CHAPTER 2 CONSTRUCTION PROJECTS ... 2 CONSTRUCTION PROJECTS, CONTRACTORS AND CONSTRUCTION PERSONNEL Registration of Construction Projects Projects by Category Projects by Location

CHAPTER 2CONSTRUCTION PROJECTS, CONTRACTORS AND CONSTRUCTION PERSONNEL

Registration of Construction ProjectsProjects by CategoryProjects by LocationProjects by Grade of ContractorsProjects by Type of WorkProjects by Contract SizeProjects Awarded to Foreign ContractorsRegistration of ContractorsRegistration of Construction Personnel

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CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND CONSTRUCTION PERSONNEL CHAPTER 2 CONSTRUCTION PROJECTS, CONTRACTORS AND CONSTRUCTION PERSONNEL

CONSTRUCTION INDUSTRY REVIEW AND PROSPECT 2015/2016

Introduction12 13

Registration of Construction Projects

CONSTRUCTION PROJECTS, CONTRACTORS AND CONSTRUCTION PERSONNELINTRODUCTION REGISTRATION OF

CONSTRUCTION PROJECTSThe Construction Industry Transformation Plan (CITP) and the Eleventh Malaysian Plan (11MP) were two important long-term plans unveiled in 2015 which will have a direct and indirect impact to the construction industry. These 2 plans will be concurrently implemented by CIDB and the Malaysian Federal Government respectively from 2016 to 2020. Together, these 2 plans will complement each other and determined the future of the construction industry.

CITP is a 5-year master plan to transform of the construction industry. CITP was formally launched by CIDB on 10 September 2015, and is a continuity of the Construction Industry Master Plan (CIMP) which was initiated from 2011 to 2015. Under CITP, four strategies known as Strategic Thrusts (STs) has been identified to guide the transformation and continued development of the construction industry and to address the issues. The 4 strategic thrusts are quality, safety and professionalism; environmental sustainability; productivity; and internationalization.

The 11MP was unveiled by the Malaysian Federal Government on 21 May 2015, was the second plan which will bear indirect impact to the construction industry. A total of 6 STs have been formulated to push the country towards the aim of being an advanced economy. Each of the STs will have the indirect impact through linkages to the construction industry from the involvement of the community development in rural areas, greater emphasis on affordable housing, the training of more personnel and professional, the usage of green technology, expansion of more infrastructure and social amenities, and also enhancing the construction sector from the economic perspectives.

In 2015, a total of RM124.4 billion of projects from 6,885 projects was recorded. The value of projects contracted by 27.9% to RM124.4 billion (2014: RM171.7 billion), while the numbers of projects contracted by 13.3% to 6,885 projects (2014: 7,939 projects). State-wise, the construction activities were most active in Johor, Selangor, and W.P. Kuala Lumpur which collectively registered 3,176 projects worth approximately at RM76.0 billion in 2015.

Previously, contractors only need to declare construction works with value of more than RM500,000 each. With the enactment of the amendment of Lembaga Pembangunan Industri Pembinaan Act 1994 (Act 520) in June 2015, contractors must declare all construction works regardless of the value. For this analysis, construction projects refers to projects awarded to the main contractor with value of more than RM500,000 as of 31 March 2016, and is subject to changes after taking into account later declaration of projects.

Projects by the Government and Private SectorFrom the value of projects, the private sector continues to lead the construction activity with a share of 82.0% against 18.0% by the government sector. Both the private and government sector experienced a decline in the value and numbers of projects. The value of projects from the private sector contracted by 31.3% to RM101.9 billion (2014: RM148.3 billion), while the government sector contracted by 3.9% to RM22.5 billion (2014: RM23.4 billion). The number of projects also concurrently drops by 16.8% to 5,136 projects (2014: 6,175 projects) and by 0.9% to 1,749 projects (2014: 1,764 projects) respectively for the private and government sector. In 2015, the numbers of private projects to government projects stands at a ratio of 3:1.

From RM101.9 billion of private projects awarded, a total of 198 projects worth RM55.9 billion were worth more than RM100 million each. The 5 largest private projects came from 2 Oil & Gas (O&G) projects, 2 commercial projects and an infrastructure project (Table 2.1). In contrast, a total of 39 projects worth RM12.9 billion out of total government projects were worth more than RM100 million. The largest government projects were made up of 4 infrastructure projects and 1 office building (Table 2.2).

Figure 2.1 Value of Projects by Sector

Figure 2.2 Number of Projects by Sector

Source: CIDB

Source: CIDB

Construction of 118-storey Commercial Building and Basement Carpark in Kuala Lumpur

EPCC of Independent Deepwater Petroleum Terminal Phase at Pengerang, Johor

Piping and Associated Facilities (PAF) EPCC Contract at PETRONAS LNG Complex (PLC), Bintulu, Sarawak

R&F Tanjung Puteri Project Main Construction Works at Jalan Bukit Meldrum, Johor

Design, Construction and Completion of New Deepwater Terminal at Kuantan Port, Port Consortium Sdn. Bhd. in Pahang

1.

2.

3.

4.

5.

