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FOREWORD
BCISM Costbook is a brief but reliable guide of the current costs of various types of
construction costs in Malaysia, based on the data collected and analysed, revised and
updated to reflect the latest market conditions and trends. We are proud to present this
4th edition and this time we will feature our latest product addition, a few Benchmark
Analysis Reports.

The construction industry is one of the most dynamic and requires constant adaptation
and innovation to meet the ever-changing needs and demands of clients, stakeholders
and society. Malaysia has faced various unique challenges within the construction
sector. One significant challenge is the shortage of foreign workers, impacting both
productivity and labour availability. Additionally, the increased costs of labour and
construction materials placed additional pressures on project budgets, coupled with
slow economic growth. These factors have resulted in lower profit margins and higher
risks for the construction industry players.

It is essential for everyone to adopt effective cost management strategies and practices
to ensure the viability and sustainability of their projects. Having reliable and up-to-date
information on construction costs is essential for effective planning, budgeting and
decision-making.

So how/where do you get the up-to-date cost data? The National Construction Cost
Centre (N3C) portal operated by BCISM provides reliable and relevant information on
the current and projected costs of construction in Malaysia based on extensive research
and data collection from reliable sources. This costbook covers a small percentage of
the millions of data available via subscription.

We are immensely grateful to all the sponsors who have generously supported this
publication, making it possible for BCISM to issue thousands of booklets of the previous
editions at no charge. We would also like to extend our heartfelt thanks to all the
contributors who have shared their knowledge and expertise with us. Their
contributions have been precious in our pursuit of providing valuable industry insights.

We hope that this book will be a valuable resource for all those who are involved in the
construction industry in Malaysia. We welcome any feedback or suggestions for future
editions as we strive to continuously improve and enhance the content and usability of
this essential industry guide.

Thank you

September 2023

Sr Wan Ainon Zuraiha Khalid CQS FRISM MRICS

Chair, BCISM Sdn Bhd

 TABLE OF CONTENT
1.0 INTRODUCTION
2.0 CONSTRUCTION DATA
2.1 Introduction
2.2 Building Material Price
2.3 Labour Wage Rate
2.4 Machinery Hire Rate
2.5 Equipment Purchase Price
2.6 Labour and Plant Constant
2.7 Major Unit Rate
2.8 Average Building Price
3.0 BENCHMARK ANALYSIS REPORT
3.1 Introduction
3.2 Light Duty Factory
3.3 Warehouse
3.4 Average Standard Office (low rise)
3.5 Terraced House
3.6 Condominium
4.0 RESEARCH AND REVIEW
4.1 Pricing Trends of Steel
4.2 Building Material Cost Index Changes
4.3 Labour Shortage Crisis
4.4 Building Cost Weightage
4.5 Building Cost Index v Tender Price Index
5.0 USEFUL INFORMATION
5.1 Estimating Rules of Thumb
5.2 First Step for Construction Industry into AI Verse: Big Data Analytics
5.3 Initiative for Carbon Reduction in Construction
1.0 INTRODUCTION
2 / BCISM COSTBOOK 2023
BCISM COSTBOOK 2023 / 3
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2.0 CONSTRUCTION
DATA
2.0 CONSTRUCTION DATA
 2.1 Introduction
Data are derived by BCISM from actual data collected. For more details, subscribe to CIDB National
Construction Cost Centre (n3c.cidb.gov.my).

All data are Kuala Lumpur rate in May 2023 unless otherwise stated.

As prices can differ appreciably because of the nature and specific requirements of each particular
contract, It is not recommended that they be used for quotations without checking in details the
requirements of the contract.

6 / BCISM COSTBOOK 2023

 Defined as the transaction price between the contractors and the suppliers under the normal
credit terms (60 days) specified and discount for an average contractor. The size of the
purchase shall normally be in bulk, taking care of normal discount given to its clients inclusive
of all necessary taxes if applicable payable to the government and the transportation costs
within practicable distances as well as profit.
NO. DESCRIPTION UNIT RM
A Cement
1 Ordinary Portland Cement, 50 kg bag Bag 21.80
2 Ordinary Portland Cement in Bulk MT 385.00
3 Hume Panda / Tasek Buaya, 50kg/bag Bag 20.90

B Aggregate
4 Granite Aggregate 3/4" MT 46.00

C Sand
5 Normal River Sand- Ex MT 45.00
6 Fine River Sand for Plastering -Ex MT 48.00
7 Normal Mining Sand MT 42.00
8 Fine Mining Sand for Plastering MT 48.00

D Steel Reinforcement
9 Mild Steel Round Bar R10, MS146 MT 3,058.00
10 Mild Steel Round Bar R12, MS146 MT 3,058.00
11 Mild Steel Round Bar R16, MS146 MT 3,058.00
12 High Tensile Deformed Bar-Y10, MS146 MT 2,942.00
13 High Tensile Deformed Bar-Y12, MS146 MT 2,942.00
14 High Tensile Deformed Bar-Y16, MS146 MT 2,842.00
15 High Tensile Deformed Bar-Y20, MS146 MT 2,792.00
16 High Tensile Deformed Bar-Y25, MS146 MT 2,892.00
17 High Tensile Deformed Bar-Y32, MS146 MT 2,942.00
18 High Tensile Deformed Bar- Y40, MS146 MT 2,942.00
19 BRC A6, MS145 m2 7.20
20 BRC A7, MS145 m2 9.80
21 BRC A8, MS145 m2 12.80
22 BRC A9, MS145 m2 16.15
23 BRC A10, MS145 m2 19.90
24 BRC A11, MS145 m2 24.20
25 BRC A12, MS145 m2 31.90
26 BRC B6, MS145 m2 12.15
27 BRC B7, MS145 m2 14.65
28 BRC B8, MS145 m2 19.20
29 BRC B9, MS145 m2 22.60
30 BRC B10, MS145 m2 26.30

BCISM COSTBOOK 2023 / 7

 NO. DESCRIPTION UNIT RM
E Ready Mixed Concrete
31 Ready Mix Concrete - Normal Mix - Grade15, Granite m3 263.00
32 Ready Mix Concrete - Normal Mix - Grade 20, Granite m3 269.00
33 Ready Mix Concrete - Normal Mix - Grade25, Granite m3 279.00
34 Ready Mix Concrete - Normal Mix - Grade 30, Granite m3 290.00
35 Ready Mix Concrete - Normal Mix - Grade 35, Granite m3 302.00
36 Ready Mix Concrete - Normal Mix - Grade 40, Granite m3 316.00
37 Ready Mix Concrete - Pump Mix - Grade 30, Granite m3 297.00
38 Ready Mix Concrete - Pump Mix - Grade 35, Granite m3 309.00
39 Ready Mix Concrete - Pump Mix - Grade 40, Granite m3 323.00

F Bricks
40 Common Clay Bricks - Pallet Piece 0.50
41 Cement Sand Bricks - Pallet Piece 0.29
42 AAC, Light Weight Block - 100mm x 200mm x 600mm Piece 3.55
43 AAC, Light Weight Block - 125mm x 200mm x 600mm Piece 4.45
44 AAC, Light Weight Block - 150mm x 200mm x 600mm Piece 5.30
45 AAC, Light Weight Block - 200mm x 200mm x 600mm Piece 7.00

G Roofing
46 Interlocking Concrete Tiles - Standard Duotone Colour 420mm x 330mm piece 1.90
MS Decking - Ajiya AP Rib Hi-Tensile G26, 0.47mm TCT, Clean Colourbond
47 m2 49.40
(Comercial)
MS Decking - Ajiya AP Rib Hi- Tensile G24, 0.53mm TCT, Clean Colourbond
48 m2 55.50
(Comercial)
MS Decking - Ajiya Euro Step Roofing M350 G28, 0.40mm TCT, Clean
49 m2 45.75
Colourbond
MS Decking - Ajiya Euro Step Roofing M350 G26, 0.47mm TCT, Clean
50 m2 53.05
Colourbond
MS Decking - Ajiya Euro Step Roofing M350 G26, 0.53mm TCT, Clean
51 m2 59.45
Colourbond
2
52 MS Decking -Spandec Hi-Ten 0.47mm TCT, Clean Colourbond m 44.15
53 UAC Corrugated Roofing Sheet - 1054mm x 1830mm x 4mm ft 5.10
54 UAC Corrugated Roofing Sheet - 1054mm x 2440mm x 4mm ft 5.10
55 UAC Corrugated Roofing Sheet - 1054mm x 2745mm x 4mm ft 5.10
56 UAC Corrugated Roofing Sheet - 1054mm x 3050mm x 4mm ft 5.10

