MARA and CIDB sign MoU to increase Bumiputera contractors’ IBS capacity

Image by CIDB

Kuala Lumpur, 4 November 2021 – The Malaysian Construction Industry Development Board (CIDB) and Majlis Amanah Rakyat (MARA) or People’s Trust Council on 2 November 2021 signed a Memorandum of Understanding (MoU) to enhance the capacity and sustainability of Bumiputera contractors so that they can gain a more competitive edge in the construction market.

The MoU was signed by CIDB’s CEO, Datuk Ahmad ‘Asri Abdul Hamid, and MARA Director General, Dato’ Azhar Abdul Manaf; witnessed by the Senior Minister of Works, YB Dato ’Sri Haji Fadillah Bin Haji Yusuf, and the Minister of Rural Development, YB Dato’ Seri Mahdzir Bin Khalid.

In the MoU, CIDB will provide a structured and comprehensive Industrial Building Systems (IBS) development programme to improve the supply chain. Meanwhile, MARA will provide entrepreneurship training i.e., management, finance and marketing; as well as advisory services, business financing and premises that suit the needs of the industry players involved. CIDB and MARA will work together in developing and facilitating IBS entrepreneurs through the IBS Vendor Development Program (VDP).

To date, a total of 187 IBS manufacturers have registered, which are active and possess an IBS Manufacturer & Product Assessment & Certification (IMPACT) certification from CIDB. Of this number, 42 companies are owned by the Bumiputeras. For capacity building and training programs, CIDB has trained a total of 6,000 personnel in IBS management and a total of 5,000 personnel in various IBS modules. Apart from IBS specialisation training, CIDB also implemented a Building Information Modeling (BIM) training program where a total of 3,000 participants were trained for 12 BIM training modules. In essence, CIDB has spent a budget of RM10 million on this capacity building program since 2016.

The development of entrepreneurs in the construction industry has actually been implemented by MARA for a long time. Ongoing efforts to ensure that Bumiputera contractors can be more competitive have been made through comprehensive and structured technical and management training.

During the implementation period of the 11th Malaysia Plan (11MP), a total of 2,860 entrepreneurs/ contractors have received professional development training.

For the VDP, CIDB has trained two vendors—Precast Engineering Sdn Bhd and Mutual Premium Sdn Bhd. Through this programme, they now have the capacity as a manufacturer of precast concrete systems, IBS contracting and IBS installers located in Kelantan and Kuala Lumpur. In cooperation with MARA, CIDB estimates that a total of eight more Bumiputera vendors can be trained.

To further support the sustainability of Bumiputera contractors, MARA has also improved business financing facilities by providing a special financing facility scheme through the Express Contract Financing Scheme (SPiKE). It is a short-term financing facility provided to Bumiputera contractors covering construction, supply, service and electricity activities. For the period 2016 to 2020, more than 11,000 entrepreneurs/contractors have received SPiKE financing benefits with a financing value of RM1.42 billion.

MARA is also looking for space and opportunities to ensure that graduates of MARA Educational Institutions (IPMA) as well as GIATMARA trainees in the field of architecture and building technology become competent human capital in the job market.

The collaboration with CIDB is a good opportunity in driving the development of the construction industry in the country. CIDB’s role in regulating, developing, expanding and acting as an advisor in this industry is expected to be able to support MARA’s efforts in accelerating change in the construction industry, especially among Bumiputera contractors.

CIDB, ​​through its subsidiary CIDB IBS Sdn Bhd also provides IBS training to entrepreneurs funded by MARA. To date, a total of 132 Bumiputera contractors and personnel have been trained. In addition, CIDB will also facilitate MARA training entrepreneurs in developing their businesses in the IBS Industrial Park planned by CIDB.

Apart from the development of Bumiputera entrepreneurs in the field of IBS, MARA and CIDB also agreed to work together in other matters that are beneficial to achieve the objectives of both organisations.

– Construction+ Online وان ایکس بت بت فوروارد