Table 2.1 Five Major Private Projects

Note : Largest private projects in 2015 were in Appendix 2.1a.Source : CIDB

No. Project

Since 2011, the government sector has taken a backseat while the private sector starts to command a huge share of the construction activity. Before 2010, the private sector contributes annually between 45%-60% in the value of projects. The led by the private sector correspond with the acceleration of the Malaysian economy in 2010. The trend indicates the positive correlation between the massive shares of construction values by the private sector with the well-being of the economy.



14 15Projects by Category Projects by Category

Design, Construction and Completion of Government Office Building Consisting of Office Towers, Podium Parking and External Works at Parcel F, Precint 1, Pusat Pentadbiran Kerajaan Persekutuan Putrajaya

Upgrading of Facilities and Infrastructure of Double-Tracking Railway (KVDT) between Rawang and Salak Selatan in Selangor

Regional Sewage Treatment Plant and the Sewage Piping Network in Papan, Kinta, Perak

Upgrading of Bukit Sah Water Treatment Plant, Construction of Intake, Piping System and Water Tank, Including Water Distribution from Petronas Water Treatment Plant to Kemaman Distribution System in Terengganu

Upgrading of Federal Roads between Teluk Intan and Kg. Lekir, Perak

1.

2.

3.

4.

5.

Table 2.2 Five Major Government Projects

Note : Largest government projects in 2015 were in Appendix 2.1b.Source : CIDB

No. Project

Figure 2.3 Value of Projects by Category Figure 2.4 Number of Projects by Category

Source: CIDB Source: CIDB

PROJECTS BY CATEGORY Construction projects are classified under residential, non-residential, infrastructure, and social amenities category. Residential, non-residential and infrastructure projects formed more than 95% of

the projects in 2015. Residential projects accounted for the largest share with 37.9% (RM47.1 billion). This was followed by non-residential projects with 37.0% (RM46.0 billion) and infrastructure projects with 20.6% (RM25.7 billion). Social amenities’ projects contribute the smallest portion with 4.5% (RM5.6 billion).

Non-ResidentialNon-residential projects registered the second highest worth of projects at 37.0% (RM46.0 billion). In this category, commercial subcategory recorded the highest value at 39.3% (RM18.1 billion), followed by the other subcategories of industrial at 38.5% (RM17.7 billion), administrative/ office space at 12.2% (RM5.6 billion), and travel and leisure at 1.7% (RM0.8 billion). Other subcategories, which includes security, agriculture, and landscape projects forms the rest of the portion at 8.3% (RM3.8 billion).

ResidentialResidential projects registered the highest value at 39.7% (RM47.1 billion) in 2015. The residential projects include subcategories of apartment & condominium, bungalow, semi-detached, terrace and other types of residential. Private sector was the largest contributors to the residential projects at 96.1% (RM45.1 billion). The apartment & condominium subcategory tops the residential projects with 55.6% (RM26.2 billion); terrace at 17.6% (RM8.3 billion); semi-detached at 7.0% (RM3.3 billion); and bungalow at 2.6% (RM1.2 billion). Other subcategories of residential projects registered at 17.2% (RM8.1 billion).

Figure 2.5 Non-Residential Projects by Subsector

Figure 2.6 Residential Projects by Subsector

Source: CIDB

Source: CIDB

Construction of 118-story Commercial Building and Basement Carpark in Kuala Lumpur

EPCC of Independent Deepwater Petroleum Terminal Phase at Pengerang, Johor

Piping and Associated Facilities (PAF) EPCC Contract at Petronas LNG Complex (PLC), Bintulu, Serawak

Design, Construction, and Completion of Government Office Building Consisting of Office Towers, Podium Parking, and External Works at Parcel F, Precint 1, Pusat Pentadbiran Kerajaan Persekutuan Putrajaya

Construction and Completion of Southkey Megamall, Comprising the Retail Podium, Basement Carpark, and Elevated Car Park and Related Infrastructure in Mukim Plentong, Johor Bahru

1.

2.

3.

4.

5.

Table 2.3 Five Major Non-Residential Projects

Note : The 10 major non-residential projects in 2015 were in Appendix 2.2a.Source : CIDB

No. Project



16 17Projects by LocationProjects by Category

R&F Tanjung Puteri Project Main Work Construction at Jalan Bukit Meldrum, Johor

High Cost Condo and Shops with Kindergarten Facilities, Multi-purpose Hall, Surau and Podium Parking, and Recreation and Basement, Selangor

Reclamation and Channel Dredging for Seri Tanjung Pinang Development (STP2) Penang and Channel Dredging, Pulau Pinang

Proposed Development Comprising Shop Office, Elevated Carparks, Podium Landscape/Facilities, TNB Sub-stations, Refuse Chamber and Other Ancillary Works, Apartment, Podium Landscape/Facilities, Guard House, and Refuse Chamber at Setapak, Kuala Lumpur

Commercial Building Including Apartment Tower, Podium Parking, Business Space, and Recreational Facilities, Johor

1.

2.

3.

4.

5.