H Walls & Floor Tiles

Plain Homogeneous Floor Tiles, Standard light Colour, 300mm x 300mm x 8mm
57 Piece 3.60
- Grade 1
Glazed Ceramic Wall Tiles, Standard light Colour, 200mm x 250mm x 6mm -
58 Piece 2.90
Grade 1
59 Porcelain Tiles, Standard Colour, 300mm x 600mm x 9mm Piece 9.10
60 Porcelain Tiles, Standard Colour, 600mm x 600mm x 9mm Piece 17.00

8 / BCISM COSTBOOK 2023

NO. DESCRIPTION UNIT RM
I Ceiling Board
Plain Cellulose Fibre Ceiling Sheet,610mm x 1220mm x 3.2mm
61 Sheet 5.40
(UAC/Hume/Malex)
Plain Cellulose Fibre Ceiling Sheet,610mm x 1220mm x 4.5mm
62 Sheet 11.20
(UAC/Hume/Malex)
Plain Cellulose Fibre Ceiling Sheet, 1220mm x 1220mm x 3.2mm
63 Sheet 10.80
(UAC/Hume/Malex)
Plain Cellulose Fibre Ceiling Sheet, 1220mm x 1220mm x 4.5mm
64 Sheet 19.90
(UAC/Hume/Malex)
Plain Cellulose Fibre Ceiling Sheet, 1220mm x 2440mm x 6.0mm
65 Sheet 44.95
(UAC/Hume/Malex)
66 Plain Gypsum Ceiling Board, 610mm x 1220mm x 9.5mm, (Boral/Armstrong) Sheet 8.15
67 Plain Gypsum Ceiling Board, 1220mm x 2440mm x 9mm (Hume) Sheet 21.00
68 Plain Gypsum Ceiling Board, 1220mm x 2440mm x 12mm (Hume) Sheet 30.00

J Plumbing Works
69 PVC Pressure Pipes Class E Grey Colour - 25mm Diameter (paling) , MS628 6m run 31.50
70 PVC Pressure Pipes Class E, Grey Colour - 50mm Diameter (paling), MS 628 6m run 92.70
71 PVC Pressure Pipes Class D Grey Colour - 50mm Diameter (paling) , MS628 4m run 75.60
72 HDPE Pipe PN 16 - 25mm Diameter, MS 1058 100m roll 189.10
73 HDPE Pipe PN 16 - 50mm Diameter, MS 1058 100m roll 735.50
74 HDPE Pipe PN 16 - 110mm Diameter, MS 1058 6m run 210.10

K Sanitary Fitting
Claywood Squatting Pan, includes Integral 'S' Trap (White) - 585mm x 310mm
75 Item 278.00
x 320mm, Johnson-Suisse
76 Stainless Steel Sinks - Single Bowl Single Drainer- Lay On Type, 42"x18" Item 100.00
Urinal Bowl, santana 320 c/w hanger, flange, ceramic waste & cleaning set,
77 Item 588.00
Johnson-Suisse
78 Water Closet Western Type- WC 644, white colour without cistern, claytan Item 158.00
Wash Hand Basin - 460mm x 365mm x 825mm, Neptune Wall Hung Basin,
79 Set 188.00
Claytan
Water Closet Luton Type with push button 3L or 6L Cistern, Standard Colour,
80 Set 397.00
Johnson-Suisse
Polyethylene water tank (Polytank), Circular- 200 gallons, MS 1225-weida
81 Number 220.00
equivelant

BCISM COSTBOOK 2023 / 9

 NO. DESCRIPTION UNIT RM
L Paints
82 Paint - Nippon Economy Undercoat - 5 litres 5 litres 88.00
83 Paint - Nippon Economy Undercoat - 20 litres 20 litres 180.00
84 Paint - Nippon Standard Colour - Super Matex Emulsion - 18 litres 18 litres 95.00
85 Paint - Nippon Standard Colour - Satin Glo - 5 litres 5 litres 135.70
86 Paint - Nippon Standard Colour - Satin Glo - 18 litres 18 litres 411.70
87 Paint - Nippon Standard Colour - 9000 Gloss Finish - 5 litres 5 litres 170.00
88 Paint - Nippon Standard Colour - 9000 Gloss Finish (Trade) - 20 litres 20 litres 417.45
89 Paint - Nippon Standard Colour - Weatherbond - 5 litres 5 litres 142.00
90 Paint - Nippon Standard Colour - Weatherbond (Trade) - 20 litres 20 litres 297.25
91 Paint - Nippon Standard Colour - Timber/wood, timber finish 5 Litres 146.00
92 Paint - Nippon Standard Colour - Easy Wash - 18 litres 18 litres 350.00

M Steel & Metal Sections

93 Equal angles-50mm x 50mm x 4mm (3.06kg/m) MT 3,040.00
94 Equal angles-38mm x 38mm x 3.8mm (2.17kg/m) MT 3,100.00
95 Square hollow Sections - 12mm x 12mm x 1.0mm (0.339kg/m) MT 4,012.00
96 Square Hollow Sections - 19mm x 19mm x 1.6mm (0.857kg/m) MT 3,750.00
97 Square Hollow Sections - 50mm x 50mm x 3.0mm (4.25kg/m) MT 3,600.00
98 Square Hollow Sections - 150mm x 150mm x 4.0mm (20.20kg/m) MT 3,550.00
99 Square Hollow Sections - 150mm x 150mm x 4.5mm (20.20kg/m) MT 3,700.00
100 Square Hollow Sections - 150mm x 150mm x 5.0mm (22.30kg/m) MT 3,700.00
101 Universal beams - 102mm x 102mm x 8.76mm (19.35kg/m ) MT 4,060.00
102 Universal beams - 400mm x 400mm (140kg/m) MT 4,200.00

N Plywood
103 Shuttering Board - 12mm x 4' x 8' (Local Grade) 5 ply Piece 57.00
104 Shuttering Board - 12mm x 4' x 8' (BB/CC-Export Grade) 5 ply Piece 60.00
105 Shuttering Board - 18mm x 4' x 8' (Local Grade) 7 ply Piece 91.00
106 Shuttering Board - 18mm x 4' x 8' (Local Grade) 9 ply Piece 93.00
107 Tego Film Single Sided - 12mm x 4' x 8' (Local Grade) 5 ply Piece 67.00
108 Tego Film Single Sided - 12mm x 4' x 8' (BB/CC-Export Grade) 7 PLY Piece 73.00
109 Tego Film Single Sided - 18mm x 4' x 8' (Local Grade) 7 ply Piece 102.00
110 Tego Film Single Sided - 18mm x 4' x 8' (BB/CC-Export Grade) 9 ply Piece 111.00
111 Marine Plywood - 12mm x 4' x 8' (Local Grade) 5 ply Piece 135.00
112 Marine Plywood - 18mm x 4' x 8' (Local Grade) 7 ply Piece 173.00

10 / BCISM COSTBOOK 2023

NO. DESCRIPTION UNIT RM
O Timber
113 MLHW 2"x 2"x 8' up (Soft) Grade C MT 1,020.00
114 MLHW 2"x 2"x 8' up (Soft Tanalised) Grade C MT 1,040.00
115 MLHW 2"x 2"x 8' up (Hard Tanalised) Grade C MT 1,110.00
116 MLHW 3"x 3"x 8' up - Grade C MT 1,210.00
117 MLHW 3"x 5"x 8' up - Grade C MT 1,240.00
118 MLHW 3"x 6"x 8' up - Grade C MT 1,300.00
119 MLHW 2"x 3"x 8' up - Mix Wood MT 1,090.00
120 MLHW 2"x 4"x 8' up - Mix Wood MT 1,120.00
121 MLHW 3"x 4"x 8' up - Mix Wood MT 1,210.00
122 MLHW 1"x 2"x 8' up - Local / Mix Wood MT 1,260.00
123 MLHW 1"x 2"x 8' up - Local / Grade B MT 1,340.00
124 Timber Plank 2"x 8"x 14' - Grade C MT 1,190.00

P Glass
125 Clear Float Glass 5mm Thk, Local/Imported m2 97.50
126 Tinted Float Glass 6mm Thk, Local / Imported, Inclusive of Cutting m2 121.50

