What It Takes to Regulate the Construction Industry

On the Breakfast Grille, we speak to Dato' Seri Ir Dr Judin Abdul Karim, the CEO of Construction Industry Development Board (CIDB). CIDB, which was formed in 1994, is a regulatory body and the custodian of the local construction industry 

He discusses some of the key challenges that CIDB faces:

--  Productivity Issues: Productivity in the Malaysian construction industry has been stagnant since the 1980's. The productivity figure as measured by GDP/employee has been about RM7,000, has remained constant – compared to other sectors which have been showing increases in productivity during this period.

--  Tax Issues: Taxes on construction machinery in Malaysia is the highest in South East Asia

--  Quality of Materials Issues

--  Health and Safety Issues

--  Procurement Issues

--  Payment Issues: Issues on late/non payments are a major grouse of contractors. This is quite worrying as people can resort to sabotage if they are not paid. To address this, the Construction Industry Payment And Adjudication Act (CIPAA) is being drafted. 

--  Globalization Issues: Globalisation can be seen as both a threat and an opportunity for the Malaysian construction industry.