MBAM OPEN HOUSE 2011

The MBAM Open House 2011 was celebrated on the 25th February 2011 at Sime Darby Convention Centre, Kuala Lumpur. More than 190 MBAM members and representatives of the construction industry turned up to enjoy the various 1Malaysia spread made available as well as to take the opportunity to network and establish better working relationship amongst members and associates in the construction industry. One of the objectives of The MBAM Open House was to welcome new members joining in the preceding year where certificates of membership were presented to new MBAM members. I am pleased to announce that last year we had 42 new members registered although only 19 were able to join us for the new membership certificate presentation ceremony. MBAM also hoped that through the event a better collaborative relationship will be forged with Agencies whether NGOs & Government such as CIDB, CLAB, PAM, REHDA and other related organizations, the construction industry players can work together as one to quickly resolve issues affecting us as a whole.

CONSTRUCTION GDP FOR 2010

According to Bank Negara Malaysia (BNM) records, the construction industry has been recording positive growth for all four quarters in 2010 (1Q10: 8.7%; 2Q10: 4.1%, 3Q10: 2.8%; 4Q10: 5.6%) with an impressive growth of 5.3% for the year 2010.

Going forward, Master Builders Association Malaysia (MBAM) is cautiously optimistic that 2011 will be a better year for the construction industry with the implementation of the 10MP & Economic Transformation Plan (ETP) projects numbering a total of 37 Entry Point Projects (EPP), efforts using Public Private Partnership (PPP) initiatives and the Government’s effort of monitoring performance through the Government Transformation Programme (GTP).

RISING BUILDING MATERIAL PRICES

Rebar prices continued to climb as steelmakers are raising selling prices to reflect higher scrap and energy costs. The current trend hovers around RM2,500.00 per tonne and we hope members are making provisions for higher building materials prices when bidding for projects. Cement manufacturers have also made announcement that there will a price increase in cement prices in the very near future.

The increase in building materials price is due to external forces such as the price of crude oil, coal, scrap metal etc. However, we hope all manufacturers will be responsible in their price increases so that the cost of doing business shall be reasonable.

CONSTRUCTION INDUSTRY PAYMENT AND ADJUDICATION ACT (CIPAA)

The construction industry players continued to pursue the enactment of CIPAA by submitting a joint memorandum on CIPAA to PEMUDAH. MBAM and The Building Industry Presidents Council (BIPC) had meetings with the Institution of Engineers (IEM) on 19th January 2011, the Kuala Lumpur Regional Centre of Arbitration (KLRCA) on 26TH January 2011and PEMUDAH on 28th January and 14th February 2011 to quickly resolve the issues pertaining to CIPAA.

We are pleased to inform that we can see the light in the end of the tunnel and hope the Act can be tabled at Parliament for approval by middle of this year.

MANPOWER AND HUMAN RESOURCES

MBAM will continue to work with CIDB to reduce the number of unskilled workers and pursue with the Government on the 5+5 renewal of work permits for skilled foreign workers. MBAM will also be discussing with CIDB on conducting Trade Foreman Training for the construction industry in the near future.

REDUCTION OF IMPORT DUTIES FOR HEAVY MACHINERIES AND SAFETY AND HEALTH EQUIPMENTS

MBAM will be working with The National Institute of Occupational Safety and Health (NIOSH) to submit a memorandum to the Government on the appeal for reduction of import duties for construction related heavy machineries which currently is in the region of 20% whilst in most ASEAN countries the import duty is in the region of 5% to 10%.

MBAM will also appeal for the reduction of duties for safety and health equipment so that construction players are willing to invest in new equipments for the continued safety of their employees.

INCLUSION OF MASTER BUILDERS ASSOCIATION MALAYSIA (MBAM) IN FUTURE PEMUDAH CONSTRUCTION RELATED LABS
MBAM has written to PEMUDAH to consider including MBAM in future dialogues or meetings involving the various construction related labs so that the Association can contribute the expertise of MBAM and its members in the field of building and construction works to the task of improving the overall economy of the construction industry and the nation. The Association looks forward to closer rapport with PEMUDAH in our efforts in stimulating growth in the construction industry towards sustainable development and gearing the nation towards high income economy
Lastly, I hope that members would participate more actively in the activities of the Association for the continued betterment of the Malaysian Construction Industry.

Thank you.

Yours faithfully,
MASTER BUILDERS ASSOCIATION MALAYSIA

KWAN FOH KWAI J.M.N.
President