2 HEIGHTS EDITORIAL

Productivity, the Engine of National

environmental ratings standards and modern practices by the construction In the modern world, there are many practices. Finally, we want to assure a industry, the goal of a highly skilled, factors at play in the marketplace. high living standard for our high-paid workforce can become Financial strength, business diversity, entire population. reality, making the other three a well-trained labour force, visionary strategic thrusts easier to achieve. leadership, global competition, KLCC Property Holdings and environmental concerns and Putrajaya Holdings are to be Nothing is more important, in our sustainability are all components commended for their initiative in view, than a commitment to of economic health, for individual this effort by adopting BREEAM productivity. It is the engine of companies and for nations. standards for all their projects. The national growth, and without it little science-based rating system was first else matters. But productivity has We face many challenges in Malaysia developed in the UK in 1988. Using its many faces. There are numerous in the coming years. We have metrics, independent auditors rate ways in which Malaysia’s construction witnessed progress toward the goals buildings for overall sustainability industries can be transformed, but that were defined by the Construction in numerous categories, including as we move forward together to meet Industry Transformation Programme energy and water use, health and the goals set in 2016, we must also in 2016, and we fully expect to wellbeing, pollution, transport, recognise that this national agenda continue on the path that was materials, waste, ecology and requires ongoing commitment envisioned when the Four Strategic management processes. and focus. Thrusts were defined: Internationalisation The focus of this edition of Heights Quality, Safety and is productivity because it is such Professionalism With an increasing level of global a vital component of growth and competition, efforts must be development. Malaysia’s goals for the These fundamentals are primary redoubled to assure that local future depend on it, and the entire concerns if Malaysian construction construction players are equipped to nation and all its people will reap firms are to assume a place on the meet challenges not only at home, the benefits. world stage. There is no acceptable but also at the international level. We alternative for high quality, increased can accomplish this by encouraging safety, and a level of knowledge Malaysian firms to improve their Dato’ Ir Ahmad ’Asri Abdul Hamid and performance that demands the competitive capabilities, to adhere Chief Executive of CIDB Malaysia highest standards of performance and to higher standards, to seek out compliance throughout the industry. specialised and highly technical contracts, and to increase their Environmental Sustainability knowledge of internationally approved materials and workmanship. Environmental consciousness has led to a new agenda designed to build Productivity an infrastructure hub in Malaysia that is resilient and sustainable. Productivity provides the leverage Malaysian buildings and construction that brings improvements in resource industries can serve as a beacon for use and effectiveness of construction, emerging nations, with efficient waste thus being the driver for GDP growth management systems, a low carbon as a whole.Beginning with the footprint, and high compliance with adoption of new technologies and GLOBAL NEWS HEIGHTS 53 Commercial Building Lows Negatively Affect Construction Rates

The United States construction industry was found to be stagnant in terms of spending in January of 2018, after 2017 experienced the slowest amount of spending growth in the last six years. While single-family home construction increased at a modest rate of 0.6%, the reason for the stagnant spending in the country was due to a decrease of project spending in commercial real estate and certain other areas. The construction of office towers, apartments, power plants and other construction types fell. Spending on commercial building went down 2.7% at the beginning of this year. While the construction industry did not see overall growth in January, one sector that could help improve productivity of United States builders looking for projects is that of the public sector. Construction spending on state and federal projects has increased during this same time. UNITED STATES January showed increases of 4.4% for road and highway construction projects and of 2.1% for schools, among increases in other public sector areas. GLOBAL Sky Bridge Being NEWS Developed Will Become Biggest of CHINA Its Kind in World

When an aerial bridge is completed in Chongqing, China by Singaporean developer CapitaLand, it will become the largest example so far of a “horizontal skyscraper” anywhere in the world. This structure will act as a sky bridge that goes across four towers. One section is already completed of the planned 400m bridge called the Conservatory, and the anticipated completion date for the rest of the project is the middle of 2018. The Conservatory will provide a viewing deck to see the city of Chongqing, as well as places to eat and sky gardens and swimming pools to enjoy. “Some of the world’s most advanced construction and engineering techniques have been deployed to install this megastructure,” said the president of CapitaLand, Lim Ming Yan. The sky bridge was designed by architect Moshe Safdie from Canada, while the structural design was conducted by consulting engineer Arup from the United Kingdom. 4 HEIGHTS GLOBAL NEWS The United Kingdom Faces a Lack of Quality in Its Construction Industry

The United Kingdom is currently having problems with quality in the construction industry. The Chartered Institute of Building (CIOB) began a Construction Quality Commission in October 2017 after some serious construction failings came to light in the United Kingdom. The commission’s research found that “more than three-quarters of construction professionals believe the industry’s management of quality is inadequate.” The commission questioned industry professionals, related sectors and the public. Some problems that were highlighted in the research included deficient management of quality that negatively affects workmanship and signing off work. Instead of focusing on quality management, the industry in the UK has been making price and program its main components. Research findings also noted that quality in construction is not adequately covered in educational programs. UNITED KINGDOM Based on this research, the CIOB will make recommendations to improve quality within UK construction. These include creating a qualification or certification that’s focused on quality, developing a quality code with best practices and standards, and improving the GLOBAL focus on quality within education. NEWS “Plantscrapers” Could Be Answer SWEDEN to Feeding an Increasing Population

A Swedish project is showing that construction can help with some of the world’s pressing problems. This is the case with a recent project idea known as “plantscrapers” created by Plantagon, a Swedish food-tech company. These “plantscrapers” are office buildings that feature indoor farms taken care of hydroponically, which is a method that doesn’t use soil. Plantagon offers “plantscrapers” as a solution to provide enough food to a growing population. As the world population could go up to close to 10 billion people by 2050 and create the question of how to feed this number of people, one of these buildings could contribute by feeding 5,000 people with its indoor farm. Construction is underway of Plantagon’s first “plantscraper” known as The World Food Building, which started in 2012 and has an anticipated completion date of 2020. This $40 million building is located in Linkoping, Sweden, and it will make use of robot technology to create a mostly automated farm. Plantagon hopes that this idea will grow to different cities throughout the world. GLOBAL NEWS HEIGHTS 5 Firms Named to Complete Montreal’s Light Rail System Project

Canada has a planned project to connect Montreal suburbs with the city and airport through a light rail system. The firms that will conduct this project have been named, and they include firms from Canada, the United States and France. Canadian companies SNC- Lavalin, Aecon, Pomerleau and EBC will handle the engineering and construction aspects of the project. American Aecom and Dragados Canada will also provide engineering. French firms Alstom Transport and SNC-Lavalin will handle the supply of rolling stock. The $5.3 billion construction of this rail system will start in April 2018 with an expected completion date of 2021. The light rail, which is known as the Reseau Express Metropolitain (REM), is planned as Picture Source: ESO/L. Calçada a 67km electric and automated network with 26 stations that will provide improved public transportation to the Montreal area. “We’re excited to soon see a brand new public transportation network built with cutting-edge technology in Greater Montreal,” said Canadian CANADA pension fund CDPQ Infra’s chief executive, Macky Tall. GLOBAL Robots Infiltrate the NEWS Construction Industry Across the Globe GLOBAL

As a range of industries from technology to automotive increasingly rely on high-tech capabilities, the construction industry is keeping up with this forward movement. A main way the construction industry is using technology is through robotics. Construction firms are utilising robots for bricklaying, demolition, rescue, 3D printing and other areas. This technology is used for building, cement, mining, tunnelling and other components of construction work. This capability could help the industry as it has difficulty finding enough workers and to help it move forward in a changing world. It can also help with areas like disaster management and help the industry improve productivity. The use of robots in construction is a trend being used across the globe. Some major examples include Swedish companies Brokk AB, Husqvarna and Conjet AB; Chinese companies Giant Hydraulic Tech and Beijing Borui Intelligent Control Technology; German company TopTecSpezialmaschinen GmbH; Japanese companies Shimizu Construction and Fujita Corporation; and US companies Alpine, Construction Robotic and Cazza. 6 HEIGHTS CIDB NEWS CIDB LAUNCHES MALAYSIA’S FIRST ONE-STOP “myBIM CENTRE” TO IMPROVE CONSTRUCTION PRODUCTIVITY RM3 million Building Information Modelling (BIM) resource centre to promote industry adoption of modern construction technology

Minister of Works Dato’ Sri Haji Fadillah bin Haji Yusof officially launches the myBIM Centre as CIDB Chief Executive Dato’ Ahmad ‘Asri Abdul Hamid looks on

The Construction Industry Development Board Malaysia (CIDB) launched Malaysia’s launched by the Minister of Works, modern, progressive change to remain first one-stop “myBIM Dato’ Sri Haji Fadillah bin Haji Yusof. competitive and dynamic,” said Dato’ Centre” on 20 November The Centre lets industry players model Ir. Ahmad ‘Asri Abdul Hamid, Chief 2017 as a resource centre and visualise building projects in a Executive of CIDB Malaysia, at the simulated environment using BIM – a myBIM Centre’s opening. to promote Building modelling technology to produce, Information Modelling communicate and analyse digital Recognised as an advanced (BIM) system usage information models throughout the information and communications construction project life-cycle. technology (ICT), BIM lets users amongst construction design, visualise, simulate and analyse industry players. “This is the era of Industry 4.0. The each project element’s key physical construction sector, like Malaysia’s key and functional characteristics virtually Established by CIDB Malaysia for economic drivers, must embrace the before construction begins. This construction industry players’ usage disruption resulting from technology. identifies and rectifies potential issues with an initial investment of RM3 Building Information Modelling is how in the early stages. Its intelligent million, myBIM Centre was officially the construction industry can embrace digital models that facilitate CIDB NEWS HEIGHTS 7

BIM lets users design, visualise, simulate and analyse physical characteristics virtually before construction coordination, communication, analysis, Being able to virtually analyse key National Cancer Institute in Putrajaya, project management, and even asset physical and functional characteristics the Malaysian Anti-Corruption management are expected to bring the even before construction works Commission Building in Shah Alam, industry multiple benefits. commence, helps improve the the Educity Sports Complex in efficiency, quality, and most Nusajaya and the Ancasa Hotel in The introduction of myBIM Centre is importantly, the productivity of the Pekan, Pahang. timely as the construction industry overall construction process,” said needs major changes to improve Dato’ Ir. Ahmad ‘Asri Abdul Hamid. With myBIM Centre’s launch, BIM its productivity. According to the software and training programmes will Malaysian Productivity Corporation The implementation of BIM is part of be offered, complementing the myBIM (MPC), the construction industry the initiatives to more than double the Library portal and its BIM materials. experienced the lowest productivity industry’s productivity, in line with the To date, 1,300 BIM personnel have level of RM40,018 per worker in 2016. Productivity strategic thrust of the been trained by CIDB. The Centre also By comparison, the agriculture sector Construction Industry Transformation features state-of-the-art facilities, experienced RM55,485 per worker, Programme 2016-2020 (CITP). including a rental studio available to all services sector experienced RM68,166 Currently, adoption of BIM in Malaysia BIM practitioners, a lab, seminar room per worker, while manufacturing is at 17 percent which is lower than and showcase area, all equipped with experienced RM106,647 per worker, more developed economies such as advanced audiovisual devices and high the highest productivity level. the United States at 71 percent and user capacity. United Kingdom at 54 percent. “BIM’s advantages in building projects For more information, please visit: are manifold and extend throughout Notable projects in Malaysia www.mybimcentre.com.my the entire construction value chain. constructed using BIM include the

The implementation of BIM is part of the initiatives to more than double the industry’s productivity in line with the CITP 8 HEIGHTS CIDB NEWS

CLAB’s CLQ Marks a New Beginning for The Minister of Works, Dato’ Sri Haji Fadillah signs the plaque, officially launching the Workers’ Housing Sungai Buloh CLQ since its refurbishment

Dato’ Sri Haji Fadillah converses with some of the foreign workers who live at the CLAB CLQ On 18 January 2018, the Construction Labour Exchange Centre Berhad (CLAB), a non-profit subsidiary of CIDB, launched its first Centralised Labour Quarters (CLQ) to improve the living conditions of construction workers. Located in Shah Alam, the CLQ encompasses six blocks consisting of 144 rooms with each room fitting a total of six people. The entire facility has the capacity to house a maximum of 864 workers at any point.

