Dato’ Ir Ahmad ‘Asri Abdul HamidChief Executive,

Construction Industry Development Board Malaysia

INTERNATIONAL CONSTRUCTION TRANSFORMATION CONFERENCE 2019Keynote Address: “Construction Beyond 2020”

INTERNATIONAL CONSTRUCTION TRANSFORMATION CONFERENCE (ICTC)

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Construction

Beyond 2020

“”

OVERVIEW OF

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CONSTRUCTION INDUSTRY

JOB CREATION ADDRESSES SOCIAL, CLIMATE

& ENERGY CHALLENGES ECONOMIC GROWTH

LINKED TO OTHER SECTORS

IMPACTS GDP & ECONOMIC DEVELOPMENT

ENVIRONMENTAL SUSTAINABILITY

PRODUCTIVITY

COMPETITION

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CHALLENGES IN THE CONSTRUCTION INDUSTRY

QUALITY

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TRANSFORMATION PROGRAMME IN MALAYSIA

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1994 Act 520

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MIDTERM REVIEW OF CITP KPIs

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ExportSafetyQuality Professionalism Sustainability Skills Training Technology

4 KPIs 2 KPIs 5 KPIs 6 KPIs 3 KPIs 6 KPIs 4 KPIs

Competitiveness

6 KPIs

Construction Industry

Transformation Plan 2016-2020

11 Thrust KPI 6 Thrust KPI 9 Thrust KPI 10 Thrust KPI

Which can be categorized into 8 Focus Areas

1 2 3 4 5 6 7

Annual Targets + Weightage + Activities

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Thrust 1

Quality, Safety &

Professionalism

Thrust 2

Environmental

Sustainability

Thrust 3

Productivity

Thrust 4

Internationalization &

Competitiveness

Quality, safety &

professionalism to be

ingrained in industry culture

Malaysia’s sustainable

construction to be a model for

the emerging world

Productivity of the industry is

more than doubled, matched

with higher wages

Malaysia champions to lead

the charge locally and abroad

Improved quality, safety and

professionalism across the

construction industry

Sustainable construction

emphasis in the value chain

Double construction industry

productivity from 2011

Greater business

competitiveness of

construction companies

THRUSTS

END-STATES

INTERMEDIATE END-STATES

36 THRUST OUTPUT KPIS

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Quality, Safety and Professionalism ingrained in industry culture

Malaysia’s sustainable infrastructure:A model for the emerging world

More than doubling productivity, matched by higher wages

Malaysian champions:Leading the charge locally and globally

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Quality, Safety and Professionalism ingrained in industry culture

Malaysia’s sustainable infrastructure:A model for the emerging world

More than doubling productivity, matched by higher wages

Malaysian champions:Leading the charge locally and globally

QUALITY, SAFETY & PROFESSIONALISM

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• Very few quality-rated buildings

• High occupational deaths in construction

• Delays in approvals of construction permits

Case for Change Examples

COAMS: ISO

37001:2016(ABMS)

OSHCIM

BIM-enabled NBS

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Quality, Safety and Professionalism ingrained in industry culture

Malaysia’s sustainable infrastructure:A model for the emerging world

More than doubling productivity, matched by higher wages

Malaysian champions:Leading the charge locally and globally

• Climate change

• Lack of sustainability-rated construction in Malaysia

• High carbon emissions and energy usage of buildings

• High volume of construction and demolition waste dumping

ENVIRONMENTAL SUSTAINABILITY

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Case for Change

Environmental sustainability to support the sustainability goal under the 11th Malaysian Plan

2020 ASPIRATIONS

ENVIRONMENTAL SUSTAINABILITY

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• 100% LARGE INFRASTRUCTURE AND BUILDING PROJECTS EXCEED SUSTAINABILITY REQUIREMENTS

• 4 MT OF CO2 REDUCTION PER ANNUM BY 2020.

