| 2016 Volume 3  Volume The Path to Enhanced Productivity The Path Industrialised Building System Money Matters Budget 2016 and the Construction Industry Careers in Careers Construction Become an Industrialised Building System Engineer Sarawak’s Sarawak’s Construction Industry Pledges Support for CITP

Heights Volume 3 | 2016 PP18923/11/2015(034397) www.cidb.gov.my

CONTENTS Technology in Construction 34 Connecting Everything A look at the role connected Feature devices and the Internet of Things 02 Editorial Board 22 play in the modernisation of the Upskilling the Industry construction sector. Global Frontiers In line with this issue’s theme of 03 productivity, the Heights team looks at Automation & the News and highlights from the how IBS drives the enhancement of skills 38 Construction Industry construction sector around the world. and competencies in the construction 06 Rising cost of migrant labour and slow workforce. domestic workforce participation has ABM Column Malaysian construction players looking at Going Global 06 increased automation. 46 Creating Opportunities 26 Prime Movers Kazakhstan’s for Success Datuk Buhtamam Mahmum, Board Construction Boom Member of the Malaysian Productivity Akademi Binaan Malaysia (ABM), Money Matters The host for the 2017 World Expo, Council and CIDB, speaks to Heights Malaysia’s premier training institute for 42 Kazakhstan has been stepping up about efforts to boost productivity in the Financing Development the construction industry, has helped construction and infrastructure construction industry. enhanced the livelihoods of many Strong emphasis on major infrastructure development in time to welcome the by giving them the skills needed to projects means Construction is a big world and create the foundation for winner in the 2016 Budget. future economic growth. succeed in the building sector. Careers in Construction 30 IBS Expert Events IBS Engineer Ahmad Azhar Abdul 10 Commitment to Wahab takes the Heights team behind Excellence the scenes as we find out more about his chosen vocation Sarawak construction industry leaders pledge their commitment to the EDITORIAL BOARD Construction Industry Transformation Programme (CITP) in Kuching. Honorary Advisor Conceptualised, Produced, and Dato’ Ir Ahmad ‘Asri bin Abdul Hamid Published for CIDB Malaysia by 14 CIDB Publication Committee AMG Holdings International Sdn Bhd (356247-V) Sariah Abdul Karib 10-3A, Jalan PJU 8/3 Megat Kamil Azmi Damansara Perdana, 47820, Petaling Jaya Cover Story Datuk Ir Elias Ismail Selangor Darul Ehsan, Malaysia 14 Tel: 603-77294886 Benefitting from IBS Fax: 603-77294887 Publisher Website: www.amginternational.net Otherwise known as pre-fabrication, Editorial email: [email protected] Industrialised Building Systems (IBS) CIDB Malaysia Corporate Communication Unit has been employed in some of Level 25, Menara Dato’ Onn Printed by: Malaysia’s most iconic structures such Pusat Dagangan Dunia Putra No 45, Jalan Tun Ismail Percetakan Skyline Sdn Bhd (135134_V) as the Petronas Twin Towers and the 50480 Kuala Lumpur 35 & 37, Jalan 12/32B, KL International Airport, and is an Jalan Kepong, 52100, Tel: 03 4047 7000 Kuala Lumpur, Malaysia important tool in boosting construction Fax: 034047 7020 productivity. Email: [email protected] FROM THE EDITORIAL BOARD GLOBAL FRONTIERS PRODUCTIVITY BOOST

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

2 3 GLOBAL FRONTIERS

CHINA UNITED ARAB EMIRATES Protesting the Hike The levy for foreign workers in the industry cannot operate without manufacturing and construction foreign workers. A case study by the sectors has been doubled from Construction Industry Transformation RM1,250 to RM2,500, increasing their Programme (CITP) identified cost of hiring as part of a deliberate that locals often have negative policy to reduce over-reliance on low- perceptions of the construction skilled foreign labour. industry as challenging to work in, making them reluctant to take up Deputy Prime Minister Datuk Seri Dr jobs in construction. Ahmad Zahid Hamidi said that the increase in the foreign worker’s levy He also cautioned that small (starting February 2016), should be contractors were the ones most likely seen as a positive move to reduce to suffer from the new levy, which dependence on migrant labour. would drive their profitability down, and eventually close them down. Shanghai This will significantly impact the domestic construction industry, which Speaking separately, MBAM deputy has a labour composition comprising president Foo Chek Lee criticized the Tower 25% registered foreign workers, levy hike as being untimely, especially compared to an average of 13% in all with the Goods and Services Tax (GST) Breaks other sectors. and current economic conditions. He projected the new levy would Records Master Builders Association Malaysia mean an increase in house prices, as (MBAM) vice president Tan Sri AK developers will be forced to pass on The 632 metre tall Shanghai Tower Nathan said the government should the additional labour costs incurred to Despite rising construction costs, Doha is still a relatively stable location for developers. is finally complete after six years of understand that the construction the end users or buyers. construction, making it the second tallest building in the world behind the Burj Khalifa. Shanghai’s first ‘megatall’ tower MALAYSIA features 400,000 square metres of floor Expanding the space and 121 floors. Architect Marshall Straballa who worked Qatari Oasis on the original design described the Sheikh Tamin bin Hamad Al tower as “the greenest super high-rise Doha has been named the most Thani, who announced that Thani is the eight and current building on Earth”. The spiralling form expensive city in the Middle East the government would contain Emir of the state of Qatar of the structure provides up to 22% in for construction costs, and 12th inflation “by all available means energy savings compared to a rectangular worldwide in the new annual and ways.” ports, as well as hospitality skyscraper of the same height, while the ranking published by global design and social infrastructure, with double-skin glass façade helps insulate the and consultancy firm Arcadis. Qatar continues to be an attractive further investments in transport building and reduce energy use. A ‘sky investment destination, benefitting infrastructure, water and electricity garden’ concept will also be introduced, A rapidly growing population and from access to inexpensive labour by 2020. However, falling oil planting 10 acres of greenery complete preparations for the 2022 FIFA and energy. prices and a forecasted budget with trees, parks, and pathways. World Cup has driven up inflation deficit means that the government and construction costs. Addressing Over the next ten years, US$150 is set to cut spending to US$22.2 The Shanghai Tower also comes equipped this has been a top priority for billion is expected to be spent billion in 2016, compared to with the world’s fastest elevator, reaching Sheikh Tamin bin Hamad Al on roads, railways, stadiums and US$30 billion last year. 25% of Malaysia’s entire construction labour force comprises foreign workers. top speeds of 40 miles per hour.

