EMBRACING STATE OF THE ART EMBRACING STATE OF THE ART TECHNOLOGY IN THE TECHNOLOGY IN THE

CONSTRUCTION INDUSTRY OF CONSTRUCTION INDUSTRY OF MALAYSIAMALAYSIA

bybyDATUK IR. HAMZAH HASANDATUK IR. HAMZAH HASAN

CHIEF EXECUTIVECHIEF EXECUTIVECIDB MALAYSIACIDB MALAYSIA

State of the Art Technology State of the Art Technology

““highest level of development in the highest level of development in the engagement of technology as a device, engagement of technology as a device, procedure, process, technique, or science procedure, process, technique, or science reached at any particular time as a result of reached at any particular time as a result of modern methods”modern methods”

a relation between evolution of technology a relation between evolution of technology or innovation, utilization demand and a or innovation, utilization demand and a particular period of time particular period of time

ChronologyChronology

Construction industry in Malaysia rose to Construction industry in Malaysia rose to prominence in the post Merdeka era prominence in the post Merdeka era

focusing on capacity and capability focusing on capacity and capability development in the 80s development in the 80s

the launch of many large projects, the launch of many large projects, continuing through the booming 90s continuing through the booming 90s

Malaysian Construction Industry, rising to Malaysian Construction Industry, rising to prominence as a catalyst for growth of the prominence as a catalyst for growth of the nation’s economy nation’s economy

Construction ContributionConstruction Contribution GDP for the year 2007 was 2.9% and has GDP for the year 2007 was 2.9% and has

experienced a growth of 4.6 % since the experienced a growth of 4.6 % since the launch of the 9th Malaysia Plan launch of the 9th Malaysia Plan

construction industry as one of the service construction industry as one of the service sectors that will be key to driving the engine sectors that will be key to driving the engine of economic growth of economic growth

global construction industry today has global construction industry today has evolved into a highly competitive industry evolved into a highly competitive industry and enhancing competitiveness and enhancing competitiveness

technology features as a key component technology features as a key component beyond the organization and the processes beyond the organization and the processes towards enhancing competitiveness towards enhancing competitiveness

harnessing state of the art technology and harnessing state of the art technology and maintaining a culture of excellence in the maintaining a culture of excellence in the organization has to feature prominently at organization has to feature prominently at the firm level of the industrythe firm level of the industry

Construction ContributionConstruction Contribution

Efficiency, Productivity & QualityEfficiency, Productivity & Quality efficiency, productivity and quality efficiency, productivity and quality soaring increase in cost of materials, soaring increase in cost of materials,

migration of professionals, and shortage of migration of professionals, and shortage of skilled workers to increasingly stringent skilled workers to increasingly stringent and demanding work conditions and demanding work conditions

trilogy of demand in the construction trilogy of demand in the construction industry that is industry that is time, cost and qualitytime, cost and quality

crucial in sustaining competitiveness under crucial in sustaining competitiveness under the adverse conditions the adverse conditions

Construction Industry Master PlanConstruction Industry Master Plan collaborated with the stakeholders in the collaborated with the stakeholders in the

industry industry Master Plan envisions a world class Master Plan envisions a world class

industry that embraces state of the art industry that embraces state of the art technology to be innovative and emerge as a technology to be innovative and emerge as a global solution provider global solution provider

Strategic technology development is critical Strategic technology development is critical to wealth creation and to the long term to wealth creation and to the long term competitiveness of the industry itselfcompetitiveness of the industry itself

innovation through R&D initiatives innovation through R&D initiatives

key areas identified for innovation and key areas identified for innovation and technology development are in construction technology development are in construction management, planning, design, construction management, planning, design, construction techniques, construction materials, techniques, construction materials, machineries and equipments, supply chain machineries and equipments, supply chain management, facility management and management, facility management and procurement systems procurement systems

Construction Industry Master PlanConstruction Industry Master Plan

Technology Foresight ReportTechnology Foresight Report

CIDB had undertaken the identification of the CIDB had undertaken the identification of the Research Priority Areas Research Priority Areas

Report articulates a list of Seventeen statements Report articulates a list of Seventeen statements that describes the characteristics of the that describes the characteristics of the construction industry in the future construction industry in the future

Construction Research Institute of Malaysia or Construction Research Institute of Malaysia or CREAM CREAM

CREAM has been tasked to provide the link CREAM has been tasked to provide the link between government, academia and the business between government, academia and the business community community

CREAMCREAM coordinator of research grants sourced from coordinator of research grants sourced from

the various government supportthe various government support sources of funding for R&D established by sources of funding for R&D established by

the governmentthe government (i) IRPA program, or Intensification of (i) IRPA program, or Intensification of