Q Ironmongery
CL03-Duraset brand residential grade 3 cylindral knobsets - PASSAGE-
127 Set 35.00
CL0363030
CL03-Duraset brand residential grade 3 cylindral knobsets - PATIO-
128 Set 35.50
CL0363020
CL03-Duraset brand residential grade 3 cylindral knobsets - PRIVACY-
129 Set 37.00
CL0363010
CL03-Duraset brand residential grade 3 cylindral knobsets - ENTRANCE -
130 Set 38.40
CL0363000
131 Leverset (Entrance) Doretti Set 73.90
132 Concorde 102mm x 76mm x 2.0mm SS hinge SUS 304 Set 12.45
133 GERE Heavy Duty Door Closer G803 Set 85.50

R Roof Insulation
134 Rockwool Thermal Rock B40, 1200mm (W) x 5000mm (L) x 50mm thick Roll 82.00
135 Rockwool Thermal Rock B40, 1200mm (W) x 5000mm (L) x 75mm thick Roll 122.00
136 Rockwool Thermal Rock B50, 1200mm (W) x 5000mm (L) x 50mm thick Roll 101.00
137 PGF EWBL 1.10 50mm x 1.22mm x 30m Roll 95.00
138 Single Sided Woven Aluminium Foil (W118) - 1.25m x 48m Roll 102.00
139 Double Sided Woven Foil (W228 FR) - 1.25m x 48m Roll 144.00
140 Double Sided Bubble Foil (B22BA/A-L) - 1.22m x 40m Roll 238.00

BCISM COSTBOOK 2023 / 11

 NO. DESCRIPTION UNIT RM
S Pile
141 RC Square Pile, 150mm x 150mm x 3m - starter with cast iron shoe Piece 156.70
142 RC Square Pile, 150mm x 150mm x 3m - extension Piece 98.90
143 RC Square Pile, 150mm x 150mm x 6m - starter with cast iron shoe Piece 212.25
144 RC Square Pile, 150mm x 150mm x 6m - extension Piece 154.45
145 RC Square Pile, 200mm x 200mm x 3m - starter with cast iron shoe Piece 248.90
146 RC Square Pile, 200mm x 200mm x 3m - extension Piece 168.90
147 RC Square Pile, 200mm x 200mm x 6m - starter with cast iron shoe Piece 320.00
148 RC Square Pile, 200mm x 200mm x 6m - extension Piece 242.25
149 Sheet Pile - FSP IIIA, 400mm x 150mm x 13.1mm (58.4kg/m x 12m L) MT 4,600.00

12 / BCISM COSTBOOK 2023

NO. LABOUR SPECIFICATION RM/DAY
A Construction Workers
1 General Construction Worker - Building Semi-skilled 90 – 125
2 General Construction Worker - Civil Semi-skilled 90 – 155
3 Concretor Skilled 115 – 135
4 Bricklayer Skilled 130 – 180
5 Plasterer Skilled 150 – 210
6 Tiler Skilled 130 – 220
7 Barbender Skilled 115 – 150
8 Carpenter - Formwork Skilled 210 – 300
9 Carpenter - Joinery Skilled 145 – 220
10 Roofer Skilled 155 – 220
11 Steel Structure Fabricator Skilled 135 – 200
12 General Welder Skilled 135 – 215
13 Plumber - Building & Sanitary Skilled 120 – 170
14 Plumber - Reticulation Skilled 130 – 180
15 Building Wiring Installer Semi-skilled 100 – 150
16 Electrical Wireman PW2 Skilled 132 – 205
17 Electrical Wireman PW4 Skilled 173 – 243
18 Scaffolder - Prefabricated Skilled 120 – 200
19 Scaffolder - Tubular Skilled 120 – 180
20 Painter – Building Skilled 100 – 165

B IBS Installers
21 IBS Precast Concrete Installer Skilled 110 – 150
22 IBS Lightweight Panel Installer Skilled 95 – 155
23 Lightweight Blockwall Installer Skilled 110 – 155
24 System Formwork Installer Skilled 100 – 150
25 Roof Truss Installer (Timber) Skilled 90 – 150
26 Roof Truss Installer (Light Gauge Steel) Skilled 100 – 150

BCISM COSTBOOK 2023 / 13

 NO. LABOUR SPECIFICATION RM/DAY
C Plant and Machinery Operators
27 Backhoe Loader Operator Skilled 120 – 160
28 Crawler Crane Operator Skilled 130 – 165
29 Excavator Operator Skilled 135 – 200
30 Forklift Operator Skilled 100 – 130
31 Mobile Crane Operator Skilled 130 – 165
32 Motor Grader Operator Skilled 100 – 155
33 Off Road Truck Operator Skilled 110 – 150
34 Paver Operator Skilled 110 – 155
35 Pile Rigger Skilled 110 – 165
36 Roller Operator Skilled 100 – 140
37 Roller / Compactor Operator Skilled 100 – 135
38 Scrapper Operator Skilled 115 – 150
39 Slinger / Dogger Skilled 105 – 150
40 Tower Crane Operator Skilled 140 – 175
41 Wheel Loader Operator Skilled 110 – 150

14 / BCISM COSTBOOK 2023

NO. MACHINERY SPECIFICATION RM/DAY
A Excavator
1 Hydraulic Excavator Operating Weight 20000kg 344 – 633
2 Hydraulic Excavator Operating Weight 30000kg 517 – 933
3 Hydraulic Excavator Operating Weight 40000kg 772 – 1,200
4 Mini Hydraulic Excavator Operating Weight 3500kg 322 – 533
5 Mini Hydraulic Excavator Operating Weight 6000kg 328 – 650

B Dozer
6 Bulldozer CAT D4 or equivalent 422 – 600
7 Bulldozer CAT D6 or equivalent 439 – 667

C Compactor
8 Tandem Vibratory Compactor Operating Weight 3000kg - 5000kg 211 – 600
9 Tandem Vibratory Compactor Operating Weight 8000kg - 10000kg 306 – 683
10 Vibratory Soil Compactor Operating Weight 10000kg 333 – 650

D Motor Grader
11 Motor Grader 3.7m / 12ft Blade 717 – 717

E Dump Truck
12 Dump Truck Operating Weight 10000kg / Six Wheels 328 – 533
13 Dump Truck Operating Weight 20000kg / Ten Wheels 372 – 567
14 Dump Truck Operating Weight 40000kg / Twelve Wheels 450 – 600

F Lorry
15 Lorry BTM 3000kg 272 – 433
16 Lorry BTM 5000kg 194 – 393
17 Lorry BTM 10000kg 439 – 533

G Crane
18 Hydraulic Crawler Crane Operating Weight 45000kg 689 – 1,233
19 Mobile Crane Operating Weight 20000kg 417 – 700
20 Mobile Crane Operating Weight 25000kg 478 – 867
21 Mobile Crane Operating Weight 45000kg 617 – 1,467
22 Mobile Crane Operating Weight 50000kg 753 – 1,733
23 Mobile Crane Operating Weight 80000kg 1,467 – 3,417

H Backhoe
24 Backhoe Loader Bucket Breakout 6000kg 317 – 533

BCISM COSTBOOK 2023 / 15

 NO. EQUIPMENT SPECIFICATION RM
A Concrete Works & Plastering
Cement / Mortar Mixer (Power
1 Max Stirrer Dia. 120mm-160mm 946.67
Tool)
Cement & Sand Mortar Mixer c/w
2 - 47,333.33
Pump (Diesel Engine)
Concrete Cutter (Gasoline/Petrol
3 Max Cutting Depth 145mm 3,933.33
Engine)
Concrete Cutter (Gasoline/Petrol
4 Max Cutting Depth 190mm 4,466.67
Engine)
5 Concrete Mixer (Diesel Engine) Unmixed-3.5 Cubic Feet; Mixed-2.5 Cubic Feet 1,716.67
6 Concrete Mixer (Diesel Engine) Unmixed-10 Cubic Feet; Mixed-7 Cubic Feet 5,883.33
7 Concrete Vibrator (Diesel Engine) 35mm Dia. Vibrator Head 1,806.67
8 Concrete Vibrator (Diesel Engine) 50mm Dia. Vibrator Head 1,933.33
Power Trowel (Gasoline/Petrol
9 Trowel Plate Dia. 910mm (36") 2,800.00
Engine)
Screed Vibrator / Magic Screed
10 Blade length: 6 - 8 feet 3,566.67
(Gasoline/Petrol Engine)
Vibratory Plate Compactor
11 Max Compaction Depth 200mm 1,693.33
(Gasoline/Petrol Engine)
Vibratory Plate Compactor
12 Max Compaction Depth 300mm 3,350.00
(Gasoline/Petrol Engine)