4 5 ABM COLUMN

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

CONTINUING PROFESSIONAL DEVELOPMENT (CPD) CONSTRUCTION CERTIFICATION PROGRAM (CCP) SEMINAR PROGRAM

* TECHNICAL SERVICES

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

6 7 ABM COLUMN

workers—94,272 of whom are from MOBILE CRANE the youth training programme—in the construction field since it was established, OPERATION COURSE offering more than 60 training courses specifically related to the building and Qualification & Recognition construction industry. Coordinator of the Upon successful completion of this course, participants will be issued a Certificate of Competencyrecognised by CIDB and are eligible to register as Northern Region ABM, Mohd Norlizam Md a Skilled Worker with CIDB. Ariff, said that the academy offers a youth course for Mobile Crane Operation that Course Contents is open to those between the ages of 21 Introduction to Cranes and 35. The course is conducted over two Lifting Appliance months, and accepts up to 20 trainees per Signals and Communication session. There is also a separate Personnel Pre- and Post-operation Checks Programme for individuals between 21 Slinging Method Load Chart and 55 years old, which has an additional Calculation of Mass prerequisite of six months’ minimum Legislative Requirements of Crane Operation experience in a related field. General Safety All skills training courses focus on hands- Assessment on experience, with 40% theory and 60% At the end of the course the participants are assessed emphasis on practical application. After on their skill and knowledge completing the ABM courses, trainees are Application Pre-requisites given Skill Efficiency Certificates that are Malaysian citizen officially recognised by CIDB and means Physically fit that the trainees are eligible to register Literate as a Skilled Workers, which significantly Completed Standard 6/Form 3 increases their employment opportunities. Aged 21–35 years old for Youth Programme They are then required to register with the Aged 21–55 years old for Personnel Programme Department of Occupational Safety and Possesses a valid Green Card and 6 months minimum experience Health (DOSH) to receive valid licenses as in a related field for the Personnel Programme accredited crane operators. Minimum completion of Sijil Pelajaran Malaysia (SPM) Possesses at least an ‘L’ class driving license Duration ABM provides construction Personnel Programme: 5 days | Youth Programme: 2 months skills training to prospective personnel in the construction

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

8 EVENTS

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

In October 2015, 80 organisations— comprising 56 stakeholders from Melaka and 24 industry captains from Kuala Lumpur—pledged their commitment to the CITP. CITP sponsors from within the Construction Industry Development Board (CIDB) Malaysia and other agencies under the Ministry of Works also signed pledges of commitment to the CITP last year.

“The Sarawak government fully supports the CITP and will work 30 Sarawak industry leaders in the process of signing pledges of commitment to the CITP. with CIDB to make every effort to increase the state’s involvement in the construction industry, in line with the goals outlined in the plan,” said Dato’ Sri Haji Fadillah.

A Commitment The signing was also attended by Dato’ Sri Zohari Haji Akob, Secretary General of the Ministry of Works; Sr Sariah to Excellence Abdul Karib, Acting Chief Executive of CIDB Malaysia; Mohd Nazli Ahmad SARAWAK INDUSTRY LEADERS Mahyadin, General Manager of the Personnel & Contractor Sector, CIDB PLEDGE COMMITMENT TO CITP The cooperation of agencies and players brings the CITP a step closer to realizing its objective of Malaysia; Dato’ Sri Profesor Ir Dr Judin transforming and improving the Malaysia construction industry. Bin Karim, Chairman of ABM; and Sr Abdul Latif Hitam, Chief Executive he Construction Industry Transformation Programme (CITP)— The CITP was launched by Prime realisation of the CITP, listing specific Officer of CIDB Holdings. Malaysia’s national plan to transform the construction industry— Minister Datuk Seri Najib Tun Razak in initiatives that the organisation received another boost on the 29th of February 2016 when late 2015 and comprises four thrusts: pledges to undertake under the four Dato’ Sri Haji Fadillah expressed his 30 Sarawak industry leaders signed pledges of commitment to Quality, Safety and Professionalism; thrusts of the CITP. hope that the pledge would serve as the initiative. The pledge signing, which was held at the Ranyai Environmental Sustainability; an example and motivation to agencies TBallroom at the Waterfront Hotel in Kuching, was attended by a number Productivity; and Internationalisation. “Among the development projects and players in the construction of construction industry players and stakeholders including Dato’ Sri Haji 18 initiatives are spread across these identified by the 11th Malaysian industry that the CITP’s objectives four thrusts, each of which addresses Plan (11MP) for the state of Sarawak and targets cannot be achieved Fadillah Bin Haji Yusof, Minister of Works Malaysia. specific challenges in the construction are the Pan Borneo Highway, the without cooperation between industry industry. Each organisation’s pledge Sarawak Renewable Energy Corridor, players and relevant agencies in the outlines its commitment to the the upgrade to the Miri Hospital, construction industry.

