CIDB MASTERPLAN

CIDB Masterplan

CIDB NOW HAS A MASTERPLAN TO SUCK MORE FOR A FEW

After 10 years of existence, we now hear something - A Masterplan. They don't have it before (I presumed). It is encouraging news to hear that CIDB is formulating a Masterplan for the development of the construction industry and it's sustainability towards 2020.

CIDB will be inviting the Presidents & CEOs of the companies involved in the industry to help lay down the final groundwork for the Masterplan at the one day meeting on the formulation of the masterplan.

"ONE DAY IS ENOUGH SIR, TO GET THE FEEDBACK AND STRATEGIES TO DRIVE THE MASTER TO PLAN."

“WE are addressing several issues on the development of the construction sector & its sustainability towards 2020,” says Datuk Hamzah Hasan, the CEO of CIDB.

“The Vision of the Masterplan is to make Malaysia among the best construction industry nations of the world,” he said.

Among the areas covered were sustainable flow of domestic projects, foreign markets and human resources.

Based on his statement and the one-day meeting with Industry captains, what do you figure will come good for the industry?

Before I could comment, lets look at CIDB reasons for existence.

CIDB's motto:
CIDB Malaysia-
Understand The Past,
Conquer The Present,
Shape The Future.


The enactment of the ACT 520 [Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994] has paved the way for the empowerment of CIDB Malaysia to:

1) Create a climate for a more vigorous development in the Construction Industry
2) Carry out its functions as the enabling authority to help Construction Industry Players overcome bureaucratic obstacles
3) Play the role of facilitator by addressing the current and future needs of the Construction Industry.

Roles & Responsibility of CIDB:

1)Carrying out all activities in respect of the Construction Industry
2)Awarding certificates of proficiency
3)Establishing, expanding, promoting the establishment or expansion of companies, corporations or other bodies to carry out activities deemed requisite, advantageous or convenient for or in connection with the performance of its functions
4)Providing financial assistance in the form of loans or otherwise, to persons engaged in the Construction Industry for the purpose of promoting the Industry and providing any guarantees on their behalf
5)Imposing fees or any other charges as deemed fit for giving effect to any of its functions or powers
6)Receiving commission or payments in consideration of any services that may be rendered

REASONS FOR ESTABLISHMENT OF CIDB:

Prior to the establishment of CIDB Malaysia, the Construction Industry was a very segmented and fragmented one where various players were implementing and carrying out their own programs and activities without proper direction and guidance.
This situation has resulted in challenging issues that involved the:

1) Significant decline in construction quality
2) Acute shortage of skilled and unskilled labour, leading to an over-dependency on foreign labor
3) Lack of pertinent statistics and information required for planning, monitoring and decision-making

It was at this juncture, that the Federal Government acknowledged the need to fill a ‘vacuum’ in the Industry, which paved the way for the establishment of CIDB Malaysia as a regulated body entrusted with the responsibility of:

1) Coordinating the needs and wants of the Industry
2) Planning the direction of the Industry
3) Addressing the pertinent issues and problems faced by the Industry
4) Making recommendations in the formulation of policies for the Industry

To fulfill our (CIDB) Vision, 3 key areas have been identified:

1) Setting the stage for Industry Players to embrace new technology
2) Undertaking development and accreditation programs designed to improve construction quality delivery as well as competitive edge
3) Functioning as a gateway for Construction Industry Players to get involved in the international construction marketplace, with the aim of enabling them to earn leadership positions in overseas ventures and maintaining an open exchange of information with construction leaders worldwide.

To achieve our (CIDB)Vision, the 3 key areas have been translated to involve 4 main initiatives:

1) The development of quality services in Construction as a basis for maintaining and improving competitive edge
2) The focus on Construction Technology Development along the lines of new opportunities for innovation and cost effectiveness
3) A “Going Global” initiative that serves to promote and encourage the export of services and products
4) Continuing efforts in terms of reviewing and revising existing rules and policies with the aim of facilitating the development of the Industry

With a far-reaching view of facilitating the Construction Industry towards enhancing Construction business growth potential, CIDB believes that, to trigger development, there is a compelling need to change the way things are being done.
To facilitate that ‘change’, it is imperative to formulate CIDB’s Mission in the light of improving the overall climate of the Construction Industry, thus leading to improvement in standards, skills, technology, manpower and the overall Construction market.

