1. Why is construction important to the economy?
Construction has enjoyed double digit growth over the past several years and is expected to achieve 10.3% growth under the 11th Malaysia Plan. The industry will help enable the aspirations of inclusive growth – with strong forward and backward linkages, it contributes to more than 120 industries (manufacturing); supports a large segment of SMEs; and its workforce spans professionals (engineers, architects, planners, etc) as well as skilled and technical workers.

2. What is the aim of CITP?
CITP’s overarching aim is a transformation of today’s construction industry into a modern, highly productive and sustainable industry that is able to enjoy continues growth and enable Malaysian companies to compete with international players whether domestically or abroad. CITP will drive an unprecedented era of progress and growth in the industry over 2016–2020.

3. How were CITP’s four thrusts selected?
Three core lenses were used to determine the overall strategic thrusts of the CITP:

  1. Inputs from Key Stakeholders
  2. Lessons from Global Trends and Benchmarks
  3. Alignment with Malaysia’s National Agenda

After intensive industry and government dialogues, findings were assimilated from across the three lenses, culminating in the four strategic thrusts for Malaysia’s construction.

4. What is transformational in the CITP?
Building on the industry’s achievements in the past, CITP takes a transformative approach right from the design phase:

  1. Identifying and prioritizing only key initiatives that are aligned with the overall national agenda and will ‘move the needle’
  2. Putting in place a string governance body with the minister of Works chairing the highest level committee to having initiative working groups owning and driving the implementation
  3. Including the industry, ministries and agencies, research organisations and academia from design through implementation in order to collaborative drive changes

Specifically, the CITP recommends a number of new ways of doing things, for example measures to manage the demand and supply of foreign workers towards higher skills as well as leveraging the broader ecosystem for support such as collaborating with financial institutions to drive the demand for quality, safety and environmental responsibility. It also enhances existing programmes including expanding the breath and skill levels of construction training programmes to cover more aspects of sustainable construction and technological advancement.

5. Who was involved in the development of CITP?
CIDB, under the guidance of the Ministry of Works, has engaged over 150 stakeholder groups in the development of CITP. These include local and international industry players, professional bodies and associations, academic and research institutions as well as government ministries and agencies.

6. How were stakeholders engaged in the development of the CITP?
The stakeholders were engaged via lab sessions, focus group discussions, one-on-one engagements, roundtable dialogues as well as surveys and interviews. In addition, a number of key stakeholders have since come forward to formally indicate their support to collaborate and implement the CITP via signing Pledges of Support.

7. How will the industry benefit from CITP?
CITP will benefit the industry in a number of ways, these include providing easy access to modern, good practices focused on quality and safety as well as facilitating the ease of doing business for the industry. CITP also introduces measures to encourage adoption of environmentally sustainable practices and supports the further development of skilled workforce and entrepreneurs including the greater adoption of technology. At the same time, CITP enables industry players to achieve greater scale and capabilities to compete.

8. Will CITP result in the increase in cost of doing business for the industry?
One of the target outcomes under the Quality, Safety and Professionalism thrust is to explicitly improve the ease of doing business (hence reducing cost of doing business) by addressing regulatory constraints, Thus, there are specific initiatives geared towards this. More generally, it is true that with CITP, upfront investments will often be required to ensure that the effective levels of quality, safety, professionalism and environmental sustainability are built early into the construction project costs.

However, the often quoted cost ratio “0.1:1:5:200” in the “Design: Construction: Maintenance: Operations” costs reflects the true value of investing in well-designed construction that far outweighs the project costs over the longer term. Taken together, over the project life cycle, these investments will result in tremendous value not just for the construction industry, but all key stakeholders and the country.

9. How will Malaysia benefit from CITP?
Construction is reflected in the homes we live in, the buildings and infrastructure around us and in the cities and townships we inhabit. Construction has strong backward and forward linkages with other industries such as manufacturing, finance and professional services. As such, construction creates jobs directly in the construction industry and indirectly in over 120 adjacent industries.

Further, as clients and end-consumers of the industry, Malaysians will be able to purchase, live and work in a built environment that conforms to higher quality and does not compromise on safety and environmental sustainability. More seamless transactions will lower costs of doing business while productivity initiatives will deliver more modern practices aimed at attracting more locals into the industry at higher wages.

CITP will also help win domestic market share from foreign players and raise export earnings. The multiplier effect will then distribute all this additional wealth across the linked industries and the county.

10. How will the success of CITP be measured?
Each of the four CITP thrusts has a set of measurable outcomes. To achieve these thrust-level outcomes will require implementation of the CITP initiatives with each initiative having their own set of timelines and key performance indicators (KPIs) and a set of implementation plans that will be closely monitored by CIDB and Ministry of Works.

11. What is the governance structure for CITP?
A Programme Management Office (PMO) for CITP has been set up to track and monitor progress of the initiatives, CITP Working Groups comprising key stakeholders are established to collaborate and help deliver the initiatives and corresponding KPIs. The PMO will support these Working Groups with all activities governed directly under the Ministry of Works and its Minister.

12. How is implementation of CITP funded?
CITP is part of the national agenda and request has been made to the Federal Government under the 11th Malaysia Plan for investment to realise the initiatives. CIDB will also co-fund the CITP and contribute to a number of initiatives given its role in leading industry development.

13. What happens when new opportunities or issues arise while CITP is being implemented?
The CITP is a dynamic programme. It can respond and adapt to any and every challenge or hurdle along the way. The overall CITP initiatives, their progress and achievements will be reviewed regularly via-à-vis any issues that may arise.

14. What is CIDB’s role with regards to CITP?
CIDB has taken the lead in developing the CITP under the guidance of Ministry of Works, the CIDB Board, and more importantly, the industry itself. As CITP is a shared programme with many stakeholders, collaboration has been key throughout the whole development and will continue to be integral during implementation. CIDB is committed to supporting the implementation of CITP and is also reorganising itself to ensure it has sufficient resources and capabilities to collaborate with stakeholders to deliver the CITP.

15. What are some of the challenges in the implementation of CITP and how does the CITP plan to overcome them?
A key challenge of CITP will be the large number of different stakeholders who will need to work together to implement and deliver the transformation.

This is where coordination, strong buy-in across stakeholders and sufficient resources are necessary – all of which have been designed into the programme. Further, the strong governance mechanism will put into place appropriate checks and resolution mechanisms in the event of any conflicts or issues.

Further, given that CITP initiatives have been designed to reflect the demands and requirements of key stakeholders as well as the general public, that in itself will help ensure implementation.

16. How can I participate in implementing CITP?
The CITP welcomes support from various parties interested in playing a role in implementing any or all of the initiatives. Contribution and collaboration are important factors determining the success of the CITP.

Please reach out to the CITP PMO at 03-4047 727103-4047 7271 or email pmo@cidb.gov.my for further information.

23 May 2017