EMBRACING STATE OF THE ART TECHNOLOGY IN THE CONSTRUCTION INDUSTRY OF MALAYSIA

1. EMBRACING STATE OF THE ART TECHNOLOGY IN THE CONSTRUCTION INDUSTRY OF MALAYSIA by DATUK IR. HAMZAH HASAN CHIEF EXECUTIVE CIDB MALAYSIA

2. State of the Art Technology • “highest level of development in the engagement of technology as a device, procedure, process, technique, or science reached at any particular time as a result of modern methods” • a relation between evolution of technology or innovation, utilization demand and a particular period of time

3. Chronology • Construction industry in Malaysia rose to prominence in the post Merdeka era • focusing on capacity and capability development in the 80s • the launch of many large projects, continuing through the booming 90s • Malaysian Construction Industry, rising to prominence as a catalyst for growth of the nation’s economy

4. Construction Contribution • GDP for the year 2007 was 2.9% and has experienced a growth of 4.6 % since the launch of the 9th Malaysia Plan • construction industry as one of the service sectors that will be key to driving the engine of economic growth • global construction industry today has evolved into a highly competitive industry and enhancing competitiveness

5. Construction Contribution • technology features as a key component beyond the organization and the processes towards enhancing competitiveness • harnessing state of the art technology and maintaining a culture of excellence in the organization has to feature prominently at the firm level of the industry

6. Efficiency, Productivity & Quality • efficiency, productivity and quality • soaring increase in cost of materials, migration of professionals, and shortage of skilled workers to increasingly stringent and demanding work conditions • trilogy of demand in the construction industry that is time, cost and quality • crucial in sustaining competitiveness under the adverse conditions

7. Construction Industry Master Plan • collaborated with the stakeholders in the industry • Master Plan envisions a world class industry that embraces state of the art technology to be innovative and emerge as a global solution provider • Strategic technology development is critical to wealth creation and to the long term competitiveness of the industry itself • innovation through R&D initiatives

8. Construction Industry Master Plan • key areas identified for innovation and technology development are in construction management, planning, design, construction techniques, construction materials, machineries and equipments, supply chain management, facility management and procurement systems

9. Technology Foresight Report • CIDB had undertaken the identification of the Research Priority Areas • Report articulates a list of Seventeen statements that describes the characteristics of the construction industry in the future • Construction Research Institute of Malaysia or CREAM • CREAM has been tasked to provide the link between government, academia and the business community

10. CREAM • coordinator of research grants sourced from the various government support • sources of funding for R&D established by the government • (i) IRPA program, or Intensification of Research in Priority Areas • (ii) Industry R&D Grant Scheme (IGS) • Technology Acquisition Fund (TAF) • R&D through the Commercialization of R&D Fund (CRDF) • SMIDEC

11. Industrilized Building System • singled out as a construction technique to address the issue of dependency on the huge fleet of foreign labour • IBS Roadmap 2003-2010 • government has also introduced incentives • construction technique involving prefabricated components and on-site installation utilizing techniques, products and building system • established the National IBS Centre

12. Stakeholder’s Role • stakeholders of the industry in the value chain of the construction industry • harnessing state of the art technology provides the leading edge • planners and the other professionals have a responsibility jointly with the developers in ensuring that the demand for sustainable Building Construction • techniques of value engineering and life cycle costing will identify the opportunities to remove unnecessary costs • professionals need to be aware of the expectations

13. Stakeholder’s Role • government as the biggest developer had invested in many mega projects for the nation • such as the Petronas Twin Towers, the KLIA, the North- South Expressway, and the Smart Tunnel • these projects serve to brand not only the nation, but the construction industry as well

14. Capacity & Capabilities • Malaysia has a very large pool of contractors • culture in the construction industry has not brought in changes towards enhancing productivity and efficiency • CIDB has been striving to bring in the changes through awareness and education • focus in profitability shall be through improvement in efficiency, productivity and quality by leveraging on technology • investing in human capital shall reign supreme in an organization’s goal

15. Capacity & Capabilities • community of the industry are equally entwined in the web of competitiveness • Information and communication Technology • enhancing efficiency and productivity in quality outputs • advancements of capabilities of information technologies and internet infrastructure have facilitated digital convergence • produced innovative solutions that have brought pride to the industry and accorded recognition

16. Stakeholders: Manufacturers • other stakeholders: manufacturers of machinery, equipment and materials • featuring sophistication and quality to support the construction industry • vital that R&D and in particular in-house R&D • ensure that state of the art technology solutions are at the disposal of the construction industry

17. Summary • issues and challenges of embracing state of the art technology in the construction • culture of excellence in the organization or at firm levels • continually adopt a culture of excellence, incorporating best practices with knowledge management seamlessly integrating the elements of people, process and technology • engagement in R&D in the construction industry is still very minimal • close link between technology and competitiveness and sustaining the competitive edge

18. Summary • processes transfer and absorption, commercialization and production management • proactive involvement and response of the private sector of the industry

19. THANK YOU