Frequently Asked Questions (FAQ)

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  • Where can I find information on current and/or historical prices of building materials?

    Information on current and/or historical prices of building materials - including such as reinforcement bar, ordinary Portland cement, ready mix concrete, sand, aggregate, common clay brick, medium metal sections and beams, steel pipes and fittings (click here).

  • Where can I find information on price trends of building materials?

    Information on material price trends for 17 building material groups is published as a Building Material Cost Index,(click here).

  • What steps have taken by the Government to stabilize prices of Building Materials?

    There are several initiatives, both ongoing and planned, undertaken by the Government to stabilize the prices of building materials:

    - Efficient planning which phases out the implementation of Government development projects, taking into account the state of private sector construction activities, in order to avoid sudden surges in the demand for construction materials which will affect prices

    - Enforcement of the Competition Act 2010 (Act 712)

    - Import and export restrictions on specific construction materials.

  • Where can I find information on current and/or historical price of Mechanical & Electrical (M&E) components?

    - Information on current and/or historical prices of M&E components - including valves, electrical and instrument cables, hot rolled coils, hot rolled and cold rolled plates, hot dipped galvanized coils and wire rods - (click here).

    - Note that the CIDB archive currently covers the period from July 2008 to April 2011.

  • Where can I find information on current and/or historical prices of civil engineering works materials?

    Information on current and/or historical prices of selected civil engineering works materials - including bitumen - is available at the Department of Statistics Malaysia website under the Special Release 1 - For Civil Engineering Works section (click here).

  • What factors affect building material prices?

    The price of building materials can be affected by internal factors or by external factors.Internal factors include:
    - Government policies
    - The imposition of a goods and services tax
    - Petrol/diesel prices and electricity tariffs, due to rationalization of fuel subsidies
    - Import restrictions on specific construction material
    - Long term development plans
    - Housing and property policies, such as the property gains tax, the restriction on foreign purchase, and the affordable housing programme(PR1MA)
    - The interest rate (BLR)
    - Supply and demand in the property market
    - Economic conditions and the confidence of investors
    External factors include international market forces affecting the prices of fuel and raw materials (such as coal, scrap iron, copper).

  • Where can I find information on the volume/value of imports and exports of selected building Materials in Malaysia?

    - Information on the volume/value of imports and exports of selected building materials in Malaysia is available from the International Trade Division of the Department of Statistics Malaysia (click here).
    - Use the HS code or SITC code - the Royal Customs Department's code used for imports and exports - of the selected building materials.

  • Where can I find information on price trends of Mechanical & Electrical (M&E) components?

    Information on M&E component price trends for selected components is published as an M&E Components Index under Special Release 3, available on the Department of Statistics Malaysia website (click here).

  • What factors affect the price of Mechanical & Electrical (M&E) components?

    The price of M&E components can be affected by internal factors or by external factors.
    Internal factors include:
    - Government policies
    - The imposition of a goods and services tax
    - Petrol/diesel prices and electricity tariffs, due to rationalization of fuel subsidies
    - Import restrictions on specific construction material
    - Long term development plans
    - Housing and property policies, such as the property gains tax, the restriction on foreign purchase, and the affordable housing programme (PR1MA)
    - The interest rate (BLR)
    - Supply and demand in the property market
    - Economic conditions and the confidence of investors
    External factors include international market forces affecting the prices of fuel and raw materials (such as coal, scrap iron, copper).

  • What factors affect the price of materials for civil engineering works?

    The price of materials for civil engineering works can be affected by internal factors, which include Government policies such as:
    - The imposition of a goods and services tax
    - Petrol/diesel prices and electricity tariffs, due to rationalization of fuel subsidies
    - Import restrictions on specific construction material
    - Long term development plans
    - The interest rate (BLR)

  • Where can I find information on material price trends of civil engineering works?

    - The trends of materials prices for civil engineering works materials - including bitumen - is not available on this website.
    - However, price trends can be extrapolated using price data published by the Department of Statistics Malaysia website under the Special Release 1- For Civil Engineering Works (click here).

  • Where can I find information on current and/or historical prices of fuel?

    Information on current and/or historical prices of fuel - such as diesel and petrol - is available at the Department of Statistics Malaysia website under the Special Release 1 - For Civil Engineering Works section (click here).

  • Where can I find information on price trends of fuels?

    - The price trends of fuels - such as diesel and petrol - is not available on this website.
    - However, price trends can be extrapolated using price data published by the Department of Statistics Malaysia website under the Special Release 1- For Civil Engineering Works (click here).

  • What are the factors affecting the price of fuel?

    The price of fuel can be affected by internal factors or by external factors.
    Internal factors include:
    - Government policies
    - The imposition of a goods and services tax
    - Petrol/diesel prices and electricity tariffs, due to rationalization of fuel subsidies
    - Import restrictions on specific construction material
    External factors include international market forces affecting the prices of fuel and raw materials (such as coal, scrap iron, copper), and political stability in the oil producing countries.

  • How is the construction industry affected by increases in the price of fuel?

    The increase in prices of fuel will give rise to higher production and transportation costs of construction material and equipment, as well as a higher rental rate of machineries.

  • Where can I find information on current and/or historical prices of scrap metal?

    Information on current and/or historical prices of scrap metal is available at the Malaysian Iron & Steel Industry Federation (MISIF) website (click here).

  • Where can I find information on current and historical construction labour wage rates?

    Information on current and/or historical prices of construction labour wage rates (click here).

  • Where can I find information on trends construction labour wage rates?

    Information on labour wage rate price trends for 12 building labour groups is published as a Building Labour Cost Index, (click here).

  • What are the factors affecting construction labour wages?

