THE CHALLENGES OF IMPLEMENTING INDUSTRAILISED BUILDING SYSTEM(IBS) IN

SELANGOR, MALAYSIA.

LIEW WEI ZHEAN

0331225

TARGETED PUBLICATION
Name of Conference/ : International Conference on Education, Engineering,

Journal Publication Business, Social Science and Technology (EBSTEC 2019)

Date of Conference : 3 October 2019

Venue : The Everly Hotel, PUTRAJAYA, MALAYSIA

Website : https://submit.confbay.com/conf/ebstec2019
 The Challenges of Implmenting Industrialised Building
System(IBS) in Selangor, Malaysia.

Liew Wei Zhean1

Abstract: Industrialised building system (IBS) is a term that is widely recognized in the construction industries. In other words, it is also
known as prefabricated construction. With many problems arising from housing development such as inconsistent quality and delay issues,
have prompted the government to put their effort into promoting the IBS to the construction industries. The Government has also
encouraged housing developers to adopt IBS in their construction methods to achieve quality construction which is in hope of reducing
such problems in the development. However, construction players seem to have a different perception towards the implementation of IBS in
Malaysia. The construction practitioners tend to pursue the conventional approach for small to medium sized projects. Therefore, this study
is intended to determine the factors that need to be considered before decisions are made to utilize IBS, the benefits which can influence
people in the industry to use IBS and the key aspects to increase usage of IBS. The study is focused on two major industry players ie.
Contractors and professional quantity surveyors specifically their perception towards the implementation of IBS in the Malaysia
construction industry. Several challenges identified are cost issues, lack of incentives provided, cheap foreign labour and several others
which will be elaborated further in this report. The findings of this study can serve as a guide for construction practitioners to understand
the challenges confronting them in the implementation of IBS in Malaysia.

Key words: Industrialised Building System, Challenges, Solution

1. INTRODUCTION classifications provided by the CIDB were also misinterpreted as a

system limited only for construction of buildings, while IBS can be
The Industrialized Building System (IBS) has been presented in interpreted as an approach or process used in making
Malaysia since 1966 for the projects which include precast houses. construction less labour-oriented and faster as well as fulfilling
From that point forward various development undertakings utilize
the IBS framework when fundamental whereby the framework is 1 Undergraduate student, School of Architecture, Building and Design,
actualized when the development requires speed precision and Taylor’s University, Kuala Lumpur, Malaysia; Email:
work that includes a great deal of repetition. weizhean.liew@sd.taylors.edu.my

Though many of the prefabrication and industrialization

terminologies are still in use, Industrialized Building System (IBS)
is become a term to represent those terminologies in the Malaysian quality concern (Shaari, S. N., & ISmail, E., 2003). The key aim of

construction industry. The term IBS is widely used by the this research study is to find determine the challenges of

practitioners, researchers and the government in this country to implementing Industrialised Building System in Selangor,

represent industrialization in construction. The term is however, Malaysia. Research objectives are listed as;

