News: Lack Of IBS Components Hinders Gov’t From Achieving Affordable Housing Target

Oct 4, 2019

While the use of Industrialised Building System (IBS) technology could help the government achieve its affordable housing target of 100,000 units per year in the next 10 years, the lack of IBS components in the country may hinder it from attaining this goal.

Construction Research Institute of Malaysia (CREAM) technical expert Prof Dr Zuhairi Abd Hamid revealed that the number of components that IBS manufacturers in Malaysia can produce is only enough to build around 25,000 housing units each year, reported Bernama.

CREAM is the Construction Industry Development Board (CIDB) Malaysia’s research and development arm.

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“This means they can only supply 25 percent of the components required under the government’s 100,000 affordable units a year plan,” he said.

Malaysia currently has around 274 manufacturers of IBS components and 26 IBS distributors that are registered with CIDB.

“We’ve to step up efforts to increase the number of IBS component producers in this country. When we have more producers and distributors, the prices will become more competitive,” said Zuhari.

He noted that not many people are willing to venture into IBS component manufacturing since hefty capital outlays is required for the factory operations, acquisition of machinery and equipment as well as logistics.

Aside from that, experienced and skilled workers who would operate the sophisticated machinery and equipment have to be hired also, he added.

And while importing IBS components from countries such as China may help resolve the shortfall and meet the affordable housing sector’s demands, choosing such an option should come with the transfer of technology.

“Any collaboration between the government and foreign IBS producers should take place in the form of joint ventures to facilitate the transfer of technology…If the transfer of technology is not included, the deal will only help to meet our immediate needs (for IBS components) but it will be a great loss to our country (over the long term if we don’t learn the technology),” explained Zuhari.

 

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Vincent Lee
Senior Real Estate Negotiotor
REN: 13152
POLYGON PROPERTIES SDN. BHD.
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