PROGRAM PEMANTAPAN KOMPETENSI PEGAWAI JKR

SARAWAK

GREEN BUILDING INDEX (GBI) – BENEFITS OF GOING

GREEN

Prepared by Ts. Chia Chin Seng, GBIF

Mechanical Branch, JKR Sarawak
 CONTENT
1. What is a Green Building
14. GBI Rating System
2. Why Green Buildings
15. GBI Classification
3. What is the Green Building Index (GBI)
16. GBI Rating Tools – Non-residential
4. Green Building Index (GBI) Tools
17. GBI Rating Tools – Residential
5. Building in Malaysia & Market Perception
18. GBI: Residential New Construction (RNC) vs Non-
6. Example of GBI Certified Buildings in Malaysia
Residential New Construction (NRNC)
7. What are the Barriers in Implementing Green
19. Tax Incentives
Building in Sarawak
20. Incentives – Passive Design
8. GBI Project Register – by Categories
21. Incentives – Active Design
9. GBI Project Register – by Rating
22. New Energy Legislations
10. Gross Floor Area (GFA) GBI Rated Buildings
23. Example of Green Cost Items
11. Carbon Dioxide (CO2) Emission Reduction of GBI
24. Costs of Going Green
Rated Buildings
25. Benefits of Green Building
12. GBI Projects by State/Territories
13. Green Pages Malaysia (GPM)
GBI MALAYSIA
GBI TOOLS

Source from https://www.greenbuildingindex.org/gbi-tools/

 Occurance
Market Perception

20% Good Practice

Up to 10% Achieve Energy Standard of MS 1525
Do not comply Achieve ‘GBI Certified’
with mandatory
Standards/
70 – 80%
Building 3% High Performance
Standards Achieve ‘GBI Gold’ or ‘GBI
Platinum’

Building Performance

Study done by Malaysia Green Building Council (MGBC)

 EXAMPLE OF GBI
CERTIFIED BUILDINGS IN
MALAYSIA
 Eco Forest, Selangor

GBI Rating Certified

Certificate No. GBI-T-0014 (P)
Validity Date 07th June 2021- 06th June 2029
Building Category Township (T)
Source from https://www.greenbuildingindex.org/how-gbi-works/gbi-certified-buildings/#
 Nucleus Tower, Selangor

GBI Rating Gold

Certificate No. GBI-NRNC-0099
Validity Date 21st Jan 2022- 20th Jan 2025
Building Category Non Residential New Construction (NRNC)

Source from https://www.greenbuildingindex.org/how-gbi-works/gbi-certified-buildings/#

 Sunway City Iskandar Puteri, Johor

GBI Rating Silver

Certificate No. GBI-T-0013 (P)
Validity Date 10th Nov 2024
Building Category Township (P)

Source from https://www.greenbuildingindex.org/how-gbi-works/gbi-certified-buildings/#

 Menara Kerja Raya, Kuala Lumpur

GBI Rating Platinum

Certificate No. GBI-NRNC-0017(RVA1)
Validity Date 18th Oct 2019 – 17th Oct 2022
Building Category Non Residential New Construction (NRNC)

Source from https://www.greenbuildingindex.org/how-gbi-works/gbi-certified-buildings/#

 University of Technology Sarawak

GBI Rating Platinum

Certificate No. GBI-NRNC-0095
Validity Date 20th Oct 2021 – 19th Oct 2024
Building Category Non Residential New Construction (NRNC)

Source from https://www.greenbuildingindex.org/how-gbi-works/gbi-certified-buildings/#

 More examples on
https://www.greenbuildingindex.org/how-gbi-
works/gbi-certified-buildings/#
WHAT ARE THE BARRIERS
IN IMPLEMENTING GREEN
BUILDING IN SARAWAK?