10 11 EVENTS

“ABM works closely with more than Professionals 50 partners in the construction agency to provide training relevant of the Future to the needs of the industry.” A HUNDRED ABM TRAINEES CELEBRATED

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

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

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

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

12 13 COVER STORY

Benef itting

Manufacturing building components and standardised, reducing defects. off-site to be transported to a project In projects with a high degree of is nothing new. Freshly felled timber repeatability, cost benefits appear from IBS has been cut to size for easier as high-quality components can be INDUSTRIALISED BUILDING transportation for centuries. We know replicated numerous times, reducing that the ‘bluestones’ for England’s the price per unit. SYSTEMS (IBS) MEANS HIGHER Stonehenge were shaped in the QUALITY, FASTER JOBS, AND quarries of South Wales before being A Proven Track Record INCREASED PROFITABILITY dragged 160 miles to their current site (though given that 4,000 years ago the IBS solutions for contractors have ancient Britons had yet to invent the been used in Malaysia for almost ndustrialised Building Systems wheel, we can only marvel at how they half a century. In the 1960s, at managed it). the start of Malaysia’s population (IBS), also known as pre- boom, parliament sent government fabrication, involves the The difference between the masons ministers, architects and engineers manufacture of components of Neolithic Europe and the builders to Europe to study pre-fabricated off-site ready for installation. of today is the wealth of materials, building processes. Modern ‘pre-fab’ I manufacturing processes and had begun in Europe as a reaction to The benefits of IBS in construction transportation options available to us. the destruction of World War 2 and has been well-documented, but We also have far greater demand for the massive numbers of displaced despite high-profile projects such fast, cheap construction than at any persons who were in desperate need time in history. of housing. With the first and second as the Petronas Twin Towers and Malaysia Plans providing the legislative Putrajaya, both of which include Industrialised Building System (IBS) is impetus, early projects planned for pre-fabricated components, uptake a home-grown term to describe the Malaysia were largely for affordable use of automation, mechanisation housing with a focus on function over of IBS solutions in the Malaysian and prefabrication of components form. They also featured a high degree construction industry has been for the building industry in Malaysia. of repetition in their design, making slower than expected. Heights looks IBS components are manufactured the methods learned in Europe ideal at how IBS can save time and money off-site, and require little additional for the purpose. By the late sixties the site work once installed. This first apartment blocks using pre-cast for contractors, and examines why means faster completion times, walls had been built in Kuala Lumpur’s some are reluctant to adopt this greater productivity, less waste, city centre, with a casting plant a few efficient building method. fewer accidents and lower overall kilometres away in Jalan Damansara. construction costs for the industry. Unfortunately, while early attempts Because components are custom- fulfilled their primary purpose of built to exact requirements in a reducing the housing shortage, the controlled, factory environment, imported materials and methods quality can be closely monitored used were sometimes found to be

14 15 COVER STORY

of CO2 national governments have inappropriate for Malaysia’s climate. “Not only can IBS shorten the pledged to eliminate. In order to get As issues including roof leaks and anywhere near meeting these targets, gaps in walls came to light, IBS fell construction period, but also cut governments will have to introduce out of favour with both the public legislation reining in the largest and the industry. costs on building materials and polluters. The search for greener materials in construction will become By the 1990s however, new manpower, especially during this a regulatory (and therefore financial) approaches to IBS played an important issue for contractors, rather than a role in Southeast Asia’s building period of labour shortage.” purely environmental one. boom. Kuala Lumpur’s Sentral station, the LRT system, and KL’s – Dato’ Ir Ahmad ‘Asri bin Abdul Hamid, Malaysian IBS suppliers have new international airport all used CEO of CIDB Malaysia demonstrated increasing innovation, prefabricated components in their and private companies, sometimes in construction. Very large projects conjunction with foreign players, have including Putrajaya and Cyberjaya, successfully created a local knowledge were heavily reliant on IBS. IBS steel base for the industry. Construction beams and floor decking were used companies themselves have also driven in the construction of the Petronas The cost savings of IBS are also investment and innovation in IBS by Twin Towers. The fact that at the well-documented. Pre-casting off- creating their own in-house teams for time of its opening it was the world’s site means faster installation and the purpose of increasing suitability of tallest building offered a further boost reduced labour costs. Down-time IBS to their own projects. to IBS’s reputation among property due to adverse weather conditions is development companies. reduced as workers spend less time Recent developments in 3D printing exposed to the elements on-site. A also allow for precise customisation Since the turn of the century, IBS has controlled factory environment also of components. In recent years 3D been used in private residences and reduces waste, lowering material costs, printing has gone through two key in the construction of much smaller and allows for far closer monitoring transformations which make it ideal projects, but its main use has still been of energy usage. Taken together, for the construction industry. Firstly, in the building of projects with a high particularly if building in large volume, it has become cheaper. Home 3D degree of repeatability in components the financial savings can be significant. printers can be bought for US$500 such as student accommodation, meaning individual, custom-made schools, public housing and hotels. One driver for IBS in recent years components from bathroom fittings to has been the call for more green ornate bannisters can be manufactured Promoting Quality building materials. Following the Paris directly from downloadable Computer- climate talks last year, contractors aided Drawing (CAD) files. Secondly, Some of Malaysia’s Dato’ Ir Ahmad Asri bin Abdul Hamid, most iconic will be keeping a close eye on for the construction industry, 3D CEO of CIDB Malaysia, is a keen structures such as parliamentary bills which call for printers have become far, far larger. advocate of the time which can be the Petronas Twin more environmentally responsible Printers with a ‘build volume’ of 1 Towers (above), the saved by employing IBS techniques. LRT system (right) building methods and materials. The cubic metre are common, allowing “The advantage of IBS is that projects and the KL Tower manufacture of cement is one of for ‘printed’ coffee-tables and other are faster,” he says. “You have faster (far right) were the largest emitters of CO . Kilns are furniture. At the extreme end of the constructed using 2 delivery, and the quality is much better heated to 1500 degrees centigrade. build volume wars, companies are IBS technology. because you are making components Limestone releases CO2 as a by- currently engaged in is China’s Winsun in a controlled environment so the product, and coal is used to heat the printer with a build volume of 2,466 quality is much easier to monitor. kilns. By 2050, cement production cubic metres. In 2014 it was used to Productivity also goes up. A project will be responsible for emitting 5 ‘print’ a five-story apartment block and that normally takes a year can take billion tonnes of CO2 a year. This a 1,100 square metre villa in Jiangsu only 6 months using IBS.” is many multiples of the amount Province. The villa’s components

