquitous in Tunnel forms, beams and columns
moulding forms, permanent steel
were printed in Winsun’s factory, and Industry Transformation Programme construction however, most private
formworks (metal decks)
assembled for a fraction of the cost aims at increasing productivity customers will be unaware how a
– by a handful of workers – in just through building information project was completed.
three hours. Governments around the
world have been placing orders with
large-scale 3D printing companies for
housing projects involving multiples Steel Framing Systems
in the thousands. Steel beams and columns, portal
framesand roof trusses
Analysing Cost Benefits
Although increasing use of IBS is
seen in projects across Malaysia, and
despite the proven benefits of the
3D printing has grown from creating
technology, uptake within the industry tiny, detailed models to an entire Prefabricated Timber
has been slower than the government 1,100 m2 3D printed villa. Framing Systems
had hoped. As with any new Timber frames and roof trusses
technology, IBS will only supersede
conventional building techniques if it
is better, or cheaper. with cheap labour, further investment
in equipment and training will often
The principal reason why many be seen as reinventing the wheel.
developers have been unwilling Making IBS cost-effective also requires Block Work Systems
to invest in IBS is because of the a buoyant housing market driving Interlocking concrete masonry
abundance of cheap foreign labour mass-production of components. In units (CMU), lightweight
in Malaysia. When conventional the current climate, unit prices may concrete blocks
methods of building can be done put off some contractors.

18 19
COVER STORY

IBS Score Formula

s The IBS Content Scoring System is based on a


formula which determines the IBS content of a
building project. Fortunately for the builder, a simple
form can be filled out to achieve the same results.

Incentivising Change 2006, giving users the right to claim IBS in Malaysia. These include
expenses against steel moulds used promoting modularisation and
The Malaysian government has in precast concrete components. standardisation in building processes.
been keen to promote IBS. In Computerisation and robotics are
1999 the first IBS Strategic Plan The 70% directive was based on going to play increasingly important
was announced, followed by two the IBS Scoring System, and an roles in construction. Education and
‘roadmaps’ intended to boost Implementation and Coordination training for Malaysian workers is
the use of IBS by 2015. A key Unit was established to monitor also a priority as the new technology
aspect of these initiatives has compliance. By 2010, projects gains ground.
been to introduce quality control, totalling almost RM10 billion had
R&D and training programmes to been completed using IBS. As a Developers have long been aware of
increase uptake. result, the cost of IBS has fallen the benefits of using IBS components
considerably. In some cases, even in their projects, but with labour
As with any new technology, before factoring in reduced labour costs showing no sign of changing,
price was going to be a key costs, it can be cheaper than using more needs to be done to facilitate
factor in the appeal of IBS for conventional methods. adoption of IBS’ cost-effective building
Malaysian companies. In 2008 the methods, and the government
government mandated that 70% CIDB has a number of measures needs to lead the charge by further
of materials in any state-funded in place to increase adoption of incentivizing contractors.
construction project had to be
IBS (up from 30% in 2004). The
proposal was designed to bring
down costs, and by extension,
The population of Malaysia reached 30 million in 2015,
encourage use in the private sector. and it is projected to grow by a further 2 million every five
years. Despite falling birth rates, the construction industry
Tax incentives were also offered
has busy times ahead. Industrialised Building Systems could
to companies which used IBS in
projects. Acceleration Capital help contractors increase profits, and can provide skilled
Allowance (ACA) was announced in work for the next generation of engineers.

20
FEATURE

IBS will help increase

Upskilling the productivity in construction


by 2.5 times to US$16,500

Industry
per worker

the restructuring of human


resource in an organization in
terms of training and education.
As such, more intensive training
programmes are needed in the
specialised IBS skills like system
integrating or assembling.”

Another reason why the government Another report The Adoption of


is encouraging the use of IBS is Industrialised Building System
because it will help reduce the (IBS) Construction in Malaysia:
number of foreign labourers in The History, Policies, Experiences
the construction sector. Presently, and Lesson Learned calls on the
they make up around 90% of the construction workforce to enhance
construction workforce; a large their skills in IBS. This, it says, will
majority of them unskilled. The result in “a more skilled workforce
government hopes to cap foreign which would ultimately enhance
labour dependency at 15% by 2020, the competitive advantage of the
and IBS will help the construction industry.” The report also identifies
sector achieve this. design, installation and project
management as three areas
However, IBS take-up is still low, crucial to IBS.
with an estimated 42% of public
projects and 70% of private projects CIDB Takes the Lead
using it. One of the main reasons is
CREATING COMPETENCY IN the lack of skills and knowledge of The CIDB is taking the lead in
the discipline. This was highlighted enhancing knowledge of IBS in the
INDUSTRIALISED BUILDING SYSTEMS in Barriers to Implementation of construction industry, in line with

T
the Industrialised Building System its mandate to regulate the industry
IBS is estimated to reduce construction (IBS) in Malaysia, published in The and achieve the aims of the CITP. In
he Malaysian government through the Construction
time by as much as 50%. As one of Built & Human Environment Review, June 2015, CIDB announced plans
Industry Development Board (CIDB) is championing the goals of the Construction Industry Volume 4, 2011. to increase training in IBS through
Industrialised Building Systems (IBS). Better known outside Transformation Programme (CITP) offering discounts and levies to
Malaysia as prefabrication, IBS enables construction firms is to enhance productivity, IBS has The article stated, “The skill level those taking such courses.
been identified as a key tool. This of IBS workers is more demanding
to manufacture building components in a controlled includes combining IBS with other compared to the conventional The CIDB is also working with
environment and then assemble it on site. This results in better methodologies, in particular Building construction methods…. This universities to reach out to students
quality and faster completion. Information Modelling. leads to a transformation requiring in architecture and building courses,

22 23
FEATURE

“Construction companies can reduce


and teach them about IBS. This
is part of the IBS Roadmap which
the number of workers by up to 50% and
identified several initiatives to also save 14% in labour costs through
increase IBS knowledge.
using IBS in their projects.”
These include implementing
certification programmes for IBS, – Ir Noraini Bahri, General Manager of the IBS
working with professional bodies & Mechanisation Division, CIDB
such as the Board of Engineers
Malaysia (BEM) and the Board of
Architects Malaysia (PAM) to conduct
professional development courses.