CIDB’s Mission Statement states…

”Together we develop the Malaysian Construction Industry towards Global Competitiveness.”

CIDB'S CORE VALUES:

CIDB’s Value Proposition to the Construction Industry involves a 2-prong perspective –

The first revolves around our focus on relentless efforts on “Adding Value Where It Counts” and
The 2nd perspective encompasses the need to assist the Construction Industry to “Understand its Past, Conquer the Present and Shape the Future”.

CIDB’s objective is to

1) Develop the Construction Industry to be one of the major contributing sectors to the National Economy,
2) capable of producing and delivering high quality construction works,
3) value for money and being responsive to the Nation’s needs.

CIDB’s development framework is derived from the 11 functions:

1) to promote and stimulate the development, improvement and expansion of the construction industry
2) to advise and make recommendations to the Federal Government and the State Government on matters affecting or connected with the construction industry
3) to promote, stimulate and undertake research into any matter relating to the construction industry
4) to promote, stimulate and assist in the export of service relating to the construction industry
5) to provide consultancy and advisory services with respect to the construction industry
6) to promote quality assurance in the construction industry
7) to encourage the standardisation and improvement of construction techniques and materials
8) to initiate and maintain a construction industry information system
9) to provide, promote, review and coordinate training programmes organised by public and private construction training centres for skilled construction workers and construction site supervisors
10) to accredit and register contractors and to cancel, suspend or reinstate the registration of any registered contractor, and
11) to accredit and certify skilled construction workers and construction site supervisors.

These functions have been referenced as a basis for CIDB’s formulation of her corporate initiatives that in turn were translated into:

CIDB Helps The Construction Industry To Explore And Harnesss Overseas Opportunities

NOW LETS ANALYZE:

Has CIDB effort so far (for the last 9 years) be any near their Vision, Mission, Goals & Objectives that were spelt out within their system (as published in their web). CIDB’s contribution to the Construction Industry is demonstrated via…………????? other than the India projects for a selected few crony contractors at the expense of tens of thousands of contributing members? AND CIDB IS FOCUSED INTO THIS POINT OF CONTENTION - THAT IS - GO TO INDIA, SRI LANKA, SUDAN, ETC & GET JOBS FOR CONTRACTOR & EXTRACT MORE FEES FROM THEM (PLUS THEIR OWN POCKET)


ACT 520 was established by the government to paved the way for the empowerment of CIDB Malaysia to:

1) Create a climate for a more vigorous development in the Construction Industry

What is this that CIDB can claim that they have created an environment for a vigorous development in the construction industry? What are the deliverables to-date on the subject point and what have been measured so far, i.e. the key Performance Index?

2) Carry out its functions as the enabling authority to help Construction Industry Players overcome bureaucratic obstacles

3) Play the role of facilitator by addressing the current and future needs of the Construction Industry.


Did CIDB offered any helping hands to thousands of contractors who faced problems such as labor shortages, shortage of building materials such as steel bars, and the problems of labor shortage caused by the deportation of foreign workers by the Government in year 2000? What about the abandon projects and failed projects that affects the livelihood of those purchasers? CIDB collected hundreds of millions of ringgits from contractors of these property development projects and if the purchaser suffers, what has CIDB done to help them - did they talk to the bankers to help suspend the loans for a certain period, help cushion off that period of uncertainty, or initiate actions to restore the project and get it to completion? CIDB only collects money from these projects but contribute nothing to the projects and the stakeholders!!!!!


REASONS FOR ESTABLISHMENT OF CIDB:

The challenging issues as stated, and as the very reason of the existence of CIDB are:

1) Significant decline in construction quality
2) Acute shortage of skilled and unskilled labour, leading to an over-dependency on foreign labor
3) Lack of pertinent statistics and information required for planning, monitoring and decision-making

Out of the 3 areas, what have we achieve thus far? Look into the construction projects and see who are the workers today - basically 99% foreigners consisting of mostly Indonesians, Bangladeshis, Thais and Myanmars. Do we hear of any strategic action by CIDB on how to overcome our dependency on foreign labors? NAYs! Have CIDB build up statistics and information required for planning, monitoring and decision-making necessary to help contractors in tendering and estimating? If it is, there must be available database in the website for contractors info, such as:

1) What is the price of plywood in Perak, Selangor, Johor, Trengganu and how many types and standards are available locally? What have CIDB done to help make plywood more competitively priced? Did they set up agencies to help reduce the price of plywood?
2) What about timber? Each state has different timber price and availability?
3) What about steel bars? Did CIDB talk to Datuk Abu Sahid of Perwaja and get him to commit to supply steel bars to contractors who faced difficulties in getting them, which delayed project completion.

