Latest news with #ConstructionIndustryDevelopmentBoard
Zawya
6 days ago
- Business
- Zawya
Public Works Entities Must Create Income-Generating Initiatives and Not Rely on Government Funding
The Portfolio Committee on Public Works and Infrastructure has called on entities within the Department of Public Works and Infrastructure portfolio to explore innovative solutions to improve their financial sustainability, rather than relying solely on the parent department for funding and bailouts. The committee today received a briefing from four public works entities on their 2025/26 annual performance plans and budget allocations. The entities include the Independent Development Trust (IDT), Agrément South Africa (ASA), the Construction Industry Development Board (CIDB), and the Council for the Built Environment (CBE). The committee expressed concerns over the absence of both the Minister and Deputy Minister of Public Works and Infrastructure from the meeting. Members of the committee were not pleased with the Minister's backlog in oral and written questions. In addition, the committee also raised alarm over the continued lack of transparency regarding the costs associated with the Minister's overseas travel, which remain undisclosed. Regarding the IDT, the committee raised serious concerns about the entity's continued financial dependence on the department. Members of the committee questioned whether the entity has any concrete plans to improve its revenue-generating capacity and reduce its reliance on bailouts. The committee also urged the entity to promote inclusivity for categories of previously disadvantaged people, women, youth, and the people with disabilities. The committee further expressed concern over the high legal costs incurred by the IDT and recommended that the entity strengthens its internal capacity to mitigate litigation risks, especially during ongoing projects. The committee called on ASA to identify alternative revenue streams, as continued dependence on government funding is unsustainable. It criticised the weak transformation and job creation targets presented and called for bolder, measurable commitments. ASA's ICT systems were also flagged and the committee encouraged the entity to work collaboratively with departments such as Human Settlements to broaden its impact. T The committee further urged ASA to establish testing sites and laboratories to ensure compliance with technical standards, noting that current operations do not adequately support this function. Committee Chairperson, Ms Caril Phiri, expressed concern over irregularities in contractor grading by the CIDB. She highlighted reports of contractors receiving higher grades without completing corresponding project scopes and urged CIDB to address and dispel public perceptions that grading statuses are being bought. The committee also raised alarm over the CIDB's claim that contractors involved in the recent collapsed building in George were not registered with them, but rather with the National Home Builders Registration Council. The committee called for greater regulatory alignment and oversight between these entities, the national and provincial departments of human settlements, and all municipal councils to prevent such tragedies. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Borneo Post
12-06-2025
- Borneo Post
CIDB issues 15 enforcement notices during Tg Kidurong construction site inspection
CIDB enforcement personnel compile data after the integrated operation. BINTULU (June 12): The Construction Industry Development Board (CIDB) Sarawak Bintulu branch issued 15 enforcement notices during an inspection of a construction site in Tanjung Kidurong here yesterday. The inspection was part of the Integrated Enforcement Operation 2025 (OPB). CIDB Sarawak Bintulu branch manager Kamarul Azman A Razak said the operation was carried out in collaboration with multiple government agencies to strengthen regulatory compliance within the div'sion's construction sector. Eleven of the notices were issued under N2/2015, requesting contractors to submit construction-related documents and information, while four were issued under N9/2015, requiring the recipients to report to the CIDB office next week. 'Contractors are reminded of their legal obligation to report and submit all necessary documents related to construction activities to CIDB,' Kamarul said in a statement. He said all construction works must comply with the current written laws and prioritise site and building safety throughout the construction period. The Ministry of Health conducted inspections focusing on hygiene and health facilities at the construction site, while the Sarawak Department of Labour ensured workers' rights were upheld. Other agencies involved carried out enforcement based on their respective legal jurisdictions. Kamarul said the OPB initiative is part of CIDB's continuous efforts to raise industry standards, particularly in safety and legal compliance. 'Contractors who fail to adhere to the CIDB Act 520 may face disciplinary measures, including compounds or court action,' he warned. He added the authorities will continue to intensify enforcement to uphold legal, safety, and quality standards in the industry. He also urged all contractors to fully comply with regulations to avoid more severe consequences in future. Additionally, he called on the public to report any suspected violations of Act 520 to CIDB Sarawak Bintulu branch or the relevant authorities. 'This operation also strengthens inter-agency cooperation in daily enforcement activities,' Kamarul added, emphasising the shared responsibility in ensuring the sector's sustainable and lawful development. Other participating agencies in the operation were the Department of Occupational Safety and Health, Department of Environment, Bintulu Development Authority, Royal Malaysia Police, Akademi Binaan Malaysia Sarawak Region, and CIDB Technologies Sarawak.