Research in Priority AreasResearch in Priority Areas (ii) Industry R&D Grant Scheme (IGS) (ii) Industry R&D Grant Scheme (IGS)

Technology Acquisition Fund (TAF) Technology Acquisition Fund (TAF) R&D through the Commercialization of R&D through the Commercialization of

R&D Fund (CRDF) R&D Fund (CRDF) SMIDEC SMIDEC

Industrilized Building SystemIndustrilized Building System singled out as a construction technique to address singled out as a construction technique to address

the issue of dependency on the huge fleet of the issue of dependency on the huge fleet of foreign labourforeign labour

IBS Roadmap 2003-2010 IBS Roadmap 2003-2010 government has also introduced incentivesgovernment has also introduced incentives construction technique involving prefabricated construction technique involving prefabricated

components and on-site installation utilizing components and on-site installation utilizing techniques, products and building systemtechniques, products and building system

established the National IBS Centre established the National IBS Centre

Stakeholder’s RoleStakeholder’s Role stakeholders of the industry in the value chain of stakeholders of the industry in the value chain of

the construction industry the construction industry harnessing state of the art technology provides the harnessing state of the art technology provides the

leading edge leading edge planners and the other professionals have a planners and the other professionals have a

responsibility jointly with the developers in responsibility jointly with the developers in ensuring that the demand for sustainable Building ensuring that the demand for sustainable Building Construction Construction

techniques of value engineering and life cycle techniques of value engineering and life cycle costing will identify the opportunities to remove costing will identify the opportunities to remove unnecessary costs unnecessary costs

professionals need to be aware of the expectationsprofessionals need to be aware of the expectations

government as the biggest developer had government as the biggest developer had invested in many mega projects for the invested in many mega projects for the nation nation

such as the Petronas Twin Towers, the such as the Petronas Twin Towers, the KLIA, the North- South Expressway, and KLIA, the North- South Expressway, and the Smart Tunnel the Smart Tunnel

these projects serve to brand not only the these projects serve to brand not only the nation, but the construction industry as well nation, but the construction industry as well

Stakeholder’s RoleStakeholder’s Role

Capacity & CapabilitiesCapacity & Capabilities Malaysia has a very large pool of contractors Malaysia has a very large pool of contractors culture in the construction industry has not culture in the construction industry has not

brought in changes towards enhancing brought in changes towards enhancing productivity and efficiency productivity and efficiency

CIDB has been striving to bring in the changes CIDB has been striving to bring in the changes through awareness and educationthrough awareness and education

focus in profitability shall be through focus in profitability shall be through improvement in efficiency, productivity and improvement in efficiency, productivity and quality by leveraging on technology quality by leveraging on technology

investing in human capital shall reign supreme in investing in human capital shall reign supreme in an organization’s goalan organization’s goal

community of the industry are equally entwined in community of the industry are equally entwined in the web of competitiveness the web of competitiveness

Information and communication Technology Information and communication Technology enhancing efficiency and productivity in quality enhancing efficiency and productivity in quality

outputs outputs advancements of capabilities of information advancements of capabilities of information

technologies and internet infrastructure have technologies and internet infrastructure have facilitated digital convergence facilitated digital convergence

produced innovative solutions that have brought produced innovative solutions that have brought pride to the industry and accorded recognition pride to the industry and accorded recognition

Capacity & CapabilitiesCapacity & Capabilities

Stakeholders: ManufacturersStakeholders: Manufacturers other stakeholders: manufacturers of other stakeholders: manufacturers of

machinery, equipment and materials machinery, equipment and materials featuring sophistication and quality to featuring sophistication and quality to

support the construction industry support the construction industry vital that R&D and in particular in-house vital that R&D and in particular in-house

R&D R&D ensure that state of the art technology ensure that state of the art technology

solutions are at the disposal of the solutions are at the disposal of the construction industry construction industry

SummarySummary issues and challenges of embracing state of issues and challenges of embracing state of

the art technology in the construction the art technology in the construction culture of excellence in the organization or at culture of excellence in the organization or at

firm levels firm levels continually adopt a culture of excellence, continually adopt a culture of excellence,

incorporating best practices with knowledge incorporating best practices with knowledge management seamlessly integrating the management seamlessly integrating the elements of people, process and technology elements of people, process and technology

engagement in R&D in the construction engagement in R&D in the construction industry is still very minimal industry is still very minimal

close link between technology and close link between technology and competitiveness and sustaining the competitive competitiveness and sustaining the competitive edge edge

SummarySummary processes transfer and absorption, processes transfer and absorption,

commercialization and production management commercialization and production management proactive involvement and response of the proactive involvement and response of the

private sector of the industry private sector of the industry

THANK YOUTHANK YOU