Dato’ Sri Haji Fadillah bin Haji Yusof, could be compromised otherwise. has a 24-hour CCTV surveillance and the Minister of Works, officiated the In line with Construction Industry access card security system, a surau, opening. Also present at the launch Transformation Programme, a target cafeteria, kitchen, sundry shop, futsal was Dato’ Sri Zohari bin Haji Akob, has been set for eight CLQs to be fully courts, showers, common bath, self- Secretary-General of the Ministry of built and operational by the fourth service laundromat, and a sick bay. Works cum CLAB Chairman, and quarter of 2020. Each room includes 3 double-bunk CLAB Chief Executive, Abdul Rafik beds, lockers as well as wall fans. Abdul Rajis. MRT Corp had built the Sungai It is expected to house construction Buloh CLQ along with other CLQs workers from small and medium- In his keynote speech, Dato’ Sri Haji at a total cost of RM79.5 million in sized construction projects within a Fadillah said, “The construction 2011 to house its workers during 10- or 20-km radius of the facility. industry is one of the main the construction of the MRT Sungai catalysts driving the growth of the Buloh ─ Kajang line. Following the The facility is currently being used country’s economy.” completion of the MRT line, MRT Corp to house workers in transit who had permitted CLAB the use of the are given training to familiarise According to the minister, the total premises for a year as a pilot project. themselves with the local value of construction in 2018 was environment and laws. CLAB Chief expected to reach RM140 billion. The CLQ Sungai Buloh had recently Executive Abdul Rafik also gave a He said that the primary aim was to undergone a RM1 million 2-month presentation on the strict rules and provide proper accommodation for refurbishment from August 2017. regulations the residents had to the workers as their health and safety A fully gated and guarded facility, it adhere to. CIDB NEWS HEIGHTS 9

amendment of Act 446 (Workers’ The Works Minister acknowledged Minimum Standards of Housing that it was a more economical and and Amenities Act 1990) to include practical option to rent a CLQ by construction workers in its scope. CLAB for construction workers as Currently, the law only mandates employers need not shoulder the housing for plantation and mining additional duties of managing workers. The Works Minister the quarters.

The CLQ has 2 outdoor courts where residents can play futsal, sepak takraw and other sports in their downtime

Residents are encouraged to buy their groceries and items for their cooking needs at the sundry shop

The Sungai Buloh CLQ is equipped with 5 self-service washing machines

At the media briefing, Dato’ Sri Haji Fadillah said, “The CLQ is not only open to foreign workers. it’s also open to local workers. There are many Cool, comfortable and clean living conditions are found in the quarters construction workers from other states here.” mentioned that there are hopes that On the rental rates, Abdul Rafik, He added that there were ongoing the amendment will be passed this said, “The monthly rent is currently talks to construct and operate two year. When asked to provide housing priced at RM150 per person with an new CLQs in Batu Kawan, Penang, for workers, many construction additional RM30 charge for utilities. and Putrajaya by 2018. companies build ramshackle wooden We are open to individual negotiations shacks where hundreds of workers with construction companies on “The location of the CLQs would also live together in squalid conditions. the rates.” depend on the demand and needs Under such circumstances, the of the construction industry in each occupants are vulnerable to disease The Sungai Buloh CLQ is hopefully state. Not every state has a need for and accidents. the first of many initiatives which CLQs,” he continued. will drive the construction industry During his address, he said, “The towards higher standards of safety, One initiative taken to improve the housing provided by unscrupulous sustainability, and productivity. housing conditions for construction employers who build facilities which Established in 2003 by CIDB to workers is the MS2593-2015 on don’t follow the standards set, manage the redistribution of foreign Construction Worker’s Amenities. exposing the workers to vulnerable workers for construction projects It had been established by CIDB lifestyles. This unhealthy environment throughout the country, to date, in collaboration with industry does not only endanger the workers; CLAB has succeeded in redistributing stakeholders and published by the it may also impact the local socio- as many as 174,000 workers and Department of Standards in 2016. economic development, safety, and managing 34,800 requests from Meanwhile, CIDB is working with the health conditions.” construction companies. Ministry of Human Resource on the 10 HEIGHTS NEWS & EVENTS GAMUDA Leads the Way with First Fully Automated IBS Factory

Gamuda launches Malaysia’s first fully automated robotic IBS factory

Industrialised Building System (IBS) has been heralded as a cutting edge measure that will help propel the transformation of the construction industry in Malaysia and Gamuda is spearheading the adoption of this innovative construction method through the country’s first fully automated robotic IBS factory. Through IBS, components for a construction project are manufactured in a controlled environment and are then assembled and installed on-site.

The Gamuda IBS factory located has produced over 3,000 apartment Minister of Works, Dato’ Sri Haji in Sepang, Selangor has been units for the Jade Hills development Fadillah bin Haji Yusuff, made a visit operational since July 2016 and project in Kajang and its residential to the factory recently and said that is fully integrated with Building show units have achieved a Quality the government intends to engage Information Modelling (BIM) Robotics Assessment System in Construction with industry players to make the Production System. BIM is a 3D (Qlassic) score of 86%. adoption of IBS in construction modelling software that facilitates the management of information on construction projects from conception to completion. This technology enables a more sustainable construction process that promotes efficiency and reduces wastage. The BIM Integrated Robotics Production System at Gamuda IBS translates 2D drawings into 3D models, which are then deciphered by robotics to produce the needed components. It also includes Common Data Environment, an online repository that consolidates all the information for easy access and sharing among Minister of Works Dato’ Sri Haji Fadillah bin Haji Yusuff project team members. IBS Gamuda visits the factory with CIDB officials NEWS & EVENTS HEIGHTS 11

projects compulsory in the coming improved prosperity and higher that Gamuda IBS had demonstrated year. As of May 2016, approximately standards of living,” Dato’ Sri Haji the effectiveness of technology 69% of government projects have Fadillah said. “With more of such in elevating standards of safety, GAMUDA Leads the Way adopted IBS while the private sector high impact development, sustainable efficiency, and quality in construction. has an adoption rate of under 15%. “I human capital development can be He maintained that IBS can help believe we can all do much more and achieved as we progress in our nation eliminate the negative perception of with First Fully Automated for that, I applaud Gamuda for taking building journey.” the industry. “They call it the 3Ds – the initiative to kick-start private dirty, difficult, and dangerous–but that sector participation in leading the The adoption of IBS is also consistent can be changed through IBS where IBS Factory adoption of IBS in construction,” said with the goals of the Construction people don’t need to be layering Dato’ Sri Haji Fadillah in the speech Industry Transformation Programme bricks at sites and things like that.” he gave during his visit. (CITP), which aims to effect a holistic overhaul of the industry. The desired Gamuda IBS has trained more than He also praised the company for outcome is a construction industry 200 students from Institut Kemahiran upskilling its employees by training that adheres to high quality and safety Belia Negara (IKBN) to date and them on how to use IBS and other standards, is efficient and productive, reduced reliance on foreign labour by advanced technologies used at its environmentally sustainable, and up to 63%, subsequently minimising factory such as BIM and Common globally competitive. outflow of funds. Construction of the Data Environment. “ second Gamuda IBS plant in Banting, “The best way to achieve this is Selangor is ongoing and expected This equates to enhancing the through technology, which includes to be completed by end of 2018. capabilities and capacities of our robotics, mechanisation, and With the new factory, Gamuda IBS’ workforce and is important as the automation,” said Dato’ Ir Ahmad Asri production capacity will increase to country progresses towards achieving Abdul Hamid, CEO of CIDB, adding 8,000 units a year.

Dato’ Ubull Din Om, Managing Director of Gamuda Engineering, introduces the Gamuda IBS facility

The desired outcome of IBS is a construction industry that adheres to high quality and safety standards and is globally competitive

Gamuda IBS’ production capacity is expected to increase to 8,000 units a year by end 2018

Raw materials awaiting processing VIP tour of the facilities 12 HEIGHTS NEWS & EVENTS Setting the Benchmark for Productivity Not only will Exchange 106 transform the skyline, it’s also setting new standards

The Exchange 106 is not only set on changing Kuala Lumpur’s skyline; the structure is also making waves for the sheer productivity demonstrated throughout its construction.

Exchange 106 is set to redefine the Kuala Lumpur cityscape

Indonesian developer Mulia Property which the project is progressing is of technology that proved highly Development, a subsidiary of Mulia astonishing. Nevertheless, it would useful in keeping the project well Group, and China State Construction not be possible without the adoption of within its planned duration was a Engineering Company are currently efficient construction methods, cutting- 4D building information modelling building the structure in the heart edge machinery and technology as well (BIM) system. Currently used by 5% of Tun Razak Exchange, the 70-acre as a highly skilled workforce. of construction firms in Malaysia, development primed to be the software enables architects and the financial and banking district At an on-site presentation by several contractors to build 4-dimensional of Malaysia. members of the project management digital models and simulate team on 15 November, CIDB construction, thus streamlining Upon its completion, the 106-storey representatives were briefed on various processes. building will stand at 452.37 metres the project’s use of these methods or 1484.15 ft will overtake Petronas and technologies. Mulia Group also purchased two new Twin Towers’ spot (452 metres) as the Zoomlion L500-32 internal climbing tallest building in Malaysia. However, According to the project’s deputy tower cranes for the project. These The Exchange 106’s height is just its construction manager, Jeff Yap, highly impressive tower cranes’ crowning glory to the team a state-of-the-art concrete pump electronic display systems come behind the project. was used. Brought in from China, it with a speed changing mode which is able to carry concrete up to 500 ensures steady movement, especially Commencing in February 2016, the metres. If a concrete pump had not when hoisting steel structures. This project has been on a fast track since been adopted, the team would have allows the team to complete each its inception and should be finished had to use a tower crane or other floor within three days. in September 2018. The speed at conventional methods. Another piece NEWS & EVENTS HEIGHTS 13