    Construction labour wages can be affected by internal factors, including:
    - Government policies
    - The imposition of a goods and services tax
    - Immigration policy on foreign workers
    - Long term development plans
    - Housing and property policies, such as the property gains tax, the restriction on foreign purchase, and the affordable housing programme (PR1MA)
    - The interest rate (BLR)
    - Supply and demand in the property market
    - Economic conditions and the confidence of investors

  • How does the supply of construction labour affect construction costs and schedules?

    A study by the CIDB shows that labour generally counts for approximately 30% of construction costs for building works. The impact of a shortage of labour supply on construction cost may vary from state to state in Malaysia, due to the following factors:

    - The Government’s economic and development policies to promote development and foreign investment at selected states or regions - such as Iskandar Malaysia and the Kuala Lumpur Financial Centre (KLFC) - will cause those regions to experience greater impact from shortages in the labour supply. Labour wage rates are likely to increase when demand exceeds supply. In this situation, the increase in labour wage rates will also increase construction costs in those affected states more than other states and, naturally, its schedule.

    - States or regions that have more construction activities - such as Selangor, Kuala Lumpur and Johor - will experience a more acute and adverse impact to construction costs and schedules when there is a labour shortage.

    Immigration policy on levies, the intake of foreign workers and preference on the country of origin of these workers may also contribute to the changes in labour supply. Shortages of labour will promote or encourage unhealthy competition for labour, including pinching of workers among contractors, states and regions. This will push up labour cost/wages (including higher cost/wages for working overtime), affecting construction costs and schedules.

  • Where can I find information on current and historical construction machinery rental rate & equipments prices?

    Information on current and/or historical prices of construction machinery rental rate and equipments purchase rate (click here).

  • Where can I find information on trends of machinery rental rate and equipments prices?

    Information on material price trends for 7 building machinery and equipment groups is published as a Machinery & Equipment Cost Index, (click here).

  • What are the factors affecting construction machinery rental equipment rates and prices?

    Construction machinery rental equipment rates and prices can be affected by internal factors, including:
    - Government policies
    - The imposition of a goods and services tax
    - Immigration policy on foreign workers
    - Long term development plans
    - Housing and property policies, such as the property gains tax, the restriction on foreign purchase, and the affordable housing programme (PR1MA)
    - The interest rate (BLR)
    - Supply and demand in the property market
    - Cheaper and more efficient imported machinery equipment

  • How does the supply market for construction machinery and equipment affect construction costs and schedules?

    Generally, supply shortages of construction machinery and equipment will increase construction costs and delay construction schedules.

    Though the direct machinery cost impact may be minimal - its composition in construction cost is found to average only about 3% - the actual additional cost incurred may be much higher, arising from prolonged construction periods.

    However, the impact may be greater in certain construction activities, e.g. piling works, which is a specialist work that requires very specialized machinery and equipment.

    As it is often the first construction activity within a tight timeframe, shortages of specialized machinery and equipment will most likely increase construction costs and delay project completion.

    The impact of this shortage may vary from state to state in Malaysia due to the following factors:
    - The Government's economic and development policies to promote development and foreign investment at selected states or regions - such as Iskandar Malaysia and the Kuala Lumpur Financial Centre (KLFC) - will cause those regions to experience greater impact from shortages in the machinery and equipment supply. Machinery rental rates and equipment prices are likely to increase when demand exceeds supply. In this situation, the increase in labour wage rates will also increase construction costs in those affected states more than other states and, naturally, its schedule.
    - States or regions that have more construction activities - such as Selangor, Kuala Lumpur and Johor - will experience a more acute and adverse impact to construction costs and schedules when there is a machinery and equipment shortage.
    - The import policy and taxation on imported machinery and equipment.

    Supply shortages of machinery and equipment will result in unhealthy tender/bid competitions, as lesser contractors will be able to participate in the tender calling exercise. This will push up construction costs (including higher rental and cost for working overtime) and delay project completion.

  • 25 Where can I find current and/or historical information on the building materials cost index?

    The Building Material Cost Index(click here).

  • Where can I find current and/or historical information on the building labour cost index?

    The Building Labour Cost Index (click here).

  • Where can I find current and/or historical information on the machinery and equipment cost index?

    The Machinery & Equipment Cost Index (click here).

  • Where can I find current and/or historical information on the building cost index?

    The Building Cost Index (click here).

  • What proportion of a typical residential building's construction cost is made up of building materials, labour, machinery and equipment?

    Based on a study by CIDB, the proportions of construction cost for building materials, labour, machinery and equipment for a typical residential building construction are:
    - 66.67% = Materials
    - 30.85% = Labour
    - 2.48% = Machinery & Equipment
    The figures were derived from basic construction costs that do not take into account overheads, profit margins, M&E and preliminary costs.

  • What factors affect residential building prices?

    The price of residential building prices can be affected by internal factors or by external factors.
    Internal factors include:
    - Government policies
    - The imposition of a goods and services tax
    - Petrol/diesel prices and electricity tariffs, due to rationalization of fuel subsidies
    - Land acquisition policy and conversion process
    - Housing and property policies, such as the property gains tax, the restriction on foreign purchase, and the affordable housing programme (PR1MA)
    - The interest rate (BLR)
    - Supply and demand in the property market
    - Land costs
    - Cost of construction materials and labour
    - Security features
    External factors include keen foreign interest in taking up local properties, either for speculation or through promotional schemes (such as "second home" ownership for foreigners, for certain categories of high-end residential properties).

  • Where can I find information on current and/or historical construction labour productivity?

    The information is unavailable, as CIDB does not have any data on construction labour productivity.

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