cover a very wide scope which includes the application of

1. To identify the challenges faced by implementing an
onsite systems and one cannot distinguish it properly with
industrialised building system (IBS).
conventional practice. While other terms used to represent
2. To identify the key aspect to increase the number of usage
construction industrialization often relates to innovative solution.
industrialised building system (IBS).
Current definition by CIDB includes low-tech solutions and
other practices which have already become common and not
2. LITERATURE REVIEW
substituting conventional practices. The terms and
Construction Industry Development Board (CIDB) has defined IBS
as a construction technology in which components are
manufactured in a controlled environment (on or off site),
transported, positioned and erected into a structure by reducing site
labour (CIDB, 2013; Trikha, 1999).
Furthermore, Abdullah and Egbu (2009) has characterized that an
IBS is a building method developed for human investment in
innovation and rethinking the best way of delivering construction
project based on industrialisation. It has distinctive phases of levels
in IBS as arranged in pre-building system, modern construction,
advance automation and volumetric construction.
2.1 IBS STRUCTURAL CLASSIFICATION
According to the (CIDB. 2003; MIDF. 2014), IBS can be
grouped into five categories based on the structural classification.
The details of classification are shown in Figure 2.1.
2.1.1 PRECAST CONCRETE FRAMING, PANELS
AND BOX SYSTEM
Precast concrete framing, panels and box systems require a
restructuring of the entire conventional construction process to
enable interaction between the design phase and production
planning in order to improve and speed up the construction. This
type of IBS is cast in factories, delivered to site and erected.
(MIDF, 2014)
2.1.2 STEEL FORMWORK SYSTEM
This IBS is made up of tunnel forms, beams and columns moulding
forms, and permanent steel formworks. This system is the least pre-
fabricated among the IBS, as it normally involves site casting.
Therefore, it is subject to structural quality control, high-quality
finishes and fast construction with less site labour and material
requirement. (MIDF, 2014)
2.1.3 STEEL FRAMING SYSTEM
Steel framing system is favoured in high-rise buildings and
factories due to fast construction and a much reduced labour
requirement on site. Most of the developments in using steel
farming system is the increased usage of steel portal frame systems
and light steel trusses. The overall floor depth in the steel framing
system is reduced by integrating services more completely,
including the use of a plate to fabricate profiled beams that are
used in place of hot-rolled beams. Steel framing system is only
suitable for framing such as beams, columns, roof trusses and
similar structural elements. (MIDF, 2014)
2.1.4 TIMBER FRAMING SYSTEM
The use of a prefabricated timber framing system is recognised as a
rapidly constructed and economical form of construction. Among
the products listed in this category are timber building frames and
timber roof trusses. This type of IBS offers appealing design
features, which require high aesthetical values. Traditional houses
in Malaysia are mostly constructed using timber and wood. The
type of joint for a timber prefabricated framing system is very
important to distribute the self and imposed load. (MIDF, 2014)
2.1.5 BLOCKWORK SYSTEM
The usage of interlocking concrete masonry units (CMU) and
lightweight concrete blocks is a revolutionised by using
conventional bricks. The time consuming in laying traditional brick
are greatly than block because of bigger size on block. The block
system is mainly used for non-structural wall as an alternative to
conventional brick and plaster. (MIDF, 2014)
2.1.2 INNOVATIVE SYSTEM
Lastly, there is a new IBS system which known as innovative
system. This is the most recent IBS technology which incorporates
with various “green” materials, which known as innovative in the
construction industry. When two elements are mixed to produce
one component, it is termed as an innovative system. As an
example, mixture of polystyrene and concrete to produce wall
which have better heat insulation. In recent years, with
advancement in technology and innovation, new materials are
being introduced at the fabrication stage to improve the elements’
performance. Many new components such as wood wool, polymer,
fiberglass, gypsum and aluminium-based IBS components to create
the innovative system to fit Malaysian Tropical climate. (MIDF,
2014)
2.2 CHALLENGES IN IMPLEMENTING
INDUSTRIALISED BUILDING SYSTEM
Generally, the implementation of IBS is still low
compared with conventional methods. The main reason why there
is reluctance amongst clients and contractors to adopt this system is
that they have difficulty ascertaining the benefits that such an
approach would add to a project. This situation happens probably
because the numerous benefits and opportunities of using IBS have
not been properly highlighted and thus go unnoticed.
