1. ENHANCING INTEGRITY Best Practices in ConstructionBy
Y.Bhg. Datuk Ir. Hamzah Hasan
Chief Executive,
Construction Industry Development Board Malaysia
22 April 2008

2. THE MALAYSIAN CONSTRUCTION INDUSTRY1
GDP – 3.42%
Acts as a catalyst for and has multiplier effects to the economy
Provides employment to 800,000 workers
Make Us Your Partner

3. Challenges Facing The Malaysian Construction Industry2
Low productivity
Shoddy workmanship
Substandard materials
High fatality rates at work sites
Make Us Your Partner

4. Challenges Facing The Malaysian Construction Industry (Cont’d)3
Engagement of illegal & unskilled foreign workers
Selling of construction materials beyond the government controlled price
Issue of non-payment
Make Us Your Partner

5. Construction Industry Development Board of Malaysia (CIDB)4
Formed in 1994
To promote & stimulate the development, improvement & expansion of the construction industry in terms of technology, business environment & human resource
Mission is to develop a world class construction industry
Make Us Your Partner

6. Construction Industry Master Plan (CIMP)5
A 10 year blueprint for a holistic development of the industry that encompasses:-
Productivity
Efficiency
Quality
Safety & Health
Environment
Make Us Your Partner

7. Construction Industry Master Plan (CIMP)6
A 10 year blueprint for a holistic development of the industry that encompasses:-
Human Resources
Research & Development
Sustainability
Information technology
Image & professionalism
Make Us Your Partner

8. Best Practices Areas covered:-7
Areas covered:-
Training & accreditation of contractors & construction workers
Upgrading of the supervisory & project management
Health & safety, environmental issues & sustainable construction
Make Us Your Partner

9. Training & Accreditation of Contractors8
64,000 contractors registered with CIDB
Review the national contractor registration system to incorporate a system based on competency
Accreditation system to identify the competent contractors in both management & technical capacity
Continuous Contractor Development (CCD)
Make Us Your Partner

10. Export of Services 9
Malaysian contractors are currently active in 38 countries
Registry for contractors venturing abroad
Monitoring of performance
Make Us Your Partner

11. Issues On Payment Issues of late and non-payments10
Issues of late and non-payments
Construction Industry Payment & Adjudication Act
Make Us Your Partner

12. Enhancement Of Integrity11
Construction Industry Integrity Committee
One day awareness course on integrity as the pre-requisite for the renewal of contractor’s license
Make Us Your Partner

13. Code of Ethics for Contractor12
Outlines the practices as well as noble conduct that must be adopted by all contractors in order to enhance the level of professionalism, integrity & accountability
CODE OF ETHICS
for
CONTRACTOR
Lembaga Pembangunan Industri Pembinaan Malaysia Tingkat 7, Grand Seasons Avenue,
72 Jalan Pahang, Kuala Lumpur
Make Us Your Partner

14. Six (6) Principles Principles 1 – Honesty in carrying out13
Principles 1 – Honesty in carrying out
Responsibilities
Principles 2 – Compliance with the
Laws & Regulations
Principles 3 – Respect for the
Individual & Community
Make Us Your Partner

15. Six (6) Principles (Cont’d)14
Principles 4 – Importance of Quality,
Skills & Standards
Principles 5 – Importance of Safety,
Health & Welfare
Principles 6 – Importance of Environmental
Preservation
Make Us Your Partner

16. Training & Accreditation of Construction Workers15
Approx. 500,000 construction personnel registered with CIDB
Approx. 250,000 foreign workers registered with Home Ministry
CIDB has trained & accredited approx. 100,000 local workers
Make Us Your Partner

17. Upgrading Supervisory & Project Management Skills16
72,000 site supervisors & 46,000 projects managers registered with CIDB
Training & accreditation program & provided a budget of almost a million Ringgit per year.
Make Us Your Partner

18. Occupational Safety & Health in Construction17
Master Plan for Occupational Safety & Health ( ) to complement the efforts of the Department of Occupational Safety & Health & fatalities at construction sites
OSHMS MS 1722/OHSAS 18001:1999 certification
Make Us Your Partner

19. Sustainable Construction And The Environmental18
Sustainable development involves balancing & integrating social, environmental & economic implications in decision making process
CIDB is currently promoting awareness on sustainable construction & good environmental practices & assisting contractors in attaining the ISO14001 Environmental Management System (EMS)
Make Us Your Partner

20. Improvement of the Delivery19
Improvement of the Delivery
The Government has endorsed efforts taken by Ministry of Housing & Local Government to change the status of Certificate of Fitness for Occupation to Certificate of Completion & Compliance by end of 2005.
Make Us Your Partner

21. Improvement of the Delivery (Cont’d’)20
Improvement of the Delivery (Cont’d’)
The objectives are to improve the delivery system, to enhance transparency and to call for higher level of integrity from both & private sectors.
The elimination of red tapes will improve the delivery system as well as minimize the opportunity for corrupt practices.
Make Us Your Partner

22. 21
Conclusion
An industry that practices good governance & upholds the values of ethics & integrity can contribute towards the development & well being of our society
This plays an important role towards strengthening image & enhancing professionalism of the construction industry.
It is no longer just a matter of domestic efficiency; it is becoming the standard by which all nations & economies are judged
Make Us Your Partner

23. THANK YOU
Make Us Your Partner