16 17 COVER STORY

The long-term cost benefits of IBS modelling and IBS. Universities also are clear, but the initial outlay on have an important role to play. 5 IBS Groups equipment and training deters some Student architects and engineers need (Structural developers. High interest rates and to be introduced to the potential of low profit margins mean developers IBS before they join the job market. Classifications): keep a close eye on every penny. The With around 400,000 foreign workers construction industry is in good health in the Malaysian construction industry, currently, growing at 10.3% in 2015, the government is keen to encourage and with foreign labour is so cheap, greater use of IBS with skilled investing in retraining your workforce Malaysian workers using superior or buying large-scale 3D printing technology. Pre-cast Concrete Framing, equipment may seem extravagant, Panel and Box Systems despite reduced labour costs and The general public has yet to make Pre-cast columns, beams, slabs, other future savings. up its mind on IBS. When IBS is 3-D components (balconies, described as ‘pre-fabricated’, the staircases, toilets, lift chambers), Following the success of government stigma of the post-war European permanent concrete formwork initiatives in the past, further experience leads some to think drivers can again aid the industry. that components are more likely Standardised training programmes to leak or – for those with an eye will create a skilled, local workforce, to property as an investment – 3D printing is the latest technology utilised in IBS. Andrey Rudenko of Minnesota in the United States for instance has managed to build a castle measuring 15 square metres using this technology and aims to ‘print’ a full-live-scale home in the near future. and investment in automation (and that they cannot be renovated even robotics), will reduce the need as easily as conventionally built Steel Formwork Systems for foreign labour. The Construction houses. With IBS so ubiquitous in Tunnel forms, beams and columns moulding forms, permanent steel Industry Transformation Programme construction however, most private were printed in Winsun’s factory, and formworks (metal decks) assembled for a fraction of the cost aims at increasing productivity customers will be unaware how a – by a handful of workers – in just through building information project was completed. three hours. Governments around the world have been placing orders with large-scale 3D printing companies for housing projects involving multiples Steel Framing Systems in the thousands. Steel beams and columns, portal framesand roof trusses Analysing Cost Benefits

Although increasing use of IBS is seen in projects across Malaysia, and despite the proven benefits of the 3D printing has grown from creating technology, uptake within the industry tiny, detailed models to an entire Prefabricated Timber has been slower than the government 1,100 m2 3D printed villa. Framing Systems had hoped. As with any new Timber frames and roof trusses technology, IBS will only supersede conventional building techniques if it is better, or cheaper. with cheap labour, further investment in equipment and training will often The principal reason why many be seen as reinventing the wheel. developers have been unwilling Making IBS cost-effective also requires Block Work Systems to invest in IBS is because of the a buoyant housing market driving Interlocking concrete masonry abundance of cheap foreign labour mass-production of components. In units (CMU), lightweight in Malaysia. When conventional the current climate, unit prices may concrete blocks methods of building can be done put off some contractors.

18 19 H1_FINAL CORPORATE COMM 2.pdf 1 8/6/15 9:49 AM

COVER STORY

IBS Score Formula

s The IBS Content Scoring System is based on a formula which determines the IBS content of a building project. Fortunately for the builder, a simple form can be filled out to achieve the same results.