2.2.1 LACK OF SKILLED AND KNOWLEDGE
MANPOWER
IBS component requires high precision during pre-assembling and
assembling period. In Malaysia, the quality of skilled manpower is
not enough for implementing IBS (Haron et. al.,2009).
2.2.2 LOW QUALITY
In many of the earlier and previous projects which utilized IBS in
Malaysia, there were many unfavourable feedbacks and bad
comments on the quality of the constructed IBS buildings. One of
the bad comments about the IBS building is the poor quality of the
joints of IBS components which resulted in water leakage problems
(Haron et. al.,2009).
2.2.3 LACK OF INCENTIVE AND AWARENESS
Due to the lack of incentives and promotions to use IBS, many
architects and engineers are still unaware of the basic elements of
IBS, such as modular coordination. Reluctance on the part of the
industry is probably the main reason for the lack of awareness of
the incentives offered by government. In addition, designers are not
aware of the benefits and do not understand how the system
impacts on the design process of the IBS system (Haron et.
al.,2009).
2.2.4 WASTAGES OF MATERIAL
In the IBS construction in Malaysia, it is still lacking IBS
manufacturers that are able to manufacture varying types of IBS
components to suit the many different needs of a design. Due to
standardisation in the design of IBS components, there will be
wastage with a standardised component that is used for every
situation. For example, IBS slab of 320mm thick have to be
installed in a building or parts of the building that only require
280mm thick slab. Thus, there is a wastage of construction material
(Waleed, 2003).
2.2.5 PROJECT DELIVERY AND SUPPLY CHAIN
“Shortage or late supply of IBS information, equipment and
materials to sites has been an important barrier to successful
implementation of an IBS project” (Said Potts 1995). The distance
of the locations of the manufacturers to the construction site is also
a severe issue if the distance between these two are too far away.
The reason why that this is a problem to adoption of IBS is that this
huge distance can actually cause extra expenses on the logistics
and associated expenses. Besides this, the IBS manufacturing
factories are mostly located in suburban areas or industrial areas.
2.2.6 APPLICATION OF PAYMENT
With the conventional application of payment practice will cause
contractor having cash flow problem through to the IBS
manufacturers will charge an initial payment or upfront payment to
contractors for the purchase and delivery of IBS components.
Besides, delivery of IBS components would need direct payment
unless the contractor has a close relationship with the IBS
manufacturers to negotiate for the payment method. With the
conventional application of payment is not suitable been use for
IBS project because the payment is made by month because the
amount needed to pay directly to manufacturers after delivery
whereby the conventional method is pay after the structure
completed at the site. (MIDF, 2014)
2.2.7 HIGH INVESTMENT COST
Implementation of IBS costs is about 12-13% higher compared
with conventional methods. This is due to the high prices of IBS
components that can be broken down to purchase of new
machinery, mold manufacturing, tax and machinery imported from
abroad as well as cost of training workers for the installation of the
components and operation of various high tech machines. The high
investment cost is also due to a mismatch in supply and demand for
IBS components as there is a limited number of IBS suppliers in
the industry against the backdrop of a rising demand for IBS
components. (MIDF, 2014)
2.2.8 NOT WILLING TO CHANGE
As Kamar et al. (2009) remarked, many small contractors are still
not willing to change their construction method to IBS method.
They prefer to adopt the conventional method of construction
because they are more familiar with the conventional system and to
them the conventional method is well suited for small scale
projects and therefore they are not willing to switch to IBS.
Besides, contractor prefer conventional method approach because
labour rate is cheaper compared to investment in mechanised based
system (Thanoon et al., 2003)
3. METHODOLOGY 5. Cost of investment on Heavy Equipment 3.33 5
required for manufacturing IBS is high
3.1 RESPONDENT OF THE STUDY 6. Low Quality 3.24 6
7. Lack of knowledge and expertise 3.19 7
To collect data for this study, a questionnaire survey was conducted
8. Lack of standardization 2.90 8
among the construction companies in Selangor, Malaysia. A total of
9. Design limitations 2.86 9
376 questionnaires were sent out through mail and 30 of them have
10. Lack of Incentive from government 2.76 10
been received. The respondent rate was 8% for this study. The main
11. Insufficient supply and limited number 2.67 11
aims of this study are to find out the challengess in implmenting
of manufacturers of IBS components
IBS, to identify the key aspect to increase the number of usage
IBS, to study on awareness and accaptance of IBS and finally the 12. Transportation problem 2.52 12