• Most of the construction firms
have an opinion that development
of green building will spend a lot of
time which affect their profits. Time
• Design green concept is
complicated and this need huge Consuming
amount of time and effort to
•
produce splendid outcome.
Also, the processes to get the
approval on design to construction
stage are too long.
• Currently, there are still a lot of
upper management refuse to
accept the new construction
Management
•
method.
Due to the concern of profits and
they do not wish to take any risks
that might be obstacle to earn
more profits.
• Lack of knowledge and awareness
of top management will affect the
intention of the construction firm to
implement green practices in the
projects (Journal of Cleaner
Production. 2012)
• Green concept is still new and
complicated, so it is difficult to be
practiced by the construction firm if
they do not have intensive
Lack of experience and sufficient
knowledge in the related field.
Awareness /
Knowledge
• Cost of sustainable building is
higher due to the green materials
are expensive.
Economic • Client will be more concern about
their profitability than sustainability
Issues to environment.
• The construction industries will
Internal only implement the green practice
when they get incentive by
government or private sector.
Barriers
• Majority of green technologies are
complicated and it requires
professional knowledge to be
success.
Technology • Policy and standard need to fulfil
Barrier and Training when practice the green practices
in construction projects.
• Some of the companies are not
willing to send their workers for
training in green building.
Source from Ha C.Y, Radzi Ismail, Khoo T.J. (2020). The
Barriers of Implementing Green Building in Construction
Industry. Penerbit Akademia Baru, 1-10
 • Old generation workers that are
full of experience in the
construction site – refuse to learn
the new things and technology.
• Traditional method is not green
and cause pollution.
• When market demand is low on
green building, green building will
not be constructed and utilized.

Attitude and
Market

• Government is the leader and play

• Insufficient guidelines from
available source is within the Regulation main role in encouraging green
Insufficient building construction and
consideration of
and development.
designer/contractor/developer to Guidelines • Government involvement –
implement green building as there
is no any precedent can refer if
Governance provision of financial and non-
financial incentives, regulations
there is any problem occur.
and policies.

External
Barriers
Lack of
• Lack of mimetic pressure for green
development policy will increase
Mimetic Production
• Lack of information about the
performance and cost needed of
the resistance to change and Pressure for Information the technology will cause the
ignore to the benefits of new construction industry to bear their
technology. Green and Sourcing risk of adopting the green building
• Green development policy must be
emphasize and all parties shall
Development •
practices.
Sufficient guidelines are important
work together and solve the
obstructions (i.e. lack of end user
Policy to lead practitioners: if insufficient,
stakeholders and clients will worry
support, lack of awareness, high about the potential hidden risks of
initial cost, etc) cause in green green construction method.
building.
Lack of
Incentives
• Incentives is important to develop
or adopt new technologies and
practices.
• But will not work if the construction
firms are lacking of awareness and
knowledge in green development

Source from Ha C.Y, Radzi Ismail, Khoo T.J. (2020). The

Barriers of Implementing Green Building in Construction
Industry. Penerbit Akademia Baru, 1-10
Source from Malaysia Green Building Council (MGBC)
Source from Malaysia Green Building Council (MGBC)
Source from Malaysia Green Building Council (MGBC)
Source from Malaysia Green Building Council (MGBC)
Source from Malaysia Green Building Council (MGBC)
Source from Malaysia Green Building Council (MGBC)
Source from Malaysia Green Building Council (MGBC)
GREENPAGESMALAYSIA (GPM)
 GBI
GBI

MS1525
MS1525

UBBL ✓ Health
SBO ✓ Safety
✓ Smart Building
✓ Energy Efficient
✓ Water Efficient
✓ Environment Friendly
✓ Health
✓ Community
✓ Safety
✓ Material & Resources
✓ Health ✓ Smart Building
✓ Safety ✓ Energy Efficient

Before 1990s Since 1990s to end Since 21st Century

2000.
 Energy Efficiency (EE)
• Reduce energy
consumption by optimising
building orientation
• Minimizing solar heat gain
through building envelope
• Harvesting natural lighting
• Adopting the best practices
in building services including
use of renewable energy
• Proper testing, Indoor Environmental
commissioning and regular
maintenance Quality (EQ)
• Achieve good quality
Innovation (IN) performance in indoor air
• Innovative design and quality, acoustics, visual
initiatives that meet the and thermal comfort
objectives of the GBI • Use of low volatile organic
compound materials, air
filtration system, proper
control of air temperature,
movement and humidity