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

20 FEATURE

IBS will help increase productivity in construction Upskilling the by 2.5 times to US$16,500 Industry per worker

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

Another reason why the government Another report The Adoption of is encouraging the use of IBS is Industrialised Building System because it will help reduce the (IBS) Construction in Malaysia: number of foreign labourers in The History, Policies, Experiences the construction sector. Presently, and Lesson Learned calls on the they make up around 90% of the construction workforce to enhance construction workforce; a large their skills in IBS. This, it says, will majority of them unskilled. The result in “a more skilled workforce government hopes to cap foreign which would ultimately enhance labour dependency at 15% by 2020, the competitive advantage of the and IBS will help the construction industry.” The report also identifies sector achieve this. design, installation and project management as three areas However, IBS take-up is still low, crucial to IBS. with an estimated 42% of public projects and 70% of private projects CIDB Takes the Lead using it. One of the main reasons is CREATING COMPETENCY IN the lack of skills and knowledge of The CIDB is taking the lead in INDUSTRIALISED BUILDING SYSTEMS the discipline. This was highlighted enhancing knowledge of IBS in the in Barriers to Implementation of construction industry, in line with the Industrialised Building System its mandate to regulate the industry he Malaysian government through the Construction IBS is estimated to reduce construction (IBS) in Malaysia, published in The and achieve the aims of the CITP. In time by as much as 50%. As one of Built & Human Environment Review, June 2015, CIDB announced plans Industry Development Board (CIDB) is championing the goals of the Construction Industry Volume 4, 2011. to increase training in IBS through Industrialised Building Systems (IBS). Better known outside Transformation Programme (CITP) offering discounts and levies to Malaysia as prefabrication, IBS enables construction firms is to enhance productivity, IBS has The article stated, “The skill level those taking such courses. to manufacture building components in a controlled been identified as a key tool. This of IBS workers is more demanding includes combining IBS with other compared to the conventional The CIDB is also working with Tenvironment and then assemble it on site. This results in better methodologies, in particular Building construction methods…. This universities to reach out to students quality and faster completion. Information Modelling. leads to a transformation requiring in architecture and building courses,

22 23 FEATURE

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

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

24 25 PRIME MOVERS

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

26 27 PRIME MOVERS

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

28 29 CAREERS IN CONSTRUCTION

SO YOU WANT TO BE AN... IBS ENGINEER

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

“In the 1980s, concrete was mixed on-site manually. Today, you only have to make a call and the concrete will be delivered to What is IBS? you, ready to pour. It was an evolution in the construction industry. Similarly, IBS has The Industrialised Building System, or IBS as it is commonly known, is a changed the way we build, and hence is an building method that uses different means to a similar end when compared evolution itself. It is something to adapt to be to conventional construction practices. on par with the best players in the market,

The variations between the techniques both locally and internationally.” are subtle enough for either method to be considered to fulfill the general requirements of a construction is casted and once the concrete has IBS, while also using moulds to cast project, but distinct enough for IBS to cured, a beam can be casted over it, building components such as beams possess desirable advantages over the and so on. and columns, is done in a more standard approach. controlled environment. This simply This work is done on the construction means that the components are Traditional construction technique sites, with variables such as worker skill produced off-site, for instance in a involves fashioning wooden moulds, and site conditions affecting the final factory, before being transported to known as formwork, into which the result. This leaves many avenues open the site to be installed. steel reinforcement bars are placed and for mistakes, and if proper procedure pre-mixed concrete poured. Structures is not adhered to, it can result in a These elements are designed from are built up in this way – a column decline in quality standards. the beginning to fit snugly with one

30 31 CAREERS IN CONSTRUCTION

A DAY IN THE LIFE The components are produced at the IBS factory, where they undergo standardised manufacturing processes to ensure that stringent quality levels are met. What is the work of a Senior Operation Manager at an IBS company like on a daily basis? Once a project has been given the green light, your job is to make sure it all goes according to plan. When you produce something at the factory, everything is calculated for. You have to ensure that there are no errors and nothing is wasted as a mistake could end up being repeated. This is crucial as the elements cannot be modified or amended after being produced, and re-casting new ones can be a tedious and costly affair. According to him, the involvement of You manage operations further down the line too. For instance, an IBS contractor in the planning of the sequence for delivery and installation of components must be a construction project usually begins synchronised, and the transporter and installer must work according on day one, when they discuss the to schedule. There is no point if, for example, you produce enough design with the other parties involved components to build two housing units a day if you can only in the project. “This is to ensure that transport enough components to build one house per day. everyone, such as the architect, civil and structure consultants, mechanical Not only would the installation be lagging behind production, but and electrical engineers, and even the there would be extra elements in the factory to build an additional 30 houses after a month. Therefore a schedule has to be set. Typically, quantity surveyors are on the same the plan is to have the precast elements carted off to the site within page as us.” three days of production, as undelivered elements will cost you every day they remain at the factory. This is because contracts usually “This is pertinent as we need to design stipulate payment on delivery. another for easy installation, and This spurred his interest and those of and mould the pre-cast elements, it just takes a short time to secure others in his construction company The Work Process especially walls, with provisions for the elements together using various to the potential of the IBS, and switches, piping and ducting before What advice do you have for anyone who wants techniques such as welding plates and persuaded them to try the system out “When we secure a project, the first they are assembled on site,” he to be an IBS Engineer? grouting at the site. As almost every later that year. They secured their first thing we do is a feasibility study to says. The early involvement also has step of the way is monitored and project, a six-block school complex in assess whether IBS would be a suitable another purpose. “We will come into IBS can be considered as a new trend in the Malaysian construction standardised, there is less chance of Kulim, Kedah. fit for the job,” Ahmad Azhar explains. theproject in the beginning stage as industry, and is just gaining traction here. Therefore, other than quality being compromised. This saves “The reason behind this is cost. As the we need to prepare the moulds and set having the knowledge and technical know-how, you should have the money in the long run as it reduces the “That was the first time we utilised building elements need to be produced up the factory accordingly. This process passion to apply yourself in this field. If you are an undergraduate, need for future maintenance. IBS in a project, and we discovered at the factory, a process that involves a takes two to three months, which is it is advisable choose an IBS-related company – consultants, that it is significantly more convenient financial investment, we need to know perfect as by the time we deliver the manufacturers or even installers – to do your industrial training to than the conventional method of if the break-even point or return on groundwork and piling at the site absorb as much hands-on knowledge as possible in the industry The IBS Expert before encountering IBS later in your working life. construction,” he reveals. “We investment is favourable.” would have been completed.” Having been in the construction managed to reduce the use of industry for over 30 years, Ahmad manpower – by more than half – and Azhar was first a contractor for curtail wastage of material, among How much can a fresh graduate expect to earn as Ahmad Azhar’s interest in IBS also stemmed from an IBS Engineer? conventional building projects, before other things.” one of its usually unseen benefit. “By using this seriously considering IBS five years The salary of a fresh graduate in this field on average hovers around ago. “In 2011, I attended courses His company switched to using IBS system we can drastically reduce our dependence RM2,500. Companies usually hire degree holders over diploma organised by the Construction Industry for all its projects, setting up an IBS on workers in the construction industry, especially holders, and preference is given to those who have prior knowledge Development Board (CIDB), MARA, factory in Alor Setar, Kedah. As other lower-skilled foreign workers. This in turn would and experience in IBS. Bahagian Pembangunan Kontraktor IBS projects came pouring in, including help reduce the cash outflow of the country as they dan Ushawan Kementerian Kerja one that involved 400 housing units, Raya (BPKU) and other agencies that they opened another factory in channel the money they earn here back to their championed the use of IBS,” he says. Temerloh, Pahang. own nation.”