Table 2.4 Five Major Residential Projects

Note : The 10 major residential projects in 2015 were in Appendix 2.2b.Source : CIDB

No. Project

Upgrading of Facilities and Infrastructure of Double-Tracking Railway (KVDT) between Rawang and Salak Selatan

Design, Construction, and Completion of New Deepwater Terminal at Kuantan Port, Port Consortium Sdn Bhd, Pahang

Re-Fend and EPCC of the Effluent Treatment Plant for RAPID Project, Johor

Regional Sewage Treatment Plant and Sewer Network Board, Kinta District, Perak

Construction and Completion of Infrastructure and Roadway Works at the Tun Razak Exchange, Kuala Lumpur.

1.

2.

3.

4.

5.

Table 2.5 Five Major Infrastructure Projects

Note : The 10 major infrastructure projects in 2015 were in Appendix 2.2cSource : CIDB

No. Project

Development of Tahfiz Secondary School Darul Ridzuan, Perak

Hospital Baru Sri Aman, Sarawak

Medical Center and Medical Faculty for UCSI University which includes Hospital, M&E Complex and Guardhouse in Bandar Springhill, Port Dickson, Negeri Sembilan

Private Medical Centre Building and Parking Facilities in Bandar Sunway, Mukim Damansara, Selangor

Specialist Hospital for Women & Children in Precinct 207, Seksyen 14, Shah Alam, Selangor

1.

2.

3.

4.

5.

Table 2.6 Five Major Social Amenities Projects

Note : The 10 major infrastructure projects in 2015 were in Appendix 2.2cSource : CIDB

No. Project

InfrastructureIn 2015, transportation forms more than 40% of the share under infrastructure projects at 45.2% (RM11.6 billion). This was followed by utilities at 42.0% (RM10.8 billion); drainage and sewage at 10.5% (RM2.7 billion); and disaster and prevention at 2.3% (RM0.6 billion). In total, 20.6% (RM25.7 billion) worth of projects from 1,741 projects were registered for infrastructure projects, of which the largest five projects amounted to RM5.0 billion.

Social AmenitiesFor social amenities, the subcategory of education contributed the largest portion at 39.3% (RM2.2 billion), followed by health at 23.2% (RM1.3 billion), and public amenities at 16.1% (RM0.9 billion). Other subcategories which includes recreational and sports, welfare and community, and clubs and associations completes the rest of the social amenities projects with 21.4% (RM1.2 billion).

Figure 2.7 Infrastructure Projects by Subsector

Figure 2.8 Social Amenities Projects by Subsector

Figure 2.9 Value and Number of Projects by State

Source: CIDB

Source: CIDB

Source: CIDB

PROJECTS BY LOCATION More than 60% of the projects in 2015 came from Johor (23.7%; RM29.4 billion), Selangor (18.8%; RM23.4 billion) and W.P. Kuala Lumpur (18.7%; RM23.3 billion). Private sector continues to dominate projects in nearly all of the states in 2015 notably in Johor (92.8%; RM27.2 billion), Pulau Pinang (92.8%; RM7.0 billion), Negeri Sembilan (92.0%; RM4.2 billion) and Selangor (91.0%; RM21.3 billion). From the numbers of project, Selangor leads with 1,458 projects, followed by Johor with 1,098 projects, and W.P. Kuala Lumpur with 620 projects.



18 19Projects by LocationProjects by Location

Figure 2.10 Government and Private Projects by State

Figure 2.11 Value of Projects by State and Category

Source: CIDB Source: CIDB

JohorIn 2015, Johor became the state with the largest projects in Malaysia with 23.7% or RM29.4 billion. The construction works were mainly contributed by non-residential projects at 46.8% (RM13.8 billion) and residential projects at 37.7% (RM11.1 billion). The rest were from infrastructure projects at 10.2% (RM3.0 billion); and social amenities projects at 5.3% (RM1.5 billion). The rapid expansion was driven by private sector which commands approximately 93.0% of the construction projects in Johor. The construction projects largely came from the O&G segments at 14.4% (RM4.2 billion), manufacturing facilities at 66.7% (RM9.2 billion), commercial buildings at 20.0% (RM2.8 billion) and industrial buildings at 5.1% (RM0.7 billion). The three major projects were the EPCC project at Pengerang, R&F Tanjung Puteri Project Main Work Construction, and the construction of Southkey Megamall (Appendix 2.4.a).

KedahKedah recorded 2.4% (RM3.0 billion) of the total value of projects awarded in 2015. The construction projects in Kedah came from the non-residential projects with 47.8% (RM1.5 billion); residential projects at 28.6% (RM0.9 billion); infrastructure projects at 21.0% (RM0.6 billion); and social amenities projects at 2.6% (RM79.3 million). A total of 58.9% of the construction projects in Kedah came from the private sector with non-residential projects consisted of manufacturing facilities (RM157.3 million; 27 projects); hotels (RM136.9 million; 21 projects); and commercial buildings (RM133.9 million; 36 projects). For 2015, the largest construction project in Kedah was the development of the Customs, Immigration, Quarantine, and Security (ICQS) Integrated Centre at Bukit Kayu Hitam (Appendix 2.4.b).

