What stopped the industrialised building systems (IBS) - a modernised construction technique, dead in its tracks for over 20 years - was cheap Indonesian labour, claimed two architects.

The IBS, known industry-wide as system construction, has been shunned by the local industry despite having been around since the 1970s, albeit in parts. It is also a regular topic during the weekly cabinet meetings.

The IBS mainly uses pre-fabricated basic structure known as system formwork such as slabs, beams, columns and panels produced in a factory-like environment on-site.

In its report 'Adequate Housing: A Human Right' released on Nov 9, the Human Rights Commission of Malaysia (Suhakam) recommended for the government to implement the IBS through a new national housing policy.

So why does the IBS remain unpopular till today?

Cost factor

Architect Mazlin Ghazali, whose views on housing design was cited in the Suhakam report, said the fears of the system's opponents has been mainly supported by the cost factor which is slightly higher than employing conventional methods.

"It's wrong to say that only a few people know about the IBS because the idea has been around, at least in various forms, for almost 30 years.

"Contractors and developers know what it is but the general resistance is basically due to the cost factor," he said when met recently.

"The abundance of cheap Indonesian labour in the construction industry is preferred than a risky switch to a modern and slightly expensive method," he added.

Mazlin believed that the government has been pushing for the IBS to be adopted by the industry players in recent years in order to deal with the problem of a large population of migrant labour in the country.

"The large number has displaced local labour by working for lower wages. But as we become more developed, it would be inevitable to shift to more modern techniques," he said, noting that Singapore was not dependent on migrant labour.

"This is the reason why the government is pushing for the IBS, not so much for the inherent technological advantages," he said.

Malaysia's construction cost is notably among the cheapest in the world, he added, thanks to the country's over-dependence on Indonesian or migrant workforce.

He said that Malaysia's construction cost has been "arguably quite steady" over the last 20 years with a steady supply of building material.

Mazlin said the IBS could gain popularity and mainstream industry support if the government made it more expensive to hire foreign labour without shifting the cost to consumers.

He conceded that some companies have suffered from slow business because jobs requiring some form of the IBS were hard to come by.

"Although the system is designed to modernise the building or construction process, the cost is still decided by market forces and the supply-demand factor.

"For example, building terrace houses using conventional methods are much cheaper compared with high-rise buildings that are usually low- to medium-cost apartments," he explained.

"Developers do not easily embrace the IBS because, although it is competitive it's not terribly compelling.

"Therefore, an understanding of the system and the decision to adopt a modern system on behalf of shareholders are two very different considerations," he added.

Open tenders

Mazlin suggested that the government be the employer by opening tenders for public projects that gives priority to the lowest bid and that which includes an IBS contractor.

He said this would help alleviate the fear that if the IBS was fully adopted now, contractors would have to fork out more money due to the additional risks on their investments.

Mazlin's business partner and fellow architect Michael James Durack said it was impossible to properly introduce IBS in Malaysia.

"It's much easier in Australia as the industry and the various sectors therein are more refined.

"In Malaysia, developers think they're building houses but in essence they're simply sub-dividing land," he said.

He argued that the IBS is also to try and get better on-site conditions, including the workers' living conditions.