32 33 TECHNOLOGY OF CONSTRUCTION

he Internet of Things (IoT) has been one of the most talked-about components of technology in the last few years. In most cases, this has been in relation to how it can be applied in homes or businesses to automate processes, and make systems streamlined and faster. However, according to multi-national research organisation TMcKinsey Global Institute’s (MGI) The Internet of Things: Mapping the Value Beyond the Hype eport in June 2015, the implementation of IoT in worksite environments (which encompasses oil and gas exploration and production, mining, and construction) has the potential to yield an economic value of up to US$930 billion (RM3.92 trillion at current rates) annually in 2025.

EVERYTHING HOW EMBEDDING TECHNOLOGY IN MACHINES AND DEVICES CAN ENHANCE CO NNE CTING THE CONSTRUCTION INDUSTRY machines on construction sites, and automate request for supplies when a monitored storage goes Intelligent Devices below a pre-determined level.

Construction sites are high-activity The impact of this widespread For predictive maintenance, advanced environments, with mobile machines connection is massive, particularly as sensors can also be installed in and stationary equipment the number of components and mechanical parts and of all sizes, as well as people who equipment used on constructions sites equipment that allow them to always have to be conscious of their and in the operation of buildings is automatically report when they are in safety. The concept of IoT high, which also presents need of maintenance. MGI’s allows physical objects (machines its share of challenges to project report estimates that predictive and and humans) to be assigned digital managers in terms of monitoring condition-based maintenance in site addresses or Internet Protocol supplies and equipment. Using operations can reduce maintenance (IP) through sensors and actuators Radio-frequency identification (RFID) costs by between 5% and 10% linked by networks to computing tags and self-detecting sensors, and increase output by up to 5% systems that allows them to construction site operators can by avoiding unplanned outages. All connect to and communicate with determine how, when and where of these translate into one of the each other, and other electronic supplies go missing (if they do) and major benefits of IoT, lowered costs devices on the Internet. track them, the number of and financial savings from fewer

34 35 TECHNOLOGY OF CONSTRUCTION

WORKSITES: POTENTIAL DIRECT ECONOMIC IMPACT OF $160 BILLION TO $930 BILLION PER YEAR IN 2025

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

36 37 TECHNOLOGY OF CONSTRUCTION

AUTOMATION & he time to invest in automation is upon us. Automation is the perfect complement to an industry that fails or succeeds by its optimisation of manpower. The Construction Industry Transformation THE CONSTRUCTION Programme (CITP) was launched in Malaysia on September 2015 as a comprehensive implementation plan, announcing four strategic Tthrusts: Quality Safety and Professionalism (QSP), Environment Sustainability, INDUSTRY Productivity and Internationalisation. With higher levies imposed for foreign IN THE LAND OF LABOUR, workers, and low domestic participation in the construction labour force, THE ONE-ARMED ROBOT IS KING automation may be the key to saving both time and labour cost.