KelantanKelantan recorded the second lowest value of construction projects in Malaysia at 1.2% (RM1.5 billion). The construction projects in Kelantan were contributed by infrastructure projects at 40.2% (RM0.6 billion); non-residential projects at 39.0% (RM0.6 billion); residential projects at 13.1% (RM0.2 billion); and social amenities projects at 7.7% (RM0.1 billion). Unlike other states, the construction projects in Kelantan were largely driven by the government sector at 0.6% (RM0.9 billion). The value of infrastructure projects was largely contributed by transportation subsector (RM0.5 billion; 15 projects) and utilities subsector (RM91 million; 9 projects). The biggest awarded project in Kelantan was the Restoration of Gua Musang and Tumpat Railway Station (Appendix 2.4.c).

MelakaA total of 2.0% (RM2.5 billion) worth of projects came from Melaka in 2015. The non-residential projects recorded the highest value at 52.9% (RM1.3 billion); residential projects at 28.1% (RM0.7 billion); infrastructure projects at 15.0% (RM0.4 billion); and social amenities projects at 3.9% (RM98.3 million). Private sector forms the majority of the projects at 82.4% in Melaka with hotels (RM0.1 billion; 9 projects), manufacturing facilities (RM453.0 million; 45 projects); and commercial buildings (RM258.5 million; 35 projects). From CIDB database, the largest construction projects in Melaka were the service apartment project in Bandar Melaka and PR1MA housing development at Mukim Balai Panjang, both valued at RM483.7million (Appendix 2.4.d).

Negeri SembilanIn 2015, Negeri Sembilan registered a total of 3.6% (RM4.5 billion) of construction projects in Malaysia. As projected, the residential project forms the largest share of construction projects with 46.1% (RM2.1 billion). The rest were accounted by non-residential projects at 30.3% (RM1.4 billion); infrastructure projects at 17.7% (RM0.8 billion); and social amenities projects at 5.9% (RM0.3 billion). As much as 92.0% of the construction projects in Negeri Sembilan were driven by the private sector. In fact, nearly all residential works came from the private sector at approximately RM2.1 billion. The biggest contributor to construction projects

in Negeri Sembilan was the construction of PR1MA Apartments in Seremban (Appendix 2.4.e).

PahangPahang was the sixth Malaysian state with the highest value of projects at 5.5% (RM6.8 billion). A total of 79.3% (RM5.3 billion) of construction projects were driven by the private sector. Infrastructure projects were the largest contributor of construction projects at 46.4% (RM3.1 billion). This was followed by non-residential projects at 33.2% (RM2.3 billion); residential projects at 17.2% (RM1.2 billion) and social amenities projects at 3.2% (RM0.2 billion). Transportation and utilities subsector contributed at 71.9% (RM2.3 billion) of the projects under the infrastructure works. The largest construction project in Pahang was the new deepwater terminal at Kuantan Port (Appendix 2.4.f).

PerakWith a share of 3.7% (RM4.6 billion), Perak recorded the seventh highest value of projects in Malaysia. From this amount, infrastructure projects forms the largest bulk at 42.5% (RM2.0 billion); residential projects at 27.7% (RM1.3 billion); non-residential projects at 19.9% (RM0.9 billion); and social amenities projects at 9.9% (RM0.5 billion). More than half of the construction projects came from the private sector which responsible for 50.3% (RM2.3 billion) of the construction projects in Perak. The value of infrastructure projects were largely contributed by 31 utility-related projects worth RM1.9 billion, and 5 drainage and sewage projects worth RM26.8 million. The largest construction project in Perak was the sewage and sewer treatment plant at Kinta (Appendix 2.4.g).

PerlisThe lowest construction projects came from Perlis with 0.1% (RM140.3 million) of the total value of projects awarded in Malaysia. The residential projects forms the largest contributor at 51.2% (RM71.9 million); followed by social amenities projects at 23.2% (RM32.5 million); infrastructure projects at 15.0% (RM21.1 million); and non-residential projects at 10.6% (RM14.8 million). The biggest contributor to construction projects in Perlis was the residential project in Arau (Appendix 2.4.h).



20 21Projects by Grade of ContractorsProjects by Location

Pulau PinangThe construction projects in Pulau Pinang stands at 6.1% (RM7.6 billion), making it the fifth largest state with construction projects in Malaysia. More than half of the construction projects came from residential projects at 56.2% (RM4.3 billion); while the rest were comprises of non-residential projects at 31.7% (RM2.4 billion); infrastructure projects at 9.1% (RM0.7 billion); and social amenities projects at 3.1%(RM0.2 billion).A large portion of the residential projects in Pulau Pinang were contributed by the private sector at 92.8% (RM4.2 billion). New projects form the majority of residential projects with 156 projects. The largest projects in Pulau Pinang were the reclamation works for Seri Tanjung Pinang, the serviced apartment at Tanjung Pinang and the mix development at Georgetown (Appendix 2.4.i).

