Foreword: Towards a more sustainable and responsible construction sector
The International Construction Transformation Conference (ICTC) 2023 was where industry practitioners, professionals and experts converged to illuminate the path towards a more sustainable and responsible construction sector.
ICTC is aligned with the International Construction Week’s “Leading ESG in Construction” theme this year. This conference encapsulates the essence of environmental, social and governance (ESG) considerations, recognising their pivotal role in shaping the construction industry’s future.
As the construction landscape evolves, so too does our commitment to fostering knowledge exchange. This year’s sessions delve into the multifaceted dimensions of ESG — policy, financial landscapes, innovative building materials, and the realm of ESG-infused construction projects. The richness of our discussions reflects the industry’s dedication to exploring, implementing and advancing ESG practices.
ESG isn’t merely a buzzword; it is a transformative force echoing throughout the construction realm. The certification of green projects and the emergence of innovative, environmentally conscious construction materials underscore the industry’s dynamic response to the pressing challenges of our time.
Governance, a linchpin in ethical operation, takes centre stage, with Bursa Malaysia’s presentation of an ESG reporting framework tailored to the unique needs of the construction sector. It serves as a compass, guiding companies towards transparency, ethical conduct and regulatory compliance.
Our exploration extends beyond the boardroom, delving into the Social Impact Assessment — acknowledging the profound influence construction projects exert on local communities. With a spotlight on employment, economic development and worker well-being, we navigate the social fabric of construction, recognising its far-reaching implications.
ESG isn’t a mere obligation; it’s a necessity. The environmental footprint of the construction industry necessitates a recalibration of practices. From resource consumption and greenhouse gas emissions to waste generation, this conference addresses the industry’s environmental responsibilities head on.
Social considerations, entwined with the industry’s fabric, propel us to scrutinise its impact on communities and workers. Employment, economic development and worker safety form the cornerstone of our exploration, embodying the industry’s commitment to fostering positive societal outcomes.
Governance, the invisible hand shaping ethical landscapes, guides us in ensuring transparency, adherence to laws and establishing trust with stakeholders. It is the underpinning force that empowers companies to navigate risks and build resilient foundations for the future.
In weaving together the strands of ESG, we strive not only for industry evolution but for a profound societal impact. As we embark on this collective journey, let us catalyse change, inspire innovation and forge a construction industry that not only builds structures but also sustains communities and preserves our planet for generations to come. Welcome to the transformative dialogue of ICTC 2023.
Datuk Sr Mohd Zaid Zakaria
CEO
Construction Industry Development Board (CIDB)
Minister's Speech: Construction industry at a pivotal juncture
International Construction Week (ICW) and BuildXpo 2023 were officiated by Minister of Works Datuk Sri Alexander Nanta Linggi. Below are excerpts of his speech.
“The construction industry serves as a dynamic catalyst, igniting opportunities that reverberate across sectors. Each project becomes a symbol of economic vitality and societal advancement, creating a ripple effect of prosperity.
Yet, today, we find ourselves at a pivotal juncture in the construction industry. It is no longer solely about erecting structures; it is about constructing a sustainable future for our people and planet. The construction industry, with its transformative power, plays a pivotal role in shaping the environment we live in. Our choices today will echo through generations, influencing not just the physical landscape but the social fabric of our society and the ethical compass guiding our actions.
The theme ‘Leading ESG in construction’ takes centre stage, embodying our collective commitment to environmental, social and governance principles that serve as our moral compass. It is our responsibility to ensure that this industry becomes a beacon of sustainable development, setting new standards for environmental stewardship, social responsibility and ethical governance.
I wholeheartedly acknowledge the remarkable growth of Malaysia’s construction sector. As at September 2023, an impressive 9,144 projects had taken flight, showcasing the vibrancy of our construction industry. These endeavours represent substantial investments, with RM63 billion dedicated to private initiatives and RM84 billion for government projects. Notably, 91% of these projects are proudly managed by local contractors, a testament to their expertise in shaping Malaysia’s infrastructure landscape.