According to General Manager of Encouraging Take-up Certified IBS consultants are also listed
the CIDB IBS Centre in the IBS portal, an online one-stop
Ir Noraini Bahri in a December To ensure that there are sufficient directory of IBS experts so they can be
2015 press statement, the A small house made with prefabricated walls is one of the exhibits at CIDB’s IBS Component Gallery. qualified IBS trainers, CIDB has easily found when needed for both
This as well as other exhibits are used to train IBS students. embarked on programmes such as the public and private sector projects.
organisation is working with
professional organisations such Train the Trainer initiative. According In addition, these IBS experts are
as PAM to conduct training in the to Ir Noraini, CIDB plans to have 250 also invited to participate in various
management of IBS projects, how trained IBS professionals, particularly seminars and roadshows about IBS
to calculate the IBS score, and other designers, architects and quantity conducted by the CIDB.
MODULES surveyors. To do so, it will collaborate
aspects of the discipline. The IBS Roadmap set the strategy for
Part of the IBS Centre,
1 IBS Project Management with other government agencies as the adoption of the discipline in the
the IBS Component Gallery
Speaking to Heights, Ir Noraini also well as professional bodies. Malaysian construction sector.
showcases various IBS
revealed that CIDB has created an 2 Modular Coordination System components available in
Malaysia and is divided
accredited training centre for IBS 3 IBS Score Manual Calculation into six zones – Blockwork
(PLB IBS) to conduct IBS Professional
3a Smart IBS Calculator (IBS Score Apps)
system, Steel-framing
syatem, Precast concrete
IBS in Malaysia seems to be a chicken
Training. Attendees are given
grounding in all aspects of IBR from
system, Formwork system, and egg situation. On one hand, the lack
Design Concept on Timber framing system
design concept to score calculation to 4
Precast Concrete System and other prefabricated of skilled workers may be hindering the
project management.
5 IBS Project Management
construction components. take-up of IBS among construction firms.
There are three types of IBS-related
On the other hand, if there is no take-up,
training programmes – for consultants, then fewer people will want to gain skills
installers and contractors. Those who The Installer Training Programme is borne by the CIDB. However, foreign in IBS. However, construction professionals
enrol in the first course are mostly more geared towards skilled manual workers need to pay a fee. and workers should bear in mind that IBS
architects, civil engineers, quantity workers. It certifies their competency
surveyors and other construction-related in installing IBS components as well as Last but not least, contractors
knowledge is a long-term investment.
engineering professionals. They have to supervising such work. These include undergo courses on general The construction industry is changing,
sit through six modules on the subject precast concrete, lightweight panels, management of IBS systems, which and by adopting new technologies and
including learning how to analyse and lightweight block walls, and roof enhances their knowledge of precast
design precast structures, modular
methodologies such as IBS, professionals
trusses. The last is divided into timber concrete, steel framework systems,
coordination, and plan IBS projects. and lightweight steel. Incidentally, the formwork systems, block systems and companies will be able to meet the
The modules are as follows: cost of training for local attendees is and timber frame systems. demands of the future.

24 25
PRIME MOVERS

Datuk Buhtamam What Are Some higher wages? First, we need to have

Mahmun
“Industrialised Building Measures To Enhance skilled workers. Under the Technical
System is a KPI of the Productivity In The
Vocational Education training (TVET),
there is an increased focus on enhancing
Malaysian government Malaysian Construction training. In advanced countries such as

PRIME MOVER IN PRODUCTIVITY ENHANCEMENT because they understand Industry? the UK and Germany, the emphasis is on

FOR THE CONSTRUCTION SECTOR that the technique can TVET and providing people with industry-
There is a lot of debate on how to relevant and real-world skills rather than
help build faster with

T
increase productivity. One of the only degrees. The recent announcement
he construction industry plays a crucial role in the growth less waste, a cleaner solutions that the government is by the government to bring in 1.5
of the Malaysian economy, attracting foreign investment environment, and considering is creating more skilled million Bangladeshi workers drew a lot

and contributing to the national GDP. However, Datuk increased safety and workers. This is extremely important and
also involves enhancing the design of
of criticism from Malaysians asking why
we need more foreign workers when we
Buhtamam Mahmun—Director of hospital support productivity.” the construction system because even already have a surplus of them.
services company Sedafiat, and Board Member of the with highly-skilled workers, there will be
no increase in productivity if the right The problem is that the 3D (dangerous,
Malaysian Productivity Corporation and the Construction Industry system design is not in place. difficult and dirty) occupations demand
Development Board (CIDB)—explains to Heights that there is more local participation. Prior to the
plenty of room for growth and enhancing productivity in the The Demand for government announcing the 1.5 million
industry by adopting a number of crucial measures. Skilled Workers foreign workers, the construction
industry had stated that it needed
The rule of thumb in the Malaysian 450,000 workers urgently. These foreign
These measures will also be instrumental in meeting the industry’s construction industry is that the financial workers can help fill these positions.
goals indicated in the Construction Industry Transformation allocation for any project is 55% - 60%
spent on raw materials, 15% - 20% Up to 95% of the workers on almost
Programme (CITP), particularly as one of the four strategic on labour and manpower, and 20% on all construction sites in the country are
thrusts of the initiative is enhancing productivity in the gross profit. Comparing this to advanced foreigners because they are willing to
sector. The other thrusts outlined in the countries such as Australia where project take the 3D occupations and because
CITP—which goes into operation this financial allocations are 40% for raw they are affordable. Then again, you
materials, 45% - 55% to labour, and 5% don’t have trained, skilled workers. If
year with a 2020 deadline—are - 10% on gross profit. Malaysia can create more skilled local
Quality, Safety and Professionalism; workers and the industry can pay them
Environmental Sustainability; and This means that developers and higher, then we will be able to break our
contractors in the country spend reliance on foreign workers.
Internationalisation. more on labour than on raw
materials; the workers are System Design
highly-paid. Skilled labour in
the industry—from plumbers, In advanced countries like Australia, the
scaffolding people—are the second UK and neighbouring Singapore, the
highest income earners in the price difference between the traditional
country second to academicians. and the present methods of construction
This positions the industry is a are non-existent because orthodox
lucrative one that can attract highly- construction methods have not been used
skilled workers from around the world. in the last 30 years. They currently have
only one method of construction, which
How are you going to make the is Industrialised Building System (IBS).
construction industry in Malaysia pay Fewer skilled workers are required while

