Friday, June 18, 2004

New Pantai Highway - No More Toll Subsidy

"The Cabinet has decided not to subsidise the toll rate for New Pantai Highway which charge $3.20 one way," said Datuk Seri Samy Toll.

Well, pay for it my friend if you choose to use it - that's the Doctrine of Laissez faire, a doctrine opposing governmental interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights.

Let the market decides the survival of the wisemen. There are already a number of highways that had sufferred badly due to insufficient revenue from toll collection, such as Port Dickson-Seremban Highway, Kulim-Butterworth Highway, etc.

The people should teach those suckers a lesson by abstaining from the use of those highways that overcharge the users and let time decide their demise. Then Samy vellu will be back to save them by proposing to the Government to save them. Look at Putra Monorail and Star monorail; Khazanah save them from extinction and save Renong Billions of dollars for that failed privatization project.

In the first place, why did Samy agreed on the rate for the toll when he knows from his historical experience that the Rakyat cannot afford it? Just abort the proposed project, and the interested concessionaires will come running to reduce the rates.
Isn't this SANDIWARA SAMY?

Wednesday, June 16, 2004

CIDB - They have a Master Plan? Are U Sure?

CIDB NOW HAS A MASTERPLAN TO SUCK MORE FOR A FEW

After 10 years of existence, we now hear something - A Masterplan. They don't have it before (I presumed). It is encouraging news to hear that CIDB is formulating a Masterplan for the development of the construction industry and it's sustainability towards 2020.

CIDB will be inviting the Presidents & CEOs of the companies involved in the industry to help lay down the final groundwork for the Masterplan at the one day meeting on the formulation of the masterplan.

"ONE DAY IS ENOUGH SIR, TO GET THE FEEDBACK AND STRATEGIES TO DRIVE THE MASTER TO PLAN."

“WE are addressing several issues on the development of the construction sector & its sustainability towards 2020,” says Datuk Hamzah Hasan, the CEO of CIDB.

“The Vision of the Masterplan is to make Malaysia among the best construction industry nations of the world,” he said.

Among the areas covered were sustainable flow of domestic projects, foreign markets and human resources.

Based on his statement and the one-day meeting with Industry captains, what do you figure will come good for the industry?

Before I could comment, lets look at CIDB reasons for existence.

CIDB's motto:
CIDB Malaysia-
Understand The Past,
Conquer The Present,
Shape The Future.


The enactment of the ACT 520 [Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994] has paved the way for the empowerment of CIDB Malaysia to:

1) Create a climate for a more vigorous development in the Construction Industry
2) Carry out its functions as the enabling authority to help Construction Industry Players overcome bureaucratic obstacles
3) Play the role of facilitator by addressing the current and future needs of the Construction Industry.

Roles & Responsibility of CIDB:

1)Carrying out all activities in respect of the Construction Industry
2)Awarding certificates of proficiency
3)Establishing, expanding, promoting the establishment or expansion of companies, corporations or other bodies to carry out activities deemed requisite, advantageous or convenient for or in connection with the performance of its functions
4)Providing financial assistance in the form of loans or otherwise, to persons engaged in the Construction Industry for the purpose of promoting the Industry and providing any guarantees on their behalf
5)Imposing fees or any other charges as deemed fit for giving effect to any of its functions or powers
6)Receiving commission or payments in consideration of any services that may be rendered

REASONS FOR ESTABLISHMENT OF CIDB:

Prior to the establishment of CIDB Malaysia, the Construction Industry was a very segmented and fragmented one where various players were implementing and carrying out their own programs and activities without proper direction and guidance.
This situation has resulted in challenging issues that involved the:

1) Significant decline in construction quality
2) Acute shortage of skilled and unskilled labour, leading to an over-dependency on foreign labor
3) Lack of pertinent statistics and information required for planning, monitoring and decision-making

It was at this juncture, that the Federal Government acknowledged the need to fill a ‘vacuum’ in the Industry, which paved the way for the establishment of CIDB Malaysia as a regulated body entrusted with the responsibility of:

1) Coordinating the needs and wants of the Industry
2) Planning the direction of the Industry
3) Addressing the pertinent issues and problems faced by the Industry
4) Making recommendations in the formulation of policies for the Industry

To fulfill our (CIDB) Vision, 3 key areas have been identified:

1) Setting the stage for Industry Players to embrace new technology
2) Undertaking development and accreditation programs designed to improve construction quality delivery as well as competitive edge
3) Functioning as a gateway for Construction Industry Players to get involved in the international construction marketplace, with the aim of enabling them to earn leadership positions in overseas ventures and maintaining an open exchange of information with construction leaders worldwide.

