The Wisdom From CIDB

April 9, 2005, NST Business Times, page 1

CIDB Call to Builders - Go Abroad Now!

It is a necessity and the time is now - GO ABROAD,” says CIDB CEO Datuk Hamzah Hasan. According to Hamzah, going abroad is the effective way of countering job losses locally and competition posed by foreign players in the name of globalization.

It was reported that CIDB’s Construction Business Development division senior manager Ahmad Asri Abdul Hamid who had just returned from India armed with a basketful of job opportunities, adequate for big and small construction players to diversify their earning base.

Ahmad Asri felt that apart from the need to build capacity, Malaysian contractors must change their mindset and strategise when going abroad. “Overseas is the way … but it is not easy.

The CIDB is at the same time concerned with the quality and ability of Malaysian companies to perform without tarnishing their image abroad. CIDB is currently looking at putting in place a process and mechanism to accredit contractors especially those involved in the overseas market.”

Ask the contractors why they are not going abroad?

The answer is simple. "Kalau tak boleh cari makan di sini, mana ada kemampuan untuk melabur seberang laut?

The first criteria of investment abroad is .....CAPITAL...MONEY... A LOT OF MONEY!!!!! To many of the local contractors, making ends meet is the current problem. Everyone will want to invest overseas, if they had the capacity and SEED CAPITAL. Those who are currently investing abroad, they are either Public Listed Companies (PLCs) or Extremely Rich Businessmen. PLCs can do it as they can seek financial fundings from banks or investment Bankers. Private Limited Companies... you need to come up with million dollars of collateral to get bank to approve any loans. And to tender a foreign project, just to pay for the Tender Bond, put tak Larat-lah!!!!

So, thank you for your kind wisdom, Mr CIDB!

For CIDB's information, almost all contractors knows (including any stupid ones) that going abroad is a right move which will expand the boundaries of business opportunities, but, can you go abroad with your underpants and singlets and tell the foreign client, "PLEASE TRUST ME, I CAN DO A GOOD JOB; I JUST HAVE NO MONEY; JUST GIVE ME A CHANCE PLUS 15% ADVANCE PAYMENT & I WILL PROVE TO YOU SAYA BOLEH DAN MALAYSIA SEMUA BOLEH?"

Why is it that the Koreans and Japanese are successful in investing abroad in the last 30 years? Firstly, it is their Government's policy and effort with strong encouragement and proactive actions from the authorities such as Works Ministry, Construction Development Board, Govt-owned Industrial Banks, etc. Their government had initiated and directed the Industrial Development Banks & Export-Import (EXIM) Banks to fund all contractors who could secure overseas Federal Government-funded projects. Those who could show a letter of award from government-sponsored project overseas, they would be given total fundings. All they do is assigned their payment certificate as collaterals to the EXIM Banks or Industrial Development Banks, and they will receive the cash flows to pay for the project expenses.

Can CIDB do the same for the local contractors, particularly, Bumiputra Contractors and would CIDB KINDLY arrange with the Govt to provide the fundings to Bumiputra Contractors? AND, PLEASE ....Is there any under-table fees?