26 27
PRIME MOVERS

reducing the number unskilled workers, to understand and agree that the new Ministry of Works that private and was rebuilt by a contractor in about
which will in turn attract more Malaysians construction technique is the fastest government projects above RM50 9-10 weeks using IBS, compared with
because they can be paid higher. way to achieve increased productivity. million and RM10 million respectively conventional that will take months.
will require the use of IBS.
Construction sites are also going to Even developed countries take a I believe that if we go ahead with the
be cleaner and safer because all the while before they can get other We can also start from low cost new method of construction and design,
building components will be produced construction systems, such as Building housing, such as the under the the government initiative to have the
elsewhere and moved to the site (no Information Modelling, to fit into IBS. Ministry of Housing’s 1Malaysia one million low cost houses available
need for in-situ works such as plastering, Another issue is creating standardised People’s Housing (PR1MA), People’s will be achieved faster. We can create While adoption is slow, the Malaysian construction industry has already recognised the benefits
bar-bending and scaffolding). When specifications for building components. Housing Project (PPR) and the Housing more dedicated TVET training centres of IBS, and developers and contractors have implemented a number of projects using IBS, such
such measures have been mastered, For example, can a developer just walk Development Program for the Hardcore such as CIDB’s Akademi Binaan Malaysia as the Putrajaya Bridge (pictured), Petronas Twin Towers and KL Sentral.
Malaysian developers can start exporting into a hardware store, see a door that Poor (PPRT). All the components can be (Malaysian Construction Academy –
their services globally because we will be they want and go fit it in their project? IBS-created. The critical components in ABM) specifically for the construction of IBS, a new system, and the training of building materials and safety. We are also
on par with international standards. This Moving forward with IBS requires that buildings are walls, slabs, beams and buildings using IBS. We have to adopt workers remains conventional, then IBS focusing on enhancing environmental
helps achieve the four major thrusts of we do so progressive phases with the roof, with the remaining parts just a new way of construction, as it is one implementation will not be achieved. sustainability.
the CITP and goes to show that the goals an understanding of the targets for being fixtures inside. For instance, in of the crucial measures to increase To transform the industry, the way
of the transformation programme can adopting IBS. For instance, we can the low-cost income housing, what the productivity and ensure the advancement things are done currently have to be When we have achieved safety, quality,
be achieved if we improve our human start with schools, two storeys and developer may need is 10 panels which of the industry while reducing changed and IBS is one answer for the professionalism, productivity and good
resource and enhance the system of then we can go higher, 10 and then they can create off site and assemble dependence on foreign workers. construction industry. environmental practice, then we can
construction methods. 15-storey building school building. on site like LEGOs. An example of concentrate on selling our construction
And to qualify the building for IBS, how useful modular IBS is the Sekolah Effectively implementing IBS in the What Initiatives Have industry services on an international level,
What are some the developer needs to have a 70% Kebangsaan Bawang in Bawang, construction industry also requires a
Been Implemented? to China, Arab countries, Australia, because
components produced using IBS, such Tuaran, Sabah that got burnt down. strong belief in the technique. The we would have reached global standards.
Challenges To as the recent announcement by the The school’s ten classroom building reason being that if we simply believe in We are already enhancing TVET This is what the CITP—that begins this
Adopting IBS and courses, designed in a way that will year until 2020—is about; enhancing the
Overcoming Them increase and improve the capability construction industry and strengthening it
of human resources in the country by for the future. To achieve this however, we
There is a lot of rejection in pushing
strengthening training. As part of the collectively have to put in our best efforts.
IBS for various reasons, one of which Industrialised Building
System (IBS) involves CITP, CIDB is reviewing the syllabus for It is important to note that CITP is not
is the impact on the supply chain. For
creating the components ABM courses so that they are focused just about transforming the construction
instance, from purchasing 10 bags
of the project (such as on new methods of construction. Other industry, as it can also help provide
of cement daily, IBS can reduce the the walls and floors)
initiatives are through policies, such affordable, quality housing built faster
number to about five per day. Of offsite and assembling
them onsite to form a as the recent Act 520 (Amendment and cheaper, and solve accommodation
course the supply chain will not be
finished construction. 2011) that focuses on the quality of problems faced by the people.
happy. Another challenge is human
nature and change; being comfortable
with what we already know and Increasing productivity in the construction industry
understand, and rejecting new ideas.
requires a change to the existing methods of
While the workers in the construction construction as well as the skill set to manage new
industry need to have the right construction systems and trends, as emphasised by Datuk
skill and enhanced TVET training, Buhtamam. One such technique is IBS which is already
the professionals also have to
update their expertise, from the
being promoted in the country, with the Malaysian
conventional methods to new government’s 2016 Budget pledging RM500 million in
construction techniques. Advancing soft loans to developers and contractors who adopt the
the construction requires that the
construction method. The increased productivity will
skilled and unskilled workers, and the
professionals have to move forward in translate to safer project sites, less wastage and reliance
tandem All the parties involved have on foreign labour, and increased profitability.

28 29
CAREERS IN CONSTRUCTION

SO YOU
WANT TO BE AN...
IBS ENGINEER

I
n our bid to encourage more interest in the construction sector among
students, Heightsshowcases professionals in various fields related to the
construction sector – from architects to engineers, from project managers
to site inspectors. Taking readers behind the scenes to find out more about
what working in the construction and other related fields, we speak with
Ahmad Azhar Abdul Wahab of IHS Precast, Senior Operation Manager at
IHS Precast about being an IBS Engineer.
After the panels have been manufactured at the factory, they are transported to the project site (inset) and installed.

