EDITORIAL LINE-UP: Sariah • Noridah • Siti Fatimah • Pang • Halimi • Siti Aminah • Heryanti • Farris • Yusri • Che Saliza

• Nur Ima • Nazir • Farrah Fazini • Nisrinah • Enerda • Shahreen • Fariq • Faranesha • Hanishahani

YOUR PERSONAL COPY The newsletter is published by the Business Environment Development Sector of CIDB Malaysia with the sole aim of disseminating strategic information to the whole spectrum of stakeholders in the Malaysian construction industry. Recipients of this newsletter will benefit from the ‘breaking news’ in the construction business environment, especially in the areas of strategic construction economics information including price trends of construction resources, tender and contract administration and management, best practices, new initiatives in construction management and construction opportunities.


Apr 2010




TOP 10

*Detail information on projects awarded in the country is available in ‘Daftar Projek Pembinaan’ published monthly by CIDB Malaysia


(Recorded as at 31st March 2010)

CONSTRUCTION PROJECTS IN VALUE for January 2010 as at 31 March 2010
No. Projects in Brief

1 Project Value
Contractor Date of Award Date of Completion Location/State

: RM291,180,764.38
Value of Projects (RM mil)

Site preparation, earthworks and main drain for runway 3 at new LCC Terminal

: : : :

Gadang Engineering (M) Sdn. Bhd (Foreign) 11/01/2010 18/12/2010 Sepang Selangor

2 Project Value
Contractor Date of Award Date of Completion Location/State

: RM241,298,000.00
: : : : Bina Rezeki Sdn. Bhd.(G7) 28/01/2010 31/12/2011 W.P Putrajaya

Development of Boulevard Plaza

400 350 300 250 200 150 100 50 0

Jan ‘10

Feb ‘10
Residential Non Residentital

1600 1400 1200 1000 800 600 400 200 0


For the month of February 2010, the number and value of projects declined by 32.9% to 216 projects and by 35.8 % to RM2.1 billion respectively, compared with the preceding month.
Jan ‘10 Feb ‘10
Infrastructure Others

100 50 0

Feb 2010 Value of Projects No. of Projects

A total of 538 projects valued at RM5.47 billion were recorded from January to February 2010. During this two-month period, Selangor led the other states with RM1.5 billion worth of projects, followed closely by Wilayah Persekutuan with RM1.3 billion and Johor with RM0.52 billion.

No. of Projects

Value of Projects (RM m)

350 300 250 200 150

322 216

3500 3000 2500 2000 1500 1000 500 0

Jan 2010

Mix Development Social Amenities

The Private Sector continued in its strong performance to record 152 projects worth RM1.72 billion against 64 projects valued at RM0.42 billion by the Government Sector in February 2010. Residential (RM1.01 billion), Non-Residential (RM0.58 billion) and Infrastructure Projects (RM0.11 billion) remained as the mainstay of the Private Sector that accounted for nearly 80 % of the total project value. The Government Sector, on the other hand, registered infrastructure projects at RM 0.26 billion, social amenities projects at RM 0.09 billion as well as Non-Residential projects at RM 0.04 billion as the top categories. The three biggest projects for February 2010 were the construction of residential houses and condominium blocks in Petaling Jaya (RM169 million) and Mont Kiara (RM165 million) respectively and the road dispersion project at MRR2 Kuala Lumpur (RM105 million). Generally, positive sentiments were echoed throughout the country with most economists reviewing Malaysia’s GDP growth at a higher rate than the initial estimation. For the second quarter of 2010, the Business Con dence Index (BCI) rose by 13.5% year-on-year, while the Consumer Sentiments Index (CSI) increases by 4.3% year-on-year. This was followed by the announcement of the rst draft of the New Economic Model on 30 March 2010 by the Prime Minister that was complemented by the better-than-expected results of 10.1% economic growth for the rst quarter of 2010. This in turn will push the stock market and Ringgit exchange rate up, as con dence starts to build which will indirectly boost the local property market further.
Contact Person: Nisrinah, 03-26170209 / nisrinah@cidb.gov.my

3 Project Value
Contractor Date of Award Date of Completion Location/State

: RM181,818,000.00
: : : : Putra Perdana Construction Sdn. Bhd.(G7). 18/01/2010 27/01/2012 W.P Putrajaya

Office building and external works at Precinct 2

Johor Kedah Kelantan Melaka Negeri Sembilan Pahang Perak Perlis Pulau Pinang Sabah Sarawak Selangor Terengganu W. Persekutuan TOTAL

No. of Projects
92 21 16 36 19 22 40 2 33 49 24 115 13 56 538

Value of Projects (RM mil)
523.59 273.42 121.75 291.27 270.51 118.71 182.91 13.62 168.96 329.56 327.65 1,469.22 121.41 1,258.04 5,470.62