Project director Roland Suckling shares the philosophy According to project safety officer behind the design Krishnasamy A/L Arumugam, the management conducts monthly safety inductions and training sessions Yet another example of the staff’s commitment to efficiency is their adoption of a self-climbing placing As the project’s safety officer, boom. Mounted to the core wall Krishnasamy A/L Arumugam system, it is able to climb the shared during the presentation, building as construction upon each the management conducts floor is completed. monthly safety inductions and training sessions for all workers. The Exchange 106’s practices are perfectly aligned with the For some perspective, safety Construction Industry Transformation manager Ying Yue Min shared, Programme’s aims of achieving “Most construction companies in productivity through modern China spend 2% of each project’s total practices, increased mechanisation, expenditure on safety measures.” and a highly skilled workforce. In fact, For The Exchange 106, he revealed Exchange 106 will stand at 58 of the Chinese management staff that the spending on safety 452.37 metres as the tallest building members are university graduates. amounted to approximately in Malaysia 3-4% of the total expenditures. Key to the project’s development is an aggressive momentum. Roland After the presentation, the shoot up the corners of the building Suckling, the project director for representatives were also given right up to the crown.” Mulia Property Development, said, a site tour and taken up to Level 49. “We developed a very specific strategy Previous news reports have all Sirius Lighting, a Japanese lighting to fast-track the building. We started commented on the structure’s consultant firm from Hong Kong, off with a 4-day cycle, then we moved record-breaking height. Upon chose the colours of the Malaysian to a 3-day cycle. At the top of the nightfall, however, the LED-lit currency for the colour scheme of building, we’re on a 2-day cycle.” facade will truly be a sight to behold. the LED lights. As CIDB representatives viewed a Besides the usage of these modern model of the completed building, The crown itself is another stunning machines, the 22/7 schedule the Suckling shared the philosophy wonder. 65 metres tall, it is shaped workers are on also contributes to the behind the design. like a perfectly cut diamond and made structure’s lightning-fast progress. of extremely clear, non-ion laminated Concern for their safety and health “There are LED lights in the facade. glass. Suckling said, “There are would not be amiss under such We integrated them right into the lights in the glass and there are stringent working conditions. How curtain wall. There are about 100 lights inside the crown which shine does one prioritise speed and metres of LED lights in the facade onto a lantern.” The crown is efficiency without compromising [where] we can do a big show. For expected to display colourful swirls on the workers’ emotional and festivals or other events, there will be of lights during major events and physical health? LED light shows. There are lights that special occasions. 14 HEIGHTS NEWS & EVENTS

Rawang Bypass: A model construction with a heart

Federal Route 37 - called the Rawang Bypass - is set to become Malaysia’s foremost elevated highway project, with its highest pier reaching 60 metres above ground.

Connecting the ever busy Rawang to According to JKR Director-General Serendah, this 8.25km marvel of elevated Datuk Seri Ir Dr Roslan Md Taha, the public was engaged to construction reduces peak travel time understand their concerns from two hours to a mere thirty minutes. and get their thoughts toward the project NEWS & EVENTS HEIGHTS 15

The scope of work looked into To protect and preserve the with his team, which was a dense upgrading the existing 12.1 km environment and eco-system, the jungle at that time. “By the time we Federal Road 1 (FT1), widening a Works Ministry and the Selangor finished, my shoes didn’t resemble single-lane dual carriageway road to State Government adopted the viaduct shoes and all my toenails had come off!” two lanes and constructing a 9 km solution instead of the conventional two-lane dual carriageway from the cut and fill method to traverse He explained that on the job site, Sungai Kanching Bridge along the through this environmentally sensitive JKR took health and safety matters fringe of the Kanching Forest Reserve area. The viaduct solution offers seriously. They conducted daily tool to Sungai Choh, Serendah. very minimal and localised cutting box talks with the workforce, focusing of slopes, causing minimal on safety related to the specific job, According to JKR Director-General disturbance of the vegetation including workplace hazards and safe Datuk Seri Ir. Dr. Roslan Md Taha, the and eco-system. work practices. proposed road met with resistance from the surrounding residents. The Due to this decision, the project’s As a result, the project has managed public was engaged several times to original completion date of 2008 was a zero fatality rate despite the understand their concerns as well as delayed. This was largely due to using challenging work conditions. get their thoughts and ideas moving the hand dug caissons method for forward with the project. the construction of the foundation, Rawang Bypass is also Malaysia’s which avoided the need for first construction project to use the Today, with the completion of the mobilization and usage of heavy Movable Scaffolding System (MSS) - road, this toll-free journey glides bore piling machineries. travelling steel structures supporting past, through and over the hilly and the formwork that give shape to the densely forested Kanching Eco-Forest Double column piers with immediate bridge. The MSS is self-launching Park and Lagong Forest Reserve, tie beams for tall piers were selected and does not require any supporting both part of Taman Warisan Selangor to act effectively as a frame structure cranes for handling the support (Selangor Heritage Parks). for economy of the substructure brackets, and was considered feasible works, allowing for minimal use for this project considering the These forests harbour beautiful of pilecaps. minimal impact it had on the forest waterfalls, rivers and catchment reserve along its alignment. areas, exotic wildlife, and unique flora Other new environmentally friendly and fauna, including the celebrated methods were introduced, such as The project’s Level of Service (LOS) Giam Kanching (Hopea Subalata) geo-grid and precast interlocking is expected to improve from level F found only in this part of the world. slab. The construction of silt traps to level C, producing smoother traffic and silt fences in specific locations flow from Bandar Rawang. This bypass Fear of the Giam Kanching tree’s controlled heavy runoffs. is also expected to boost development extinction due to the highway project in neighbouring towns in Serendah, was one of the biggest motivating Approximately 1,200 workers from six Batang Kali and Tanjung Malim. factors for the Works Ministry (JKR) different nations (Malaysia, Vietnam, to abandon the original design Bangladesh, India, Pakistan and Today, Rawang Bypass stands proud alignment and use of the conventional China) worked strenuous three hour as a model construction with a cut and fill construction method. shifts round the clock to manage heart. By saving almost 40 hectares the feat. of forest, the Works Ministry has The cut and fill method would have proven that it can still provide led to extensive felling of trees, as JKR Civil Project Engineer Abdul excellent infrastructure for the well as cutting and filling of slopes. Rahim Mokhtar, fondly called Rahim public by choosing preservation over It would have also disrupted the free King Kong by his colleagues, recalled destruction. As for Rahim King Kong, flow of wildlife, if not destroyed many an amusing yet painful moment in the the project goes down as a personal species altogether, in addition to project. He had to scout out the area badge of honour in his eventful career. other impacts on the eco-system.

To protect and preserve the environment and ecosystem, the Works Ministry and the Selangor State Government adopted the viaduct solution instead of the conventional cut and fill method 16 HEIGHTS NEWS & EVENTS

KL Sports City has garnered a CIDB 5-star award and an ISO award from Hong Kong, and was shortlisted for World Architecture Festival 2017 in Berlin MRCB comes with a winner with world-class KL Sports City

The massive, multi-million comprehensive safety systems, and Construction giant redevelopment project spearheaded by improved tracks and pools. Malaysian Resources Corp. MRCB and international architectural Berhad (MRCB has received firm Populous saw comprehensively According to MRCB General Manager upgraded facilities, infrastructure and Datuk S Nalgunalingam, KLSC was praise from industry systems at KLSC in preparation for designed to create a co-ordinated stakeholders for their the 2017 KL SEA Games. These were and liveable sports city by adapting, redevelopment of the centred on the National Stadium, the updating and linking the existing refurbished National Aquatic Centre, facilities, giving the community a former Bukit Jalil Sports the Axiata Arena, the National Hockey sustainable sporting precinct Complex into KL Sports City Stadium and a sprawling plaza. year-round. (KLSC). It has garnered a The stadiums received major facility New cycling and running tracks have CIDB 5-star award for safety and capacity improvements and been installed outside the stadium, and an ISO award from Hong meet international standards. These alongside new shower rooms so Kong, and was shortlisted improvements included greater people can use the new facilities. 800 seating capacity such as the National security cameras and better lighting for World Architecture Stadium’s 85,000 seats and the Axiata also heighten public safety. KLSC Festival 2017 in Berlin. Arena’s 15,000 seats, state-of-the-art also has ample green space and audiovisual displays and speakers, pedestrian-centred layouts with public NEWS & EVENTS HEIGHTS 17

MRCB General Manager Datuk S. Nalgunalingam explains that KLSC was designed to create a co-ordinated and liveable sports city

The works undertaken by MRCB at KLSC is a fine example of transforming Malaysia’s national construction into a responsible and developed industry transportation and canopy walkways see stadiums around Europe and individual project owners to drive encouraging community activity neighbouring Asian countries. We Safety. As early as tender processing, at all times. talked to stadium operators on the Safety element must be factored in challenges and improvements that can so that contractors can be held liable The project as a whole completed be made,” he added. and penalised to emphasise the Safety ahead of schedule in 15 months factor’s importance. on a tight budget, thanks to the The project achieved a zero fatality detailed planning stage, strict rating. Separate safety briefings “Safety has always been our topmost time management, and sound and workshops were held for the priority. We do not compromise on communication to tackle any issues workers, management, and contractor safety. Everybody has to go home arising. Additionally, Nalgunalingam representatives to ensure Safety safe,” said Nalgunalingam. stated the Safety aspect was stressed drove decisions and was everybody’s at every stage. responsibility. Risk elements were The works undertaken by MRCB at assessed prior to the start of KLSC is a fine example of transforming “Building Information Modeling (BIM) the project to avert danger and Malaysia’s national construction into a was used from day one of design, during the project. Work was responsible and developed industry. project planning and modeling,” ordered to be stopped in the event of he said. unsafe occurrences. Its high quality construction, adhering to primary prerequisites of quality, “We went on a benchmarking In Nalgunalingam’s point of view, safety and professionalism, makes it a tour together with Populous to conscious efforts must be taken by model project to emulate. 18 HEIGHTS PRIME MOVER

Gamuda Engineering Managing Director Dato’ Ubull Din Om (second from right) receiving the QLASSIC Certification for the Gamuda IBS show unit from CIDB Malaysia’s Chief Executive, Dato’ Ir Ahmad Asri Abd Hamid. With them are Works Minister Dato’ Sri Fadillah Yusof and Gamuda Group Managing Director Dato’ Lin Yun Ling (centre) Gamuda’s IBS Push Shifting Construction the Sustainable Way