Comprehensive suite of sustainability ratings

SOLID WASTE MANAGEMENT

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Quality, Safety and Professionalism ingrained in industry culture

Malaysia’s sustainable infrastructure:A model for the emerging world

More than doubling productivity, matched by higher wages

Malaysian champions:Leading the charge locally and globally

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Outpacing global GDP by over one percentage point

Global construction industry will grow at an

average rate of 3.9% to

2030Driven by developed countries recovering from economic instability and emerging countries continuing to industrialize.

https://www.pwc.com/vn/en/industries/engineering-and-construction/pwc-global-construction-2030.html

INTERNATIONALISATION & COMPETITIVENESS

2020 ASPIRATIONS

INTERNATIONALISATION & COMPETITIVENESS

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• Increased need for Malaysian companies to hold ground against foreign competitors

• Erosion of domestic construction share of local companies

• 70% decrease in value of overseas projects won by Malaysian companies

Case for Change

The CITP aims to nurture ‘Malaysian Champions’,i.e. companies with the

potential to become construction industry leaders.

2020 KEY OUTCOMES

• Lead the charge both locally and globally

• Raise the profile of the Malaysian construction industry in the global market

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LEVELLING THE PLAYING FIELD FOR LOCAL PLAYERS AGAINST FOREIGN COMPETITION BIDDING FOR MALAYSIAN PROJECTS

SCORE

INTERNATIONALISATION & COMPETITIVENESS

EXPORT

CONSTRUCTION PERMIT

CONVINCE

INTEGRATED CONTRACTOR REGISTRATION

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Quality, Safety and Professionalism ingrained in industry culture

Malaysia’s sustainable infrastructure:A model for the emerging world

More than doubling productivity, matched by higher wages

Malaysian champions:Leading the charge locally and globally

Technology

Process

Workforce

PRODUCTIVITY

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• Low Industrialised Building System (IBS) adoption rate

• Largely unskilled workforce

• High proportion of subscale SMEs and Bumiputera firms

Case for Change

Key Drivers

2020 ASPIRATIONS

The productivity in the construction industry must be underpinned by the drivers of workforce, technology and processes.

2020 KEY OUTCOMES

• Increase productivity by 2.5 times

• Pay out higher wages based on increased efficiency leading to reduced costs

INCREASING PRODUCTIVITY IN CONSTRUCTION INDUSTRY

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Moving away from labour intensive activities

• Ensure better safety• Speed up delivery time• Improve overall quality• Reduce construction

wasteIndustrialised Building System (IBS)

INCREASING PRODUCTIVITY IN CONSTRUCTION INDUSTRY

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Industrialised Building System (IBS)

Initiatives

• Lowering the cost of IBS machinery

• Offer higher plot ratio incentives for developers

• Facilitating short-term loans for IBS components procurement

• Training programmes and assessment tools to ensure the quality of IBS work in the country

Championing the adoption of IBS in the country

All public projects worth above 10 million must adopt IBS and achieve minimum IBS score of 70

IBS made compulsory for all private projects worth RM50 million above and achieve IBS score of 50

Public Sector

Private Sector

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INCREASING PRODUCTIVITY IN CONSTRUCTION INDUSTRY

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BUILDING INFORMATION MODELLING (BIM)

BENEFITS

✓ Build with more

accuracy

✓ Fewer errors

✓ Less waste

✓ Better safety

✓ Improved efficiency

✓ Shorter time frame

Efficient and Effective life

cycle

INCREASING PRODUCTIVITY IN CONSTRUCTION INDUSTRY

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BUILDING INFORMATION MODELLING (BIM)

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CONCLUSION

ROADMAP FOR IR 4.0 IN CONSTRUCTION

PLANNING & DESIGN

- BIM

- Virtual Migration of physical structures

● 3-D Laser Scanning & Aerial Mapping

- Data-Driven Design

● Big Data Analytics

- Simulation and Rapid Prototyping

● Simulation enhance through

holographic & 3D printing

ROADMAP FOR IR 4.0 IN CONSTRUCTION

DEVELOPMENT AND OPERATIONS

- Real-Time Data Sharing, Integration &

Coordination Across Stakeholders

- Constructability

● Remove any ambiguity

ROADMAP FOR IR 4.0 IN CONSTRUCTION

WORLDWIDE TREND

- Prefabrication & Modular Construction

- Advanced Building Materials

- Sustainable Energy

- Mobility & Transport

●Autonomous Vehicles

- Drones & Robots

- Internet of Things (IoT) & Cloud Computing

- Big Data & Analytics

- Augmented Reality & Simulation

- Additive Manufacturing

- Jack Ma

“Adopt and change before any major trends or changes.”

THANK YOU

Driving Construction Excellence Together