MBAM hopes for boost in construction sector with more projects in Budget 2023 wishlist
KUALA LUMPUR (Sept 30): Master Builders Association Malaysia (MBAM) has announced its Budget 2023 wishlist, urging the government to boost the construction sector with more projects, according to a statement released on Monday (Sept 26).
To ensure sustainable growth of the construction industry, MBAM president Oliver Wee Hiang Chyn hopes the government will use its development budget to boost the adoption of the Industrialised Building System (IBS) and implement planned public projects, such as affordable housing.
Also, he hopes to see the government intervene and assist in resolving construction disputes and issues. Wee noted that the Construction Industry Payment and Adjudication Act (CIPAA), which has been in effect for eight years, has handled over 4,000 cases, with contractors spending no less than an estimated RM400 million on legal fees. The Covid Act 829, which allows for non-performance of contractual obligations during the Covid years, which will expire on Oct 22, will further increase the number of disputes involving the construction industry, he said.
In line with Construction 4.0 Strategic Plan for the construction industry to use alternative materials, contemporary construction techniques, more mechanisation usage and design, and robotics and automation, Wee said the government must provide incentives and subsidies to encourage effective buy-in from construction enterprises.
“The first two elements that we can focus on for our transformation journey are Building Information Modelling (BIM) and Industrialised Building System (IBS),” he said.
Besides that, MBAM hopes that the government will include a streamlined and expedited admission process for foreign labourers in the construction industry. To make up for the shortage of foreign labour, the government could offer additional incentives and subsidies to support the construction sector's digital transformation.
“We also recommend the government to offer capital expenditures, incentives, and support for the construction industry and lower taxes on building equipment to encourage mechanisation and productivity in the construction sector,” he added.
Lastly, he hopes the government will consider lowering the country’s income tax and corporate tax, in light of the rising cost of living.