IN a bid to heed the Government’s call for transformation, Gamuda embarked on what was to be a game changer for the construction industry. Having delivered iconic road and rail projects, the infrastructure development Group has become a reliable household name that promises to deliver projects of any scale on time and on cost as evidenced by their over four- decade track record. PRIME MOVER HEIGHTS 19 One of the more efficient and Increasing Productivity first automated robotic factory. productivity-driven method of with IBS It combines Building Information construction uses the Industrialised Modelling (BIM) with robotics and Building System (IBS). The IBS The existing representation of the automated production on a digitally Strategic Plan by Construction construction industry has been steering integrated platform. This is in line Industry Development Board local talent away from the sector with the Fourth Industrial Revolution (CIDB) and IBS Roadmap (2003- contributing to an increase in foreign (IR 4.0) wave which is transforming 2010) was first approved by the labour. To put things into perspective, business landscapes globally. Cabinet in 2003. This was followed the construction sector utilises 9.5% by the IBS Roadmap 2011-2015 of the labour workforce despite Automation certainly cuts down and the Construction Industry contributing only 4.5% to the GDP. production time. Investing in this Transformation Programme (CITP) technology also reduces labour 2016-2020, which further asserts As the industry became more dependency by 65% at the site. the Government’s aspiration to foreign labour intensive, so did Automation also enhances fully implement the use of IBS in a host of other economic, social accuracy and more importantly, the construction sector by 2020 and health issues. In addition, improves output. for a cleaner, efficient and more poor housekeeping methods and productive building industry. low quality, safety, health and Today, it takes Gamuda 12 months environmental protection painted a instead of 18 months to build landed Gamuda Engineering Managing grim picture. homes and just 24 months instead Director Dato’ Ubull Din Om speaks of 36 months to construct high- to Heights on how the Government’s “We were dedicated to growing rise buildings. There are more aspiration pushed Gamuda to our business and leading the convincing numbers – their factory invest into the nation’s first Digital construction industry by introducing in Sepang currently produces one Industrialised Building System (IBS). best industry practices. Gamuda housing unit per hour and it takes IBS became an industrial solution them only one week to complete Shifting Perception as it promoted sustainable installation of each floor on-site, construction methods,” says the which includes fully fitted out Innovation is key to industry Managing Director. bathroom units. transformation, particularly in this digital age which thrives on speed, Today’s technology enables the The ones who benefit the most are seamless data and efficiency. Group to design, customise and end users as investors get the keys produce a wide range of precast to their properties earlier, allowing With this focus in mind, Gamuda products according to client’s savings on interest payments as pioneered the development of specifications. For the time being, well as rental for first-time buyers. Gamuda Digital IBS factory, which Gamuda IBS offers solid wall, started operations in July 2016 in double wall, half slab, prestressed The structural installation works Sepang. A second plant in Banting slab, prefabricated bathroom units, for the Rumah Selangorku (RSKU) will be ready in the third quarter of and unique wall facades. affordable home project in Jade this year and together, the facilities Hills, Kajang – consisting of over boast a combined output capacity of Gamuda’s indoor facility in Sepang 700 units, shop lots and car park 8,000 property units annually. and soon, Banting, manufacture facility – was completed within all precast panels in a safe, and 393 days. This track record is fast “This was our idea of expansion, controlled environment. This way, when compared with conventional transformation and productivity they are able to eliminate error, construction methods, which would enhancement as the government optimise cost, reduce wastages, have taken 540 days. began pushing for a more guarantee better quality, and reduce productive, efficient and cleaner construction time. Gamuda is currently doing the construction ecosystem. The call same for another RSKU project in was clearly aimed at replacing With digitalisation, managing Kundang Estates, Rawang. This the existing 3D (dangerous, dirty multiple projects simultaneously is low-density development project and difficult) image by the sector,” now viable. comprises 230 units of modern explains Dato’ Ubull. apartments ranging from 750sqft to Automating the Process 1,000sqft, community hall, car park With an improved overall image, it facilities and a playground. would be easier to train and retain IBS has a long history. But here, a skilled workforce locally which for the first time ever, Gamuda Gamuda Gardens, an integrated in turn contributes to the local brings to the nation Malaysia’s low-density development which economic growth. includes interconnected parks and 20 HEIGHTS PRIME MOVER community-friendly features, will and automated control system, the with enhanced earning power house Gamuda IBS’s first landed completed BIM model is seamlessly and marketability. This, in turn, homes, expanding their capacity put into production at their factories. spurs a renewed image for to build contemporary landed the building sector,” properties. In future, homes built by “Since we are the first to adapt Dato’ Ubull stresses. Gamuda Land such as twentyfive.7 such an initiative locally, the onus and Gamuda Cove will optimise is on us to train the workforce with Flexible Design Gamuda IBS. necessary skills and knowledge and Safe Construction as training and development Gamuda IBS, whose engineering, contributes to an increased and The key differentiator that places manufacturing and supply of quality output. To support this Gamuda IBS products a step reinforced precast concrete agenda, we started the BIM above is customisation over products are ISO certified by SIRIM Academy in 2017 to train our standardisation as every single QAS International (ISO9001:2015), workforce on proper technology cast can be made differently has been successful in their usage and management. To date, on a flexible mould, formed by external tenders, securing more we have trained some 700 the robots. In the process of than 1,000 units of external Order employees with relevant skills and transforming the construction knowledge, moving them up the

Gamuda Engineering Managing Director Dato’ Ubull Din Om (second from left) accompanying Works Minister Datuk Seri Fadillah Yusof on a working visit to Gamuda IBS factory in Sepang last August Photo credit: Gamuda Bhd

Book for high-rise residential industry value chain,” practices, they are also shifting apartments. Looking ahead, more Dato’ Ubull explains. perceptions that IBS products are than half of Gamuda IBS orders will boring and confines designers’ be from external sources. As manual labour reduces with creativity due to standardisation of automation and digitalisation, precast products. A Digital skilled manpower increases, Construction Ecosystem meeting the government’s agenda They are able to produce solid, to have 35% skilled workforce by high quality and stylish products all 2020. To give a simple example, within a controlled environment. BIM (Building Information Modelling) Gamuda now require only one Off-site manufacturing has great is touted as the ‘central intelligence’ quantity surveyor (QS) to finalise advantages because the process is of the IBS operations - synchronising cost assessment for 10 KVMRT simpler, faster and safer. This the inputs from various functions stations within three weeks as makes it easier to design, develop, across different business units as it opposed to 10 QS taking two produce, transport and assemble acts as a single source of information months to do the same, previously. the products at site. available on a digital platform. BIM allows the builders to pre-plan and “Since we have made it a point to A major plus point that elevates rectify errors at the design and use IBS for all our infrastructure construction standards is a cleaner planning stage. Integrated with an projects, we envision the creation and greener site which contributes Enterprise Resource Planning (ERP) of a fresh pool of skilled talent PRIME MOVER HEIGHTS 21

Using advanced robotic functions, Gamuda IBS increases productivity, optimises resource allocation and reduces wastage Photo credit: Gamuda Bhd 22 HEIGHTS PRIME MOVER

Artist’s impression of a building with precast concrete beams. Gamuda IBS has the capacity to produce a variety of designs and products Photo credit: Gamuda Bhd

A prefabricated bathroom unit designed, produced and completely assembled inside Gamuda IBS factory Photo credit: Gamuda Bhd

Malaysia’s first digital IBS by Gamuda in Sepang has a yearly output capacity of 3,000 units Photo credit: Gamuda Bhd PRIME MOVER HEIGHTS 23

RSKU Jade Hills in Kajang is Gamuda’s first affordable housing project that’s IBS-optimised. Structural completion on-site just took 393 days Photo credit: Gamuda Bhd

towards sustainable building “We learnt that it is possible to Excellent heat and sound insulation practices. Take a visit to an optimise IBS for an entire township. gives investors the added advantage IBS-optimised construction We also learnt that we have the of owning a quality property that area and compare them with a ability to build beyond 40-storeys; was built sustainably,” conventional construction zone infrastructure such as toll plazas; Dato’ Ubull reveals. to see the difference. commercial and industrial lots; and enhance the aesthetical appeal of an Currently, their facility in Sepang is There are far lesser waste, bigger IBS-optimised product. operating at full capacity to cater to space for movement and a healthier Gamuda Land projects. Their capacity working environment because “Indeed, every technology has its will be further boosted when their workers deal with less noise, heat, strengths and limitations. We Banting factory is ready as they can dusts and chemical fumes. Fewer discovered our strengths and better serve external clients who are workers on-site also means better mitigated the machineries’ limitations major developers in town. Clients safety aspects. through new design methodology. who engage Gamuda to build for Today, we can claim that our IBS them can be assured of higher quality Product Development products have more pros than cons. standards for their developments as - Leading the Change they focus on marketing strategies to For instance, our products have build their business. Gamuda’s team heavily invests into superior resistance to fire and rot product research and development compared to timber or steel At a macro level, Gamuda is forming and this was a major learning ground construction. As opposed to brick good industrial collaborations whilst for them. Through continuous product walls, the factory finish quality for encouraging efficient time and cost development, they realised that the Gamuda IBS panel is superior. utilisation that will raise the standards possibilities are limitless. of the local construction sector, an effect that will benefit all interested parties in the industry. 24 HEIGHTS COVER STORY The Human Touch to PRODUCTIVITY

As Malaysia presses on towards its 11th Malaysia Plan goal of becoming a high-income nation by 2020, there’s a buzzword being bandied about. It’s “productivity.” Investing in human capital might seem a foregone conclusion at this point, but it is precisely what’s needed to drive productivity.

Simply put, productivity is the Datuk Matthew Tee, Group Executive Director, Bina Puri efficiency by which a producer converts inputs into outputs. Without a specific context, There is no question that questions about the factors driving productivity usually means labour productivity is the key to unlocking productivity and solutions rise to productivity, which can be calculated Malaysia’s path as a high-income the fore. Seeking insight on these by the amount of output per hour nation. Greater productivity, in turn, matters, HEIGHTS spoke to Datuk worked or workers employed. leads to an enhanced sense of Matthew Tee, the president of competition across the sector, International Federation of Asian Key goals for 2020 include giving both the economy a boost and and Western Pacific Contractors’ increasing productivity by 2.5 times leading to higher incomes for all. Association (IFAWPCA) and group up to an output of USD16,500 per executive director of Bina Puri. worker and paying out higher wages In the debate on improving based on increased efficiency. productivity in construction, COVER STORY HEIGHTS 25

On the Tech Track Oregon, they saved USD10 million A Little Behind on a project which was budgeted for Technological progress brings a USD295 million. Despite their benefits, both BIM and whole slew of promises. One major IBS haven’t been as well-received as technological marvel, Building Speaking to the news website Fast hoped. In line with the productivity Information Modelling (BIM), enables Company, Alene Davis of SERA thrust under the Construction architects, engineers, contractors Architects, one of the lead firms Industry Transformation Programme, and their collaborators to generate involved in the CLSB project said, CIDB has been driving the adoption 3D models of a building over its “It’s hard to determine just how of both technologies in the public and lifecycle. Decades ago, they would much more time the project would private sector. have been completely reliant on have taken if these processes hadn’t hand-drawn illustrations and been as streamlined, but it’s safe to High investment costs could be computer-aided design. say we saved many months.” deterring some industry players from adopting BIM and IBS. “Depending on “Last time, we used to have all our Industrialised Building System (IBS) the vendor, the BIM software could draughting team use AutoCAD. is another innovation that heightens cost hundreds of thousands,” Datuk Each respective drawing is separated productivity rates. It involves Matthew explained. one by one. It was just a 2D view,” manufacturing building components Datuk Matthew recalled. “Now with in a controlled environment such BIM, we can visualise 3D buildings as a factory or plant before they’re from start to end, incorporating transported to the construction site all segments such as M&E, C&S, for assembly. architectural and others. If one of the segments clashes, the team will Impressively, in 2015, Mini Sky City, a immediately rectify to integrate them.” 57-storey skyscraper was assembled in 19 working days in Changsha, And if a contractor wishes to change China. Locally, the administrative one element of the design, the block of a primary school in Sarawak, modification and its ripple effects SK Siniawan, was built within 49 (costs, building performance, days, earlier this year. If conventional construction time, etc.) would be building methods had been used, the updated in real time and every same project would have taken at least member of the team would be able to six months. see the updates. It might seem like a recent Using a fully digital design-and- development, but IBS was introduced documentation system such as BIM to Malaysia in the 1960s with the reduces construction costs – 2% by Pekeliling Flats project. Other conservative estimates. In a rare case notable projects that have seen where all designers and contractors the use of IBS since then are the used BIM to work on the Collaborative Petronas Twin Towers and the Main Place is one of Bina Puri’s popular Life Sciences Building in Portland, Kuala Lumpur International Airport. residential-commercial developments Photo credit: StarProperty.my

