Snippets
MBAM calls for lower tariff on IBS equipment
Aliff Yusri 02 Nov 2017 21:59
Foo (second from left) at the launch of the MBAM Building and Construction Conference 2017

The Master Builders Association Malaysia (MBAM) has reiterated calls for the lowering of tariffs on the import of construction machinery used in industrialised building systems (IBS).

 

“The industry needs more heavy lifting equipment to encourage IBS adoption, and MBAM has fought for the reduction of taxes on these items. However, this issue was not addressed in the recent Budget, despite the national drive to promote IBS uptake,” says MBAM president Foo Chek Lee.

 

Speaking at MBAM’s inaugural Building and Construction Conference, he notes that such machinery is currently subject to import duties ranging from 20% to 30%.

 

To reduce initial capital costs for IBS practitioners, the association called for a decrease in tariffs on heavy construction machinery to 5%, as well as the waiving of duties on heavy lifting machinery aside from goods and services tax.

 

Widespread adoption of IBS, where building components are manufactured offsite and assembled onsite to reduce wastage and unskilled labour requirements, is seen as critical in enhancing the productivity of the construction sector.