MBAM: IBS can help reduce construction cost

The use of IBS also means better construction quality. The savings in labour cost, time and in rectifying defects could help bring down construction cost in the long run.  

Speaking as a panellist at TheEdgeProperty.com Roundtable on Budget 2017 on Monday Oct 24, Foo said the modular method of IBS should be encouraged as the components could be produced by local SMEs, thus saving cost and time.

“In Budget 2017, we do not see many incentives for contractors and developers who are using IBS. We should encourage the industry more to move towards this system,” he added.

He also urged the government to review taxes imposed on heavy equipment. “I think the government should forgo the Goods and Services Tax on construction materials to reduce building cost.

“This can help to bring down property prices,” he added.

Moderated by TheEdgeProperty.com managing director and editor-in-chief Au Foong Yee, the roundtable invited six panellists to discuss the impact of Budget 2017 on the property sector, the cost of doing business and the outlook of the sector.

Besides Foo, the other panellists were Real Estate and Housing Developers’ Association (Rehda) Malaysia deputy president Datuk Soam Heng Choon, Rehda Johor chairman Datuk Steve Chong, Rehda Kedah and Perlis chairman Datuk Rick Cheng, Rehda Selangor chairman Zulkifly Garib and Rehda deputy secretary general Tan Ching Meng. 

For a detailed report on the roundtable, read the Oct 28, 2016 issue of TheEdgeProperty.com pullout. It is available free for download here.

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