CIDB urges more collaborations between M’sian and China contractors

  • Construction
  • Wednesday, 30 Oct 2019

Chinese Ambassador to Malaysia Bai Tian and CIDB Malaysia chief executive Datuk Ahmad 'Asri Abdul Hamid

KUALA LUMPUR: Following the increased participation of Chinese construction firms in local projects, the Construction Industry Development Board (CIDB) Malaysia calls for greater collaboration between China and Malaysia contractors.

Through such collaborations, the approval process for the project, building materials and expertise can be sped up.

CIDB Malaysia chief executive Datuk Ahmad ‘Asri Abdul Hamid hopes for more engagements by Chinese contractors to work with local contractors or subcontractors for their projects here in Malaysia.

“Apart from that, we would like to encourage Chinese contractors to use building materials manufactured by Malaysian companies.

“That will be a win-win situation for both parties, as the sourcing of building materials locally will contribute to the nation’s economy, while Chinese contractors will be able to lower their material cost, given that the cost of materials sourced from China would be more expensive, ” he said.

He said this on the sidelines of the “Guidelines for Chinese Contractors in Malaysia” briefing yesterday.

The briefing was co-organised by CIDB Malaysia and the Embassy of the People’s Republic of China, aimed to create greater awareness and understanding for Chinese construction firms on the existing rules and regulations related to the Malaysian construction industry.

Ahmad added that the collaborations could also entail technology and expertise transfer to the local industry players.

“While we have no target set to increase the collaborations between Malaysian and Chinese construction players, we hope that more Malaysian companies can get involved in project collaborations with their Chinese counterparts going forward, at the very least, at sub-contract levels, ” he said.

According to CIDB’s statistics, China took the lead in 2015 for carrying out the most projects in Malaysia, with 33 projects worth RM3.3bil.

In 2018 and 2019, the figures grew to 264 projects worth RM31bil.

On the levy charges imposed under CIDB Act 520, Ahmad said there was no plan to implement a higher levy rate, given the lacklustre growth rate of the construction industry.

Therefore, CIDB will maintain the current levy rate of 0.125% on the project value, to spur more construction activities.

The levy charges imposed for construction works with a contract sum of above RM500,000 were halved by the government in 2013 to 0.125%, in a move to stimulate the construction industry.

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