The Star
10-06-2025
- Business
- The Star
Industry concerns over expanded SST
PETALING JAYA: Consumers will eventually have to bear the brunt of the expanded Sales and Service Tax (SST) set to start July 1, said Malay Contractors Association of Malaysia president Datuk Mohd Rosdi Ab Aziz. The SST, he added, will further put a dent in the thin profits of building contractors who are already struggling with higher operating costs, following the increase in prices and removal of subsidies of multiple items over the past two years. Mohd Rosdi pointed out that the new SST could also affect the smooth flow of projects and cause delays. He said the higher costs may even lead to contractors opting for cheaper alternatives when carrying out projects, resulting in compromised quality. Mohd Rosdi said the association had attended a discussion on the expanded SST with the Construction Industry Development Board (CIDB) in April last year, where it expressed concerns over rising costs. 'We had asked the government to think about the move again and do more research on the issue. We are not opposed to the government's plan to impose taxes to strengthen its coffers. All we ask, is for it to be done gradually in phases over a year or two in a more orderly and sensible manner. 'As it is, we are already mired with additional costs from the removal of the diesel subsidy and the compulsory EPF contributions for foreign workers. To impose further taxes on the industry is not only unreasonable but also illogical. This will eat into the minimal profits we make,' he told The Star. Mohd Rosdi said the future removal of petrol subsidies and the hike in electricity tariffs will also affect contractors when they come into effect. 'Although the man on the street will be exempt from these taxes, additional costs from new taxes, rate hikes and subsidy removals will eventually be passed on to the consumer,' he said. Master Builders Association Malaysia (MBAM) president Oliver H.C. Wee said with the construction industry currently subjected to multiple layers of taxation across various aspects of project execution, including building materials, labour and equipment, the new tax would seriously disrupt existing contractual obligations, budgets and project timelines. 'This creates undue burden on both contractors and clients and could lead to delays and cost overruns. We appeal that such tax shall only apply to those contracts executed after Jan 1, 2026, instead of next month. 'The SST will also significantly strain cash flows within the construction sector. Contractors already face substantial financial pressures. We are concerned about the cumulative financial impact and urge the government to avoid introducing further inflationary costs,' he said. Wee said that if the implementation of the 6% SST is inevitable, the association strongly urges the government to lower the rate from 6% to 4%. He said introducing the new tax in about three weeks denies sufficient lead time for the industry to respond, and a reasonable grace period should be granted to allow all stakeholders to make necessary adjustments and financial preparations. Malaysia's private education sector is also expected to face some challenges, when a 6% service tax is imposed on private preschool, primary and secondary education providers that charge more than RM60,000 per student in annual tuition fees. National Association of Private Educational Institutions (NAPEI) deputy president Dr Teh Choon Jin said that while the goal to broaden the government's fiscal base is understandable, a more balanced and phased approach to implementing the tax is essential. 'Private educational institutions are likely to intensify efforts to attract more local students, leading to heightened competition for a relatively limited domestic pool. 'Institutions that rely heavily on foreign student enrolment will face the challenge of diversifying their market base,' he said. Teh cautioned that price-sensitive international markets, particularly students from developing countries, could be disproportionately impacted by the additional costs. To address this, he suggested that institutions explore offshore delivery partnerships or targeted scholarships and financial aid. NAPEI has called on the government to consider a gradual rollout of its tax policy to allow private institutions to adjust their business models without destabilising their operations. The association also proposed targeted exemptions or rebates for students from developing countries or those enrolling in critical fields such as STEM, artificial intelligence and healthcare. 'Equally important is the creation of a policy dialogue platform that includes the Higher Education Ministry, Finance Ministry and key stakeholders such as NAPEI. 'This will help collaboratively monitor and address the tax implications on enrolment trends, institutional sustainability and Malaysia's long-term education agenda,' he added. Teh warned that a 6% cost increase could weaken Malaysia's competitive edge in the international education market. 'This could make Malaysia less attractive compared to regional players like Singapore, Thailand and Vietnam,' he said. He noted that operationally, the tax would also present compliance and administrative challenges for institutions. 'Many will need to review and adjust their fee structures, billing processes and financial forecasts. Smaller institutions, in particular, may struggle more with these adjustments compared to well-resourced education groups,' he said. As for high-end private and international schools, where many students come from expatriate or affluent local families, Teh said the 6% tax could either be passed on to parents or absorbed by the schools. 'Schools will need to be sensitive to the psychological and financial impact on parents, particularly those with multiple children enrolled. Some institutions may opt to absorb part of the tax, but this will add further strain on school finances,' Teh said.