In the SMART Tunnel project, Bakun, SMART School, Computer Lab projects, Did CIDB help contractors to have the opportunity to participate in those project and when the computer lab projects was in trouble, what was the contribution of CIDB?

FUNDAMENTALLY, THE PROBLEM WITH CIDB IS NOT WHAT THEY CAN DO BUT WHAT THEY DIDN'T DO!

Confucius says, "Till you admit that you know what don't not know, you will not achieve profound knowledge."

The Eleven functions set by CIDB that give rise to the formulation of her corporate initiatives which in turn were translated into: CIDB Helps The Construction Industry To Explore And Harnesss Overseas Opportunities - THAT WAS THE SOLE REASON WHICH DEFEAT THE VERY PURPOSE OF THE GOVERNMENT'S INTENTION FOR SETTING UP CIDB IN 1994.

The first question CIDB should consider before putting up the Masterplan is:

"How are the contractors which consists of Class A to Class F plus those in the private sectors (all of them contribute 0.25% of the contract value to CIDB) - How is CIDB going to serve them? What are their needs, what are their weaknesses and what are their lack of knowledge and competencies? What about their financial problems caused by late payment, particularly of Government projects; can CIDB provide them with some financial credit or guarantees to help them get construction materials and pay their labor wages?

There are many Class F, E and Class D contractors, particularly those Bumiputera companies that need assistance in terms of technical expertise and technical informations, including Engineering design knowledge - what can CIDB do for them?

The Mission Statement of CIDB - ”Together we develop the Malaysian Construction Industry towards Global Competitiveness.” is too far fetch; it's more a Vicious Statement than a Mission; The Mission will not be achieve as it is made in DREAMLAND. Does CIDB understand what is Global Competitiveness? Can we compete with Koreans, Japanese, Chinese, Thais? What can CIDB do to prepare the Malaysian contractors to have the competitive advantage over the other international players? What are the statistical datas that Malaysian contractors must know of their international counterparts? What is competitiveness - in terms of cost leadership, branding, uniqueness, product quality, service quality, efficiency, networking and relationship building, strategic partnership, etc? Do we have any measurement standards and benchmarks? Do we have CIDB to do research, regular and continuous research that keeps us inform? Does CIDB having collected Billions of ringgit have a full-time research team - what's the money for, what did they spent it on, where the money?


CIDB’s Value Proposition to the Construction Industry involves a 2-prong perspective – the first revolves around our focus on relentless efforts on “Adding Value Where It Counts” and the 2nd perspective encompasses the need to assist the Construction Industry to “Understand its Past, Conquer the Present and Shape the Future”.

IS THAT WHAT WAS CIDB'S CORE VALUES? ADDING VALUE WHERE IT COUNTS - WHAT VALUES? COLLECTING MONEY FROM CONTRACTORS; ISSUING GREEN CARD TO WORKERS FOR $250? WHAT ARE THE VALUES ADDED FOR THE CONTRACTORS, THE STAFFS & THE WORKERS? CONTRACTORS WHO SENT THEIR STAFFS FOR TRAINING WITH CIDB HAD TO PAY EACH TIME THEY ATTEND THOSE TRAINING - WHY, WHY, WHY? AREN'T THE 0.25% COLLECTION TO BE USED TO PROVIDE TRAINING?

UNDERSTAND OUR PAST (yea, we were weak contractors)
CONQUER THE PRESENT (yea, WE WERE CONQUERED BY CIDB'S GREED & PROFANITY! pay CIDB 0.25% and pay for the green card and training fees)
SHAPE THE FUTURE (Oh, no; got to pay for the Directors' trip overseas and their families and their pension; OH SHIT)