B Generator
13 Diesel Generator Set Max Output 25KVA 44,333.33
14 Diesel Generator Set Max Output 45KVA 53,833.33
15 Diesel Generator Set Max Output 60KVA 58,000.00
16 Diesel Generator Set Max Output 80KVA 64,333.33
17 Diesel Generator Set Max Output 100KVA 66,333.33
18 Diesel Generator Set Max Output 200-250KVA 118,000.00

16 / BCISM COSTBOOK 2023

NO. EQUIPMENT SPECIFICATION RM
C Compressor
20 Piston Air Compressor 5HP 5,550.00
21 Piston Air Compressor 10HP 10,116.67
19 Screw Air Compressor 30HP 28,766.67

D Pump
24 Centrifigure Pump (Diesel) 2" (50mm) Head (Inlet and Outlet) 1,200.00
25 Centrifigure Pump (Electrical) 6" (150mm) Head (Inlet and Outlet) 3,766.67
23 Construction Water Pump (Diesel) 6" (150mm) Head (Inlet and Outlet) 1,316.67
22 Sludge Pump (Diesel) 6" (150mm) Head (Inlet and Outlet) 38,000.00

E Drill
28 Rotary Hammer Drill Max Drill Bit in Concrete: 24mm dia. 526.67
27 Rotary Hammer Drill Max Drill Bit in Concrete: 32mm dia. 2,116.67
26 Rotary Hammer Drill Max Drill Bit in Concrete: 45mm dia. 2,966.67

F Cutter
34 Bar Bender Max Bending Capacity: 32mm Dia. Bar 14,100.00
33 Bar Bender Max Bending Capacity: 42mm Dia. Bar 19,166.67
32 Bar Cutter Max Cutting Capacity: 32mm Dia. Bar 13,333.33
30 Bar Cutter Max Cutting Capacity: 42mm Dia. Bar 18,616.67
29 Circular Saw 190mm(7") of Blade Diameter 405.00
31 Diamond Cutter 110mm(4-3/8") of Wheel Diameter 455.00

G Hammer
36 Breaker 45 J Force 4,383.33
35 Breaker 60-70 J Force 7,733.33
38 Demolition Hammer 13 J Force 2,800.00
37 Demolition Hammer 23 - 25 J Force 3,450.00

BCISM COSTBOOK 2023 / 17

 LABOUR WORKDONE
NO. WORK DESCRIPTION
/PLANT PER HOUR

Concrete: place only including preparatory works

1 Labour Ready mixed concrete including vibrating and trowelling smooth to 1.41m3/hour
uniform level in upper floor slab and beam.

Reinforcement: fabrication and fixing only

2 Labour 6mm, 10mm, 12mm, 16mm, 20mm, 25mm and 32mm rods, BRC 44.84kg/hour
A7 & A8 on upper floor slab and beam.

Formwork: fix and dismantle only

3 Labour System formwork (aluminium) to sides and soffit of upper floor slab 3.72m2/hour
and beam.

Brickworks: lay only

100mm thick cement and sand brick wall bedded and jointed in
4 Labour 1.38m2/hour
cement & sand mortar (1:3) reinforced with and including “exmet”
reinforcement at every fourth course.
Wall plaster: labour only
20mm thick internal plaster consist of 2 coats of cement & sand
5 Labour (1:3) finished with steel float including raking out joints of brickwall 1.08m2/hour
or hacking concrete surface for key on sides of brickwall and
associated column and beam.

Wall tiling: labour only

6 Labour 600mm x 300mm wall tiles with cement & sand (1:3) backing 0.84m2/hour
screed, adhesive mortar and pointed in coloured cement to match.

18 / BCISM COSTBOOK 2023

 LABOUR WORKDONE PER
NO. WORK DESCRIPTION
/PLANT HOUR
Paving: labour only
7 Labour 25mm thick cement and sand (1:3) paving trowelled with a 2.87m2/hour
steel float to a smooth and level surface.
Floor tiling: labour only
600mm x 300mm floor tiles with cement & sand (1:3) floor
8 Labour 1.29m2/hour
base screed, adhesive mortar and pointed in coloured
cement to match.
Painting: labour only
Prepare and apply one (1) primer coat and two (2) finishing
9 Labour 10.40m2/hour
coats internally on surfaces of plastered sides of wall and
associated column and beams.
Piling driving
10 Plant Drive only 400mm x 400mm precast concrete pile / 400mm 14.29m/hour
diameter precast spun pile with jack-in pile rig.

Excavator 20-30 tonnes operating weight

11 Plant 72.15m3/hour
Excavation to foundation/basement.

Dump truck 10 wheels

12 Plant Disposal of excavated earth off site to dumping tip within 7.96m3/hour
30km distance with dumping truck.

Asphalt paver 10-20 tonnes operating weight

13 Plant Paving of 50mm to 75mm thick binder / wearing course with 330.88m2/hour
asphalt paver.

Road roller tandem compactor 6500kg operating weight

14 Plant Compaction of 50mm to 75mm thick binder / wearing 457.43m2/hour
course with road roller tandem compactor.

Tower crane 1-2 tonnes operating weight

15 Plant Hoisting of building materials 10-20 storeys height using 1-2 12.07trip/hour
tonne operating weight.

Mobile crane 20-30 tonnes operating weight

16 Plant Hoisting of building materials up to 10 storeys high using 20- 10.55trip/hour
30 tonnes mobile crane operating weight.

BCISM COSTBOOK 2023 / 19

 NO. ITEMS UNIT RM
1 Excavation (Up to 1.50m deep) m3 18.80
2 Hardcore bed; average 150mm thick m3 104.80
3 Lean concrete Grade 15 m 3 217.90
4 Vibrated reinforced concrete Grade 25 m 3 245.80
5 Vibrated reinforced concrete Grade 30 m 3 324.90
6 Mild steel bar reinforcement kg 3.60
7 High tensile bar reinforcement kg 3.60
8 Steel fabric reinforcement; BRC A7 m2 17.50
9 Steel fabric reinforcement; BRC A8 m 2 24.00
10 Steel fabric reinforcement; BRC A9 m2 29.00
11 Steel fabric reinforcement; BRC B7 m 2 25.80
12 Steel fabric reinforcement; BRC B8 m2 30.00
13 Steel fabric reinforcement; BRC B9 m 2 37.30
14 Sawn formwork to vertical / horizontal surfaces m2 39.80
15 140mm thk Precast concrete block in cement and sand (1:6) m 2 93.10
16 Precast concrete Grade 25 lintels m 3 1,743.20
17 12mm thick approved bituminous sealant as expansion joint m2 16.60
18 Half brick wall bedded & jointed in cement mortar m 2 44.00
19 0.25mm thick approved polythene sheet damp proof membrane m 2 3.00
20 Metal deck roofing; 0.48mm thick c/w all accessories m 2 64.90
21 Structural steelwork in column and the like kg 7.70
22 Aluminium composite casement windows m 2 293.40
23 Timber flush door (hollow core); single leaf excluding ironmongeries No. 303.90
24 One hour fire rated door; single leaf including ironmongeries No. 733.70
25 Mild steel louvres screen m2 214.20

NOTES :
Rates extracted from project BQs in West Malaysia (measurement based on SMM2)
Rates are as of 4th Quarter 2022

20 / BCISM COSTBOOK 2023

NO. ITEMS UNIT RM
26 Aluminium box louvres m2 327.00
27 150mm diameter UPVC rainwater downpipes and fittings m 65.50
28 Supply and fix basin cold tap c/w all accessories No. 142.60
29 Supply and fix stainless steel paper holder c/w all accessories No. 54.50
30 Supply and fix bidet tap c/w all accessories No. 101.60
31 20mm thk cement and sand (1:6) plaster to wall m2 20.90
32 25mm thk cement and sand (1:3) paving to floor m 2 18.80
33 Non-metallic natural colour floor hardener m 2 9.30
34 25mm thick Protective screeding in cement and sand (1:3) m 2 23.70
35 300mm x 300mm homogeneous tiles (include floor screed) m2 83.80
36 600mm x 600mm polished porcelain tiles (include floor screed) m 2 79.30
37 600mm x 600mm non-slip porcelain tiles (include floor screed) m2 85.60
38 300mm x 300mm non-slip ceramic tiles (include floor screed) m 2 73.10
39 9mm thk fibrous plaster ceiling including drops m2 41.90
40 9.5mm thick gypsum plasterboard ceiling c/w all accessories; n.e 3.5m high m 2 36.20
9.5mm thick moisture resistant plasterboard ceiling c/w all accessories; n.e 2 41.80
41 m
3.5m high
42 Aluminium strip ceiling m2 183.40
43 4mm thk plainface plaster skim coat m 2 8.30
Painting to plastered surfaces; one coat sealer and two coats of emulsion 2 6.20
44 m
paint; internally
Painting to plastered surfaces; one base coat and two coats of weathershield 11.20
45 m2
paint; externally
Painting to timber surfaces; one base coat and two coats of gloss finish paint; 13.80
46 m2
internally
Painting to metal surfaces; one primer coat and two coats of micaceous iron 0.50
47 kg
oxide paint
48 60mm Thick asphaltic concrete (ACBC 28) as binder course m 2 28.60
49 50mm thick premix asphalt concrete wearing course (ACWC 14) m 2 25.50