4 Project Value
Contractor Date of Award Date of Completion Location/State

: RM164,300,000.00
: : : : Dinamik Maju Corporation Sdn. Bhd.(G7) 29/01/2010 22/08/2012 Sungai Buloh, Selangor

Integration Quarters at Pusat Kawalan Kusta Negara

5 Project Value
Contractor Date of Award Date of Completion Location/State

: RM140,000,000.00
: : : : Gappdms Sdn. Bhd.(G7) 20/01/2010 08/02/2012 Kuching, Sarawak

Institut Aminuddin Baki (IAB) Sarawak Branch

6 Project Value
Contractor Date of Award Date of Completion Location/State

: RM96,072,125.43
: : : : Keindah Sdn. Bhd.(G7) 22/01/2010 05/11/2012 Kepala Batas, Kedah

Kolej Tentera Udara (KTU)

What’s New

7 Project Value
Contractor Date of Award Date of Completion Location/State

: RM66,170,000.00
: : : : Paksi Teguh Sdn. Bhd.(G7) 29/01/2010 21/05/2010 Dengkil, Selangor

Town houses and other related works

CIDB is focused on the formation of an N3C (National Construction Cost Centre) with its full implementation targeted for 2012. How relevant is an N3C in enhancing the reputation of our Malaysian Construction Industry as world class?
Amongst the many tasks entrusted to CIDB under the Construction Industry Development Board Act (Act 520), one is “to initiate and maintain a construction industry information system”. This task has become increasingly important in recent years as the construction industry gained momentum in the value of awarded construction projects at home as well as o shore. To emphasise this importance, the Strategic Thrust 2 of the Construction Industry Master Plan (CIMP 2006–2015) provides recommendations for the enhancement and increase of level of professionalism as well as excellence in construction, and the P2P(Procurement to Pay) Strategy within the construction community. The call for enhanced professionalism in the industry prompted CIDB to draw up a proposal for the development of an N3C initially referred to as Construction Industry Cost Information Service or CICIS. The N3C is expected to be implemented in three stages – “development”, “operation” and “future development” phases. Currently, Construction Cost Information have been compiled from study observations on labour, cost of building materials and cost of M&E building materials categorised as : • Labour Cost and Labour Output Information (from a participation of Sixty contractors from grades G5, G6 and G7) • Average Price and Price Index of Building Materials (based on a continuous compilation of published average price of building materials) • Mechanical and Electrical Building Material Price Information The perspective on Value Management needs to go beyond the common notion that it is nothing more than a cost-cutting tool. Value Management should be viewed from the angle of Life Cycle Costing, where information derived thence would help make informed and calculated decisions. The N3C is seen to complement the encompassing adoption of Value Management and Life Cycle Costing “as relevant cost data can be provided for working out initial, running and replacement costs to be incurred in construction projects”. To ful l the objectives in creating the N3C as a one-stop information centre for construction costing, fourteen modules have been identi ed as relevant cost- centres: • Building Materials Price • Labour Wage Rate • Machinery Hire Rate • Unit Rate for Major Items • M&E Component Price • Average Percentage for Preliminaries • Construction Cost Index (CCI) • Tender price Index • Materials Cost Index • Labour Out and Unit Rate • Construction Labour Cost Index • Construction Machineries Rental Cost Index • Composite Rate • Elemental Cost Analysis (ECA)
Contact Person: Nazir Muhamad Nor, 03-26170324 / nazir@cidb.gov.my

8 Project Value
Contractor Date of Award Date of Completion Location/State

: RM63,558,000.00
: : : : Econpile (M) Sdn. Bhd.(G7) 29/01/2010 22/12/2010 Damansara, W.P Kuala Lumpur

Embedded retaining structure foundation and basement structure

9 Project Value
Contractor Date of Award Date of Completion Location/State

: RM63,200,000.00
: : : : Woon Brothers Construction Sdn. Bhd.(G7) 20/01/2010 24/01/2012 Johor Bahru, Johor

Mainroad from Jalan Seelong to Taman Impian Emas, Tebrau district

10 Project Value
Contractor Date of Award Date of Completion Location/State

: RM57,107,760.00
: : : : T.J Civil & Structural Contractor Sdn. Bhd.(G7) 11/01/2010 16/05/2011 Subang Jaya, Selangor

98 units 2 1/2 storey terrace house and a TNB Sub-station

A full listing of projects awarded in the country is updated on a monthly basis. For more info, visit www.cidb.gov.my

Publisher: Business Environment Development Sector, Construction Industry Development Board, Level 10A, Grand Seasons Avenue, 72 Jalan Pahang, 53000 Kuala Lumpur, Malaysia. Tel: 603 2617 0249 Email: buildinfo@cidb.gov.my The PDF version of this newsletter is available at www.cidb.gov.my and www.1BINA.MY