“In the 1980s, concrete was mixed on-site


manually. Today, you only have to make a
call and the concrete will be delivered to
What is IBS? you, ready to pour. It was an evolution in
The Industrialised Building System,
the construction industry. Similarly, IBS has
or IBS as it is commonly known, is a changed the way we build, and hence is an
building method that uses different
means to a similar end when compared
evolution itself. It is something to adapt to be
to conventional construction practices. on par with the best players in the market,
The variations between the techniques
both locally and internationally.”
are subtle enough for either method
to be considered to fulfill the general
requirements of a construction is casted and once the concrete has IBS, while also using moulds to cast
project, but distinct enough for IBS to cured, a beam can be casted over it, building components such as beams
possess desirable advantages over the and so on. and columns, is done in a more
standard approach. controlled environment. This simply
This work is done on the construction means that the components are
Traditional construction technique sites, with variables such as worker skill produced off-site, for instance in a
involves fashioning wooden moulds, and site conditions affecting the final factory, before being transported to
known as formwork, into which the result. This leaves many avenues open the site to be installed.
steel reinforcement bars are placed and for mistakes, and if proper procedure
pre-mixed concrete poured. Structures is not adhered to, it can result in a These elements are designed from
are built up in this way – a column decline in quality standards. the beginning to fit snugly with one

30 31
CAREERS IN CONSTRUCTION

A DAY IN THE LIFE The components are produced at the IBS factory, where they undergo standardised
manufacturing processes to ensure that stringent quality levels are met.
What is the work of a Senior Operation Manager
at an IBS company like on a daily basis?
Once a project has been given the green light, your job is to make
sure it all goes according to plan. When you produce something
at the factory, everything is calculated for. You have to ensure that
there are no errors and nothing is wasted as a mistake could end up
being repeated. This is crucial as the elements cannot be modified or
amended after being produced, and re-casting new ones can be a
tedious and costly affair.
According to him, the involvement of
You manage operations further down the line too. For instance, an IBS contractor in the planning of
the sequence for delivery and installation of components must be a construction project usually begins
synchronised, and the transporter and installer must work according
on day one, when they discuss the
to schedule. There is no point if, for example, you produce enough
design with the other parties involved
components to build two housing units a day if you can only
in the project. “This is to ensure that
transport enough components to build one house per day.
everyone, such as the architect, civil
and structure consultants, mechanical
Not only would the installation be lagging behind production, but
and electrical engineers, and even the
there would be extra elements in the factory to build an additional 30
houses after a month. Therefore a schedule has to be set. Typically,
quantity surveyors are on the same
the plan is to have the precast elements carted off to the site within page as us.”
three days of production, as undelivered elements will cost you every
day they remain at the factory. This is because contracts usually “This is pertinent as we need to design
stipulate payment on delivery. another for easy installation, and This spurred his interest and those of and mould the pre-cast elements,
it just takes a short time to secure others in his construction company The Work Process especially walls, with provisions for
the elements together using various to the potential of the IBS, and switches, piping and ducting before
What advice do you have for anyone who wants techniques such as welding plates and persuaded them to try the system out “When we secure a project, the first they are assembled on site,” he
to be an IBS Engineer? grouting at the site. As almost every later that year. They secured their first thing we do is a feasibility study to says. The early involvement also has
step of the way is monitored and project, a six-block school complex in assess whether IBS would be a suitable another purpose. “We will come into
IBS can be considered as a new trend in the Malaysian construction
standardised, there is less chance of Kulim, Kedah. fit for the job,” Ahmad Azhar explains. theproject in the beginning stage as
industry, and is just gaining traction here. Therefore, other than
quality being compromised. This saves “The reason behind this is cost. As the we need to prepare the moulds and set
having the knowledge and technical know-how, you should have the
money in the long run as it reduces the “That was the first time we utilised building elements need to be produced up the factory accordingly. This process
passion to apply yourself in this field. If you are an undergraduate,
need for future maintenance. IBS in a project, and we discovered at the factory, a process that involves a takes two to three months, which is
it is advisable choose an IBS-related company – consultants,
that it is significantly more convenient financial investment, we need to know perfect as by the time we deliver the
manufacturers or even installers – to do your industrial training to
absorb as much hands-on knowledge as possible in the industry The IBS Expert than the conventional method of if the break-even point or return on groundwork and piling at the site
before encountering IBS later in your working life. construction,” he reveals. “We investment is favourable.” would have been completed.”
Having been in the construction managed to reduce the use of
industry for over 30 years, Ahmad manpower – by more than half – and

How much can a fresh graduate expect to earn as


Azhar was first a contractor for curtail wastage of material, among Ahmad Azhar’s interest in IBS also stemmed from
an IBS Engineer? conventional building projects, before other things.” one of its usually unseen benefit. “By using this
seriously considering IBS five years
The salary of a fresh graduate in this field on average hovers around ago. “In 2011, I attended courses His company switched to using IBS
system we can drastically reduce our dependence
RM2,500. Companies usually hire degree holders over diploma organised by the Construction Industry for all its projects, setting up an IBS on workers in the construction industry, especially
holders, and preference is given to those who have prior knowledge
and experience in IBS.
Development Board (CIDB), MARA, factory in Alor Setar, Kedah. As other lower-skilled foreign workers. This in turn would
Bahagian Pembangunan Kontraktor IBS projects came pouring in, including
help reduce the cash outflow of the country as they
dan Ushawan Kementerian Kerja one that involved 400 housing units,
Raya (BPKU) and other agencies that they opened another factory in channel the money they earn here back to their
championed the use of IBS,” he says. Temerloh, Pahang. own nation.”

32 33
TECHNOLOGY OF CONSTRUCTION

T
he Internet of Things (IoT) has been one of the most talked-about
components of technology in the last few years. In most cases, this
has been in relation to how it can be applied in homes or businesses
to automate processes, and make systems streamlined and faster.
However, according to multi-national research organisation
McKinsey Global Institute’s (MGI) The Internet of Things: Mapping the Value
Beyond the Hype eport in June 2015, the implementation of IoT in worksite
environments (which encompasses oil and gas exploration and production,
mining, and construction) has the potential to yield an economic value of up
to US$930 billion (RM3.92 trillion at current rates) annually in 2025.