recommend some solutions to promote IBS concept in construction 13. Safety issue 2.19 13

industry. 14. Site accessibility 1.90 14

3.2 SAMPLE SIZE

In this study, total 376 questionnaires were distributed among the
following expert in construction industry which is G1-G7
contractor.
3.3 DATA ANALYSIS
Average Index to get the data and rank it.
There are 14 challenges stated in the table above, each challenge
was rank according to the average index score. Based on the
average index score, rank 1 to rank 7 have fall under the category
of ‘High’ with the average index within the range of 3.50 to 4.49.
This indicated majorities of the respondents agreed on the
challenges from rank 1 to rank 7. The highest rating challenge of
IBS is the cost issue (eg. higher upfront cost than conventional
method) consist of 4.00 ranked 1. The reason of cost issues could

4. RESULT AND DISCUSSION be a challenges for IBS is because construction player used to
conventional which payment pay by monthly in certain percentages
A total of 376 questionnaire survey were distributed among the which allow employer and contractor have a better cash flow
CIDB registered contractor which based in Selangor Malaysia. The during construction. Beside this, Challenges ranked number 2 is
survey response was 8%. The information anaylse will be the high investment cost (eg. 12-13% higher than conventional
background and general information of the respondents. methods (MIDF,2014)) because of mismatch in supply and demand
for IBS components as there is limited number of IBS suppliers
4.1.1 THE CHALLENGES FACED BY compare to building material supplier. Next, the average index with
IMPLEMENTING IBS IN SELANGOR, 3.76 ranked 3 which construction player prefer conventional
MALAYSIA method due to familiarity. Malaysia construction industry used
conventional method for many century. IBS was beginning