20 Penisular Higher RM 14.00 217.50 55. so will the need to engage professional managers who can be designated as “Chief Asset O cer” or “Chief Facility O cer”. federal government. with 350 participants and on 27th May 2010 at The Gurney Hotel & Residence. explained the terminology of Maintenance Management and Property Management.33 9.33 235.67 320. 2ND EDITION LAND DEVELOPMENT CALCULATIONS Interactive Tools and Techniques for Site Planning. It would be imperative that these O cers”have a broad knowledge of the asset/property market.56 2390. As the understanding of AFM widens and more asset stakeholders adopt the practice.67 285. stressed the four strengths of the CESMM (M).27 0.00 33.00 28.67 12. following which we have also shown how these elemental practices play a role in the upkeep of national assets.30 2366. Mohd Saleh Santhiman of Lembaga Lebuhraya Malaysia.24 Average RM 14. London Average Prices of Major Building Materials for Semenanjung.30 Sarawak Higher RM 15.00 2310.67 2316. Published by Pertubuhan Akitek Malaysia (PAM) BOOKS Solving (ISBN9780073191584) 1.33 30. (ii) provide the industry with a more accurate cost data. Asset and Facility Management (AFM) has developed into an all important professional service that enables the proper administration of the upkeep of our national assets.31 Sabah Higher RM 16.32 0.67 2166.gov. Beams.02 0.gov.33 24. Sabah & Sarawak for February 2010 No. guidelines and regulations issued by various government ministries. current best practices and benchmarking.00 31.67 2303.50 29. Analysis. QUANTITY SURVEYORS POCKET BOOK (ISBN9780750687461) Published by Wiley-Blackwell Publication. Steel. Sr Hisham Jafrey in response to a query from Puan Sharifah Noraini Noreen of Perunding DMA Sdn Bhd. the objective of the entire seminar effort was highlighted in Kuala Lumpur when.” This will be a new category of professionals in the Malaysian asset management industry from what is currently available.11 33.94 23.22 Lower RM 16. computerised maintenance management those who have not adopted AFM have encountered unnecessary setbacks in system (CMMS).06 28. 50% of the study population demonstrated good practices at their workplace and. we shall go a step further into enhancing our readers’ knowledge on AFM.my mt=metric tonne m2 =meter square m3=meter cube .67 2249. etc have indicated satisfactory levels of understanding of Asset and Facility Management.67 10.33 0.33 7. Contact Person: Mohammad Farris. CIDB has in-exhaustive avenues for promoting CESMM (M).00 35.Highlights THE MALAYSIAN CESMM Intensive efforts to step up usage of CESMM in the Malaysian Construction Industry are understandably vital. London 4.21 276.00 0. the latest being an effort through Industry Partnering activities.35 22.34 0. projects management and contracts administration systems within the Construction Industry The afternoon session discussed The Need to Standardize Bills of Quantities for Civil Engineering Works with Case Study on “Projek Lebuhraya Penswastaan Eastern Dispersal Link (EDL) Johor Bahru”. It may be worth mentioning that introduction of smart buildings. local authorities.00 20.33 21. and common need of better management of a built environment across international borders. BULETIN THE INGENIEUR VOLUME 45 MARCH – MAY 2010 Published by Board Of Engineers Malaysia In Malaysia today. REQUIREMENT ENGINEERING FOR COMPUTER INTERGRATED ENVIRONMENTS IN CONSTRUCTION 5. LABOUR CONDITIONS FOR CONSTRUCTION . Q12: What is the prospect of the Malaysian AFM industry? A: Malaysia is one of the fastest growing economies in Asia with intensive ongoing development amidst the globalisation backdrop.my CIDB LIBRARY MAGAZINES/JOURNAL Latest Additions Zoom In: Insights and Q&A on Asset Facility Management 1. Q11: Is AFM governed by Malaysian law and regulations? A: Whilst there is no consolidated act & by-law. This is considering that the mammoth value in civil engineering work projects awarded in Malaysia had tipped an average of RM22 billion over the current 5 year period. departments and agencies. VR maintenance and consistent breakdowns which had led to frequent downtime and escalating early detection system amongst others. We shall enlighten you on the status of AFM under Malaysian law and regulations. London Malaysian AFM participants shall develop new trends in asset management practices with environment conservation technology that leads to an There is room for improvement at this juncture. 