‘Asean Economic Community won’t have impact on IBS’

KUALA LUMPUR: The formation of the Asean Economic Community (AEC) next year will not impact the industrialised building system (IBS) which aims to reduce dependency on foreign labour.

HSBC Asean economist Joseph Incalcaterra said the AEC, which promotes free movement of labour across the region, only focused on skilled labour.

“Unskilled labour, including most in the construction workforce, falls outside of AEC’s scope,” he said.

Local industry players have recently raised concerns that the AEC would open up foreign labour flows into the country, thus slowing IBS implementation among the developers.

Some analysts opined that the developers might revert from IBS to the classic system as the free movement of labour would result in cheaper workforce.

IBS has been used as a building system in local construction projects since the 1960s, albeit on a small scale, as the system is designed to, among others, reduce the number of workforce especially foreign workers, and increase the construction quality.

To spur the industry further, an IBS Centre has been set up under the five-year Construction Industry Transformation Programme (CITP) launched by Prime Minister Datuk Seri Najib Abdul Razak in September.

CITP, which is spearheaded by the Construction Industry Development Board (CIDB) and the Works Ministry, is aimed at transforming the industry into a modern, highly productive and sustainable one by 2020. The programme also aims at enabling Malaysian companies to compete locally and globally with international players while enjoying continued growth.

Expected to be a primary driver for the construction industry next year, CIDB has been granted approval to ensure that all private sector projects valued at RM50 million and above are required to achieve an IBS score of 50%.

Any party submitting building plans for approval will receive the requirement from the relevant local authorities of a 50% IBS score. – Bernama