NOTES :
Rates extracted from project BQs in West Malaysia (measurement based on SMM2)
Rates are as of 4th Quarter 2022

BCISM COSTBOOK 2023 / 21

 Type Of Buildings Building Categories Brief Specifications
Steel structure and roof with light weight concrete roof
Light duty factories
including M&E services.
Industrial Buildings
Steel structure with metal deck roofing including M&E
Warehouses
services.
RC structure, structural steel roof with metal decking
3-storey offices,
including M&E services. Office fit-out excluded from the
owner operated
cost.
Office Buildings
RC structure, lightweight steel roof truss system with
Shop offices painting and tiling works for finishes, including M&E
services. Office fit-out excluded from the cost.
Refreshment, RC frame with tiling and painting works for finishes,
Restaurants
Entertainment, and including M&E services.
Recreational RC frame with tiling and painting for finishes, including
Multi-purpose halls
Buildings M&E services.
RC structure including tiling, decorative motifs, dome
Religious Buildings Mosques
roof, painting, and carpet. Include M&E services.
Houses with prefabricated roof trusses and roof tiles as
2-storey bungalows covering. Tiling and painting works as its finishes.
Fittings and furnishings are excluded.
Residential Houses without fit out but including sanitary appliances
2-storey terrace
Buildings and M&E services. Tiling and painting works as its
houses
finishes.
Apartments with built-in fitments excluding loose
Luxury apartments
furniture, M&E are included.
Buildings, Spaces in RC structure with M&E that includes electrical, fire
Elevated car parks
General protection and lift installations.

22 / BCISM COSTBOOK 2023

 2
No. Building Categories RM/m GFA
A Industrial Buildings
1 Light duty factories 1,520 - 2,000
2 Warehouses 1,820 - 2,550
B Office Buildings
3 3-storey offices, owner operated 1,570 - 3,100
4 Shop offices 1,380 - 1,890
C Refreshment, Entertainment, and Recreational Buildings
5 Restaurants 2,080 - 2,200
6 Multi-purpose halls 2,230 - 2,650
D Religious Buildings
7 Mosques 2,380 - 3,820
E Residential Buildings
8 2-storey bungalows 3,250 - 3,430
9 2-storey terrace houses 1,100 - 1,490
10 Luxury apartments 2,870 - 3,590
F Buildings, Spaces in General
11 Elevated car parks 770 - 880

BCISM COSTBOOK 2023 / 23

 2
RM/m GFA (Mechanical & Electrical)
No. Building Categories
Electrical Plumbing A/C Fire Services Lift & Escalators

A Industrial Buildings

1 Light duty factories 110 - 150 40 - 60 0 90 - 110 0

2 Warehouses 100 - 220 10 - 20 100 - 110 100 - 210 0

B Office Buildings
3-storey offices, owner
3 150 - 170 4 - 20 0 20 - 60 90 - 100
operated
4 Shop offices 90 - 290 60 - 70 40 - 50 20 - 60 0

C Refreshment, Entertainment, and Recreational Buildings

5 Restaurants 70 - 110 70 - 90 0 20 - 60 0

6 Multi-purpose halls 350 - 440 50 - 60 170 - 220 40 - 90 0

D Religious Buildings

7 Mosques 1,040 - 1,140 50 - 60 650 - 700 40 - 90 0

E Residential Buildings

8 2-storey bungalows 70 - 100 160 - 170 30 - 40 0 0

9 2-storey terrace houses 40 - 70 90 - 100 0 0 0

10 Luxury apartments 370 - 490 140 - 150 230 - 250 70 - 90 70 - 150

F Buildings, Spaces in General

11 Elevated car parks 160 - 180 0 0 40 - 60 30 - 40

24 / BCISM COSTBOOK 2023

Advertisement
3.0 BENCHMARK
ANALYSIS REPORT
 3.1 Introduction
BCISM welcomes the industry players to submit their past or future projects information in
exchange for a benchmarking analysis report for the project. Furthermore, with the
submission of information, the players will contribute to raise the quality of benchmark data in
the construction sector and eventually support the industry drive for efficiency.
Benchmarking allows you to compare your project's performance to that of other similar
projects, facilitating strategic decisions and continuous development.
Information provided is confidential, none of which will be published without your own or the
client’s concern.

How Do We Analyse Your Project?

This benchmarking analysis has been prepared following submission of estimated construction
project information to the Building Cost Information Services Malaysia (BCISM).
The project was analysed using BCISM Elemental Cost Analysis (ECA) to produce cost/m2 GFA
and the summary is shown in this report. Projects with the same function and specifications
were selected and the cost are updated to reflect the projects location as the submitted
project before benchmarking can be done.
The submitted project has been compared with a sample of 5 similar projects.
All projects are factored to Quarter 2, 2023.

28 / BCISM COSTBOOK 2023

Project Details
Cost : RM1,500,000
GFA : 750m2
Location : Shah Alam, Selangor

The results are summarized in the graphs and tables below.

Please note that the benchmarked project is excluded in the calculation of mean price shown.
Cost/m2 GFA

RM1,818
RM2,000

RM1,968

RM1,968
RM1,897
RM1,715
RM1,542

Benchmarked Project 1 Project 2 Project 3 Project 4 Project 5

Project

5 Comparable Projects Mean Price

Element Mean Price (RM/m2) Benchmarked % Difference

Project (RM/m2)

Substructure 209 200 -4%

Superstructure 678 710 +5%

Finishes 231 190 -18%

FF&B 0 0 0

Services 621 700 +13%

Preliminaries 79 200 +153%

Benchmarked project cost more than the mean price by RM182/m2.

The element showing the largest cost difference is preliminaries which is 153% higher
than the mean of similar projects.

BCISM COSTBOOK 2023 / 29

 Project Details
Cost : RM7,500,000
GFA : 2,500m2
Location : Kota Damansara, Selangor

The results are summarized in the graphs and tables below.

Please note that the benchmarked project is excluded in the calculation of mean price shown.
Cost/m2 GFA

RM2,295
RM3,000

RM2,536
RM2,496
RM2,476
RM2,009
RM1,958

Benchmarked Project 1 Project 2 Project 3 Project 4 Project 5

Project
5 Comparable Projects Mean Price

Element Mean Price (RM/m2) Benchmarked % Difference

Project (RM/m2)

Substructure 276 300 +9%

Superstructure 968 1,200 +24%

Finishes 156 150 -4%

FF&B 0 0 0

Services 700 1,050 +50%

Preliminaries 195 300 +54%

Benchmarked project cost more than the mean price by RM705/m2.

The element showing the largest cost difference is preliminaries which is 54% higher
than the mean of similar projects.

30 / BCISM COSTBOOK 2023

Project Details
Cost : RM 6,820,000
GFA : 3,100m2
Location : Seremban, Negeri Sembilan

The results are summarized in the graphs and tables below.

Please note that the benchmarked project is excluded in the calculation of mean price shown.

RM2,766
Cost/m2 GFA

RM3,074
RM3,003
RM2,750
RM2,547
RM2,455
RM2,200

Benchmarked Project 1 Project 3 Project 4 Project 2 Project 5

Project

5 Comparable Projects Mean Price

Element Mean Price (RM/m2) Benchmarked % Difference

Project (RM/m2)

Substructure 357 110 -69%

Superstructure 883 880 -0.3%

Finishes 404 310 -23%

FF&B 130 110 -15%

Services 808 660 -18%

Preliminaries 184 130 -29%

Benchmarked project cost less than the mean price by RM566/m2.

The element showing the largest cost difference is substructure which is 69% lower than
the mean of similar projects.

BCISM COSTBOOK 2023 / 31

 Project Details
Cost : RM135,000 (1 unit)
GFA : 150m2 (1 unit)
Location : Nilai, Negeri Sembilan

The results are summarized in the graphs and tables below.

Please note that the benchmarked project is excluded in the calculation of mean price shown.

