Public-Private Partnership to accelerate construction industry transformation
Penang, 25 April 2017: In a move to accelerate the construction industry’s transformation, 53 construction players in Penang today signed pledges of support for the Construction Industry Transformation Programme (CITP), a holistic and comprehensive national agenda launched in 2015 to spearhead the overall development and future direction of the Malaysian construction sector.
For the first time in Penang, the construction industry leaders and players in the state will join 219 other industry players around the country that has signed the Akujanji CITP pledge. Held in conjunction with a seminar on the CITP for industry players, the ceremony was witnessed by Datuk Haji Sarani Bin Dollah, Deputy Secretary-General of Ministry of Works, and Puan Sr. Sariah Abdul Karib, Senior General Manager of Corporate and Business Sector, Construction Industry Development Board (CIDB), Malaysia.
At this milestone event today, the 53 developers, manufacturers, contractors, and government agencies pledged their commitment to the realization of the CITP and listed specific initiatives that the respective organizations will undertake to transform under the four strategic thrusts of the CITP.
“We are pleased to see that the industry’s movers and shakers in Penang have now stepped-up and joined us in our transformation journey. Their commitment to transforming their business activities and processes towards the standards outlined in the CITP will ultimately elevate the status and performance of the construction industry in Malaysia,” said Datuk Haji Sarani during his address to the industry players.
“Importantly, the construction sector is one of the key sectors in Malaysia as it serves as a catalyst to the development of over 120 industries. A construction industry that is capable, high quality, and efficient is important in attracting investments. In 2016 alone, there were a total of 6,305 construction projects with a combined value of RM166.4 billion in Malaysia, once again underscoring the magnitude and impact of the construction sector in the country. Thus, it is timely that we are rallying construction players to adopt the CITP and elevate the standard of Malaysia’s construction industry,” he added.
The CITP, which was launched on September 10, 2015 by Prime Minister Datuk Seri Najib Tun Razak, is a national agenda to transform the construction industry into a modern, highly productive and sustainable industry. It forms an important part of the 11th Malaysia Plan and supports the overall National Transformation Agenda in making Malaysia an advanced and high-income nation by 2020.
Formulated by the Ministry of Works and CIDB, the CITP comprises of four strategic thrusts: Quality, Safety and Professionalism; Environmental Sustainability; Productivity; and Internationalisation, with 20 initiatives identified over these four thrusts that addresses specific challenges in the construction industry.
Following the signing today, there are now a total of 272 organisations that have pledged their support for CITP. The “Akujanji CITP” pledge initiative kicked off in 2015 with more than 86 organisations pledging their support for the CITP. In 2016, the momentum continued with the pledge signing by 20 key developers from the Real Estate and Housing Developers Association (REHDA), 6 developers in Cyberjaya, and a total of 107 organisations in East Malaysia covering both Sarawak and Sabah. Today’s pledge signing ceremony is the ninth of its kind so far.
“We are pleased that the CITP has now built the momentum and is a case for change for the construction industry. As of 2016, out of the 96 KPIs outlined under CITP, 62 have exceeded targets of 90% or more while 25 KPIs have achieved targets of 61% to 89%. All in all, we are on track towards transforming Malaysia’s construction industry by 2020,” said Puan Sr. Sariah Abdul Karib, Senior General Manager of Corporate and Business Sector, CIDB Malaysia.
Some of the key achievements thus far include CIDB’s success in rallying over 20 key developers in the country to adopt the MyCREST carbon emission rating tool – a key enabler under the Environmental Sustainability thrust of the CITP. The Malaysian Carbon Reduction and Environmental Sustainability Tool or MyCREST aims to quantify and reduce carbon emissions in the construction sector. Through the adoption of MyCREST, industry players including developers will be guided to design, construct and operate buildings in a lowcarbon and sustainable manner.
On top of that, CIDB has also trained over 120 QLASSIC Assessors who will support CIDB in assessing projects under the QLASSIC guidelines – a scoring system that measures and evaluates the workmanship quality of a building construction based on the Construction Industry Standard (CIS).
Meanwhile, the high adoption of the Industrialised Building System (IBS) in government projects at 70% is also signal to construction players to continue investing in modern construction technologies. Malaysian construction players are also consistently exposed to the global market, having participated in 74 overseas projects through CIDB Malaysia’s facilitation.
On the human capital front, the construction sector consumes about 15% of the country’s manufacturing output and accounts for 9.5% of the workforce with a total of 1.2 million registered workers. According to official statistics, 75% of these are Malaysians, including professionals such as engineers, architects and surveyors, signifying the key role of this sector in uplifting the overall income levels of the Rakyat.
“We at CIDB will continue to collaborate with strategic partners from both the public and private sectors to accelerate the transformation of the construction industry as outlined under the CITP. We believe, if we work together to drive the initiatives within the various strategic thrusts, we will be able to build a construction sector that will provide quality products and services through a safer and sustainable environment. This will ultimately make the sector a key contributor to the socio-economic transformation of the country,” concluded Puan Sr. Sariah.
The Construction Industry Development Board was established under the Construction Industry Development Act (Act 520) to develop the Capacity and Capability of the Construction Industry through Enhancement of Quality and Productivity by Placing Great Emphasis on Professionalism, Innovation and Knowledge in the Endeavour to Improve the Quality of Life.