The GBI Rating

System

Material & Resources

Water Efficiency (WE) (MR)
• Rainwater harvesting • Use of environment-friendly
• Water recycling materials from sustainable
• Water-saving fittings sources and recycling
• To reduce the amount of • Implement proper
water used in buildings construction waste
management
Sustainable Site Planning
& Management (SM)
• Selecting appropriate sites
with planned access to
public transportation,
community services, open
spaces and landscaping.
• Implementing proper
construction management,
storm water management
Green Building Index Classification
POINTS GBI RATING

86 to 100 points Platinum

76 to 85 points Gold

66 to 75 points Silver

50 to 65 points Certified
GBI: RNC vs NRNC
 TAX INCENTIVES ANNOUNCED IN
BUDGET 2010

● “Building owners obtaining GBI Certificates from 24 October 2009 until 31

December 2014 be given income tax exemption equivalent to the additional capital
expenditure in obtaining such Certificates”
And

● “Buyers purchasing buildings with GBI Certificates from developers be given

stamp duty exemption on instruments of transfer of ownership.”

excerpts from PM’s Speech, 23 October 2009

STILL REMAIN VALID ON 2023. APPLICATION CAN BE

MADE UPON OBTAINING THE FINAL (CVA) GBI
CERTIFICATE
 INCENTIVES FOR GOING GREEN

1. GBI Incentives (based on incremental cost)

○ Investment Tax Allowance (ITA)
○ Stamp Duty Waiver

2. EE / RE Incentives (based on total component cost)

○ Investment Tax Allowance (ITA)
○ Import Duty Waiver and Sales Tax Waiver (subject to ST and PTM validation)

3. Development Incentives
○ By Local Authorities
 WHAT ARE THESE?

● Investment Tax Allowance

1. On additional capital expenditure incurred to obtain GBI certification for buildings where
income is derived
2. To companies investing in generation of energy from renewable sources and EC/EE activities

● Stamp Duty Waiver

1. For purchase of properties with GBI certification

● Import Duty and Sales Tax Waiver

1. For equipment used to generate energy from renewable sources, and EE equipment such as
high efficiency motors
 INCENTIVES FOR BUILDINGS OBTAINING
GREEN BUILDING INDEX CERTIFICATE
A. TAX EXEMPTION
○ Any person who incurs qualifying expenditure (QE) to obtain GBI certification for a building used for his business qualifies for tax
exemption. This tax incentive provides exemption on the statutory income which is equivalent to 100% of that expenditure.
○ Qualifying expenditure means an additional expenditure (known as the Green Building Cost Sum) incurred in relation to construction
of a building, alteration, renovation, extension or improvement of an existing building. The exemption can be up to 100% of statutory
income for each year of assessment.
○ Any unutilized QE can be carried forward to subsequent years of assessment until the amount is fully exempted. This tax exemption
STILL APPLICABLE ON 2023
only applies once for each building certified from 24 October 2009 until 31 December 2014.
○ The type of tax incentive mutually exclusive to this tax exemption are addressed in the guidelines issued by Lembaga Hasil Dalam
Negeri Malaysia (LHDNM).

B. STAMP DUTY EXEMPTION

○ The stamp duty exemption provides exemption on instruments of transfer of ownership of buildings and residential properties
acquired from property developers and awarded GBI certificate. The exemption is on the additional cost of the property incurred to
obtain the GBI certificate. The exemption is only given for the first transfer of ownership of the building and for sales and purchase
agreements.

Once certified, applicants can claim for tax exemption or stamp duty exemption in their annual Income Tax return forms. The GBI Certificate has to be
kept for audit purposes by LHDNM.

Please note that a complete set of guidelines on the tax and stamp duty exemption can be obtained from www.hasil.gov.my
 INCENTIVES FOR BUILDINGS OBTAINING
GREEN BUILDING INDEX CERTIFICATE
PASSIVE DESIGN
1. Building envelope components such as wall and roof insulation and
treatment
2. Wall design additions (e.g. insulated cavity walls)
3. Window design features (IGUs, DGUs)
4. Rainwater harvesting
5. Waste water recycling
6. Light tubes, light shelves for enhanced day lighting, etc
 INCENTIVES FOR BUILDINGS OBTAINING
GREEN BUILDING INDEX CERTIFICATE
ACTIVE DESIGN
1. Air conditioning and mechanical ventilation (ACMV) equipment
2. Lighting system and controls
3. Renewable Energy (RE) power generation such as BIPV system, wind
turbines, etc
4. CO2 detectors and leak controls
5. Building Management System (BMS)