RM1,465
Cost/m2 GFA

RM1,836
RM1,694
RM1,410
RM1,269
RM1,116
RM900

Benchmarked Project 1 Project 2 Project 3 Project 4 Project 5

Project

5 Comparable Projects Mean Price

Element Mean Price (RM/m2) Benchmarked % Difference

Project (RM/m2)

Substructure 191 120 -37%

Superstructure 653 410 -37%

Finishes 262 160 -39%

FF&B 130 70 -46%

Services 138 90 -35%

Preliminaries 91 50 -45%

Benchmarked project cost less than the mean price by RM565/m2.

The element showing the largest cost difference is fittings, furnishings & built-In
furniture which is 46% lower than the mean of similar projects.

32 / BCISM COSTBOOK 2023

Project Details
Cost : RM 240,000,000
GFA : 60,000m2
Location : Kuala Lumpur

The results are summarized in the graphs and tables below.

Please note that the benchmarked project is excluded in the calculation of mean price shown.

RM3,435
Cost/m2 GFA

RM4,000

RM3,764
RM3,663
RM3,480
RM3,358
RM2,912

Benchmarked Project 1 Project 2 Project 3 Project 4 Project 5

Project

5 Comparable Projects Mean Price

Element Mean Price (RM/m2) Benchmarked % Difference

Project (RM/m2)

Substructure 266 400 +50%

Superstructure 1,240 1400 +13%

Finishes 489 600 +23%

FF&B 215 200 -7%

Services 958 1000 +4%

Preliminaries 267 400 +50%

Benchmarked project cost more than the mean price by RM565/m2.

The element showing the largest cost difference is substructure & preliminaries which is
50% higher than the mean of similar projects.

BCISM COSTBOOK 2023 / 33

Advertisement
4.0 RESEARCH AND
REVIEW
 4.1 Pricing Trends of Steel SAME AS MAGAZINE
“The trajectory of domestic steel prices tracks the N3C Steel Reinforcement Price Index is used to
international price trend. Hence, domestic steel view the trends for the steel price. The Index is
bar manufacturers have no control over steel defined as an input price index which measures
prices as domestic steel prices are subject to global changes in the transaction price of steel
supply and demand dynamics,” – The Malaysian reinforcement input to the construction process.
Iron & Steel Industry Federation and Malaysia
Steel Association.

Steel Reinforcement Price Index

162.7

152.4 150.4

Forecast
129.4 140.3 126.7
135.2 122.8
132.2 118.4

107.1 107.1
99.6
103.1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2020 2021 2022 2023

In Q3 2020, steel prices fall at 7% due to The price of steel soared to its highest level since
lockdowns and a sharp decline in end-use 2020 at the Q2 2022 which record an increase of
demand. However, the recovery begins in the 14% from previous quarter. By that time, it was
subsequent quarter. Restocking and pent-up obvious that the War in Ukraine would not finish
demand combined with recovering underlying quickly, and steel prices would react accordingly.
demand drove Malaysia's market into Shortly after, restrictions were imposed on Russian
undersupply. goods and Ukrainian output slowed down. Due to
supply shortages, this forced importers of pig iron
to look outside of Ukraine and Russia for suppliers.
In Q4 2020 to Q3 2021, steel prices have soared by
35% as a result of a lack of supply compared to
demand from end users and supply chain China's implementation of the zero-COVID policy
restocking. The Covid-19 issue had a significant in Q3 2022 led to a decrease in the demand for
impact on China's steel production, and while it steel prices in the construction industry.
gradually recovered, the increase in perceived
demand exceeded it. The economic stimulus in
So, what’s next for the market?
China made the undersupply in Malaysia worse.
The infrastructure and construction sectors
received incentive from the stimulus plan. Because Being the world's largest user and producer of
of this, China's exports of steel were insufficient metals, China's economic expansion will boost the
due to the country's high domestic demand. This demand for industrial metals. However, the
has an impact on Malaysia because it imports ongoing war between Russia and Ukraine will keep
steel from China the most especially long products. this market uncertain. Russian metal might also
flood the markets and effect the prices if the war
Restocking and pent-up demand slowdown in Q4 ends. If this condition persists, it is expected that
the price of steel will continue to decline by 7% at
2021, which causes the price of steel to fall by 8% the end of Q2 2023.
until Q1 2022.

36 / BCISM COSTBOOK 2023

 Year-On-Year Percentage Changes (2022 on 2021)
Month
Ready Mixed Steel
Cement Aggregate Sand
Concrete Reinforcement
Jan 27% 8% -6% 8% 9%

Feb 7% 10% -6% 8% 19%

Mar 10% 1% -13% 24% 20%

Apr 42% 1% -13% 24% 20%

May 43% 1% -13% 24% 0%

June 18% 1% -13% 24% -5%

July 3% 1% -13% 24% -13%

Aug -8% 1% -13% 24% -15%

Sept -10% -2% -5% 24% -15%

Oct 5% 4% 0% 24% -16%

Nov 20% 4% 1% 35% -13%

Dec 32% 4% 4% 26% -4%

BCISM COSTBOOK 2023 / 37

 The scarcity of over a million workers in shortage worsens daily as demand rises
Malaysia threatens the country's economic because the pandemic is slowly improving.
recovery. According to MIDF, some risks to a full Manufacturers say they need 600,000 more
employment recovery include a lack of available workers, construction needs 550,000, the palm
workers, a constrained global supply chain, and oil industry needs 120,000 more workers,
concerns over Covid-19. A vital part of the chipmakers need 15,000 more workers and still
worldwide supply chain, it employs millions of cannot meet demand, and medical glove
foreign workers to do the dirty, risky, and makers need 12,000. In April 2022, the Minister
challenging work in its factories, plantations, of Human Resources said that companies had
and service sectors that the native population asked to hire 475,000 migrant workers, but the
refuses to do. Businesses across the country, ministry had only approved 2,065. Some
from palm oil plantations to semiconductor requests were denied because the companies
manufacturers, are denying orders and forgoing did not give enough information or did not follow
billions in sales. Covid-19 recruitment the regulations. Workers' rights were mentioned
restrictions were lifted in previous year. Still, by diplomats from Indonesia and Bangladesh,
sluggish government approvals and protracted two of Malaysia's primary sources of foreign
discussions with Indonesia and Bangladesh labour, as a reason for the delay in sourcing
over worker rights have prevented a significant migrant workers. Bangladesh signed an
return of migrant employees to Malaysia. agreement in December to send workers. Still,
the plan has not been implemented yet because
The New Straits Times reported that Malaysia is Bangladesh is protesting Malaysia's proposed
short at least 1.2 million workers in
hiring process. They feared the plan would lead
manufacturing, plantation, and construction. to higher worker costs and debt bondage.
Industry and government data show that this

In bigger picture on labour market, a year-on- overall economy. A decreasing employment rate
year decrease in both the labour force and indicates that less people being hired, which
employment is a concerning trend as it suggests can lead to decreased consumer spending and
a weakening labour market. A shrinking labour economic growth. It can also increase
force can lead to increased competition for unemployment rates, which can have long-term
jobs, higher labour costs, and decreased negative impacts on individuals, families, and
productivity, which can negatively impact the the broader economy.

38 / BCISM COSTBOOK 2023

The Low Wage Paradox Several property developments, hospitality, and
construction companies continue to have
Particularly during the COVID-19 movement
trouble filling low-paying jobs in this situation.
restriction period, several businesses, notably
real estate, and construction, had a labour On the other hand, Khazanah Research Institute
scarcity. Problems continue in these industries (KRI) is accomplishing extensive research on the
because Malaysians are unwilling to take on labour wage problem. According to them, some
what they see as low-wage, manual work. This workers in Malaysia are fighting to make ends
difficulty persists in the post-pandemic period, meet and save up for a better future for
especially with low-paying jobs. Because of this, themselves and their families. The lack of
recruiting foreigners has always been necessary financial stability and opportunities to plan for a
for companies trying to fill these roles. Owing to better future due to low wages had been a
labour scarcity and difficulties in recruiting significant contributor. Bank Negara Malaysia
foreign employees, corporations have (BNM) and the Employees Provident Fund (EPF)
attempted to recruit locals for these positions. have each calculated what a single person and
Options include: a family in Kuala Lumpur need to make a living
wage. KRI changed BNM's 2016 and EPF's 2019
• Considering temporary workers as opposed
levels to 2018 prices so they could figure out
to full-time employees.
how many young (age 15–29) full-time workers
• Allowing a greater turnover rate among in Kuala Lumpur earn less than these levels.
temporary staff as they move on to other
jobs.
• Automating their operations.