These statistics not only symbolise but also embody progress, development and the unwavering promise of a brighter future. Today’s infrastructural investments pave the way for enhanced connectivity, improved education, superior healthcare and an elevated quality of life for every Malaysian.
The Madani economic framework, ‘Empowering the People’, was launched on July 27, 2023. This framework focuses on two key areas: restructuring the economy to position Malaysia as a leading Asian economy; and enhancing the quality of life for all Malaysians.
In line with this, Budget 2024 has outlined three main focus areas: best governance for service agility; restructuring of the economy to increase growth; and improving people’s living standards. These focus areas reflect the unity government’s commitment to good governance, improving the well-being of the people and driving economic growth through strategic measures outlined in Budget 2024.
I am reminded of the timeless words of Nelson Mandela, who once said, ‘Education is the most powerful weapon which you can use to change the world.’ These words hold profound meaning when we consider the immense significance of technical and vocational education and training (TVET) in driving Malaysia’s sustainable development.
In the pursuit of progress, TVET stands as a crucial pillar that equips individuals with practical skills, fostering a skilled workforce that is vital for our economic growth. It goes beyond traditional education, nurturing innovation and progress across industries, and opening doors to diverse career opportunities.
By investing in TVET, we are investing in the foundation of our nation’s progress. We are building a skilled workforce that will not only contribute to economic growth but also ensure a prosperous and innovative future for all Malaysians.
I am truly delighted and honoured to announce a significant milestone related to TVET: the establishment of the Construction Skills Qualification Framework (CSQF) by CIBD Malaysia — a system designed to provide a structured approach to skills development and training within the construction industry in Malaysia.
The impact of CSQF will be transformative. We are not just setting standards; we are shaping the future of the construction expertise in Malaysia. This framework serves as a beacon of opportunity, guiding aspiring individuals towards acquiring the necessary skills and qualifications that the industry demands.
The establishment of CSQF not only elevates the standards of our workforce but also solidifies Malaysia’s position as a hub of skilled professionals in the global construction arena. This achievement is a testament to our dedication to fostering talent, promoting innovation, and driving sustainable growth, and it aligns directly with the aspirations of Malaysia Madani to be a hub of innovation and learning.
Today, as part of the CSQF journey, CIDB Malaysia will be receiving the International Standards Organisation and International Electrotechnical Commission ISO/IEC 17024:2012 Certification from the Department of Standards Malaysia. The ISO/IEC 17024:2012 certification is on Conformity Assessment: General Requirements for Bodies Operating Certification of Persons, which is an international recognition in the assessment and accreditation of construction personnel competency. CIDB will be receiving the ISO/IEC for three construction trades highly in demand in the oil and gas industry, namely welding, non-destructive testing (NDT), and blasting and painting.
With the ISO/IEC certification, all Construction Skills Competency Certification, or Sijil Kompetensi Kemahiran Pembinaan, issued by CIDB Malaysia for these three competency areas will be recognised internationally. Skill competency training in welding, NDT and blasting and painting training for youth and construction personnel is available at CIDB’s wholly-owned training centres — Akademi Binaan Malaysia and CIDB Tech.
As we look toward the future, I have great hopes for the construction industry in Malaysia. I see a future where our buildings are not just structures of steel and concrete but symbols of our collective dreams and aspirations. I see a future where our workforce is not just skilled but empowered with knowledge and integrity. I see a future where the construction industry is not just a sector of our economy but a driving force behind our nation’s progress.
Professionalism, integrity, collaboration and recognition begin today. The future isn’t just a destination; it’s your masterpiece in the making. You’re not just the architects; you’re the builders of a sustainable tomorrow. As we embrace ESG principles and pioneer sustainable construction practices, let us remember that each blueprint, innovation and partnership is a brushstroke on the canvas of a sustainable future. May our masterpiece inspire awe and wonder, not only for its beauty but also for the transformative power it holds.
Finally, I want to express my deepest gratitude to CIDB for their unwavering commitment to excellence and innovation. Thank you to everyone present here for your dedication to the construction industry and thank you for believing in the vision of a better Malaysia. Together, we can weave a tapestry of flourishing ecosystems, thriving ecosystems, thriving communities and responsible governance.”