Building Integrated Photovoltaics (BIPV) System

 NEW ENERGY LEGISLATIONS

1. Renewable Energy Act – Fit-in Tariff (FiT)

○ To enhance the utilization of indigenous renewable energy sources* to contribute

towards national electricity supply security and sustainable socioeconomic
development.
○ Approved by Cabinet on 2nd April 2011
○ *Indigenous renewable energy sources include Solar PV, Biomass, Biogas, Hydro

2. Sustainable Energy Development Authority Act

3. Energy Efficiency and Conservation Act

 EXAMPLES OF GREEN COST ITEMS
CRITERIA GREEN COST ITEMS REFERENCE BASE DESCRIPTIONS
COST
EE1 Double Glazing Unit (DGU), Tempered Glass, Claimable on the difference of
EE5 Insulated Glazing Unit (IGU) Laminated Glass glass rates. Base shall be of
reasonable thickness and type
of glass which complies with
the performance of similar
window/curtain wall size
EE1 Roof and wall insulation Nil 200% claimable, must comply
EE5 with OTTV
EE1 Cavity Brickwall 115mm thick brick Claimable on the difference
wall
EE1 Sun shading devices Nil 100% claimable, must
EE5 effectively reduce OTTV
 EXAMPLES OF GREEN COST ITEMS
CRITERIA GREEN COST ITEMS REFERENCE BASE DESCRIPTIONS
COST
EE2 Daylight Sensor Nil 100% claimable, must
effectively reduce energy
usage
EQ3 CO2 Detectors Nil 100% claimable

EQ4 Low VOC paint Emulsion paint Claimable on the difference

EE1 Green Roof Nil 100% claimable, must

SM12 effectively reduce Roof U-value
SM4 Green Walls Nil 100% claimable

EE1 Double Roof System (metal roof RC flat roof c/w Claimable on the difference
SM12 and RC flat roof) waterproofing and between the two roof systems
screeding
 EXAMPLES OF GREEN COST ITEMS
CRITERIA GREEN COST ITEMS REFERENCE BASE DESCRIPTIONS
COST
WE2 Grey Water Recycling Nil 100% claimable, including
plantroom
WE4 Dual Flush Valve WC Single Flush Valve Claimable on the difference,
WC but based on same brand and
range
WE5 Water sub-meters to monitor Nil 100% claimable
leakage
WE1 Rainwater harvesting Nil 100% claimable
WE3
MR5 Waste recycling bins Nil 100% claimable

IN1 Heat pipe technology Nil 100% claimable

 COSTS OF GOING GREEN

GBI Ave
Meets GBI GBI GBI GBI
M’sia
MS1525 Certified Silver Gold Platinum
Bldg

BEI 250 200 - 220 150 - 180 120 - 150 100- 120 <100
kWh/m2/yr

Energy Base 10 - 20 30 - 40 40 - 50 50 - 60 > 60

Savings % line
Incremental
construction Base 0 – 3% 1% – 5% 5% - 8% 5% - 7% -
cost % line 10% 13%

* Further project cost savings can be incorporated by implementing Building Information Modelling (BIM) in GBI projects

Study conducted by Malaysia Green Building Council (MGBC)

 BENEFITS OF GREEN BUILDING

1. Is NOT about squeezing all the latest Green Building Technologies into the development.

2. Involves an integrated design systems approach on energy usage, water usage, site
context, etc.

3. Reduce wastes and redundancy wherever possible during and after construction.

4. Observes Triple Bottom Line (TBL) and Life Cycle Costing (LCC).

Note: TBL is Triple Bottom Line where social, economic and environmental priorities converge
with sustainability (Venn Diagram)
 BENEFITS OF GREEN BUILDING

5. May cost more upfront, but savings through lower operating costs over the life
of the building (approx. 20-50%), through the following physical
improvements:
a. Environmentally integrated planning
b. Site orientation
c. Energy saving technologies
d. On-site renewable energy technologies
e. Natural daylight and ventilation
f. Improved building envelope design
g. Downsized HVAC and other equipment
Thank You