SabahSabah was tied at the seventh place along with Perak after registering the same share of 3.7% (RM4.6 billion) of construction projects in 2015. The construction projects came from infrastructure projects at 42.4% (RM1.9 billion); residential projects at 27.4% (RM1.3 billion); non-residential projects at 26.2% (RM1.2 billion); and social amenities projects at 4.1% (RM0.2 billion). From the value of construction projects, the government and private sector stands nearly equal at share of 50.6% and 49.4%, in Sabah. The government sector was the main mover in the infrastructure projects with a share of 37.4% (RM1.7 billion). The value of infrastructure projects was largely came from transportation projects at 53.0% (RM0.9 billion) and was followed by 47 utility-related projects worth RM0.5 billion. This situation was consistent with aim of the state government of Sabah to boost the connectivity and utilities through better infrastructure in order to tap other economic sectors such as tourism. The largest awarded project in Sabah was the residential project in Sandakan (Appendix 2.4.j).

SarawakThe fourth highest projects in Malaysia came from Sarawak with 7.7% (RM9.5 billion) of the total share of construction projects in Malaysia. With the aim of increasing more connectivity on the roads, infrastructure projects led the construction projects with 45.3% (RM4.3 billion); followed by non-residential projects at 38.7%(RM3.7 billion); residential projects at

9.4% (RM0.9 billion); and social amenities projects at 6.6% (RM0.6 billion). The infrastructure projects largely came from transportation subsector, which forms 44.4% or RM2.2 billion of the infrastructure works in Sarawak. This was followed by the utilities subsector at 42.9% (RM1.9 billion).The major projects in Sarawak were the Petronas LNG Complex in Bintulu, the Pan Borneo Highway, and upgrading of the Pan Borneo Highway (Appendix 2.4.k).

SelangorSelangor recorded the second highest value of projects with RM23.4 billion (18.8%). Unlike Johor, projects in Selangor came largely from residential projects which accounted for more than half of the projects in Selangor with 54.3% (RM12.7 billion). This could be due to the high demand from the public, which turns to neighbouring state of Selangor following the sky-high prices of houses in W.P. Kuala Lumpur. The trend could also be seen in the coming years in Negeri Sembilan. The other work segments completes the projects with non-residential projects (27.2%; RM6.4 billion); infrastructure projects (14.6%; RM3.4 billion), and social amenities projects (3.8%; RM0.9 billion).The residential projects mainly came from private sectors with a staggering 96.0% (RM12.6 billion) of the share. For 2015, the biggest projects in Selangor were the residential projects in Gombak and Ampang, and the air traffic management project at KLIA (Appendix 2.4.l).

TerengganuA total of 2.8% (RM3.5 billion) of the construction projects in 2015 came from Terengganu. From this amount, non-residential projects contribute at 49.1% (RM1.7 billion); infrastructure projects at 31.4% (RM1.1 billion); social amenities projects at 13.0% (RM0.5 billion); and residential projects at 6.5% (RM0.2 billion). Government sector formed approximately 69.5% of the projects against just 30.5% by the private sector. The largest contributor to construction projects in Terengganu was the water treatment facilities in Kemaman (Appendix 2.4.m).

W.P. Kuala Lumpur W.P. Kuala Lumpur, which includes projects under W.P. Putrajaya recorded the third highest projects in Malaysia at 18.7% (RM23.3 billion). This was slightly less than 0.1% (RM0.1 billion) than the value registered from the second highest state of Selangor. As with all urban cities in the world, there will be always the demand for housing from the increasing city population. This ring true for W.P. Kuala Lumpur with residential projects forms the highest portion at 44.5% (RM10.4 billion). This was followed by non-residential projects at 38.5% (RM9.0 billion); infrastructure projects at 15.4% (RM4.0 billion); and social amenities projects at 1.6% (RM0.4 billion). For 2015, the largest projects were the KL118 skyscraper, the government office building at Putrajaya and the double-tracking railway project (Appendix 2.4.n).

PROJECTS BY GRADE OF CONTRACTORSIn 2015, a total of 84.6% (RM105.2 billion) of construction projects were secured by local contractors against only 15.4% (RM19.2 billion) which was awarded to foreign contractors. In terms of numbers, local and foreign contractors managed to secure 98.1% (6,851 projects) and 1.9% (134 projects) respectively of construction projects.

In Malaysia, grade G7 contractors continue to command the bigger slice of the construction market at 76.1% (RM94.7 billion), which proves that these contractors remains the dominant player against other smaller grade contractors. The rest of the contractors managed to secure lesser portion with G6 contractors (2.3%; RM3.4 billion); G5 contractors (2.7%; RM3.4 billion); G4 contractors (1.3%; RM1.6 billion); and G3 contractors (1.9%; RM2.4 billion). The other surprisingly entry were the G1 and G2 contractors, which together managed to secure 0.2% (RM0.2 billion) worth of projects. It is interesting to note that G1 and G2 contractors were limited to projects worth not more than RM200,000 and RM500,000 respectively.

Local contractors prove that they were actively competing in the construction market. A total of 97.2% (3,635 contractors) of the awarded contractors were local contractors that managed to obtain 98.1% (6,751 projects) of construction projects in 2015. From this amount, 41.2% (1,531 contractors) came from G7 contractors. This was followed by G5 contractors (16.5%; 611 contractors); G4 contractors (14.9%; 553 contractors); and G3 contractors (13.8%; 513 contractors). The rest were comprised of G6 contractors (9.1%; 338 contractors) and G1 & G2 contractors (2.4%; 89 contractors). In contrast, only 2.1% (78 contractors) of the awarded contractors were foreign contractors which managed to wrestle 1.9% (134 projects) number of projects in Malaysia.