To achieve our (CIDB)Vision, the 3 key areas have been translated to involve 4 main initiatives:

1) The development of quality services in Construction as a basis for maintaining and improving competitive edge
2) The focus on Construction Technology Development along the lines of new opportunities for innovation and cost effectiveness
3) A “Going Global” initiative that serves to promote and encourage the export of services and products
4) Continuing efforts in terms of reviewing and revising existing rules and policies with the aim of facilitating the development of the Industry

With a far-reaching view of facilitating the Construction Industry towards enhancing Construction business growth potential, CIDB believes that, to trigger development, there is a compelling need to change the way things are being done.
To facilitate that ‘change’, it is imperative to formulate CIDB’s Mission in the light of improving the overall climate of the Construction Industry, thus leading to improvement in standards, skills, technology, manpower and the overall Construction market.

CIDB’s Mission Statement states…

”Together we develop the Malaysian Construction Industry towards Global Competitiveness.”

CIDB'S CORE VALUES:

CIDB’s Value Proposition to the Construction Industry involves a 2-prong perspective –

The first revolves around our focus on relentless efforts on “Adding Value Where It Counts” and
The 2nd perspective encompasses the need to assist the Construction Industry to “Understand its Past, Conquer the Present and Shape the Future”.

CIDB’s objective is to

1) Develop the Construction Industry to be one of the major contributing sectors to the National Economy,
2) capable of producing and delivering high quality construction works,
3) value for money and being responsive to the Nation’s needs.

CIDB’s development framework is derived from the 11 functions:

1) to promote and stimulate the development, improvement and expansion of the construction industry
2) to advise and make recommendations to the Federal Government and the State Government on matters affecting or connected with the construction industry
3) to promote, stimulate and undertake research into any matter relating to the construction industry
4) to promote, stimulate and assist in the export of service relating to the construction industry
5) to provide consultancy and advisory services with respect to the construction industry
6) to promote quality assurance in the construction industry
7) to encourage the standardisation and improvement of construction techniques and materials
8) to initiate and maintain a construction industry information system
9) to provide, promote, review and coordinate training programmes organised by public and private construction training centres for skilled construction workers and construction site supervisors
10) to accredit and register contractors and to cancel, suspend or reinstate the registration of any registered contractor, and
11) to accredit and certify skilled construction workers and construction site supervisors.

These functions have been referenced as a basis for CIDB’s formulation of her corporate initiatives that in turn were translated into:

CIDB Helps The Construction Industry To Explore And Harnesss Overseas Opportunities

NOW LETS ANALYZE:

Has CIDB effort so far (for the last 9 years) be any near their Vision, Mission, Goals & Objectives that were spelt out within their system (as published in their web). CIDB’s contribution to the Construction Industry is demonstrated via…………????? other than the India projects for a selected few crony contractors at the expense of tens of thousands of contributing members? AND CIDB IS FOCUSED INTO THIS POINT OF CONTENTION - THAT IS - GO TO INDIA, SRI LANKA, SUDAN, ETC & GET JOBS FOR CONTRACTOR & EXTRACT MORE FEES FROM THEM (PLUS THEIR OWN POCKET)


ACT 520 was established by the government to paved the way for the empowerment of CIDB Malaysia to:

1) Create a climate for a more vigorous development in the Construction Industry

What is this that CIDB can claim that they have created an environment for a vigorous development in the construction industry? What are the deliverables to-date on the subject point and what have been measured so far, i.e. the key Performance Index?

2) Carry out its functions as the enabling authority to help Construction Industry Players overcome bureaucratic obstacles

3) Play the role of facilitator by addressing the current and future needs of the Construction Industry.


Did CIDB offered any helping hands to thousands of contractors who faced problems such as labor shortages, shortage of building materials such as steel bars, and the problems of labor shortage caused by the deportation of foreign workers by the Government in year 2000? What about the abandon projects and failed projects that affects the livelihood of those purchasers? CIDB collected hundreds of millions of ringgits from contractors of these property development projects and if the purchaser suffers, what has CIDB done to help them - did they talk to the bankers to help suspend the loans for a certain period, help cushion off that period of uncertainty, or initiate actions to restore the project and get it to completion? CIDB only collects money from these projects but contribute nothing to the projects and the stakeholders!!!!!


