CIDB urges more local banks to fund overseas construction projects
LUMPUR, Nov 28 ― The Construction Industry Development Board (CIDB) has urged more local banks to provide more funds for local construction companies to strengthen their international presence.
At this juncture, only Exim Bank has been aggressively supporting overseas projects by local construction companies, CIDB Chief Executive Datuk Seri Dr Judin Abdul Karim said, adding local banks must have the capacity and be willing to take the risks.
“Besides funding local construction companies, at the same time the banks can also build their reputation internationally,” he told reporters after delivering a keynote address at the International Constructional Steel Conference (ICSC) 2012 here today.
In his speech earlier, he said Malaysian steel players are facing tough competition from external producers.
He said larger markets with much larger economies of scale may be able to offer significantly cheaper steel products.
“I would like to urge local contractors to use locally fabricated steel as it carries the necessary standards certification, the trade transaction is much more efficient, and it also contributes positively to the country’s overall economy.”
He also said that Malaysian constructional steel producers, on the other hand, must realise that in the long term, innovation and quality of their products will win over cheap imported materials.
“If we play only on price, we will be at the mercy of larger producers or countries, which enjoy much larger economies of scale.”
On the “2012 Open Ideas Competition” organised by CIDB recently, he said it was a good platform to train left brain- and right brain-dominant students to be more creative.
Judin, who is also the President of the Malaysia Structural Steel Association (MSSA), said the contest aims to train students from different fields to work together and combine their ideas.
It challenged 200 engineering and architecture students from local universities to design a mixed-use tower with green building elements, using 80 per cent steel content for the structure. ― Bernama