ERYTHING
NG EV
TI
Y IN
C
L O G

E
ECH N O

N
T C E

N
D I N G E N H A N

O
BED AN
HOW EM AND DEVICES C DUSTRY
C M A C H
T
I
H
N
E
ES
C O N STR U C T I O N IN
machines on construction sites, and
automate request for supplies when a
monitored storage goes
below a pre-determined level.
Intelligent Devices
Construction sites are high-activity The impact of this widespread For predictive maintenance, advanced
environments, with mobile machines connection is massive, particularly as sensors can also be installed in
and stationary equipment the number of components and mechanical parts and
of all sizes, as well as people who equipment used on constructions sites equipment that allow them to
always have to be conscious of their and in the operation of buildings is automatically report when they are in
safety. The concept of IoT high, which also presents need of maintenance. MGI’s
allows physical objects (machines its share of challenges to project report estimates that predictive and
and humans) to be assigned digital managers in terms of monitoring condition-based maintenance in site
addresses or Internet Protocol supplies and equipment. Using operations can reduce maintenance
(IP) through sensors and actuators Radio-frequency identification (RFID) costs by between 5% and 10%
linked by networks to computing tags and self-detecting sensors, and increase output by up to 5%
systems that allows them to construction site operators can by avoiding unplanned outages. All
connect to and communicate with determine how, when and where of these translate into one of the
each other, and other electronic supplies go missing (if they do) and major benefits of IoT, lowered costs
devices on the Internet. track them, the number of and financial savings from fewer

34 35
TECHNOLOGY OF CONSTRUCTION

WORKSITES: POTENTIAL DIRECT ECONOMIC IMPACT


OF $160 BILLION TO $930 BILLION PER YEAR IN 2025

Sized Potential Economic Impact can be used for aerial and internal

Applications Total = $160 billion–930 billion Assumptions Potential Value Gain 1 survey of buildings that may not be
structurally sound prior to demolition.
Technology such as virtual reality and
$7.2 trillion in costs in 3 5–10% increase in work-site
augmented reality that are getting
sectors; 10–20% productivity; 10–20% of
Operations 56 – 47
penetration in O&G, consumables, 10–20% more popular, with devices such
(US$ Billion)
Optimization 25–80% in mining, up to of personnel as Google’s Glass and Microsoft’s
20% in construction HoloLens, can allow architects, for
example, design and make corrections
to building in virtual reality, saving time
Improved 10–20% penetration 3–5% productivity gain:
and cost of using physical resources.
Equipment 81– 363 in O&G, 40–100% in 5–10% of equipment
(US$ Billion) mining, up to 20% costs: 5–10% of
Maintenance in construction equipment maintanence The Internet of Things will allow workers on construction sites monitor projects, supplies, the Getting There
site, workers and the machines more effectively by linking everything to the Internet.
A number of measures have to be
$640 billion in costs in 3 10–20% decrease in breakdowns, higher productive uptime, machinery—that shuts down when implemented to fully realise the
Health sectors, 10–20% adoption health and safety costs improved business and construction proximity detectors indicate that a benefits of IoT. One is these is that
and Safety 3 – 29
(US$ Billion) in O&G, 25–80% in mining, processes, automated operations worker is hazardously close—and in construction site operators will need to
Management up to 20% in construction (including self-driving vehicles), and employees’ tags, or wearable bands attract a new set of skills and talents
reductions in the cost of and devices that will monitor workers’ from IT—machine learning and data
maintenance, labour and energy. health, location, activities, and scientists, and statisticians. Another
Human $590 billion in labor costs; 10% productivity exposure to chemicals. factor is support from the government
17 – 37 adoption 8–15% in improvement and policymakers, as well as the
Productivity (US$ Billion)
advanced economies, Safety First The increased use of remote- manufacturers of IoT components in
2–5% in developing
Another area where IoT can make a controlled, automated and Internet- creating IoT sensors and systems that
significant impact in the construction connected machinery also means that are easy to use, rugged and durable
$760 billion in equipment 6% increase in sector is in employee safety. workers do not have to physically be enough to withstand the weather
Usage-based 1 – 21
costs in 3 sectors: 30–50% equipment supplier Construction sites can be extremely inside heavy machinery to operate and harsh working conditions in
(US$ Billion) adoption in O&G, 40–100% revenue
Design in mining, 10–75%
dangerous environments, with the them, particularly when operating construction sites. Adoptability also
in construction presence of heavy machinery and dangerous equipment and in depends on how cheap the IoT devices
materials, the physical nature of the environments that may be hazardous are and their ability to be retrofitted on
$760 billion in equipment 2% increase in work and sometimes high structures, to human health. For instance, drones older machinery and equipment.
Pre-sales costs in 3 sectors: 30–50% equipment supplier with the ‘Fatal Four’ or top four causes
0.3 – 3
Analytics (US$ Billion) adoption in O&G, 40–100% revenue of accidents in construction sites being
in mining, 10–75%
in construction
falls, being caught between machines, Integrating IoT into the construction is a win situation
electrocutions and getting struck by for everyone involved in the industry. For construction
moving equipment.
site operators, there is the massive cost savings from
1. Ranges of values are adjusted for estimated potential penetration of IoT applications in advanced
and developing economies (0–100%). NOTE: Estimates of potential economic Impact are for sized With IoT, construction site operators increased efficiency, IoT device manufacturers get a
applications and not comprehensive estimates of potential Impact. Estimates include consumer a number of measure that can reduce new market for their systems, workers enjoy reduced
surplus and cannot be related to potential company revenue, market size, or GDP Impact; accidents and injuries, and according
estimates are not adjusted for risk or probability. Numbers may not sum due to rounding. chances of injuries and better working environment
to MGI, the cost of insurance by up
to 20%. These measures can include and the government benefits from the increased
installing intelligent IoT sensors on contribution of the sector to the national economy.