Table 1: The Challenges Faced by Implementing IBS introduced during 1960 however the response rate on using IBS is
low and currently IBS started increase number of usage through to
government empowerment on IBS especially for public project
which required up to 70% use IBS.
Challenges Faced by Implementing IBS Average Rank
Index Next is application of payment which fall under rank 4 th, method of
payment for IBS unable based on conventional method because
1. Cost issues 4.00 1
once IBS component delivered to site them need direct payment
2. High investment cost 3.81 2
from contractor. However, conventional method only pay
3. Prefer conventional method due to 3.76 3
contractor once the structure in fixed only proceed to claim.
familiarity or used to the conventional
However, rank 5th is about the cost of investment on heavy
method
equipment required for manufacturing IBS is high.
4. Application of Payment 3.38 4
Ranked 6th, 7th and 8th is ‘Low Quality’, ‘Lack of knowledge and
expertise in IBS’ and ‘Lack of standardization component’. Low
quality occur when the joint of IBS component didn’t fixed in right
position cause water leakages. Therefore, experienced expertise
need on site to supervise the jointing process or having a
standardization size may help to solve the water leakages problem.
Furthermore, ranked 9th, 10th and 11th is ‘Design limitations’, ‘Lack
of Incentive from government’ and ‘Insufficient supply and limited
number of manufacturers of IBS components’. Design limitation in
IBS is definitely not a solution for all construction works. It will
not, for example, be suitable in the construction of structures with
unique designs. Which increase incentive by government will
increase the rate of implementing IBS for private developer
because private developer only implement IBS when the profits
generate by building an IBS is higher than conventional method.
Based on economic view, through to mismatch in supply and
demand for IBS components as there is limit of supplier in the
industry.
Lastly, ranked 12th, 13th and 14th is ‘Transportation problem, size of
IBS component’, ‘Safety issue eg. Risk of mobile crane falling if
the component is too heavy ‘and ‘Site accessibility’. Transportation
problem through to huge IBS component may hard to transport
from one location to another location however it ranked at 12 th.
Moreover, to fix the IBS component on site we need mobile crane
to lift it up, it may cause safety issues when the components is too
heavy that cause accident. Finally ranked 14 th is the site
accessibility which narrow road may cause traffic congestion and
risk on hitting neighbour property through to large components.
4.1.2 KEY ASPECT TO INCREASE USAGE OF IBS IN
SELANGOR, MALAYSIA
Table 2: The key Aspect to Increase Usage of IBS
The Key Aspect to Increase Usage of Average Rank
IBS Index
1. A loan scheme for employer 3.48 1 industry interest to improve the sustainable idea. Lastly, introduce
2. Government to offer better incentives 3.43 2 IBS syllabus in construction related education may also improve
for IBS project
3. Offer tax reduction to manufacturer and 3.33 3
IBS contractor
4. CIDB to increase 3.24 4
advertisement/promotion of their IBS
programme to public
5. Design Consultant work closely with 3.19 5
manufacturer to avoid mistake in
production stage
6. Contractor work closely with consultant 3.10 6
to avoid redesign happen
7. Government to impose standardization 2.95 7
some of components
8. Government/Private sector to increase 2.90 8
advertisement on social media about
advantages of using IBS
9. Introduce IBS syllabus in construction 2.81 9
related education
Based on the ranking from table above, all the respondents have
voted ‘a loan scheme for employer to solve the high initial capital
on IBS project’ as the most efficiency solution to overcome the
challenges of IBS with the average index of 3.95. Whereas, the
solution of ‘government to offer better incentives for IBS project’
(3.35). Furthermore, offer tax reduction to manufacturer and IBS
contractor with average index of 3.31 has falls in third place
followed by CIDB increasing advertisement and promotion of their
IBS programme with average index 3.19.
Next, design consultant work closely with manufacturer to avoid
mistake in production stages and contractor work closely with
consultant to avoid redesign happen which ranked at 5th and 6th.
Furthermore, government to impose standardization some of
components to improve speed of installation in projects which
ranked 7th. If IBs components is ready made, the construction
process will much like a ‘Lego’ which contractor brought
component from supplier and direct build in for low cost
development. Besides, government or private sector to increase
advertisement on social media about advantages of using IBS
which ranked and introduce IBS syllabus in construction related
education which ranked 8th and 9th. Private sector such as IBS
manufacturer may advertise their product to gain public and
the understanding the important of IBS to sustainable concept.
 The finding on the challenges faced by implementing IBS in
Selangor has established since 1960an. There are 14 challenges
being analysed where the cost issue on high upfront payment is the
most significant challenges among the other then followed by high
5. CONCLUSION AND RECOMMONDATION
investment cost. eg: Implementing IBS is cost about 12-13%
higher than conventional method (MIDF,2014) and prefer
The implementation rate of IBS are commonly believe to be more
conventional method due to familiarity or used to the conventional
effective in construction industry compare to conventional method.
method. Implementing IBS usually requires huge amount of
Hence in this study, survey have been conducted to find out the
upfront capital which is the reason behind low adoption rate and
perception of contractor towards the idea of implementing IBS by
the contractor feels that investment cost for IBS is higher than
identify the challenges faced by implementing IBS.
conventional method through to lack of demand. Furthermore,
majorities of the contractors also mentioned that application of
payment is a problem for IBS because conventional method unable
to be used in IBS construction through to high upfront payment
needed however conventional method are pay contractor by
monthly progress claim.

The possible recommendation are gathered from the literature

review and are set out to identify the efficiency based on contractor
perception. There are 9 key aspect to increase usage of IBS to
overcome the challenges faced by implementing of IBS in
Selangor. The findings show the recommendation that has the
highest efficient rate is government or private create loan scheme
for employer to solve the high initial capital on IBS project. As the
cash flow pattern for conventional method and IBS is different.
With the support on the financial for employer and a standard IBS
contract may motivate construction player move toward IBS for
faster construction and quality control. By increase demand the
investment cost may reduce or even go cheaper than conventional
method. From here we can deduce that government and industry
players plays the most important role on increasing the chances of
IBS adoption in Selangor.

ACKNOWLEDGMENTS

In preparing this dissertation, I was in contact with many people,

researchers, academicians, and practitioners. They have contributed
towards my understanding and thoughts. In particular, I wish to
express my sincere appreciation to my supervisor and lecturer, Ms
Nurulhuda Hashim, Ms Myzatul Aishah Kamarazaly for
encouragement, guidance, suggestions, friendship, advices and
motivation. Without her support and interest, this dissertation
would not have been the same as presented here.
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