Using a fully digital design-and-documentation system such as BIM reduces construction costs 26 HEIGHTS COVER STORY

“We need multi-skilled workers... That will lead to higher pay and higher-skilled workers.” - Datuk Matthew Tee

In the long term, as the adoption of “I’m ready. I’ve got 6 fellows here. But Inspired by a simulation during a BIM and IBS grows more widespread, what about the carpet? What colour? workshop training several Bina Puri the need for low-skilled migrant How do you want the lighting? Your staff went to, he gave an example: workers will drop sharply. This would wall? What paint colour? Plastered “Let’s say on a normal day, we sweep increase the productivity rate by 2.5 or not plastered? A lot of info for one times to USD 16,500. simple room.” the corridor. But with a certain push When clients change their factor, we can sweep 7 times faster. It “We need multi-skilled workers. requirements or demands, this may shows that the general human being Not only can you do brick-laying, prevent contractors from completing can work 7 times faster.” you can also do plastering. That will the project at the rate they desire or lead to higher pay and higher skilled planned for. According to a Wages and Salaries workers,” Datuk Matthew added. Report released by the Department Among other factors, cashflows or the of Statistics in 2013, Malaysia’s Another challenge lies in the logistics lack thereof could also lead to project construction sector’s average cost. Contractors would need to invest delays. monthly salaries were recorded at in the proper equipment that can RM1,708 and RM1,932 for men and transport these heavy components for “For example, you’re supposed to pay women respectively. assembly to the building site. me within 45 days. Sometimes, you pay me after 60 days. Or sometimes you From his perspective, high wages Also, some things just can’t be only pay me 60-70% of what I’m owed. do not necessarily lead to a stronger replaced by robotics and AI. A lot of times, contractors have to bear performance. In fact, it could result the burden on behalf of their clients.” in a waste of money if the increased Datuk Matthew shared, “If you ask salary does not result in rising me, drones are good for taking Does the Chicken or productivity. pictures of the site, but they can’t the Egg Come First? monitor wastage and other things. “High pay is not necessarily You still need humans to supervise.” Do high wages lead to high commensurate with high productivity. productivity rates or is it the other I think ownership comes first. You Smooth Flows way around? have to love what you do. It’s always ownership first, self-motivation first. An efficient flow of information is Taking ownership of your work and High pay can only get you so far. also necessary for productivity in your responsibilities plays a huge Eventually, you’ll be found out.” construction projects. If one person influence in productivity, stresses in the chain delays delivering Datuk Matthew. However, he does think that it’s information, the rest of the chain gets possible that low wages could affected. Sometimes, contractors “It comes back to ownership. A lot of contribute to low productivity rates are waiting for information. Datuk people want high wages but the things and vice versa. Matthew segues into an example that you’re supposed to be doing, about a room: you’re not doing. Lots of times, the “It’s possible. There’s a motivation bosses have to push and push.” effect as well. All of a sudden, I give COVER STORY HEIGHTS 27 this person an increment. Naturally, Matthew explains. “We’ve had trips there are still many growing pains to he will be more motivated, but I’m not to Singapore, to China. Once you join overcome before the industry reaches sure how long the motivating effect Bina Puri, you simply must join the peak productivity. Uptake of BIM and will last.” Sports Club.” IBS in the private sector needs to be increased. High investment costs and According to some research, a higher Each employee only had to pay the lack of economies of scale remain wage does raise productivity. In early RM2,400 for the 7-day trip in Turkey, strong concerns for contractors. 2015, Walmart announced that it was as the club subsidised the costs, going to start paying its employees contributing RM1,800 per pax for Adoption of modern technology and more. Sales increased and the rate of that trip. mechanisation may be instrumental stores meeting their customer service in driving productivity, but it is not targets rose to 75% by early 2016. Another avenue through which the the sole factor behind increased A 2005 study found that boosting company fosters a warm environment efficiency. A host of other factors the wages of low wage, low-skilled is the General Assembly. “Every contribute to a greater quality or workers in American hospitals led to 2 months, we gather in the hall quantity of output and some of them less turnover and fewer days taken off downstairs from the headquarters lie in the human touch. Positive by the staff. and sing ‘Negaraku’. We celebrate the shocks in wages have been shown staff’s birthdays. And we mingle with to boost motivation levels. Having a The Human Touch other employees.” holistic working environment and an employer who listens and values your Wages only form a part of the The level of care doesn’t stop with the input, work wonders for performance. puzzle. What drives productivity or employees. Bina Puri also gives out undermines it is the environment at undergraduate scholarships to the As employers invest in the work. When people feel respected and children of staff members annually, human capital that makes up valued by the people they work for, with the total amount capped at their workforce, be it through it goes a long way towards creating RM250,000. technological training and upskilling a sense of warmth and belonging at or simple encouragement and work. Empowering employees plays a At Bina Puri, the mental, emotional, acknowledgement, that will shape major role in driving performance and and physical welfare of employees employees into people who enjoy motivation levels up. is clearly a priority. Aside from a their work and work more efficiently competitive salary package and with the same resources. In the long When Surati Sujor, an assistant other benefits, proper welfare run, the benefits will translate into general manager, was asked what facilities and activities provide more highly skilled workers who can kept her motivated to work at Bina employees with outlets to manage command higher wages, allowing Puri, she mentioned, “Most of our and release their stress. our nation to realise its aspiration of loyal staff mentioned that the most becoming a high-income nation. effective thing is the personal touch Datuk Matthew shared, “We have from the boss. With a good boss, you massage chairs on the mezzanine can talk with him; you can fight with floor and we also have a gym. We him. No problem. He can admonish don’t have counselling for the staff us anytime. But the next day when yet. That’s quite out of the norm, but we come to work, he’ll ask, ‘Are you maybe we can be the first to do it.” better?’ A good boss is somebody who listens to us.” Acknowledging solid and consistent performances is crucial in deepening Aside from having leaders who the sense of ownership they have over empower their staff, the organisation work. “Based on some consultants’ works hard to ensure that each advice, we’re thinking, why not have employee feels they’re a part of the more regular reviews? Currently, it’s family. Funded partly by employees annually. Maybe we can do it every and partly by the company, the Sports six months instead of once a year. We Club organises activities for the also have Best Employee awards.” benefit and enjoyment of the staff. In a Nutshell “From that pool of money, we have weekly badminton activities. We had As it stands, the current productivity treasure hunts. We organise trips. thrust progress stands at 96%. While Productivity is the key to Last year, we went to Turkey,” Datuk the progress looks highly promising, unlocking Malaysia’s path as a high-income nation 28 HEIGHTS TECHNOLOGY 4th Industrial Revolution Technologies Helping Raise Productivity in Construction

The construction industry is an important already causing disruptions in a wide sector of the economy supporting the range of industries. growth of many other industries. Through an infusion of funds, the construction industry “In the last 20 to 30 years, not just in functions like a jump-starter, galvanising Malaysia but many other countries as well, the economy during periods of economic the practices of the construction industry decline. Given its crucial role in stabilising has not changed,” admits Dato’ Ir Ahmad the economy, it is vital that the construction ’Asri Abdul Hamid, Chief Executive of CIDB. industry in Malaysia maintains not just “For example, the process and products steady but also rapid growth. However it is for constructing a building have remained hampered in this regard by an adherence to practically the same over that period. what can be described as archaic methods Because of that, while there has been and practices, particularly in the current age growth in the construction sector, it has of the fourth industrial revolution where not been significant.” digital technology and innovations are TECHNOLOGY HEIGHTS 29

CIDB conducted a study that revealed construction of a project using IBS can be done in half the time it would take using traditional methods

As the construction industry plays a long term stability. Productivity is Encouraging the Adoption vital role in supporting the economic one of the guiding thrusts of the CITP of Technology development of the country, the need and it is addressed through three to accelerate its growth has become a main areas: technology, process, and Under technology, CIDB aims to priority for CIDB. manpower. These three components encourage mechanisation and will contribute to the increase in the use of Industrialised Building “The department of statistics figures productivity, stresses Systems (IBS). show the correlation between Dato’ Ahmad ’Asri. productivity and economic growth “Through IBS, manufacturing of the of the country. The construction The productivity baseline level is components for a construction project industry’s productivity growth in 2014 set from 2011, which is RM22,464 is done in a controlled environment so was 13.2% against the growth of 3.8% per capita worker per year. Under ideally it should be in the factory. It’s in 2013,” says Dato’ Ahmad ’Asri. “In the CITP, the aim is to increase the just like manufacturing a car. If you turn, you can see the contribution to productivity level by 2.5 times to don’t mechanise car manufacturing, the country’s GDP surged by 11.6% RM62,000 per capita worker per year. imagine the length of time it takes to RM33 billion in 2014 compared to to build a single car and the issues RM29.5 billion in 2013. Overall that “It is a big target,” the Chief Executive that may arise such as quality and is 3.9% of the GDP. When productivity points out. “We monitored the figures all that. So the best is to automate it, registers good growth, the from 2011 to 2017 and we have only manufacture in the factory, and then contribution to the economy managed to increase by 1.8 times. deliver it to the distributors,” says is also significant.” In 2017, we were only at RM40,105 Dato’ Ahmad ’Asri. so we still have a long way to go. We To facilitate the growth of the industry, have increased productivity but not According to the Chief Executive, CIDB CIDB introduced the Construction significantly enough so we have to conducted a study that revealed that Industry Transformation Programme step up our effort in the three areas. construction of a project using IBS (CITP), a comprehensive blueprint that It’s a good achievement to date but can be done in half the time it would details plans and initiatives to create our target is big so there is a lot take using traditional methods a significant change in the industry more to go.” of construction. with the aim of stronger growth and 30 HEIGHTS TECHNOLOGY