ForeignG1-G2G3G4G5G6G7TOTAL

15.4%0.2%1.9%1.3%2.7%2.3%

76.1%100.0%

19.20.22.41.63.42.9

94.7124.4

1.9%1.4%

10.0%12.3%13.1%

9.0%52.3%

100.0%

13499

687849899618

3,5996,885

7889

513553611338

1,5313,713

Table 2.7 Projects by Grade of Contractors

Note : Contractors were only counted once for more than one awarded projects based on their Grade in Table 2.7. Therefore, the numbers of contractors were different between Table 2.7 and Table 2.9. Source : CIDB

Grade of Contractor Number of Contractors1

Number of Projects

Number of Projects (%)

Value of Projects

(RM billion)Value of

Projects (%)



22 23Projects Awarded to Foreign ContractorsProjects by Type of Work | Project by Contract Size

PROJECTS BY TYPE OF WORK

PROJECTS BY CONTRACT SIZE

PROJECTS AWARDED TO FOREIGN CONTRACTORS

New projects constitute the largest portion of construction works in 2015. New projects represents close to 90.0% (RM111.5 billion) of the total value of projects or about 76.0% (5,230 projects) of the numbers of projects. The high number of new projects was supported by robust activities and developments in the infrastructure and residential category, which accounted for more than half of the total project value in 2015. The other types of work were modest in comparison with upgrading works (4.6%; RM5.7 billion); repair and maintenance works (3.6%; RM4.5 billion); renovation works (1.4%; RM1.7 billion) and expansion works (0.8%; RM1.0 billion).

Based on the contract-size, the main construction projects in 2015 came from the middle range value. Construction projects worth between RM100 million to RM300 million was the largest by value of project at 24.5% (RM30.5 billion). This was followed by projects with the value range of between RM10 million to RM50 million at 21.1% (RM26.2 billion). Interestingly, projects worth more than RM1 billion form the third largest share at 13.8% (RM17.2 billion) mainly due to the O&G and non-residential projects. The other double digit contributor were projects worth between RM50 million to RM100 million at 12.2% (RM15.2 billion).

In 2015, foreign contractors acquired 15.4% (RM19.2 billion) of the total construction project value (RM124.4 billion) in 2015. Based on the statistics, most of the foreign contractors participated in high-value construction projects. On average, each of the foreign contractors managed to win RM0.25 billion projects each, with the highest value being the RM3.6 billion residential project in Kuala Lumpur and the lowest value being the RM0.5 million non-residential projects in Johor (Table 2.10).

By contrast, a large number of construction projects in 2015 came from the smaller range value. From 6,885 projects awarded, 44.7% (3,077 projects) and 20.4% (1,407 projects) came from construction projects with a value range of between RM1 million to RM5 million and

RM500,000 to RM1 million respectively. While projects valued between RM10 million to RM50 million contributed 16.5% (1,135 projects). The balance of 18.4% (1,266 projects) were accounted moderately by the rest of the value range.

RenovationRepairMaintenanceNew ProjectExpansionUpgradingTOTAL

1.4%1.8%1.8%

89.6%0.8%4.6%

100.0%

1.72.32.2

111.51.05.7

124.4

4.2%5.3%4.8%

76.0%2.3%7.5%

100.0%

290368329

5,230155513

6,885

Table 2.8 Projects by Type of Work

Source : CIDB

Grade of Contractor Number of Projects

Number of Projects (%)

Value of Projects


Projects (%)

Figure 2.12 Value of Projects by Grade of Contractors

Source: CIDB

Figure 2.13 Projects by Type of Work

Source: CIDB

Figure 2.14 Value and Number of Projects by Foreign Contractors

Source: CIDB

Exceeding 0.5 to 1 millionExceeding 1 million to 5 millionExceeding 5 million to 10 millionExceeding 10 million to 50 millionExceeding 50 million to 100 millionExceeding 100 million to 300 millionExceeding 300 million to 500 millionExceeding 500 million to 1 billionExceeding 1 billionTOTAL

0.9%6.0%4.6%

21.1%12.2%24.5%

8.6%8.3%

13.8%100.0%

1.17.55.7

26.215.230.510.710.317.2

124.4

1,4073,077

8121,135

218181

291511

6,885

9041,993

653805186154

271511

4,748

Table 2.9 Projects by Contract Size

Note : Contractors were counted according to the awarded projects. If the contractors were awarded more than one projects in the specific value range, it will also be counted in Table 2.9. Therefore, the numbers of contractors were different between Table 2.7 and Table 2.9. Source : CIDB

Range of Project Value (RM) Number of Contractors1

Number of Projects

Value of Projects


Projects (%)



24 25Registration of ContractorsRegistration of Contractors

Construction of 118-storey Commercial Building and Basement Carpark in Kuala Lumpur

Piping and Associated Facilities (“PAF”) EPCC Contract at Petronas LNG Complex (PLC), Bintulu, Sarawak

R&F Tanjung Puteri Project Main Work Construction at Jalan Bukit Meldrum, Johor

High Cost Condo and Shops with Kindergarten Facilities, multi-purpose hall, Surau and Podium Parking, and Recreation and Basement, Selangor

Reclamation and Channel Dredging for Seri Tanjung Pinang Development (STP2) Penang

1.