REASONS FOR ESTABLISHMENT OF CIDB:

The challenging issues as stated, and as the very reason of the existence of CIDB are:

1) Significant decline in construction quality
2) Acute shortage of skilled and unskilled labour, leading to an over-dependency on foreign labor
3) Lack of pertinent statistics and information required for planning, monitoring and decision-making

Out of the 3 areas, what have we achieve thus far? Look into the construction projects and see who are the workers today - basically 99% foreigners consisting of mostly Indonesians, Bangladeshis, Thais and Myanmars. Do we hear of any strategic action by CIDB on how to overcome our dependency on foreign labors? NAYs! Have CIDB build up statistics and information required for planning, monitoring and decision-making necessary to help contractors in tendering and estimating? If it is, there must be available database in the website for contractors info, such as:

1) What is the price of plywood in Perak, Selangor, Johor, Trengganu and how many types and standards are available locally? What have CIDB done to help make plywood more competitively priced? Did they set up agencies to help reduce the price of plywood?
2) What about timber? Each state has different timber price and availability?
3) What about steel bars? Did CIDB talk to Datuk Abu Sahid of Perwaja and get him to commit to supply steel bars to contractors who faced difficulties in getting them, which delayed project completion.

In the SMART Tunnel project, Bakun, SMART School, Computer Lab projects, Did CIDB help contractors to have the opportunity to participate in those project and when the computer lab projects was in trouble, what was the contribution of CIDB?

FUNDAMENTALLY, THE PROBLEM WITH CIDB IS NOT WHAT THEY CAN DO BUT WHAT THEY DIDN'T DO!

Confucius says, "Till you admit that you know what don't not know, you will not achieve profound knowledge."

The Eleven functions set by CIDB that give rise to the formulation of her corporate initiatives which in turn were translated into: CIDB Helps The Construction Industry To Explore And Harnesss Overseas Opportunities - THAT WAS THE SOLE REASON WHICH DEFEAT THE VERY PURPOSE OF THE GOVERNMENT'S INTENTION FOR SETTING UP CIDB IN 1994.

The first question CIDB should consider before putting up the Masterplan is:

"How are the contractors which consists of Class A to Class F plus those in the private sectors (all of them contribute 0.25% of the contract value to CIDB) - How is CIDB going to serve them? What are their needs, what are their weaknesses and what are their lack of knowledge and competencies? What about their financial problems caused by late payment, particularly of Government projects; can CIDB provide them with some financial credit or guarantees to help them get construction materials and pay their labor wages?

There are many Class F, E and Class D contractors, particularly those Bumiputera companies that need assistance in terms of technical expertise and technical informations, including Engineering design knowledge - what can CIDB do for them?

The Mission Statement of CIDB - ”Together we develop the Malaysian Construction Industry towards Global Competitiveness.” is too far fetch; it's more a Vicious Statement than a Mission; The Mission will not be achieve as it is made in DREAMLAND. Does CIDB understand what is Global Competitiveness? Can we compete with Koreans, Japanese, Chinese, Thais? What can CIDB do to prepare the Malaysian contractors to have the competitive advantage over the other international players? What are the statistical datas that Malaysian contractors must know of their international counterparts? What is competitiveness - in terms of cost leadership, branding, uniqueness, product quality, service quality, efficiency, networking and relationship building, strategic partnership, etc? Do we have any measurement standards and benchmarks? Do we have CIDB to do research, regular and continuous research that keeps us inform? Does CIDB having collected Billions of ringgit have a full-time research team - what's the money for, what did they spent it on, where the money?


CIDB’s Value Proposition to the Construction Industry involves a 2-prong perspective – the first revolves around our focus on relentless efforts on “Adding Value Where It Counts” and the 2nd perspective encompasses the need to assist the Construction Industry to “Understand its Past, Conquer the Present and Shape the Future”.

IS THAT WHAT WAS CIDB'S CORE VALUES? ADDING VALUE WHERE IT COUNTS - WHAT VALUES? COLLECTING MONEY FROM CONTRACTORS; ISSUING GREEN CARD TO WORKERS FOR $250? WHAT ARE THE VALUES ADDED FOR THE CONTRACTORS, THE STAFFS & THE WORKERS? CONTRACTORS WHO SENT THEIR STAFFS FOR TRAINING WITH CIDB HAD TO PAY EACH TIME THEY ATTEND THOSE TRAINING - WHY, WHY, WHY? AREN'T THE 0.25% COLLECTION TO BE USED TO PROVIDE TRAINING?