“What is supposed to be completed in “We are still grappling with idea of get the scale to make IBS viable or 36 months is completed in 18 months. using IBS, but other countries are cheaper. Therefore the government Additionally, when you use machines already ahead of us. China has gone has decided to make IBS mandatory to develop components and all that even further, taking it to another for private sector projects. The plan is and then transfer them to the site, level by printing homes. They use to impose it in 2020 for private sector the number of workers that you need 3D printers to build homes. So the projects exceeding RM50 million, will be greatly reduced. Because the progress we see in the construction they have to reach an IBS score of 50. characteristic of construction as it is industry is from building to That’s a start so hopefully after that, involves a lot of workers on-site,” manufacturing to assembly–where they will be volume and more demand he adds. the entire unit itself is built in the for IBS. When you have the volume, factory–and eventually to printing the price will come down,” Dato’ The combination of speed and homes. Yet here we are still doing Ahmad ’Asri reveals. reduction in number of workers manufacturing of components. So we will increase productivity, says are still very far behind but hopefully, Making Processes Dato’ Ahmad ’Asri, who also points once IBS is adopted, it will accelerate Smoother with BIM out that because the components the process of adopting all these new are manufactured in a controlled technologies,” says Dato’ Ahmad ’Asri. Process is another area under the environment, quality control and safety productivity thrust that is closely can be better managed. Furthermore, The government has actually made related to technology. In this area, IBS facilitates proper planning of it compulsory since 2008 for public CIDB is promoting the use of Building a project, which will reduce the construction projects worth RM10 Information Modelling (BIM) in amount of construction waste. million and above to use the construction industry. BIM is a the IBS method. modelling technology to produce, “Construction waste is one of the communicate, and analyse digital major issues in the country now “The difference between then and information models throughout the because the construction industry now is the lack of enforcement. construction project life cycle. produces 40 percent of the waste in So adoption of IBS for government the country. So, if you improve the projects is on the increasing trend,” “What BIM does is it allows you to practice by using IBS for example, Dato’ Ahmad ’Asri says, while pointing spend more time in planning, but you then you can reduce a lot of waste,” out that CIDB records indicate that the reduce your time in construction,” he says. share of private sector projects are says Dato’ Ahmad ’Asri. increasing compared to government While IBS clearly offers many benefits projects. “In 2016, about 78% of the BIM helps reduce problems and to the industry, Dato’ Ahmad ’Asri projects are from the private sector, issues during the construction period laments its slow uptake among only 22% were from the government such as improper sizing of beams local developers. sector. So if you only push it to the and incorrect positioning of ceilings. government sector, you still cannot The combination of BIM and IBS

Credit: MPC Productivity Report 2016/2017 TECHNOLOGY HEIGHTS 31 increases the chances of successfully the UK,” maintains Dato’ Ahmad ’Asri. the third area under the productivity completing a construction project with The two major challenges of BIM thrust, which is manpower. Through minimal problems and helps ensure a is the high cost of the software and its Akademi Binaan Malaysia (ABM), better-quality end product. the limited number of competent of which there are six throughout the personnel with the expertise to use country including Sabah and Sarawak, “Using BIM, you can also standardise the system. CIDB has trained over 300,000 youth your components and transfer the and personnel from the construction information to IBS manufacturers “There is a lot of staff pinching sector combined. who will produce the components. happening at the moment. What After that, it’s just installation, happens is people go through BIM “The youth category are for people everything is there.” training and then they are offered jobs who maybe failed their SPM. They in other companies because those have nowhere to go. We provide free To promote and increase the use companies want to use BIM. Our training using CIDB funds. Up to now, of BIM in the Malaysia construction strategy is to train as many people as we have trained about 100,000 youth,” industry, CIDB established a centre possible so we are able to flood the says Dato’ Ahmad ’Asri. of excellence for BIM, which was market,” he reveals. launched in 2017. Known as the Personnel undergo shorter training myBIM Centre, it features state-of- To date, CIDB has trained about 1,300 periods of about a week or so to the-art facilities including a studio personnel on BIM. The organisation improve their skills before which is available for rental to all has also formed collaborations returning to the industry. Successful BIM practitioners, a lab, seminar with universities to train university participants of the training room, and showcase area. The centre students so that they are BIM ready programme receive a certificate enables construction industry players by the time they graduate. of accreditation recognising them to model and visualise building as skilled workers. CIDB spends projects in a simulated environment High Impact Training to approximately RM100 million by using BIM. Attract Workers a year for its training programmes under ABM. “We had a speaker from the UK who In fact, training is a key strategy for came to visit last year and he said this CIDB when it comes to addressing is a lot better than what they have in

The Gamuda IBS factory in Sepang, Selangor is an exemplary operation that is fully integrated with BIM Robotics Production System 32 HEIGHTS TECHNOLOGY Embrace Industry 4.0 Technologies to Accelerate Growth and Promote Efficiency

The first industrial revolution back in the 18th century not only created a seismic shift in the process of manufacturing – propelling large-scale production of goods through mechanisation and heralding the advent of the factory system – it also inspired the world to create and embrace technology and innovation as a means of improving lives and promoting progress. It created a ripple effect that led to the second industrial revolution which centred on the use of electric power, as well as the electronics and information technology–driven third industrial revolution.

The next phase in this storied players to seize the opportunities Slow IBS Uptake tradition of human innovation is the arising out of industry 4.0. “In order fourth industrial revolution, which to do this, people will have to break In Malaysia, for example, while the Chief Executive Officer of the the barrier of current thinking and Industrialised Building Systems Malaysian Industry-Government be open to accepting new business were introduced in the country Group for High Technology (MiGHT), models and implementing new decades ago, construction companies Datuk Dr Mohd Yusoff Sulaiman, approaches to doing things.” have been slow to adopt its use in explains, is characterised by the their projects. convergence of digital, virtual, and However, many industry players are “IBS is like building a house biological technologies. Another still grappling with the way disruptive with Legos. The components are distinct feature of the fourth industrial technologies have upended the manufactured in a controlled revolution is the emergence of status quo and are finding it hard to environment and then delivered to the disruptive technologies that challenge take advantage of the benefits they site for installation,” says Datuk Dr outmoded business practices and afford. The construction industry, in Mohd Yusoff. “However, construction propel significant changes in the particular, is widely acknowledged companies were content to carry industrial landscape. to be lagging behind other industries on as usual, because labour in the when it comes to adopting the country is cheap.” “The emergence of new technologies latest technological innovations. Ida such as the Internet of Things (IoT), Semurni Abdullah Ali, programme He also noted that architects were big data, systems integration, and director at MiGHT, cites a report by resistant to IBS because they did not blockchain technology are altering the McKinsey and Company, which states see its aesthetic value. manufacturing terrain and creating that the construction industry is one new opportunities,” he says, adding of the lowest digitised sectors. “However, IBS creates the potential that it is incumbent on industry for a new kind of employment with

Credit: MPC Productivity Report 2016/2017 TECHNOLOGY HEIGHTS 33

“IBS creates the potential for a new kind of employment with qualified workers trained to work in clean environments, dispelling the image of the 3 Ds (dangerous, dirty, and difficult) associated with the construction industry.” - Datuk Dr Mohd Yusoff Sulaiman

qualified workers trained to work in planning required in the use of IBS, construction industry can use clean environments, dispelling the for instance, the technology can go a blockchain technology to streamline image of the 3 Ds (dangerous, dirty, long way in helping the country deal their payment systems,” explains and difficult) associated with the with its longstanding construction Datuk Dr Mohd Yusoff. “The construction industry,” says waste problem. construction industry will need to Datuk Dr Mohd Yusoff. “A McDonalds motivate themselves and pick up the was built in one week using IBS.” “Smart is the new green. Companies pace to access the benefits and value that are championing sustainability of 4.0 technologies.” Addressing Social and are developing materials based Environmental Concerns on renewable and biodegradable Countries like Dubai are way ahead as resources,” say Datuk Dr Mohd Yusoff. they are already using 3D printing for New technology should also be their construction projects. explored for its potential to benefit “For example, MiGHT is working with society. In the case of IBS, the companies like the Sunway Group “Dubai’s target is to have 25% of their system would be useful for providing and Ikhmas Jaya to use agricultural houses built using 3D printing by construction solutions during wastes like paddy straws and husks 2030,” says Ida Semurni. disasters like the tsunami, points to make bricks,” adds Ida Semurni. out the CEO of MiGHT. Furthermore, as Malaysia strives Pick Up the Pace towards its target of becoming a “IBS can be utilised for the quick developed nation, the development rebuilding of homes that were However, if other companies in of smart and sustainable cities are destroyed,” he points out. the construction industry do not becoming imperative. In fact, the technological innovations want to be left behind, they will of the fourth industrial revolution need to move faster in embracing “The construction industry will have can be used to address a wide technologies that can help them to look at the bigger picture as they range of societal and environmental function more effectively. have an important role to play in the concerns that the world is dealing “As they deal with a lot of suppliers, ecosystem of these cities,” concludes with today. Due to the precise for instance, companies in the Datuk Dr Mohd Yusoff Sulaiman. 34 HEIGHTS TECHNOLOGY Ensuring Public Safety Through PRODUCT CERTIFICATION

When a fire broke out at the Employees Provident Fund building in Jalan Gasing, Petaling Jaya, earlier this year, the cause was attributed to cladding panels that did not meet safety standards. As the disaster demonstrates, the whole may be more than the sum of its parts but when it comes to construction projects, the devil is the details. Even the smallest materials and the tiniest components can have an effect on the success of a construction project. Hence, the existence of laws to regulate the industry and ensure its players toe the line so that public safety is not jeopardised by defective products.

Sr Abdul Latif Hitam, CIDB Holdings Chief Executive Officer TECHNOLOGY HEIGHTS 35

In Malaysia, the CIDB Act 520 was and outgoing materials. The auditor factory audit process usually takes passed in 1994, which established the will also test the equipment used for one to two months. Construction Industry Development daily quality inspections. Board (CIDB) and enabled its role “You must indicate the brand and as an enforcer of law on matters “We will check the suitability of country of origin, what kind of pertaining to the construction the equipment and how well it is standards it follows, model number industry. The Act was further maintained. There must be some and the certification number,” says amended in 2011 to strengthen its consistency in the calibration of the Mohd Zahari. “Our logo is certified by focus on construction quality and equipment,” explains Mohd Zahari the Department of Standards, so if safety. Schedule 4 of the Act lists Shariffuddin, manager of the Industry the product is certified by us, the logo all of the materials that have to be Training and Quality Assurance must be placed on the packaging.” certified before they can be used in Division of CIDB Holdings. the construction of buildings and The next stage in the certification PRODUCT infrastructures in the country. In A company undergoing factory audit process is testing the product, which order to receive certification, the will also be evaluated for how it is conducted by an accredited testing materials will have to be tested handles non-conformances. body. CIDB Holdings is equipped with and verified by a certification body “How they grade the product itself is a lab that is able to provide the full CERTIFICATION that is accredited by CIDB and the important,” Mohd Zahari continues. spectrum of testing services for the Department of Standards. “They must establish some process type of materials it certifies. where they can separate defective “All the materials in Schedule 4 are products from the high-quality ones. “We have the facilities to conduct the part and parcel of the structural And they must adhere to very strict many different tests. As an example, integrity of a building, so if these ISO standards because only the a single ceramic tile would need to materials are substandard, you are highest quality products can be sold undergo 14 different types of tests to comprising the structural integrity in Malaysian markets.” comply with the requirements of the and safety of the building,” says standard MS ISO 13006:2014,” Mohd Nor Shah Shoib, general manager Additionally, the handling of customer Zahari elaborates. “This includes the of the Industry Training and Quality complaints will also be reviewed to dimensional test, water absorption Assurance Division of CIDB Holdings. ensure that the product manufacturer test, performance of the tiles, has a process in place to resolve chemical test, staining, abrasion, and A subsidiary of CIDB, CIDB Holdings disputes that are brought up by their so on. All of these tests are conducted provides certification services, which customers. The audit will also to ensure quality, which would ensure includes verification and testing, for take into account the final the safety of the tiles.” products such as ceramics, sanitary presentation of the product, which ware, glass, tap fittings, as well as should include all the relevant Based on the results of the tests, a iron and steel. markings on its packaging. The entire recommendation will be provided

Auditing for Quality

“We are in the business of selling confidence,” says its Chief Executive Officer, Sr Abdul Latif Hitam. “We give confidence to people that something that is undertaken by this organisation and the product being certified is of good quality.”

