KUALA LIMPUR: G7 grade contractors are better positioned in terms of capacity to promote and develop industrialised building systems (IBS) in the country, said Eversendai Corp Bhd.
Executive Chairman and Group Managing Director, Tan Sri AK Nathan, said in Budget 2016, the government had allocated RM500 million in soft loans facility to G5 contractors but they were not the ones who would really engage and promote the IBS.
“G7 have more capabilities to really make the IBS successful as it needs innovations, financial strength, mindset and willingness to take it forward.
“I am not saying the G5 can’t do this but the focus should be on the bigger players that could make it a success,” he told reporters at the TaxMax seminar organised by Delloite here yesterday.
Nathan said government should also look into giving some incentives or tax reduction for contractors to bring in machineries and equipment to support the IBS.
G7 contractors hold a Grade G7 licence approved by the Construction Industry Development Board (CIDB) Malaysia which permits them to undertake civil engineering construction and building construction projects for an unlimited amount.
Meanwhile, the G5 contractors are allowed to undertake civil engineering construction and building construction projects not exceeding RM5 million.
Nathan said in the construction industry, workforce was another major concern as the sector relied a lot on foreign workers.
“With the various levies imposed on foreign workers, for example, the RM5,800 charged for renewal of work permit, these would exacerbate the problems faced by the contractors as it involves a lot of money, and the foreign workers could end up costing more than the locals,” he said. — Bernama
He said, however, the locals were not committed to this kind of job and they needed to be trained with some skills in these areas.
The industry also needed to retain the skilled foreign workers after having provided training for them here for years, considering the amount of construction projects that the country has embarked on, he said.
He also said the process of getting workers into the country took at least eight months, compared to West Asia which only took about three weeks, and this became a problem in the industry.
— BERNAMA