Saturday, 10 January 2015

MALAYSIA CONSTRUCTION PRODUCTIVITY AND QUALITY IN RELATION TO FOREIGN WORKERS (Open Letter to CIDB's President)

In respond to the rampant illegal construction workers and outflow of our Ringgit to foreign land at the staggering height, I wrote some suggestions to several key stakeholders about my concern. 

Raising productivity not only push up the salary scale but also elevate the need of knowledge and skills in works thereby motivate the locals financially and mentally. this can be done without increasing the overall construction cost, in long term, as less manpower is required to do the same amount of works though for higher cost per unit.


Undeniably there will be hard to start but once it's moving, it will keep moving like a locomotive in action....




TAY KIAN GUAN
P. O. Box 11191
50738 Kuala Lumpur

Construction Industry Development Board (CIDB)
Tingkat 25A, Menara Dato Onn,
Pusat Dagangan Dunia Putra (PWTC)
No. 45, Jalan Tun Ismail,
50480 Kuala Lumpur.
                                                                                                                                                      12th January 2015
Y.Bhg. Tan Sri Dr. Ahmad Tajuddin Ali,

CONSTRUCTION PRODUCTIVITY AND QUALITY IN RELATION TO FOREIGN WORKERS.
Refer to the above, I am writing to reiterate my concern on Malaysia construction productivity and quality, with emphasis on foreign workers this time around.

Formulating antidote to subdue the heavy dependency of foreign workers couldn’t start without first understand where we stand. Without data on productivity and quality, the inconsistency of contractor performance is at one imagination.

 I applause to the move of Ministry of Foreign Affairs in repatriating the 503,000 foreign workers though another half number of illegal construction workers is still roaming around at pleased (465,000 if assumed 15%, as of 2010, of total illegals out of 3.1 million estimate, as of 2014).

In contrast to MBAM’s belief, foreign workers with more than 10 years local experience not necessary more skillful and productive, as evidenced by negative progress over the years of QLASSIC average (from 72.3 in 2012 to 68.83 2015 January) and late project delivery is still very prevalent to date. In fact, tendency to change& improve of aged& less trained is harder. I doubt that the collective effort of MBAM, PKMM, GBC& PKIM realized the extension of 523,000 worker’s permit make any sense,instead, they should promote the construction industry to adapt alternatives, such as Industrialized Building System (IBS), to offset the manpower needed prior to the expiry of 6p.

Recognized the above, our construction industry need new blood. Congruent with CIDB’s intention to make QLASSIC mandatory by 2020, collaboration with related authority to legalized foreign working permit based on performance of QLASSIC (of builders) weight against productivity, plus all workers should have minimum undergone one trade of skill training prior to employment, with tiers rate of permit levy go accordingly. This suggestion encourage developers to adopt IBS& QLASSIC and incentivized builders to control quality and productivity. It directly affect their ability to procure workers at cheapest rate and profit margin ensued.

Example 1, Builder A with average QLASSIC score of 87 at 5manhours/m2 of plastering works pay RM500 of levy/head as compare to RM 1,000 of Builder B with QLASSIC score 65 at 5manhours/m2. Lower QLASSIC score with the same productivity suggest lack of skills thus higher levy is imposed to encourage builders to upgrade (under IHRDC collaboration) or employ skill workers.  

Example 2, Builder C with 8manhours/m2 for concreting score 70 in QLASSIC as compare to Builder D with 20manhours/m2 of the same QLASSIC score. Both builder pay same levy rate but builder D is only allow to obtain the same number of working permit as builder C, assumed same total project value on hand. As in Law of Nature Selection, Builder D will brush up productivity by either eliminate unproductive workers or provide training, in order to sustain the business.

Since measureable benchmark on productivity is still none-existence in Malaysia, Buildability Score could be standard measurement in effort to promote IBS with the ultimate aim of achieving greater productivity and reduction of dependency on foreign workers.

Without gender discrimination, productivity of female construction workers is plausibly lower in relate to the physically demanding nature of construction works. Thus, reduce quota of female workers not only realistically improve overall productivity but also reduce the living condition& temptation of their male partner working in Malaysia, as suggest by Maslow’s hierarchy of needs, henceforth prevent their breeding and associated social problems, in safeguarding our nation’s social security and economy interest.

Representing 16% of the 12.7 million workforce of legal foreign workers, we rank 11th world top spending for foreign workers (as of 2013), topping Japan, Australia, New Zealand and others advanced nation with a well portion of USD 6.5billion leak out
from our country annually. What make our 30million pairs of hands so precious to spend more on foreign workers than the 128 million of Japanese or double of Australia& New Zealand in combine? Yet, this is after discounted on the illegals; we also gained fame as 3rd worst human trafficking control in the world, listed by US Depart of state.

The demography of foreign workers in construction sector by country of origin are 80.6% Indonesian, 6.5% Myanmar, 3.3% Pakistan& etc. Majority (40%) with no formal education (primary). No doubt, average value added per worker in the construction is lowest among all sector. Language and religion are major attributor to the figure. Neutralize these elements while favorable to education background in the quantitative restriction is essential in creating pools of productive workers. On the other hand, diversify the composition of worker’s country of origin would ease the influx of foreign workers as a whole, provided there’s good governance& enforcement in border control, by relevant authority.

The above don’t look bright for Malaysia toward vision 2020. As far as project under my purview is concerned, one CIDB green card for one worker, no card means no job. A control measure I learned in Singapore. Perhaps, CIDB could enforce the jurisdiction nationwide.
Thank you.




…………………………………
TAY KIAN GUAN
Tel: 010-933 5773
Cc.:
1. Public Works Department (JKR)

2. Ministry of Foreign Affairs, Malaysia

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