UNDERSTAND OUR PAST (yea, we were weak contractors)
CONQUER THE PRESENT (yea, WE WERE CONQUERED BY CIDB'S GREED & PROFANITY! pay CIDB 0.25% and pay for the green card and training fees)
SHAPE THE FUTURE (Oh, no; got to pay for the Directors' trip overseas and their families and their pension; OH SHIT)

Monday, June 14, 2004

$400 million Monorail Project Derailed

Second Rail project derailed by Pak-Lah

The $400 million monorail project in Putrajaya is suspended due to lack of funds.

Many question arises from this decision by the Government:
1) Have the Government of Mahathir made a bad decision? Do we actually need that project in the first place?
2) Is Pak-Lah's Government having financial problems? or
3) Is Pak-Lah changing a new set of (crony) contractor?
4) What is the effect of such action have on the economy?
5) Are contractors going to suffer due to less Government projects? or
6) Are only those crony contractors affected?

What is the alarm signal from here? Contractors are trembling and the cycle of change due to less forthcoming Government projects have actually been a cause of concern to the Malaysian economy as a whole.

According to Pak Lah, "the Economy have recovered and that there is no need for stimulus projects." Datuk Mustapa Mohammad denied that the Government is in financial difficulties. But Tan Sri Mohd Isa Abdul Samad, the Federal Territory Minister says otherwise. WHO IS LYING????? ALAMAK!

Monday, June 07, 2004

CIDB - Is it a Construction Development Board or ???


7th. June 2004 CIDB Posted by Hello

CIDB FAILED TO SERVE IT'S PAYING CUSTOMERS

Every contractor, big or small has to contribute o.25% of their contract value to CIDB for each and every project they undertake.

Presumably, the contribution required is to finance the DEVELOPMENT & COMPETENCY PROGRAMMES to prepare the Malaysian contractors to achieve quality and efficiency in the field of project management and construction management and to nurture the contractors and the Malaysian construction industry players in general, such that they will be on par to international standards. CIDB was set up by the Mahathir's Government to lead the CHANGE & IMPROVEMENTS. At such, they are held responsible to lead and manage the construction industry in TOTAL.

All the last few years, CIDB had spent it's time and moneys (collected from all the contractors) to set their targets for projects in India, Sri Lanka, etc. This had benefitted some large international corporations such as IJM, Binapuri, Roadbuilders, MMC, Lankhorst, etc, etc. BUT what have all the other contractors benefitted from CIDB's international projects?????? The tens of thousands of paying Class 'F' contractors, Class - E, D, C, B, BX, and many Class 'A' contractors???? Each and everyone of the contractors are contributing to CIDB's coffers, paying for all the expenses incurred and the amount collected is in excess of billions of ringgits. WHAT HAVE CIDB DONE FOR THEM??????

Does Malaysia, particularly the construction sector needs the existence of CIDB? I have asked hundreds of contractors this questions and so far, everyone is affirmative that CIDB has developed into a parasite; a Hirudinea, a "Leech" and a "Pain-in-the ASS".

What has the Government done for the contractors, as far as CIDB is concerned? Why do they collect the hundreds of millions yearly so that they can go to INDIA & SRI LANKA? What has Datuk Hamzah done for CIDB and what has Tan Sri Wan Abdul Rahman (ex-JKR Director General, and now CIDB's Chairman) done to benefit the contractors in the industry, particularly the Class 'B' down to Class 'F' contractors? Some class 'A' contractors did benefit from CIDB (Indian & Sri Lanka projects) but many Class 'A' contractors are not getting anything from CIDB.

WILL PAK-LAH DO SOMETHING ABOUT CIDB & REVAMP THE WHOLE ORGANIZATION? WITH DUE RESPECT TO ALL THOSE IN CIDB, THEY DO NOT DESERVE ANY RESPECT FOR THEY HAVE DONE NOTHING, ABSOLUTELY NOTHING FOR THE INDUSTRY, EXCEPT TO SPENT ALL THE MONIES COLLECTED FOR THEIR TRIPS TO INDIA, SRI LANKA, ETC, ETC.

I HAVE BEEN WITH THE CONTRACTORS FOR MORE THAN 20 YEARS AND I CAN TESTIFY TO WHAT I'VE SAID!!!!! CHALLENGE ME!