|CIDB exempts more builders from levy
ALL housing projects with at least 50
per cent IBS (Industrialised Building Systems) content will be exempted
from the Construction Industry Development Board (CIDB) construction levy
of 0.125 per cent this year.
Except for projects costing less than RM500, 000 and low cost, low medium
medium cost houses that enjoy zero levy, all projects were previously
imposed the levy.
In a statement, CIDB said it took this initiative following the Budget
2005 speech last September, in which Prime Minister Datuk Seri Abdullah
Ahmad Badawi announced the exemption.
IBS is a widely used construction technique in developed countries, where
components are factory-made, on- or off-site, and assembled into a
minimal additional site works.
"This initiative is in line with the Government's policy of modernising
construction industry, where for too long, the building sector has been
over dependent on cheap foreign workers performing labour intensive
construction activities," CIDB chief executive Datuk Ir. Hamzah Hasan
He said the IBS-related reduction is part of CIDB's IBS road map for the
construction industry in the next five years, to modernise building
techniques, and reduce if not eliminate, the associated problems in
quality of works, delays, wastage, and the threat of social problems
arising from illegal migrant workers.
He said a joint IBS seminar is also being organised between CIDB Malaysia
and the UK Trade and Investment, which will be held from January 18-19
2005, called "Innovation in Construction Through IBS -Malaysia and UK