The Sun
21-05-2025
- The Sun
Father and son arrested over fake immigration document racket in Chow Kit
KUALA LUMPUR: A father and son have been arrested for allegedly running a document forgery syndicate out of a watch and photograph shop in Chow Kit, producing fake immigration credentials for foreign nationals. Kuala Lumpur Immigration Department director Wan Mohammed Saupee Wan Yusoff said the local pair, aged 60 and 34, were detained around 7 pm on Tuesday during a raid known as 'Op Serkap', following a month-long surveillance operation and public tip-offs. The suspects are accused of offering falsified Temporary Employment Visit Passes (e-PLKS), altered immigration i-Kads and counterfeit cards from the Construction Industry Development Board (CIDB). Clients reportedly placed orders via WhatsApp, submitted details and paid online or in cash. Each document costs between RM60 and RM140 and could be completed within a day. 'The shop's location in a busy area popular with migrant workers helped the syndicate attract clients, including those from outside the Klang Valley, through a network of agents who may also have been deceived,' he told reporters at the Kuala Lumpur Immigration headquarters today. Officers seized a desktop computer, a high-tech card printer capable of producing hologram stickers, closed-circuit television (CCTV) equipment, RM4,000 in cash and roughly 50 counterfeit documents. These included fake PLKS slips, CIDB cards and identity cards resembling Malaysia's MyKad and MyKid, which are typically issued by the National Registration Department (JPN). 'This is a serious offence that poses a national security risk, as these documents could allow individuals to enter and work in the country illegally,' Wan Mohammed Saupee said. The suspects are being investigated under Sections 55D and 56(1)(i) of the Immigration Act 1959/63. One of the men has a previous immigration offence on record. Between January and May 20, the department conducted 272 operations across Kuala Lumpur, screening 3,587 individuals and arresting 1,789 undocumented migrants, according to Wan Mohammed Saupee. He said authorities also detained 68 employers and opened 1,551 investigation papers, collecting RM4.59 million in compound fines, primarily for employing undocumented workers and abusing immigration passes. The department has also received 96 applications under the relaunched Migrant Repatriation Programme 2.0 (PRM 2.0), which allows undocumented migrants to return to their home countries voluntarily, he added. The initiative, which resumed on Monday, has so far collected RM37,920 in fines and processing fees.
The Sun
21-05-2025
- The Sun
Father and son arrested over fake immigration document racket
KUALA LUMPUR: A father and son have been arrested for allegedly running a document forgery syndicate out of a watch and photograph shop in Chow Kit, producing fake immigration credentials for foreign nationals. Kuala Lumpur Immigration Department director Wan Mohammed Saupee Wan Yusoff said the local pair, aged 60 and 34, were detained around 7 pm on Tuesday during a raid known as 'Op Serkap', following a month-long surveillance operation and public tip-offs. The suspects are accused of offering falsified Temporary Employment Visit Passes (e-PLKS), altered immigration i-Kads and counterfeit cards from the Construction Industry Development Board (CIDB). Clients reportedly placed orders via WhatsApp, submitted details and paid online or in cash. Each document costs between RM60 and RM140 and could be completed within a day. 'The shop's location in a busy area popular with migrant workers helped the syndicate attract clients, including those from outside the Klang Valley, through a network of agents who may also have been deceived,' he told reporters at the Kuala Lumpur Immigration headquarters today. Officers seized a desktop computer, a high-tech card printer capable of producing hologram stickers, closed-circuit television (CCTV) equipment, RM4,000 in cash and roughly 50 counterfeit documents. These included fake PLKS slips, CIDB cards and identity cards resembling Malaysia's MyKad and MyKid, which are typically issued by the National Registration Department (JPN). 'This is a serious offence that poses a national security risk, as these documents could allow individuals to enter and work in the country illegally,' Wan Mohammed Saupee said. The suspects are being investigated under Sections 55D and 56(1)(i) of the Immigration Act 1959/63. One of the men has a previous immigration offence on record. Between January and May 20, the department conducted 272 operations across Kuala Lumpur, screening 3,587 individuals and arresting 1,789 undocumented migrants, according to Wan Mohammed Saupee. He said authorities also detained 68 employers and opened 1,551 investigation papers, collecting RM4.59 million in compound fines, primarily for employing undocumented workers and abusing immigration passes. The department has also received 96 applications under the relaunched Migrant Repatriation Programme 2.0 (PRM 2.0), which allows undocumented migrants to return to their home countries voluntarily, he added. The initiative, which resumed on Monday, has so far collected RM37,920 in fines and processing fees.