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

38 39 TECHNOLOGY OF CONSTRUCTION

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

THE FOUR THRUSTS OF THE CONSTRUCTION INDUSTRY TRANSFORMER PROGRAMME (CITP)

footprint. It is also quieter than The new bricklaying robot SAM, Internationalisation traditional methods of road paving. otherwise known as Semi-Automated Mason can lay three times as many Malaysian construction companies are QUALITY, SAFETY & ENVIRONMENTAL Noise pollution itself has a measureable bricks as a traditional worker. SAM is facing stiff competition domestically PRODUCTIVITY INTERNATIONALISATION PROFESSIONALISM SUSTAINABILITY cost. An Economic Assessment of highly adaptable, and can adjust to from the presence of foreign players, U.S. Environmental Noise in 2015 incline and weather conditions, while as well as challenges in expanding into OUTCOMES determined that reducing hazardous still completing precise and level work. the regional and international market. noise levels alone could save up to US$3.9 billion every year in medical While technological advances have Part of the CITP initiative is to win fees and regained productivity. reduced the demand for low-skilled back market share in both domestic workers, it has not reduced the need and overseas markets. Once again, Quality, Malaysia’s More than Malaysian for human labour overall. Robots automation may be the key to safety and sustainable doubling champions: Productivity professionalism infrastructure: productivity, leading the have been relegated to menial and winning this battle. Automation ingrained in a model for matched by charge locally Automation is also expected to help dangerous tasks, rendering specific reduces construction costs and industry culture emerging world higher wages and globally Malaysia realise its goal of more than jobs obsolete. This results in less time. This, combined with strategic doubling productivity before 2020. At dependency on foreign labour to investments into modern techniques present, the local construction industry sustain the construction workforce, and technology, may be enough to More than 100% of large 2.5x increase in 10 companies 50% public infrastructure productivity to achieve 5* is suffering from a lack of information- while simultaneously creating better provide the competitive edge local projects exceed projects exceed US$ 16,500 SCORE rating driven decision making, as well as paying jobs in maintenance and construction companies have been 1 acceptable sustainability per worker limited adoption of modern practices supervisory positions in the process. searching for.. QLASSIC score requirements and technology.

More than 4 Mt CO2 50 Malaysian 50% reduction equivalent companies Malaysia still has a low implementation in worksite fatalities reduction earn G8 and injuries per year status rate of Industrialised Building Systems Bolstered by an abundance of research into (IBS) in construction. IBS involves robotics, artificial intelligence, and information Ease of Doing Business 10 more the manufacturing of building indicator in dealing construction-related components, usually off-site, in a technology, automation in the construction with construction companies export controlled environment, which are industry has grown exponentially. The way local permits improved construction services in by 5% points the global market then installed into construction works. companies capitalise on the rapid availability of However, many modern construction new technology will determine how successfully techniques are only feasible with 1. US$16,500 is equivalent to RM61,939 as stated in the 11th Malaysia Plan; 2.5x increase uses 2011 as a base whereas 11th Malaysia Plan states extensive automation, which local the CITP would be able to transform the 1.6x increases in labor productivity using 2015 as a base, thus they are consistent companies have yet to adopt. Malaysian construction industry.

40 41 MONEY MATTERS Fina ncing Devel opment

The construction industry features prominently in the Prior to the announcement of the 2016 Budget, the first THE CONSTRUCTION SECTOR 2016 Budget in October 2015 (and in a series of five as a recalibration in January 2016 to the country moves towards achieving take global market volatility and a GAINS BIG FROM BUDGET 2016 developed nation challenging local economic conditions status in 2020. into account), the 11th Malaysia Plan ven in the middle of a global recession, with the price of (11MP)—starting this year—already set crude oil at one of its lowest points in history and the value the stage for growth in the construction of the ringgit wavering, Malaysia’s construction industry is sector.Revealed in May 2015, 11MP transport, oil and gas downstream and proposed four major infrastructure water projects. With the developed expected to continue to grow by 8.4% this year, aided by projects worth around RM80 billion nation status deadline just four years E initiatives in the 2016 Budget. in various sectors such as public away, the construction industry is an 42 43 MONEY MATTERS