36 37
TECHNOLOGY OF CONSTRUCTION

AUTOMATION &
T
he time to invest in automation is upon us. Automation is the

THE CONSTRUCTION
perfect complement to an industry that fails or succeeds by its
optimisation of manpower. The Construction Industry Transformation
Programme (CITP) was launched in Malaysia on September 2015 as

INDUSTRY a comprehensive implementation plan, announcing four strategic


thrusts: Quality Safety and Professionalism (QSP), Environment Sustainability,
Productivity and Internationalisation. With higher levies imposed for foreign
IN THE LAND OF LABOUR, workers, and low domestic participation in the construction labour force,
automation may be the key to saving both time and labour cost.
THE ONE-ARMED ROBOT IS KING

Quality Safety being able to transmit that data to


and Professionalism engineers or inspectors to conduct
real-time checks.
Among the standards to be
implemented under the CITP is The CITP also aims to reduce worksite
the Quality Assessment System in fatalities and injuries by 50%, as well
Construction (QLASSIC), which as improve safety conditions on the
creates a unified system for measuring worksite. Currently, the four most
construction workmanship to common causes of construction
ensure maximum quality control and accidents (dubbed the ‘Fatal Four’ by
standardization. the Occupational Safety and Health
Administration) are falls, electrocution,
To facilitate better QLASSIC being struck by debris or falling tools,
compliance, machine guidance and getting caught in or between
systems like the Topcon i-53 machine- equipment.
control system can be used to
provide the equipment operator Recent advances in automation look
with visual indicators of the position like they came straight out of a sci-fi
of the tool relative to the surface novel. The utilisation of construction
being constructed. Throw in some robots can mitigate the risks of
automation, and the system will not common worksite accidents. Komatsu
only guide the operator, but directly has developed robotic bulldozers
control the machine hydraulics in and excavators are guided by data
order to perform the task itself. This from aerial drones. These driverless
is typically used for final grading to construction vehicles increase workplace
achieve precision levels of cuts and safety by moving workers away from
measurements. Prior to these systems, having to perform dangerous tasks
operators had to rely on verbal under hazardous conditions, into more
instructions and hand signals provided supervisory roles. For more delicate
by another worker on site. operations requiring a human presence,
work areas are often protected by light
Machine guidance systems also record screens or barriers to keep the operator
data for quality control, while also out of danger.

38 39
TECHNOLOGY OF CONSTRUCTION

Environment Sustainability would result in waste reduction and drones could also be used to accurately
better conservation of resources. survey the environmental impact of the
Part of the ambition of the CITP is to construction process before irreversible
transform the Malaysian construction Again, aerial drones have a practical damage can be done.
industry into a role model for application here. An idea by start-
The RoadPrinter is set
emerging nations through innovative up company Skycatch is the use of But how about machinery? Enter to revolutionize the way
and sustainable building practices. drones to monitor progress on the the RoadPrinter, which can lay down brick walkways and
Case studies conducted by the CIDB construction site in real-time, using 500 meters of road in a single day by roads are constructed.
find high volumes of construction software to calculate the volume of sorting loose bricks into a pattern,
and demolition waste dumped in dirt displaced, or detect soil erosion. In and pressing them into the ground.
construction sites across Malaysia. addition to improving awareness for This piece of machinery is electrically
Automation of building processes productivity and safety purposes, these powered, and has a lower carbon

THE FOUR THRUSTS OF THE CONSTRUCTION INDUSTRY


TRANSFORMER PROGRAMME (CITP)

footprint. It is also quieter than The new bricklaying robot SAM, Internationalisation
traditional methods of road paving. otherwise known as Semi-Automated
Mason can lay three times as many Malaysian construction companies are
QUALITY, SAFETY & ENVIRONMENTAL Noise pollution itself has a measureable bricks as a traditional worker. SAM is facing stiff competition domestically
PRODUCTIVITY INTERNATIONALISATION
PROFESSIONALISM SUSTAINABILITY cost. An Economic Assessment of highly adaptable, and can adjust to from the presence of foreign players,
U.S. Environmental Noise in 2015 incline and weather conditions, while as well as challenges in expanding into
determined that reducing hazardous still completing precise and level work. the regional and international market.
OUTCOMES
noise levels alone could save up to
US$3.9 billion every year in medical While technological advances have Part of the CITP initiative is to win
fees and regained productivity. reduced the demand for low-skilled back market share in both domestic
workers, it has not reduced the need and overseas markets. Once again,
Quality, Malaysia’s More than Malaysian
safety and sustainable doubling champions: Productivity for human labour overall. Robots automation may be the key to
professionalism infrastructure: productivity, leading the have been relegated to menial and winning this battle. Automation
ingrained in a model for matched by charge locally Automation is also expected to help dangerous tasks, rendering specific reduces construction costs and
industry culture emerging world higher wages and globally Malaysia realise its goal of more than jobs obsolete. This results in less time. This, combined with strategic
doubling productivity before 2020. At dependency on foreign labour to investments into modern techniques
present, the local construction industry sustain the construction workforce, and technology, may be enough to
More than 100% of large 2.5x increase in 10 companies
50% public infrastructure productivity to achieve 5* is suffering from a lack of information- while simultaneously creating better provide the competitive edge local
projects exceed projects exceed US$ 16,500 SCORE rating driven decision making, as well as paying jobs in maintenance and construction companies have been
acceptable sustainability per worker 1
limited adoption of modern practices supervisory positions in the process. searching for..
QLASSIC score requirements
and technology.
More than 4 Mt CO2 50 Malaysian
50% reduction equivalent companies
Malaysia still has a low implementation
in worksite fatalities reduction earn G8
and injuries per year status rate of Industrialised Building Systems Bolstered by an abundance of research into
(IBS) in construction. IBS involves robotics, artificial intelligence, and information
the manufacturing of building
Ease of Doing Business
indicator in dealing
10 more
construction-related components, usually off-site, in a
technology, automation in the construction
with construction
permits improved
companies export
construction services in
controlled environment, which are industry has grown exponentially. The way local
by 5% points the global market then installed into construction works. companies capitalise on the rapid availability of
However, many modern construction
techniques are only feasible with
new technology will determine how successfully
1. US$16,500 is equivalent to RM61,939 as stated in the 11th Malaysia Plan; 2.5x increase uses 2011 as a base whereas 11th Malaysia Plan states extensive automation, which local the CITP would be able to transform the
1.6x increases in labor productivity using 2015 as a base, thus they are consistent
companies have yet to adopt. Malaysian construction industry.