Based on the table, 88% of relevant EPF's 2019 estimate for a KL family with two
respondents were earning less than the living children was RM 6,620 as a living wage.
wage threshold for young single full-time According to more recent data from EPF, 80% of
workers in KL, and a similarly high percentage its members earn less than RM 4,900 per
was found when using EPF's benchmarks. Also, month. These are more signs that wages are
DOSM's 2019 data shows that 22.6% of inadequate.
households in KL made less than RM7,000, and

BCISM COSTBOOK 2023 / 39

 Similarly, the BNM reported that in terms of decrease demand for goods and services,
momentum on private sector wage growth, negatively impacting businesses, and the
wage growth turned marginally negative on a overall economy.
quarter-on-quarter seasonally adjusted basis.
In construction industry context, based on the
These trends are in line with GDP developments.
When wages are lower, it can lead to reduced data from National Construction Cost Centre
(N3C) portal, the data points suggest that there
consumer spending, which can result in a
have been fluctuations in the gap between local
decrease in overall economic activity and lower
GDP. This is because consumer spending is a and foreign wages over time, with both local and
foreign wages increasing but the local wage
significant driver of economic growth. When
people have less money to spend, it can remaining higher than the foreign wage.

Labour Wage Rates (per Day) for General Construction Worker Source: N3C
85.80 85.00
82.80
79.50
70.60 72.80
68.20
65.90
1
21

22
1

21

2
1

2
1

21

22
21

21

21

22

2
-2

t- 2

-2
l -2

l -2
r-2

r-2
-2

-2
v-2
n-

n-
b-

g-

p-

b-
n-

n-
c-
ay

ay
ar

ar
Ju

Ju
Ap

Ap
Oc
Au

No
Ja

Ja
De
Ju

Ju
Fe

Se

Fe
M

M
M

Local W age Forei gn Wage

Aside from the issue of wage levels, the spread of wages is also a significant challenge. KRI is
conducting a comprehensive analysis of the wage structure in Malaysia, and preliminary results
show rising wage inequality.

40 / BCISM COSTBOOK 2023

In the decade before the pandemic, the mean year from 2010 to 2020, which was less than the
wage in Malaysia increased more quickly than workers with the highest skills and the best pay.
the median. When the effects of the pandemic These trends show that the incomes of people
were considered, the wages of semi-skilled at the top of the wage scale are growing faster in
workers, who make up about 60% of the ringgit than those in the middle and lower pay
Malaysian workforce, only went up by 1.9% per scales.

BCISM COSTBOOK 2023 / 41

 Finally, EPF reported in 2021 that the top 20% of Malaysians in the short term.
its members (ranked by savings levels) possess
In another report, the DOSM (Department of
77% of its assets and that the EPF wealth of the
top 0.3% of members is equivalent to the Statistic Malaysia) mentions that salary and
bottom 65%. As EPF contributions are statutory wage levels could be under pressure to increase
deductions based on the salaries and wages of over time. Wage rises that do not drive down
workers, these are strong signals of significant competitiveness require improvements in either
quantitative (increased margins) or qualitative
wage inequality.
measures of productivity (i.e., value-added, or
Moving Forward: Opportunities and Challenges intensive profit margin). Hence, either
Ahead productivity per worker needs to rise or the
value of each worker's work needs to grow.
The COVID-19 pandemic has caused a global Creating more with improved technology, a
economic and labour market crisis that has
more educated staff, and better work
never happened before. This crisis affects organization is possible. But, increasing the
millions of businesses and workers. Due to value of the output is more crucial, and it
closing or having fewer hours of operation, some requires a radical shift in one or more of the
businesses have let employees take unpaid following three areas:
leave or cut their pay. However, the continuous
resumption of economic and social activities, • The types of products produced;
innovative business models, government
policies, initiatives such as the National • The value or sophistication of those items;
Economic Recovery Plan, and several grant and • The value-added addition to the finished
financing programs partly contributed to the goods
increase in median and mean monthly salaries
and wages. To move up the value chain and achieve high-
level productivity, the Twelfth Malaysia Plan
In the first quarter of 2023, Malaysia temporarily (2021-2025) uses the full potential of innovative
revised its foreign workers' hiring rules. This is to technologies and the efficiency of businesses.
make it easier for foreign workers to enter This plan continues to speed up productivity,
certain high-demand fields. Employers with focusing on getting ready for Industrial
granted exemptions and conditional approval Revolution 4.0 (IR 4.0), creating an environment
for the first quarter of 2023 can hire foreign for the digital economy, stepping up research,
workers from 15 source countries based on the development, commercialization, innovation,
employer's credentials and necessities without and training the talent in people. All these things
meeting the prerequisites of employment and will lead to more productive workers, boosting
quota qualifications under the Government's wages and making the country more
Relaxation of Foreign Workers Employment competitive and resilient.
Plan.
Given the importance of labour to the
However, experts in the field are worried that economy's advancement, salaries and wages
this decision does not lower the costs of hiring are significant factors influencing productivity.
foreign workers for employers. This is because Building an economy that prioritizes generating
most employers use agencies to find workers work with decent salaries & wages and moving
from other countries. So, it does not look like the up the value chain by leveraging digital solutions
agencies' fees will go down because of the such as artificial intelligence (AI) and robotics to
change. Thus, loosening these rules would help increase productivity will result in higher-paying
the people who find jobs for foreign workers and productive jobs that can provide a
more than it would help their employers. Even subsistence standard of living. This may
though this easing may help Malaysia's encourage the outside labour force to enter the
economy recover in critical sectors and labour market, hence reducing labour
industries, which would benefit the economy, it shortages.
does not look like it will help unemployed

42 / BCISM COSTBOOK 2023

Below is a chart consisting Building Material Cost Index (BMCI), Building Labour Cost Index (BLCI),
Building Machinery & Equipment Index (BMEI), and Building Cost Index (BCI) for residential building in
central region of Malaysia. The indices start with the base date of July 2019.

Building Cost Indices

150

140

130

120

110

100

90

80
Ju

Se

No

Ja

Ju

Se

No

Ja

Ju

Se

No

Ja

Ju

Se

No
l -1

n-

ar

ay

l -2

n-

ar

ay

l -2

n-

ar

ay

l -2
p-

p-

p-

p-
v-1

v-2

v-2

v-2
-2

-2

-2
20

-2

21

-2

22

-2
9

19

20

21

22
0

2
9

2
BMC I BLCI BME I BCI

From the chart, we can observe that BCI tends to follow BMCI trends which shows that materials
cost has the highest cost weightage for residential buildings in central region of Malaysia. However,
BCI is not as rigid as BMEI which indicates the minor cost weightage of machinery and equipment
cost.

BCISM COSTBOOK 2023 / 43

 The chart below depicts the trajectory of the represents the cost of construction incurred by
N3C Building Cost Index (BCI) vs. the N3C contractors, whereas the TPI represents the
Tender Price Index (TPI). The comparison of both price contractors charge the client for their
trends is intended to demonstrate the market services. The base year for the indices is 2016.
condition of the construction industry. The BCI

134
133
132 132
132 131
132
130 128 130
125 129
125 128

Forecast
121 121 121

116 116 116

115 120 120
114
113 113 113
113 113 116

109 108 113

112
110

104 108
103 104
103 103 103
102
102

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
201 8 201 9 202 0 202 1 202 2 202 3

BCI TPI

From early 2018 to late 2019, the TPI line is The lines eventually crossed in the early 2nd
above the BCI line, and the margin between the quarter of 2021. During this point, the market is
two is the largest. This implies that the market in the same state as it was in 2016. Following
was booming in comparison to 2016. that, the TPI continues to fall while the BCI rises.
Contractors can demand their price for the job With the BCI line above the TPI line, the market
during this time while keeping their expenses in is worse than in the benchmark year.
check.
With the removal of the COVID-19 restriction in
However, the gap has decreased since 2020. early 2022, the market will begin to recover, and
This is attributable to the government's contractors will be able to optimise their work
movement control order (MCO) policy, which and supply chain. However, during the second
was implemented to combat the COVID-19 quarter of 2022, the Russo-Ukrainian War
pandemic in Malaysia. The entire sector was disrupts the supply network once more, causing
affected because work was halted. the BCI index to rise.
Furthermore, the supply chain for the materials
Malaysian contractors have adapted to the
was disrupted, which increased the expense of
construction due to limited supply. The work circumstance and are continuing to recover
that was permitted to continue must also follow from the pandemic and the war. BCISM predicts
that the TPI will continue to rise and eventually
the new COVID-19 process, which increases the
cost to the contractors. exceed the BCI.