03-26170303 / library@cidb. GLCs.31 0.32 0.19 13.00 2500. and Tension Elements in Wood.67 2166. environmental conservation and cost e ciency that have been gazetted as guidelines and regulations so as to be compliant to globally accepted standards in asset management. we have discussed the elements related to the better understanding and execution of AFM. Jabatan Kerja Raya Malaysia 4.Building Cities. ARCHITECTURE MALAYSIA (AM) JOURNAL OF THE – MAY 2010 : Building Blocks For The Future MALAYSIAN INSTITUTE OF ARCHITECTS VOLUME 22 ISSUE 2 APRIL Q9: How does AFM contribute towards future manpower development? A: AFM is a specialised eld that requires well trained and informed personnel to operate in an ever changing environment of asset upkeep. In this issue. Major Building Materials 1 2 Unit Lower RM 13. With emphasis being placed on its infrastructure.25 52.67 15.32 0.22 267.07 48.67 19. London 2. This valuable information will be exchanged globally with similar associations to provide support for the entire operational costs. Penang with an attendance of 200 participants.82 0. government agencies. The seminar titled The Standardising and Enhancing Bills of Quantities for Civil Engineering Works using CESMM (M) were successfully organised for Kuala Lumpur and Penang in the first quarter of this year. BULETIN SENGGARA FASILITI JALAN BIL 9 SUKU TAHUNAN – MAC 2010 Published by Bahagian Senggara Fasiliti Jalan.33 6.53 24. we can expect Malaysia to create and maintain a globalised Asset and Facility Management information bank. with updated information on market trend.37 2385.67 220. Bangi. Decent Work.11 2379.33 0. Contact Person: Farrah Fazini. public listed companies. (iii) easy to implement and (iv) significant cost factor. and Reinforced Concrete (ISBN9781856177719) Published by Wiley-Blackwell Publication.34 0.00 30.30 (ISBN9781405189453) Published by Wiley-Blackwell Publication. Panelists presented topics ranging from an Overview of Malaysia Highway Construction Projects and its Contract Management Implementation through Highlights of Salient Classification in the CESMM on various engineering works classifications. CONCRETE TECHNOLOGY TODAY VOLUME 2 APRIL – JUNE 2010 Published by Trade Link Media Publication 3.67 30. its current level of understanding amongst asset stakeholders as well as the future direction of and opportunities in AFM.67 266.21 0. The 2010 joint initiative between CIDB and Lembaga Lebuhraya Malaysia launched a series of CIDB-Lembaga Lebuhraya Malaysia Joint CESMM (M) Seminars being conducted to educate and create awareness amongst participants.67 5. more than 50% were satis ed with the level of service provided.50 2550.00 2316. London 6.00 2480. In our previous issue.00 24. regulation or guideline for AFM practices in Malaysia to date.30 Average RM 15. New York Ordinary Portland Cement Bag (50kg) Bag Bulk MT Reinforcement Mild Steel Bar MT High Tensile Bar MT BRC m2 Granite Aggreggate 3/4" MT River Sand Normal Sand MT Fine Sand MT Mining Sand Normal Sand MT Fine Sand MT Ready Mix Concrete m3 Brick Clay Brick piece Cement Sand Brick piece Contact Person: Yusri Parlan.Fundamentals and Problem Published by Wiley-Blackwell Publication. The seminars were held on 31st March 2010 at the Equatorial Hotel & Resort.32 0. Q10: What is the current level of understanding of AFM in Malaysia? A: A recent CIDB study population comprising a signi cantly large percentage of asset stakeholders including from private listed companies.93 28.67 10. 2.22 30. New York 3 4 5 6 7 7. Perhaps.00 318.00 7. We have outlined as to what constitutes “asset life cycle”.67 29.21 2272. 03-26170306 / pang@cidb.33 Average RM 16.00 0. geographical information system (GIS). These points were aptly emphasized to drive home the importance of the implementation of CESMM within the Malaysian Construction Industry. and is continuing to grow.00 0.my 3.20 2491.00 35.75 19.06 198. ending with the topic “Consulting Engineer’s Perspective on SMM in Civil Engineering Works.67 0.80 2600.A Global Concern (ISBN9780073383217) Published by McGraw-Hill Publication. and Design (ISBN9780071603218) Published by McGraw-Hill Publication.00 20.32 Lower RM 14. 5TH EDITION ENGINEERING .97 17. 03-26170245 / farris@cidb.63 13. It is imperative for AFM policies to adhere to related best practices in health and safety. 11TH EDITION ENVIRONMENTAL SCIENCE . These one-day seminars were moderated by Pn Sariah Abd Karib from CIDB and En. STRUCTURAL ELEMENTS FOR ARCHITECTS AND BUILDERS Design of Columns.00 0. the practices do adhere to the existing forms of published and enforceable Malaysian acts & by-law. namely (i)the distinct division/coding provides a more organized document.00 30.33 9. 03-26170298 / farah@cidb. and The Role of Local Authorities (ISBN9781405189439) Published by Wiley-Blackwell Publication.my Contact Person: Pang Kang Wah.gov. understand the business of the organisation and practices e ective communication skill. Instilling best practice in procurement.30 2260.67 170.67 281.56 14.gov.

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