KUALA LUMPUR: The Real Estate & Housing Developers' Association Malaysia (REHDA) is in discussion with the government over the possibility of added incentives for property developers who opt to use the Industrialised Building System (IBS).
The IBS is a technique of construction whereby components are manufactured in a controlled environment, either at site or off site, placed and assembled into construction works.
Speaking to reporters at the 19th National Housing and Property Summit, its president, Datuk Seri FD Iskandar Mohamed Mansor said that only a handful of property developers are using the IBS.
"In order for IBS to become more palatable, I urge the government to asked the developers they awarded contracts to, to use the IBS," he said.
"The government needs to take the lead by telling the developers that 60 to 70 per cent of the contracts awarded must use IBS, or they won't get the contract."
Asked if it is possible for property developers to lower their prices with IBS, FD Iskandar said it is a possibility but only if a majority of property developers participate in it.
"We are looking at an economy of scale here, the more property developers participate, the higher the possibility of lowering the prices," he said.
"The more incentives we have on tax, rebates on materials and others, then the pricing can definitely be cheaper," added FD Iskandar.
The term IBS is used in Malaysia, whereas it is also known as pre fabricated/pre-fab construction, modern method of construction (MMC) and off-site construction in the rest of the world.
The five commonly used IBS types in Malaysia are precast concrete framing, panel and box systems; steel framework systems; prefabricated timber framing systems; steel framing systems; and
blockwork systems.
The use of IBS have been known to contribute towards a safer, cleaner and more organized site, due to the reduction of construction waste, site workers and prefabricated construction material.
It also contributes to a cheaper total construction cost, resulting from the above factors.