40 41
MONEY MATTERS

Fina ncing
Devel opment

The construction
industry features

THE CONSTRUCTION SECTOR


prominently in the
Prior to the announcement of the 2016 Budget, the first
2016 Budget in October 2015 (and in a series of five as

GAINS BIG FROM BUDGET 2016 a recalibration in January 2016 to


take global market volatility and a
the country moves
towards achieving
developed nation

E
challenging local economic conditions status in 2020.
into account), the 11th Malaysia Plan
ven in the middle of a global recession, with the price of (11MP)—starting this year—already set
crude oil at one of its lowest points in history and the value the stage for growth in the construction
sector.Revealed in May 2015, 11MP transport, oil and gas downstream and
of the ringgit wavering, Malaysia’s construction industry is
proposed four major infrastructure water projects. With the developed
expected to continue to grow by 8.4% this year, aided by projects worth around RM80 billion nation status deadline just four years
initiatives in the 2016 Budget. in various sectors such as public away, the construction industry is an

42 43
MONEY MATTERS

Kota Sandakan The continuation of the 2,239 km Pan-Borneo

Pan-Borneo SOUTH CHINA SEA Kinabalu highway, even with the recalibration of the
2016 Budget, emphasises the government’s
commitment to enhancing the construction

Highway Project Sarawak


SABAH
sector in the country.

Lahad
Expected to create BRUNEI Datu
400,000 new jobs
Bandar between maintaining the state of the CIDB’s Construction Research

Toll-free along Seri Begawan the environment and economic


benefits, which is a priority in any
Institute of Malaysia (CREAM) in their
paper Sustainable Construction and
Sarawak route Tawau development. Green Building: The Case of Malaysia,
Miri
END
establishing green procurement
Expected to be To this end, Budget 2016 proposed procedures is one of the most
and allocated RM500 million to the effective ways of increasing adoption
completed by 2022
Bintulu Industrialised Building System (IBS)
Promotion Fund to be distributed
of sustainability in the construction
industry.
CELEBES SEA
MALAYSIA
by SME Bank to contractors and
developers in the G5 category This involves integrating environmental
(qualified to undertake projects considerations and planning into the
worth up to RM5 million) and entire life cycle of projects—meeting
Sibu City
below who implement and utilise the need for goods and services using
SARAWAK Highway IBS. The government also extended measures that achieve value for money
Sarikei path the implementation of the Green while minimising damage to the
International Technology Financing Scheme— environment. Contractors and property
borders which could benefit contractors developers can build sustainable
Kuching and developers who utilise green projects and also be responsible for
technology in their projects—until implementing operations, such as
31 December 2017 with a fund of maintenance, that are environment-

INDONESIA
START RM1.2 billion. These initiatives are friendly.
expected to boost the adoption of
sustainable construction as advocated Accomplishing this however will
by the Construction Industry require improved and expanded
Development Board’s Construction knowledge and technology by
important contributor to national CIMB Research in their report pointed provision of electricity and treated Transportation Master Plan (PTMP). Industry Master Plan. enhancing involvement in research and
development, encompassing out that oil and gas infrastructure, water. Other projects include the According to Maybank Research, development (R&D). To encourage and
buildings, bridges, roads, railways and such as the Petronas’ Refinery RM28 billion Mass Rapid Transit “With the Chinese companies’ ability Attaining Sustainability develop such studies, this year was
public infrastructure and contributing and Petrochemicals Integrated 2 (MRT2) and RM9 billion Light to offer attractive financing packages, declared Malaysia Commercialisation
to competitiveness and attracting Development (RAPID) project in Railway Transit 3 (LRT3), as well as the this would raise their chances of It is important to note that adopting Year, with Budget 2016 stipulating that
foreign investment. Pengerang, Johor, is expected to see RM12.8 billion Pan-Borneo Highway winning the projects, while allaying sustainability in the construction companies with paid-up capital not
investments worth RM18 billion. (PBH), the Malaysian Vision Valley concerns on project funding issues.” sector involves more than simply exceeding RM2.5 million are allowed
implementing green initiatives in to claim double tax deduction for R&D
Growing Groundwork (MVV)—a 108,000 ha integrated
the building phase. According to project expenditures up to RM50,000
The cuts to government expenditure economic development valley in The Balance Ir Dr Kamarul Anuar Mohamad for each year of assessment between
Analysts in the country maintain also meant prioritising physical Negeri Sembilan—and the Cyberjaya
that despite the revision of the projects that will have higher positive City Centre (CCC) project. Budget 2016 also highlighted the Kamar and Zuhairi Abd Hamid of 2016 and 2018.
budget which saw the allocation for impact on the welfare of the people. importance that the Malaysian
development projects decrease from These include the development of Malaysia’s strengthened ties with government attaches to its
RM50 billion to RM45 billion, the hospitals, schools, houses, roads China are also expected to boost commitment to reduce greenhouse The construction industry depends on and
construction industry will continue and public infrastructure such as the construction sector, particularly gas emissions (GHG) intensity to contributes to other economic sectors in the
to thrive and contribute significantly the RM80 million development of in projects that include the Kuala 40% of GDP by 2020. One of the
country and as the major beneficiary of the
to the economy owing to the high Integrated Villages including in Sungai Lumpur-Singapore high speed rail, main challenges in implementing
number of massive projects on board Siput, Perak, which encompasses the the Gemas-Johor Bharu double track sustainable construction measures recently revised Budget 2016, its growth will
for this year up to 2020. For instance, construction of connecting roads, rail and the RM27 billion Penang and methods is finding a balance have a wide-reaching effect on the nation.

