Malaysia SMEs Urge To Reduce Dependents On Foreign Workers
By reducing wet-trades through IBS, there will be less dependency on foreign workers and reduced fund outflows to their home countries as well as fewer inherent social problems involving these foreign workers.
CONTRACTORS for developers using the efficient and environmentally friendly Industrialised Building System (IBS) can apply for the IBS Promotion Fund (IBS fund), which was mooted under the 2016 National Budget with an allocation of RM500mil.
IBS is a construction process that uses techniques, products and building systems that involve prefabricated components and on-site installation.
SME Bank acting chief operating officer (banking) Mohammad Hardee Ibrahim said the construction industry played a crucial role in the Government’s efforts to stimulate domestic economic activities.
“Being a global player in construction requires serious efforts towards adopting new systems and technologies with other developed and developing nations, which looks at reduced construction time, cleaner and neater environment for better site management and controlled quality to lower total construction costs,” he said.
By reducing wet-trades through IBS, there will be less dependency on foreign workers and reduced fund outflows to their home countries as well as fewer inherent social problems involving these foreign workers.
The IBS fund is to promote the purchase of fixed asset, renovation of plant or factory and working capital requirement for small and medium-sized enterprises (SMEs) which use the IBS method, including IBS components manufacturers.
One of the criterion includes having IBS certification from the Construction Industry Development Board (CIDB).
“CIDB will identify whether the project is IBS certified, and the respective projects must achieve a 70% rating or more,” he said.
He added that application can be submitted to any of the 38 SME Bank branches, or direct to the Business Banking Department in Kuala Lumpur with a 30-day turnaround time upon complete submission of documents.
With a minimum financing of RM500,000 to a maximum RM10mil per applicant, this will help small contractors who lack the financial back-up and maybe even allow them to set up their own manufacturing plants, including purchase machinery and pay suppliers for the purchase of IBS products.
“There are 8,201 registered IBS contractors and manufacturers in Malaysia, and we expect the fund to benefit about 125 SME entrepreneurs,” he said, adding that the interest rate of the fund is 4.0% per annum with maximum of five years tenure.
News source: TheStar