To receive the stamp of approval that certification provides, the entire production cycle of a product will have to be evaluated. This stage of the certification process is known as the factory audit. During a factory audit, an auditor will review a company’s operational procedure including its quality control plan, as well as its process flow for inspecting incoming Even the smallest materials and the tiniest components can have an effect on the success of a construction project 36 HEIGHTS TECHNOLOGY detailing whether the product is able “We have a few partners from China such as China, Thailand, Vietnam, to meet all the standard requirements. for the lab testing that we are doing. Indonesia, Italy, Spain, and Turkey Products that are fully compliant will be So, we are testing the materials at the have applied for the company’s provided with the certificate. While its source before it comes in,” says product certification. CIDB Holdings labs are equipped for certain products Sr Abdul Latif. has a total of more than 1,000 active under Schedule 4, CIDB Holdings also clients since it began providing works with partners to certify other According to him, initially only products verification services in 2008. As Nor types of products. from overseas were subjected to Shah points out, each client may bring the process of certification but after in five to ten products for verification. “We have partnerships with other complaints were raise at the World Additionally, the company has an labs, which means we can expand any Trade Organisation, local products also active clientele of over 40 companies time to include other products,” Mohd had to be certified. for its testing services, and about 150 Zahari explains. clients for its certification services. “With that, CIDB revised its laws so “And we only work with labs that that local companies would also have “These numbers keep on growing. We are accredited by the Department to comply with the standards so that hope we can expand it into whatever the of Standards,” adds Sr Abdul Latif. everybody can compete on a level industry wants us to be because there “For international partners, there are playing ground,” adds Sr Abdul Latif. are a lot of products under Schedule mutual recognition labs.” 4 that need to be in compliance with Eye on Expansion the industry,” maintains Sr Abdul Latif. The company has collaborations with “It’s about safety and health. The list international labs, particularly in China, CIDB Holdings provides its services is not exhaustive and will be expanded which is a major importer of products for both local and imported products. accordingly, depending on the level for the construction industry. Foreign manufacturers from countries of safety and health required for the public.”

CIDB Holdings also harbours plans to broaden its services for the international market.

“We are experts on Malaysian standards, but we are looking into partners for customers who want Australian standards for example, so their products can be tested here,” the CEO continues. “These are areas of strategic direction that we are looking at. If manufacturers are bringing their products to Malaysia, they have to comply with local standards. But there are companies that want to comply with other standards as well. It all depends on what the client needs.”

Qualified Personnel

One of the main challenges in expanding its operations is finding the right people for the job as product certification is a niche field that requires individuals with a very specific level of expertise and the appropriate amount of experience.

“Before becoming an auditor, you have Product certification is a niche field that requires to fulfil all the criteria which include individuals with a very specific level of expertise the right educational background, product knowledge, and experience TECHNOLOGY HEIGHTS 37

CIDB Holdings provides its services for both local and imported products

of not less than 5 years. You will Its loyal client base is indication that have to take and pass exams, and the company is responding to their your competency will be assessed needs and requirements, says the by experts from the Department of CEO. In order to further improve Standards, who will observe what you its services, CIDB Holdings will be Holdings has an insider perspective are doing,” Mohd Zahari explains. relocating its testing lab from its and solid understanding of the current location in Jalan Chan Sow policies, rules, and requirements of “And it’s not just about the Lin, Kuala Lumpur to Shah Alam, the construction industry. Its CEO knowledge, it’s also about the Selangor where the facilities are believes this gives the company an attitude because that also speaks to more enhanced. The company sets advantage when it comes to serving the integrity of the work,” adds Sr itself apart from other certification their clients. Abdul Latif. “We could be challenged bodies through its value proposition in a court of law if a dispute was of reasonable fees and prompt “We want to be seen as a premier to arise. The vendor and even the service. Due to its sole focus on the provider of these kinds of services customer can come back to you. And construction industry, it is able to for the construction industry. It is we would have to go back and see the provide certification services within important for the public as well, as it source of the issue. This industry is a comparatively shorter timeframe. ensures them that the products in small. If your integrity is called into Furthermore, through its association the market are of high quality,” question, everybody would know.” with its parent company, CIDB he concludes.

CIDB Holdings has a staff of 22 in its certification department including five certified auditors. The team has to keep abreast of the constant change in technology for its annual accreditation.

“Within a year or two, the Department of Standards will revise their standards. There will be new testing and requirements and we have to comply with those,” says Nor Shah.

“We are monitored closely year-on- year, so we strive to avoid any glitches in our process. We have to measure our customers’ satisfaction and if Product certification is important we fall short of 80 percent, we will be questioned on the quality of our for the public, as it ensures that constructions compliance,” Sr Abdul Latif explains. are built with materials of high quality 38 HEIGHTS FINANCE

Employee Remuneration In high-income countries, remuneration encompasses the basic salary along with any and all as a Tool fringe benefits

According to the for Improving 2016 OECD Economic Assessment of Malaysia, Productivity growth in productivity is the essential standard to consider if Malaysia is to provide sustainable increases in the country’s living standards. Simply aggregating more labour inputs or capital is a strategy that has hit its limits for the time being. FINANCE HEIGHTS 39

This has been officially recognised been widely accepted since the is the basic pay of an employee. in the stated goals of the 11th early 1980s. From an Addison- However, high-income societies Malaysia Plan, which set a labour Wesley study in the early 1980s to have a much more sophisticated productivity growth metric that is Yermack and Stajkovic & Luthans view of the concept. Many experts well above the 2% average growth in the 2000s, the link between believe that if Malaysia is to meet recorded under the auspices of the remuneration and motivation has its goal of becoming a high-income previous Plan. The target between been strongly correlated, at the country, it must take on the 2016 and 2020 has been set at very least. characteristics of a high-income 3.7%. Experts say that in order to country in all aspects of the achieve the same status as high- Widely accepted game theory and professional structure. income countries, productivity other studies such as McGregor’s improvements must be driven by theory X and theory Y, Achievement In high-income countries, coordinated structural reforms. Theory, Maslow’s Need Hierarchy, remuneration encompasses the Herzberg’s Two Factor Theory basic salary along with any and all Well-Placed Reforms and Taylor’s Motivational Theory fringe benefits, employee stock basically come to the same solution options, ancillary compensation, Productivity will respond most - money is one of the vital sources commissions and other bonuses. positively to changes in skills that employers and organisations There are also many other forms of training and education, rewarding use to persuade and motivate compensation that are less direct innovation, mainstream adoption individuals. However, there must be but just as important to consider, of a more sophisticated IT as little confusion as possible about such as the concept of education as infrastructure, improving labour the system of remuneration. an investment in individuals and the market functioning, raising the system as a whole. productivity of the public sector, According to management theory integrating regional initiatives and and many of the theories mentioned Education improving the regulatory framework above, one of the main reasons within the SMB market. that employees join an organisation Investing in a more widespread The underlying strain between all is to outsource the processing of education for individuals and of these reforms is productivity, gaining resources. Most people in a more robust educational especially the productivity of the are confused about how to attract system is not usually considered front line employees who are an adequate amount of resources remuneration, but it is the responsible for implementing all of to themselves for survival, and the backbone of all future efforts to the plans and strategies laid out in most successful companies in terms improve productivity. The service studies, surveys, white papers and of HR and morale, regardless of that society pays for through government policy. Remuneration industry, are the ones that simplify education is the service that future for these employees is essential to this process as much as possible. employees provide when they come improving their productivity. to employers with a modern skill The Definition set. Education saves the employer A Clearly Defined of Remuneration onboarding and training time and Pay System costs, which could not be adopted at It is essentially important for scale for individuals. The concept of a clearly defined pay construction executives to properly system as a catalyst for improved define remuneration. Traditionally, Education also sets up an individual productivity is an idea that has the connotation of remuneration to receive more direct remuneration 40 HEIGHTS FINANCE from future employment, which socioeconomic status still enjoy access to adequate resources, is a defining point of morale for better education outcomes. underdeveloped institutional high achievers in high-income mechanisms for commercial countries. With this in mind, the Malaysia’s exploitation of innovation, and a first concept that future employees Productivity Performance technology infrastructure that must be educated on is the link was falling behind high-income between higher forms of education Malaysia owes the majority of its countries around the world. and the potential for greater direct productivity growth in the early remuneration down the line. 2000s to the manufacturing sector. The government did adopt a National However, this sector of the economy Broadband Initiative in 2010 to Statistics show that Malaysia has suffered from slower capital attempt to recognise broadband is doing a relatively good job expenditures since that time. This access as an essential component about spreading the need for coincided with a reduced share of of business innovation. However, higher education. Its Millennium skilled workers in the sector, with in 2014, Internet subscriptions Development goals have shown the number dropping from 27.6% were only at 10.1% of the total promise, producing secondary in 2010 to 25.7% in 2015. These population, which placed Malaysia education enrolment at 89% of statistics come from the latest 80th out of 189 surveyed countries. the total population. This statistic Labour Force Survey report. At the Malaysia continues to be a country comes from the Ministry of same time, migrant workers with an with relatively high broadband Education, which also showcased average lower set of skills increased subscription costs when compared to great improvements in the their total employment percentage its peers in the region. The monopoly participation of young women in from 9.5% to 15%. that the public private Telekom the educational system. Also, the Malaysia company has over the fibre District Transformation Programme Companies within Malaysia with infrastructure of the company keeps has begun to narrow the education the ability to hire at scale suffered prices high, as competition is kept out gap between urban centres and from a lower level of innovation. of the market. rural areas in the country. Although There were many reasons for the gap is closing, areas with higher this phenomenon, including less FINANCE HEIGHTS 41

Business Innovation engaged with the processes they are ancillary initiatives that helped to and Sophisticated asked to accomplish. Productivity spawn it. Concepts such as lean Remuneration will rise simply because employees management, just-in-time production are being challenged to accomplish and sustainable development mean As stated before, there are many new tasks every day. nothing if the front-line employees ways to provide remuneration to do not actually employee the employees in the construction With these new challenges comes concepts to projects on a day-to-day sector. The Construction Industry a responsibility for companies basis. Statistics show that although Transformation Programme to invest in the technological awareness of green construction highlights a very innovative structure and processing structure of a concepts is rising, implementation for motivating employees through construction company that will remains low. This is a great more sophisticated remuneration that accommodate employee creativity. opportunity to use the remuneration includes investments in technology All of these things must happen in of education to translate into higher and process. tandem – it is useless to educate individual remuneration for skilled employees to a more sophisticated, workers employing concepts that Investments in technology improve technologically-driven environment will improve the productivity and the productivity of workers by only to leave them abandoned in an profitability of projects throughout improving morale through the employment environment without the country. opportunity for more creative work. the tools they have learned to use Along with a rise in educational during their schooling. It is highly likely that Malaysia will standards, this structure has the not be able to compete with the potential to create a more highly The new generation of construction rest of the world on labour costs, skilled worker who agrees more employees can be immediately especially not against other high- with his job than the traditionally challenged through the income countries. In order to improve standard assembly line employee. implementation of new green productivity, synchronisation between If workers no longer have to worry environmental standards that are the public and private sectors is about repeated, rote tasks on the soon to be imposed by MyCREST, required to move remuneration job, they will be more mentally its parent organisation and the forward on all fronts.