2.

3.

4.

5.

Table 2.10 Five Major Construction Projects by Foreign Contractors

Source : CIDB

No. Project

Figure 2.15 Number of Foreign Contractors by Country

Source: CIDB

REGISTRATION OF CONTRACTORSContractor is defined as a person who undertakes to carry out and complete any construction works. All contractors, local and foreign need to be registered with CIDB in order to undertake any construction works in Malaysia, as stipulated under Lembaga Pembangunan Industri Pembinaan Act 1994 (Act 520). There are 3 categories of registration which are Civil Engineering (CE), Buildings (B) and Mechanical and Electrical (M&E). There are also specialisations which are listed under each category, which details the type of works that the contractors are equipped to do. All this information is listed on the certificate of contractors’ registration, commonly known as Sijil Perakuan Pendaftaran Kontraktor (PPK).

A total of 71,799 local contractors were registered in 2015. This was a big increase of 5.0% from 2014 (67,833 contractors). The registration of new contractors saw a huge increase by 9.0% to 7,092 contractors (2014: 4,884 contractors). Unsurprisingly, the rise in new registration came from grade G1 to G3 contractors, which amounted to 80.2% or 5,585 new contractors in 2015. Overall, grade G1 to G3 contractors were the largest registered contractors with 77.8% (55,850 contractors) against other grade

contractors of G4 (4.7%; 3,408 contractors); G5 (6.6%; 4,746 contractors); G6 (2.2%; 1,589 contractors); and G7 (8.6%; 6,206 contractors). The registration of foreign

contractors also saw its number rise by 5.8% to 72,246 contractors (2014: 68,255 contractors).

In terms of classification, the majority of contractors registered in 2015 were classified as active, which means that these contractors were actively involved in securing and working on construction projects within three years of registration. In 2015, a total of 77.5% or 55,624 contractors were classified as active against semi-active (1.2%), dormant (10.5%) and new registration (10.8%). This was a reduction, compared to 80.5% or 54,591 active contractors in 2014. Grade G1 to G3 contractors were the most active in 2015 with the largest portion at 76.8% (42,686 contractors) against other grade contractors.

The contribution of semi-active contractors remained unchanged at 1.2% each in 2014 and 2015 with 797 contractors and 841 contractors respectively. It is expected this figure will remained marginally the same in the future, as the trends shows that these contractors were still interested in bidding projects even though they does not win any projects during the registration period. 2015 saw an increase in the dormant and new contractors. The dormant contractors stands at 10.5% or 7,550 contractors in 2015 (2014: 9.5% or 6,451 contractors). The newly

Source : CIDB

G1G2G3G4G5G6G7

Foreign

Not exceeding RM200,000Not exceedingRM500,000Not exceedingRM1,000,000Not exceedingRM3,000,000Not exceedingRM5,000,000Not exceedingRM10,000,000No limitTotalNo limitTotal

33,99110,441

8,8753,0934,2871,5285,618

67,833422

68,255

34,06812,407

9,3753,4084,7461,5896,206

71,799447

72,246

Grade Tender Limit20152014

Total Registration

Table 2.11 Registration of Contractors by Grade

DormantSemi ActiveActive New

G1G2G3G4G5G6G7TotalPercentage

28,0467,7426,7242,5453,3731,3174,844

54,59180.5%

27,1448,7196,8232,7323,5781,3495,279

55,62477.5%

343163132

41692469

8411.2%

3,451985938227365101384

6,4519.5%

3,9681,3781,081

235379123386

7,55010.5%

2,1871,5841,078

279477

79310

5,9948.8%

2,6132,1471,339

400720

93472

7,78410.8%

307130135

42723180

7971.2%

Table 2.12 Registration of Contractors by Grade and Classification

Grade2014 2014 2014 20142015 2015 2015 2015

Classification

Source : CIDB

In terms of the value, China leads the foreign countries after securing construction projects worth RM8.0 billion, followed by Korea (RM4.7 billion) and Japan (RM2.7 billion). While Singapore recorded the highest number of projects awarded with 30 projects, followed by Japan (29 projects), China (25 projects), Hong Kong (15 projects), and Germany (12 projects).

A total of 78 foreign contractors from 14 countries were awarded134 construction projects. The largest foreign contractors were from China with 29.5% (23 contractors). This was followed by Japan with 21.8% (17 contractors) and Singapore with 17.9% (18 contractors). Other foreign contractors involved in construction projects in Malaysia included Germany (8.9%; 12 contractors), Korea (6.4%; 5 contractors), Australia (3.8%; 3 contractors), Hong Kong (2.6%; 2 contractors), and Switzerland (2.6%; 2 contractors). The rest of the contractors (5.9%) were from Belgium, Finland, India, Indonesia, Myanmar and the United Kingdom which had one construction project each.