Kota Sandakan The continuation of the 2,239 km Pan-Borneo highway, even with the recalibration of the SOUTH CHINA SEA Kinabalu 2016 Budget, emphasises the government’s Pan-Borneo commitment to enhancing the construction sector in the country. Highway Project SarawakSABAH Expected to create BRUNEI Lahad 400,000 new jobs Datu Bandar between maintaining the state of the CIDB’s Construction Research the environment and economic Institute of Malaysia (CREAM) in their Toll-free along Seri Begawan benefits, which is a priority in any paper Sustainable Construction and development. Green Building: The Case of Malaysia, Sarawak route END Tawau Miri establishing green procurement Expected to be To this end, Budget 2016 proposed procedures is one of the most completed by 2022 and allocated RM500 million to the effective ways of increasing adoption Industrialised Building System (IBS) of sustainability in the construction Bintulu Promotion Fund to be distributed industry. CELEBES SEA by SME Bank to contractors and MALAYSIA developers in the G5 category This involves integrating environmental (qualified to undertake projects considerations and planning into the worth up to RM5 million) and entire life cycle of projects—meeting Sibu City below who implement and utilise the need for goods and services using SARAWAK Highway IBS. The government also extended measures that achieve value for money Sarikei path the implementation of the Green while minimising damage to the International Technology Financing Scheme— environment. Contractors and property borders which could benefit contractors developers can build sustainable Kuching and developers who utilise green projects and also be responsible for technology in their projects—until implementing operations, such as 31 December 2017 with a fund of maintenance, that are environment- START RM1.2 billion. These initiatives are friendly. INDONESIA expected to boost the adoption of sustainable construction as advocated Accomplishing this however will by the Construction Industry require improved and expanded Development Board’s Construction knowledge and technology by important contributor to national CIMB Research in their report pointed provision of electricity and treated Transportation Master Plan (PTMP). Industry Master Plan. enhancing involvement in research and development, encompassing out that oil and gas infrastructure, water. Other projects include the According to Maybank Research, development (R&D). To encourage and buildings, bridges, roads, railways and such as the Petronas’ Refinery RM28 billion Mass Rapid Transit “With the Chinese companies’ ability Attaining Sustainability develop such studies, this year was public infrastructure and contributing and Petrochemicals Integrated 2 (MRT2) and RM9 billion Light to offer attractive financing packages, declared Malaysia Commercialisation to competitiveness and attracting Development (RAPID) project in Railway Transit 3 (LRT3), as well as the this would raise their chances of It is important to note that adopting Year, with Budget 2016 stipulating that foreign investment. Pengerang, Johor, is expected to see RM12.8 billion Pan-Borneo Highway winning the projects, while allaying sustainability in the construction companies with paid-up capital not investments worth RM18 billion. (PBH), the Malaysian Vision Valley concerns on project funding issues.” sector involves more than simply exceeding RM2.5 million are allowed Growing Groundwork (MVV)—a 108,000 ha integrated implementing green initiatives in to claim double tax deduction for R&D The cuts to government expenditure economic development valley in The Balance the building phase. According to project expenditures up to RM50,000 Analysts in the country maintain also meant prioritising physical Negeri Sembilan—and the Cyberjaya Ir Dr Kamarul Anuar Mohamad for each year of assessment between that despite the revision of the projects that will have higher positive City Centre (CCC) project. Budget 2016 also highlighted the Kamar and Zuhairi Abd Hamid of 2016 and 2018. budget which saw the allocation for impact on the welfare of the people. importance that the Malaysian development projects decrease from These include the development of Malaysia’s strengthened ties with government attaches to its RM50 billion to RM45 billion, the hospitals, schools, houses, roads China are also expected to boost commitment to reduce greenhouse The construction industry depends on and construction industry will continue and public infrastructure such as the construction sector, particularly gas emissions (GHG) intensity to contributes to other economic sectors in the to thrive and contribute significantly the RM80 million development of in projects that include the Kuala 40% of GDP by 2020. One of the country and as the major beneficiary of the to the economy owing to the high Integrated Villages including in Sungai Lumpur-Singapore high speed rail, main challenges in implementing number of massive projects on board Siput, Perak, which encompasses the the Gemas-Johor Bharu double track sustainable construction measures recently revised Budget 2016, its growth will for this year up to 2020. For instance, construction of connecting roads, rail and the RM27 billion Penang and methods is finding a balance have a wide-reaching effect on the nation.

44 45 GOING GLOBAL Kazakhstan’s Construction Boom have been identified for each of them.

he largest landlocked These include new country and seventh largest administrative buildings and a business centre on a in the world, the Central 3.63 square kilometres area Asian state of Kazakhstan in Shymkent and housing projects in is a relatively young nation. Aktobe. The piece de resistance would be TOnce part of the Soviet Union, One of the key reasons for this spike the US$10 billion G4 Golden City project in construction activity is that Astana in Almaty. Taking up more than 166,900 it became independent in 1991 has been chosen as the site for World square kilometres, the Golden City will and has since become the largest Expo 2017. More than 30 countries be a mixed-used development containing economy in the region. Its rich are expected to participate in this residential, commercial, entertainment, prestigious international exhibition, and educational and retail amenities. natural resources such as oil and Kazakhstan is looking to put its best gas have boosted its gross domestic foot forward. Infrastructure development is also on product (GDP) per capita from the rise in Kazakhstan. Aside from new US$1,500 in 1991 to US$13,000 It is doing this through the construction roads and railways being constructed, of 26 projects in Astana. These include efforts are being made to strengthen by 2013. This increase in prosperity 4,000 apartments, a hotel, a school, the Kazakhstan’s energy infrastructure. has also spurred demand for both a conference and meeting hall, and a This includes investing in new oil and property and infrastructure. As part commercial and retail area, which will gas pipelines, as well as building new be built on a 173.4 hectare space. transmission towers and lines, and of our Going Global series, Heights power plants including nuclear reactors. showcases the opportunities in the The run-up to World Expo 2017 has Kazakh construction sector. also seen Kazakhstan relax its policy on The Malaysian Connection foreign workers. Previously, non-Kazakh workers were subject to quotas so that In total, the Kazakh construction sector This growth can be particularly seen in the nation’s companies would hire locals. However, was valued at RM57 billion in 2015 capital Astana, where construction work is being the size and scope of the construction and this is expected to grow to RM72 carried out on 13,000 square metres of office projects along with the short timeframe billion by 2017. This has led to an influx space and 50,000 square metres of retail space. to complete them meant a rethinking of of foreign construction firms into the There are also more than 80 residential projects this policy. country, most of them from Russia. Last under development. This is the result of the Kazakh year, nearly a quarter of all building and authorities earmarking US$273 million to build Other than Astana, three more cities infrastructure projects were taken up by infrastructure, as well as an additional US$280 were named by the President of non-Kazakh companies. million for public housing. Kazakhstan Nursultan Nazarbayev as future urban centres: Almaty, Shymkent Opportunities are therefore plentiful in and Aktobe. Major construction projects Kazakhstan and Malaysian construction

46 47 GOING GLOBAL

“We have done much, but our country is large, and good roads are among the prerequisites for the development of our economy… We need to link all the corners of our country to the centre so that people can travel, live and work in any place they choose.”

– President Nursultan Nazarbayev of Kazakhstan

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

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

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