Investments in technology improve the productivity of workers by improving morale through the opportunity for more creative work 42 HEIGHTS INDUSTRY TRENDS Prefab Construction on the Uptick

Modular, also known as prefab or off-site, construction isn’t anything that’s particularly new or revolutionary to the construction field. However, many see this as something that is going to explode as a trend in 2018 and beyond, mainly due to factors such as time savings and labour concerns. Perhaps most importantly, prefab construction has the potential to accelerate project timelines. To date, prefab construction is mainly utilised for things like HVAC assembly building, but with the time savings benefits and process improvements that off-site construction permits, many more assemblies could follow suit. INDUSTRY TRENDS Industry Optimistic About Commercial Growth

According to the 2018 Construction Industry Forecast, there’s a high level of optimism regarding non-residential construction projects in 2018 and beyond. According to the report, it’s the most optimistic professionals have been about the potential of the commercial project market in the past 20 years, which is significant. In fact, the Optimism Quotient was 133, and anything over 100 is considered to be “strong optimism.” Professionals are unsure if this same optimism will continue down the road into the latter part of the decade, but for now professionals report plans to purchase new equipment, rent fleets of vehicles and more.

U.S. Steel and Aluminium Tariffs

In perhaps some not so great news for the construction industry, one of the big stories recently has been about U.S. President Donald Trump’s plan to impose hefty tariffs on steel and aluminium imports. Specifically, the tariffs are 25% on imported steel and 10% on imported aluminium - two materials that are crucial to commercial construction projects - and the fear is that this could set off a trade war with other countries and significantly increase the price of such products. It’s expected that the tariffs will apply to all countries. As of the time of this writing, the tariffs have yet to be officially enacted, but it’s expected that will occur soon. INDUSTRY TRENDS HEIGHTS 43 Construction and the Internet of Things (IoT)

The Internet of Things, or IoT, has been a major buzz phrase for years in many industries, mainly manufacturing. But now the construction site could soon benefit from becoming more connected. Construction sites are going to need workers to carry out tasks, but the IoT can help make sites smarter and more efficient. For instance, one aspect that’s projected to grow is the use of wearables on job sites. These worn wearables will help track workers on-site to ensure that they’re avoiding hazards and minimising waste, as well as track equipment that might need maintenance, among other things.

Essentially, the goal of a more connected site is to streamline operations and reduce overall costs. To date, the construction industry has been a bit hesitant to embrace new technologies, but if there’s proof that wearables and the IoT can help the bottom line, it’s going to warrant consideration.

3D Modelling Continues to Make Strides

Digital technology, like 3D modelling in pre-construction processes, continues to significantly enhance the way firms do business, leading to greater collaboration between parties and a better overall end product. When you consider other factors, such as cloud computing, this ensures that everyone on the job - contractors, sub contractors, engineers, etc. - has the potential to quickly and easily see the parts of the job that are most relevant to their duties. 3D modelling helps minimise mistakes, streamline efficiency and, above all, help contractors earn more jobs. It’s a trend that many are continuing to jump on moving forward. INDUSTRY Sustainable Materials: TRENDS Foamed Glass Aggregate

Sustainable construction is expected to continue its rise in 2018 and beyond, and new materials are helping to pave the way. Take one innovative material from a U.S.-based firm, which is taking glass and creating a foam aggregate with it. It’s compared to hard rock, yet it weighs about 85% less than it. What’s more is that it has insulating qualities, which make it an attractive material for roofs and walls. Europe has been using a similar material, but mainly in road construction projects. With an increase in sustainable building and some of the benefits that this particular material exhibits, it’s a material to watch moving forward. 44 HEIGHTS GOING GLOBAL Bringing Productivity in Construction to Other Shores

The construction industry in Malaysia is becoming well-known for quality work and professionalism around the region of southeastern Asia and beyond. The industry has started to expand itself beyond the borders of Malaysia, and many interesting, beautiful and engaging projects around the world owe their existence to Malaysian ingenuity and labour. Here we take a look at a few of the most successful projects, as we look at the process of Malaysian construction going global. GOING GLOBAL HEIGHTS 45

The Mayfair Development undertaking, and it is also one of Gardens right on the corner. The in Melbourne the largest residential structures Conservatory is also very close to on the entire continent of Australia. the Royal Exhibition Building and the Malaysian influenced high end luxury The Aurora Melbourne Central Melbourne Central Business District. comes to Australia in the form of a project will end up having 941 158-unit residential property with residential apartments along with Eco World International units from one to five beds. The 208 serviced apartments. These in London starting price for one of these units apartments will stretch across will come in at $823,000 and span 88 storeys. Top Malaysian developer Eco World from a size of 70 square metres all London has recently partnered the way up to 556 square metres. The Melbourne with Willmott Dixon, a development Residential amenities within the Conservatory partner based out of the United project will include garage space, Kingdom, for a 12-site project that private lift lobbies, custom designed The third project we mention from will take place in the South East of Zaha Hadid furniture and a 24-hour UEM Sunrise in Australia, the England and Greater London. This concierge. The project is overseen Melbourne Conservatory, is actually undertaking will expand the reach by Malaysian construction firm the first in terms of conception. that Eco World has in the United UEM Sunrise and represents an This project represents the first Kingdom by a factor of four. The ongoing relationship between the development that UEM Sunrise land bank that Eco World will have

The Mayfair Development Aurora Melbourne Central The Melbourne Conservatory Eco World International in Melbourne Photo credit: iBuyNew in London Photo credit: Domain Photo credit: londradavivere.com

company and the city. UEM Sunrise is collaborated on with an Australian access to in the UK now includes conducting the project in conjunction firm. The Melbourne Conservatory 6,700 residential units that have with renowned Australian and the Aurora Melbourne Central an approximate $3.4 billion gross architecture firm Elenberg Fraser. are only blocks from each other, with development value. the Conservatory resting on 9-23 Aurora Melbourne Central Mackenzie Street. As part of the agreement, there is also a framework set up for Eco This towering, beautiful residential The Conservatory is a residential World to take over the development skyscraper is also designed by UEM tower that is currently comprised of another 1,500 unit land bank. The Sunrise in conjunction with Elenberg of 446 residential units that are total amount of gross development Fraser. First approved in 2014, stretched across 42 storeys. The value for this part of the project has the structure is set for completion total floor plan comprises 3,658 yet to be determined. Overall, the sometime in 2019. The entire site square metres. This includes 310 Malaysian company will have a grand stretches 3,197 square miles and will square metres of retail space total of around 10,700 residential reach 269 metres into the sky. It will within the structure. The Melbourne units based upon this deal and the be the second tallest building in all Conservatory is considered one of previous deal that it negotiated with of Melbourne when it is completed, the most well-placed residential Ballymore, another firm centred in just behind the Eureka Tower. The structures in Melbourne, with the United Kingdom. entire project was a $730 million the sprawling, beautiful Carlton 46 HEIGHTS GOING GLOBAL

Eco World International in Sydney Photo credit: Frasers Property

The Durban Point Waterfront Photo credit: www.durbanpoint.co.za The Battersea Power Station

IOI Properties in Xiamen, China Photo credit: ioipg.cn

Sunway Property in Cambodia Sunway Property in Cambodia Photo credit: Rouydadnews.info Photo credit: PropTiger GOING GLOBAL HEIGHTS 47

Eco World will also be taking over The Battersea property development effort across a 70% stake in the development Power Station 18 different locations with a total management arm of Willmott Dixon, development value of around giving the Malaysian company the The Sime Darby Property Company $156 million. majority of the equity in the project of Malaysia took on the challenge of once it is developed. reinvigorating the Battersea Power These mixed-use projects will be Station, one of the iconic mixed-use conducted in tandem with each Eco World International neighbourhoods around the central other and will include investments in in Sydney London area. With its advantageous hospitality, healthcare, commercial location right on the River Thames, properties, education and other Eco World International is also this development represents one investment assets across the expanding its reach into Sydney, of the most accessible and coveted integrated townships of the Australia, with a land grab that has locations in all of London. Sime developer and its major cadre of a total gross development value of Darby was brought in to re-envision developments. The overall goal of around $111 million. The address the entire vision of the city district the initiative is to provide Sunway of the well-positioned project is into a global tourist and business residences with an expanded 1-3 Lachlan Avenue, Macquarie powerhouse. portfolio of activities in and around Park, Sydney, directly adjacent from currently developed Sunway Macquarie University. The University IOI Properties in properties. The company expects its Precinct plays host to a top 10 Xiamen, China property values to rise because of Australian University that brings in the investment that it is putting into thousands of international students The close and storied relationship amenities surrounding the already on an annual basis. between the People’s Republic successful ventures. The company of China and Malaysia is perhaps also hopes to create a network Within this development, Eco World represented best in the relationship of properties that will appeal to has plans to build residential between the IOI Properties Group international travellers and tourists. apartments with 125 units and a and the business district of Xiamen, small retail component. The project China. The company is currently The examples mentioned above are is expected to complete in the second on its third project within the only a few of the many construction quarter of 2022 or 2023. Eco World region, with the first two being the projects that include Malaysian is also in agreements to purchase successful developments in the management and labour among the residential units that are already Jimei district, the IOI Park Bay, and them. They serve as inspiration for within the development for around the mixed-use development in Jimei the industry as well as hard proof $30 million. known as IOI Palm City. that the MyCREST initiative and the Construction Industry Development The Durban The new development is expected Board of Malaysia are gaining Point Waterfront to expand the functionality of the positive attention as standards IOI land bank in China as well as across the world. UEM Sunrise stands at the helm the gross development value. This of the Durban Point Waterfront in third wave of development will add Durban, South Africa. The Waterfront a hospital in Xiang An, a Xiamen is a mix of entertainment facilities, international airport to be put into retail stores, hotels and residential use in 2020, and the development units. There are also road amenities of schools. that will be developed for the public as the promenade is extended all the Sunway Properties in way to the mouth of the harbour. India and Cambodia

Experts in South Africa expect As one of the top domestic the continued development of the developers in Malaysia, Sunway Durban Point Waterfront will bring Properties is more well-known for positive impact to the area that will its residential developments around culminate in its economic growth. Malaysia. However, the company has South African officials expect a an impressive array of international significant amount of job creation investments in India, Cambodia and and rising property values around Vietnam. Aside from its expansive the area of the development. domestic activities, the company has also undertaken an investment