Cheap homes price to stay

BAHAU: The price of low-cost houses will not be increased, said Datuk Seri Abdullah Ahmad Badawi. The Prime Minister said developers should not cite the increase in prices of building materials as a reason to raise the prices of the houses.

“We can’t do this ... If we allow an increase, the common man will not be able to own a house.
“Also, we do not want to do something which will create a lot of unhappiness (among people from the lower-income group),” he said after performing the ground-breaking ceremony for a Universiti Teknologi Mara campus in Kg Beting, near here.

Abdullah said developers should instead find ways to reduce their costs such as adopting new construction methods. “You can adopt the IBS (Industrialised Building System) method which can reduce your cost of doing business,” he said.

He was responding to a statement by Real Estate and Housing Developers Association deputy president Datuk Michael Yam that developers were unable to absorb the increase in prices of construction materials. The association had proposed that prices of low-cost houses and flats be increased from RM42,000 to RM60,000.

Abdullah said the IBS method was effective as developers would not have to rely heavily on skilled workers. He said if developers built houses quickly, they would also be able to service their bank loans faster.

“Pemudah has come up with recommendations that can help speed up business,” he said.
Pemudah is a public-private sector initiative which aims to simplify business operations in Malaysia by improving government services. Abdullah said it was unfair to allow an increase simply because government servants recently got a salary hike.

“They were unable to buy houses previously. If you increase the price, then the civil servants who recently got a pay increase will never be able to own a house,” he said.

(Source: The Star 24th August 2007)

MIGHT Annual Report 2006 - Industrialised Building System

Global Scenario

With the impact of globalization have run deep into many industries, more efficient methods have been introduced and implemented in order to survive the challenging market ahead. Every product have improved dramatically and been produced in a higher quality and at a lower cost but with the exception of houses and buildings. Whilst, other industries have been thriving in terms of technology application, only small improvement has been made in making building processes more efficient.

Houses of the future should be similar to products like cars or computers today. It is built mostly in a factory with parts that is easy to replace or maintain. The construction industry can be transform by following what other sectors are already doing; standardize and accessorize. This effort can be achieve by overhauling the industry through technology implementation such as Industrialised Building System or IBS. IBS based on Construction Industry Development Board of Malaysia (CIDB) is defined as “Construction technique in which components are manufactured in a factory, on or off site, positioned and assembled into a structure with minimal additional site works.”

In many parts of the world, IBS takes its forms in an initiative called open building concept. Open building is an approach to the design of buildings and said to be representing a new wave in architecture. Open building is defined as an innovative approach to design and construction that enhances the efficiency of the building process, while increasing the variety, flexibility and quality of the product [1].

Developed countries such as Japan, Netherlands and USA to name a few, have already started to develop concept that is called ‘Open Source Building’. The concept of the open source building is similar to what has happened in the ICT industry whereby through standardization of jointing parts such as USB ports, consumers can buy computer equipment such as mouse or scanner anywhere in the world. The equipment can then be easily installed by the users as the connection from the equipment to the computer has been internationally standardized.

Local Scenario

The Malaysian construction industry as envisaged in the Third Outline Perspective Plan (OPP3) 2001-2010, is expected to grow at 6.6% per annum during the period of OPP3 and contributes 3.1% to the GDP in the year 2010 [2]. The only way for the country to achieve this target is by increasing the industry’s efficiency and productivity to a higher level than it is now. In recognizing these critical factors, the Government has introduced a master plan to overhaul the construction industry into a more technology based industry. The master plan is called the “Industrialised Building Systems (IBS) Roadmap 2003-2010”. Endorsed by the Cabinet in October 2003, the plan’s ultimate objective is for the industry to achieve Open Building by the year 2010.

The IBS agenda was further boosted as the Government have announced in Budget 2005, whereby all new Government projects are required to have at least 50 per cent IBS content. This was subsequently followed by another announcement in Budget 2006 whereby IBS manufacturers would be given tax incentives through Accelerated Capital Allowance (ACA) for expenses occurred in the purchase of moulds used for production of precast concrete components. In the year 2006 also, an IBS Centre was established under CIDB that will act as a one stop agency for IBS implementation. These initiatives done by the Government have given the IBS agenda the momentum that was badly needed before. It has also put the construction industry into the right path of achieving higher efficiency and productivity by the year 2020.


Company’s activities

For the year 2006, the company has been actively promoting the use of IBS through partnership with various parties and Government agencies. Among the key activities are:

Project Implementation

IBS Modular is now actively implementing IBS product development through an IBS Technopreneur programme. The programme is in line with the Government aspiration of creating more IBS suppliers by 2010.

Human Capital Development

IBS Industrial Skills Enhancement Programme (INSEP)
The programme consists of 60 students that started on September 2006. The objective of the programme is to enhance the skill of the participants with the knowledge of IBS and therefore creating more job opportunities for them in the market place. The programme partner for this program is Housing Research Centre (HRC), UPM.

International and Business Programme

International Outreach Programme.
The objective of the programme is to create IBS awareness among developing countries through the platform of international seminars and workshops such as Langkawi International Dialogue and OIC meetings.


Reference:
1. Whitepaper 2003. About Open Building. Bensonwood Homes
2. Third Outline Perspective Plan (OPP3) 2001-2010
3. 2005 Budget Speech, www.pmo.gov.my
4. 2006 Budget Speech, www.pmo.gov.my
5. Economic Stimulus Package Speech, 2003, www.mten.gov.my