26 27Registration of Construction PersonnelRegistration of Construction Personnel

REGISTRATION OF CONSTRUCTION PERSONNELThe registration of construction personnel reduce by 12.5% to 716,542 personnel (2014: 819,192 personnel). A total of 65.3% or 467,733 personnel registered came from the renewal of personnel registration, compared with 34.7% or 248,809 personnel which came from new registration of personnel. New registration of personnel saw a huge reduction of 20.0% to 248,809 personnel (2014: 310,939 personnel), while the renewal of personnel registration drops by 8.0% to 467,733 personnel (2014: 508,253 personnel).

General Worker were the largest registered personnel at 42.0% (300,736 personnel); followed by Construction Worker (18.3%; 130,979 personnel), Administration Personnel (17.9%; 128,378 personnel), Site Manager & Assistant Site Manager (7.4%; 52,872 personnel), Skilled Construction Worker (7.3%; 52,372 personnel) and Site Supervisor (7.1%; 51,205 personnel). Overall, General Worker saw a huge reduction of 17.7%, while Skilled Construction Worker saw the least reduction at 4.9% against any other category. This could be due to the efforts to reduce the numbers of unskilled construction workers, and at the same time to increase the numbers of skilled construction workers in the industry. From the registration, local and foreign construction personnel stands at 80.3% (575,474 personnel) and 19.7% (141,068 personnel) respectively. Roughly, this indicates a ratio of 1 foreign construction personnel registered for every 4 local construction personnel registered.

Local registered personnel falls by 10.2% to 575,474 personnel (2014: 640,746 personnel) in 2015. All categories saw a reduction in numbers of registered local personnel, most notably in General Worker (14.8%). Renewals of local personnel registration forms the bulk of the registration with 66.1% (467,733 personnel), against 33.9% (248,809 personnel) for new registration. New registration of local personnel contracted by 17.0% to 248,809 personnel (2014: 310,939 personnel), against a drop of 6.2% to 380,674 personnel (2014: 405,906 personnel) for renewal (Table 2.14).

Foreign construction personnel contracted by 20.9% to 141,068 personnel (2014: 178,446 personnel) with renewal forms the majority of registration (61.7%; 87,059 personnel) against new registration (38.3%; 54,009 personnel). All categories saw a double-digit contraction in their registration except for skilled construction worker which marginally increase by 0.5% to 1,668 personnel (2014: 1,659 personnel). The registration of foreign personnel in 2015 saw a huge reduction in Site Supervisor (-35.2%); Site Manager & Assistant Site Manager (-24.2%); Administration Personnel (-22.6%); General Worker (-21.4%); and Construction Worker (-15.4%) (Table 2.15).

Figure 2.16 Number of Contractors Registered by State

Source: CIDB

Source: CIDB

General WorkerConstruction WorkerSkilled Construction WorkerSite Manager & Assistant Site ManagerSite SupervisorAdministration PersonnelTotal

172,98667,255

1,7967,5804,982

56,340310,939

132,13058,697

1,3206,0883,833

46,741248,809

192,54772,58253,28649,98352,36187,494

508,253

168,60672,28251,05246,78447,37281,637

467,733

365,533139,837

55,08257,56357,343

143,834819,192

300,736130,979

52,37252,87251,205

128,378716,542

Table 2.13 Total Registration of Construction Personnel

Category of Workers20152015 201520142014 2014

RenewalNew Registration Total Registration

Source: CIDB


104,33063,068

1,4256,4114,685

54,921234,840

83,52055,432

1,1235,3333,661

45,731194,800

98,65967,02151,99849,22352,23886,767

405,906

89,46167,29849,58146,07747,27280,985

380,674

202,989130,089

53,42355,63456,923

141,688640,746

172,981122,730

50,70451,41050,933

126,716575,474

Table 2.14 Registration of Local Construction Personnel



Source: CIDB


68,6564,187

3711,169

2971,419

76,099

48,6103,265

197755172

1,01054,009

93,8885,5611,288

760123727

102,347

79,1454,9841,471

707100652

87,059

162,5449,7481,6591,929

4202,146

178,446

127,7558,2491,6681,462

2721,662

141,068

Table 2.15 Registration of Foreign Construction Personnel



registered contractors negligibly stands at 10.8% or 7,784 contractors in 2015 (2014: 9.5% or 6,451 contractors) (Table 2.12).

In 2015, contractors mainly came from Selangor (16.5%; 11,822 contractors), Sabah (14.6%; 10,496 contractors) and W.P. Kuala Lumpur (10.9%; 7,799 contractors). All of the states show a rise in the number of registered contractors, notably Sarawak which increased by 21.3% to 4,607 contractors (2014: 3,797 contractors). While the rest of states shows a gradual amount of increase between 2014 and 2015.

Documents

CHAPTER 2 CONSTRUCTION PROJECTS ... 2 CONSTRUCTION PROJECTS, CONTRACTORS AND CONSTRUCTION PERSONNEL Registration of Construction Projects Projects by Category Projects by Location