44 / BCISM COSTBOOK 2023

 5.0 USEFUL
INFORMATION
 Percentage of element in a building

Building Category Substructure Superstructure Architectur Fittings M&E

(%) (%) al (%) (%) (%)
Low-rise residential 5 15 70 0 10
High-rise residential 5 20 45 5 25
Low-rise shops 3 15 67 0 15
Low-rise office 5 18 54 8 15
Mid-rise office 5 20 45 5 25
High-rise office 5 15 40 5 35
Hotels 5 15 25 15 40

External Wall/Floor Ratio

Building Ratio
Residential apartments 1.0m2/m2
Office, hotel 0.4m2/m2

Internal Wall/Floor Ratio

Building Ratio
Residential apartments 1.0m2/m2
Office, hotel 0.5m2/m2

46 / BCISM COSTBOOK 2023

BCISM COSTBOOK 2023 / 47
 38% of total global CO2 emissions are caused contrast, embodied carbon emissions are
by the building and construction industry. This connected with the extraction, manufacture,
value includes 28% operational carbon and 10% transportation, construction, maintenance,
embodied carbon. Carbon emissions replacement, demolition, disposal, and end-of-
attributable to operations such as heating, life components of the building's materials and
cooling, powering, supplying water, etc. In systems.

PRODUCT / SUPPLY CONSTRUCTION

Raw Transportati Manufacturi Transportati Constructio

Material on ng on n
Supply

END-OF-LIFE OPERATION

Demolitio Transportati Waste Operation Maintenanc

n on Disposal e & Repair

Embodied Operational
Carbon Carbon

Despite increased energy efficiency investment enhance building energy performance, lower the
and decreased energy intensity, the building and carbon footprint of construction materials,
construction sector's energy consumption and multiply policy goals alongside action, and
CO2 emissions have risen to an all-time high boost energy efficiency investments.
following the COVID-19 epidemic.
Can Malaysia Achieve Net Zero Carbon by
The industry's operational energy-related CO2 2050?
emissions reached 10 gigatonnes of CO2
equivalent, a 5% rise over 2020 levels and a 2% Malaysian construction culture is significantly
rise over 2019's pre-pandemic peak. The distinct from that of Europe and the west.
Europe and the western world, as developed
operating energy usage for heating, cooling,
lighting, and building equipment increased by nations, can focus more on sustainable
construction, while Malaysia, as a developing
approximately 4% in 2021 compared to 2020
and 3% compared to 2019. According to nation, will focus more on new construction to
analyses conducted by the Global Alliance for boost economic growth.
Buildings and Construction (GlobalABC), the Ir. Ramuseren of CIDB Malaysia noted that If
2050 decarbonization goal appears to be further no effort is made to reduce emissions from the
distant. sector, emissions will grow by 92% by 2050. The
Decarbonizing the buildings industry by 2050 is Malaysian government will need baseline
essential for achieving these reductions. To emission data in order to design emission
control plans for the sector.
reduce overall emissions, the sector must

48 / BCISM COSTBOOK 2023

Companies might be offered tax incentives to Ts. Dr. Foo Chee Hung of MKH Berhad outlined
encourage greenhouse gas (GHG) reporting, the lack of the Industrialised Building System
which policymakers would utilise to construct a (IBS) implementation in Malaysia. He suggested
comprehensive emission control plan. Once that the government provide tax rebates and
these systems are in place, a carbon tax non-monetary incentives, such as an increase in
scheme that discourages excessive GHG density and plot ratio or a reduction in
emissions could be introduced. development fees, to encourage the sector to
try to align with the Government's objective to
Darshan Joshi of ISIS added by decreasing raise the IBS score to above 70.
greenhouse gas emissions, carbon tax would
raise government revenue that could be used for In conclusion, the Malaysian construction
climate finance, investments in public industry has not yet implemented these
transportation, fiscal burden relief, carbon recommendations. First, there is an obvious
rebates for low-income households, etc. The lack of policy incentives. Second, there are
prospective pricing for carbon should be financial factors, such as costly consulting fees
determined based on criteria including the for engineers to create and approve a lean
actual social cost of carbon, political feasibility, building design and higher prices for materials
and economic concerns. that can substitute cement in construction.
Thirdly, a mindset shift and a deeper
Yasotha Chetty of OHR Engineering argued that comprehension of these low-carbon choices are
a leaner architectural design would necessitate
required. Furthermore, Malaysia has prioritised
less material, resulting in less carbon being operational carbon reduction above embodied
embodied. One could also try optimising design carbon. Hence, there are several regulatory
through the substitution of cement. The optimal
obstacles to adopting several of the
design with 40% cement replacement (with suggestions.
lower carbon embedded material and no
additional cost) would reduce embodied carbon
by 48%. Globally, timber with lower embodied Written by Yusuf Khalid, Construction Cost Specialist, BCISM
carbon has been utilised as a structural material
of the twenty-first century. However, the UBBL
of Malaysia now prohibits the use of wood as a
structural material.

References
1. CO2 emissions from buildings and construction hit new high, leaving sector off track to
decarbonize by 2050 (Sharm El Sheikh (UNEP), 2022), https://www.unep.org/news-and-
stories/press-release/co2-emissions-buildings-and-construction-hit-new-high-leaving-
sector#:~:text=Materials%20used%20in%20the%20construction,avoid%20undermining%20ener
gy%2Dsaving%20measures.
2. We Can Halve Embodied Carbon (Anjali Viswamohanan (CGM), 2021),
https://www.cgmalaysia.com/post/we-can-halve-embodied-carbon
3. Embodied Carbon 101 (Carbon Leadership Forum, 2020),
https://carbonleadershipforum.org/embodied-carbon-101/

BCISM COSTBOOK 2023 / 49

 Thanks to technological advances in the in open standards, such as Industry Foundation
construction industry, the Building Information Classes (IFC), can be of considerable interest.
Modelling (BIM) methodology has become a Open BIM approaches promote collaboration and
powerful tool that goes beyond the mere visual interoperability between the many different
representation of architectural designs. As well as disciplines and professionals involved in a
revolutionising how projects are designed and construction project. With IFC as a neutral and open
implemented, BIM also offers an innovative format, the exchange of information between
approach to developing accurate and detailed different platforms and programs becomes more
bills of quantities. Through the use of intelligent fluid and accurate, allowing those responsible for
data and 3D models with a high volume of the bills of quantities to directly access the relevant
information, construction professionals can now data contained in the BIM models.
take advantage of the benefits of BIM modelling to
automate the extraction of properties and quantities Open BIM Quantities, developed by CYPE, is a good
from project elements, this allows for quantities to example applied to the project's bill of quantities.
Using this tool, users can draw up a more complete
be measured more efficiently and a direct
correlation with cost databases. and accurate bill of quantities, avoiding the
inconsistencies and errors that are common in
This synergy between technology and bill of manual processes. Furthermore, professionals can
quantities represents a major step forward in the establish customised quantity criteria, selecting the
evolution of the industry, providing a solid basis for specific quantities required for creating the bill of
informed decision-making and more effective quantities. The automation provided by Open BIM
management of resources throughout the project Quantities optimises time and resources, allowing
lifecycle. experts to focus on analysis and make informed
decisions.
In this respect, the use of Open BIM tools and files

The program allows users to define specific multiple BIM models from different software
quantity criteria, enabling selective filtering of developers such as Autodesk, Bentley, Trimble and
elements based on their properties. This allows others. As a result, it accommodates federated
specialists to measure project items more model-based workflows, fostering seamless
accurately. For carrying out bills of quantities, Open collaboration and coordination on highly complex
BIM Quantities can import data from a variety of cost projects.
database formats, including .csv and the FIEBDC-3
(.bc3) standard. It also offers the ability to access
information from the National Construction Cost More information on Open BIM Quantities:
Centre and match items to data in the IFC model. https://info.cype.com/en/software/open-bim-
quantities/
Additionally, Open BIM Quantities has exceptional
adaptability, allowing the simultaneous reading of

50 / BCISM COSTBOOK 2023

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Disclaimer :
All rights reserved. No part of this publication may be reproduced or copied in any form without prior
written permission from Building Cost Information Services Malaysia (BCISM) Sdn Bhd.
The information contained herein should be regarded as indicative and for general guidance only.
Whilst every effort has been made to ensure accuracy, no responsibility can be accepted for errors
and omissions, however caused.
Unless otherwise stated, costs reflected in this costbook are Malaysian prices as of May 2023.

Price : RM 30.00