44 45
GOING GLOBAL

Kazakhstan’s
Construction Boom have been identified for
each of them.

T
he largest landlocked These include new
administrative buildings
country and seventh largest
and a business centre on a
in the world, the Central 3.63 square kilometres area
Asian state of Kazakhstan in Shymkent and housing projects in
is a relatively young nation. Aktobe. The piece de resistance would be
One of the key reasons for this spike the US$10 billion G4 Golden City project
Once part of the Soviet Union, in construction activity is that Astana in Almaty. Taking up more than 166,900
it became independent in 1991 has been chosen as the site for World square kilometres, the Golden City will
and has since become the largest Expo 2017. More than 30 countries be a mixed-used development containing
are expected to participate in this
economy in the region. Its rich residential, commercial, entertainment,
prestigious international exhibition, and educational and retail amenities.
natural resources such as oil and Kazakhstan is looking to put its best
gas have boosted its gross domestic foot forward. Infrastructure development is also on
product (GDP) per capita from the rise in Kazakhstan. Aside from new
It is doing this through the construction roads and railways being constructed,
US$1,500 in 1991 to US$13,000 of 26 projects in Astana. These include efforts are being made to strengthen
by 2013. This increase in prosperity 4,000 apartments, a hotel, a school, the Kazakhstan’s energy infrastructure.
has also spurred demand for both a conference and meeting hall, and a This includes investing in new oil and
property and infrastructure. As part commercial and retail area, which will gas pipelines, as well as building new
be built on a 173.4 hectare space. transmission towers and lines, and
of our Going Global series, Heights power plants including nuclear reactors.
showcases the opportunities in the The run-up to World Expo 2017 has
Kazakh construction sector. also seen Kazakhstan relax its policy on The Malaysian Connection
foreign workers. Previously, non-Kazakh
workers were subject to quotas so that In total, the Kazakh construction sector
This growth can be particularly seen in the nation’s companies would hire locals. However, was valued at RM57 billion in 2015
capital Astana, where construction work is being the size and scope of the construction and this is expected to grow to RM72
carried out on 13,000 square metres of office projects along with the short timeframe billion by 2017. This has led to an influx
space and 50,000 square metres of retail space. to complete them meant a rethinking of of foreign construction firms into the
There are also more than 80 residential projects this policy. country, most of them from Russia. Last
under development. This is the result of the Kazakh year, nearly a quarter of all building and
authorities earmarking US$273 million to build Other than Astana, three more cities infrastructure projects were taken up by
infrastructure, as well as an additional US$280 were named by the President of non-Kazakh companies.
million for public housing. Kazakhstan Nursultan Nazarbayev as
future urban centres: Almaty, Shymkent Opportunities are therefore plentiful in
and Aktobe. Major construction projects Kazakhstan and Malaysian construction

46 47
GOING GLOBAL

“We have done much, but our country is large,


and good roads are among the prerequisites for
the development of our economy… We need to
link all the corners of our country to the centre
so that people can travel, live and work in any
place they choose.”
– President Nursultan Nazarbayev of Kazakhstan

companies should look to venture into


this market. In February 2014, CIDB CEO
Dato’ Sri Ir Dr Judin Abdul Karim and
International Division General Manager
Zainora Zainal paid a visit to the country,
and met with officials there.

The trip resulted in CIDB’s subsidiary


CIDB Holdings being named as
a provider of construction sector
training to Kazakh officials under Langkah 1 : ‘Share’ gambar ini di wall anda.
the Malaysian Technical Cooperation
Programme (MTCP). One key focus of
this collaboration is to help raise the Langkah 2 : Sila Komen “Jom LIKE @CIDB MALAYSIA
capability and capacity levels of the An artist’s impression of Dutch architectural firm UNStudio’s proposal for the World Expo 2017
to be hosted by Kazakhstan. Hosting the expo has allowed the country to relax its foreign labour
dan menangi hadiah misteri!”
Kazakh construction sector in the use of
policies and open its construction industry to international infrastructure companies.
Industrialised Building Systems (IBS).
Langkah 3 : Sila ‘Tag’ minimum 8 orang rakan anda
Kazakh authorities also invited Malaysian untuk mengesahkan penyertaan.
According to BMI Research,
Contoh : Jom LIKE @CIDB MALAYSIA dan menangi
firms to bid for maintenance and For example, equipment, spare parts
and raw materials have been exempted
operational rights for the 326-kilometre Kazakhstan’s construction
Astana – Atbassar Expressway and the from customs duties. The state will also hadiah misteri! @topikuning, @kasuthitam,
448-kilometre Shymkent – Kyzylorda provide grants in kind of up to 30% of sector is expected to grow
at an average of 5.8%
@batubata..(‘Tag’ sekurang-kurangnya
Expressway. Malaysian companies were total investment in fixed assets. These 8 rakan fb)
also encouraged to submit proposals for include land, buildings, machinery, between 2014 and 2024.
the G4 New Town Development Project. computer equipment, measuring and
Its contribution to the
This is a US$45.3 billion venture to build control devices and vehicles.
economy is also expected
Langkah 4 : Untuk menyertai kempen ini, pastikan meletak
four new towns on a 79-kilometre stretch
to rise, from 6.4% of GDP
tetapan privasi ‘post’ anda kepada ‘PUBLIC’
between Almaty and Lake Kapchagay. The construction of roads and railways,
untuk membolehkan pihak kami mengenal-
Investor Relations
as well as telecommunications and
electricity infrastructure, are classified
in 2014 to 7.3% by 2020. pasti penyertaan anda.
as priority investment projects.
The experience Malaysian
The Kazakh government has set up This enables foreign investors to construction and engineering
the Kazakhstan Investment Agency as receive additional benefits from the firms have in building and
a centre to help facilitate the entry of Kazakhstan government such as zero
foreign investors into the country. It has percent corporate income and land
infrastructure projects gives
also introduced several incentives to taxes for 10 years, and waiver of them an advantage in this
attract investors. property tax for eight years. young but vibrant market.

48

You might also like