CIDB - Construction Industries Review

CHAPTER 3
PRICE, WAGE AND HIRE RATES
Introduction 36
Prices of Major Construction Materials 36
Wage Rates of Construction Personnel 55
CHAPTER 3 PRICE, WAGE AND HIRE RATES
Introduction
Introduction
For this edition, a review has been made to update the content All data in this chapter are from CIDB’s own database and were
on the major construction materials. While bricks, aggregate, collected with the assistance collaboration of construction
sand, cement, and ready-mixed concrete have been retained, four organisations, distributors and suppliers, including hardware
major construction materials are introduced, which indicate the shops and manufacturers.
capacity and importance of the materials to the industry. The four
new materials are paint, glass, steel & metal section and timber.
Steel bars has been renamed as steel reinforcement, in order to
avoid confusion with similar items published at CIDB.
Prices of Major Construction

- East Coast Region: Kelantan and Pahang
- Southern Region: Johor
Materials • Sabah: Kota Kinabalu, Tawau and Sandakan
The prices of construction materials were based on actual the • Sarawak: Kuching, Miri and to Sibu.
transactions between contractors and suppliers, which includes
any reduced rates or discounted prices, taxes, shipping and All major construction materials, except for aggregate and ready-
handling costs. There are 19 construction materials with 150 mixed concrete had gradual price hikes. The most significant
prices compiled. The exercise involves gathering information changes were observed in aggregate and steel reinforcement
from a minimum of three quotations at selected states. Feedback which fell by -7.0% and increased by 16.6% respectively. Steel
forms were distributed to affiliated members, where the data were reinforcement had the most increase in 2016, rising double-digit
compiled every month. Transacted price data is collated together after consecutive drop in prices (2016: RM2,437.19 per tonne;
with relevant invoices, and information from manufacturers or 2015: RM2,089.64 per tonne; 2014: RM2,363.44 per tonne;
suppliers to determine accuracy. All of the data were verified on 2013: RM 2,548.76 per tonne). The price of steel reinforcement
the validity. The data are categorised according to locations as increased substantially in Q2 and Q4 2016. This could be
listed below: possibly due to the enforcement of safeguard measures for the
• Peninsular Malaysia: steel industry by the government. Meanwhile, the contraction in
- Central Region: Selangor the aggregate prices could be attributed to correction measures
- Northern Region: Perak and Pulau Pinang within the industry after a substantial rise in 2014.
Table 3.2 | Average Price of Major Construction Materials in Malaysia
Source : CIDB
36 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Prices of Major Construction Materials CHAPTER 3
Figure 3.1a | Average Price for Major Construction Figure 3.1b | Average Price for Major Construction
Materials in Malaysia Materials in Malaysia
Aggregate Conventionally, aggregate is more expensive in Sabah than in

Aggregate price fell by -7.0% to RM42.79 per tonne (2015: 45.97 Peninsular Malaysia and Sarawak. In comparison with 2015,
per tonne). All three regions experienced a drop in the respective aggregate price dropped by 10.1% to RM52.00 per tonne (2015:
aggregate prices, the largest drop in Sabah (-10.1%), Sarawak RM57.84 per tonne). All districts registered a drop in prices,
(-7.6%) and Peninsular Malaysia (-1.5%). There was minimal most notably Tawau (-13.2%) and Kota Kinabalu (-13.0%),
variance occurrence between the quarters, with the three regions against Sandakan (-4.0%). The highest and lowest aggregate
showing similar price trends in 2016. price were registered in Sandakan at RM56.67 per tonne (June
2016) and Kota Kinabalu at RM44.83 per tonne (May 2016).
There is negligible price differential for aggregate within
Peninsular Malaysia, with Northern Region at RM39.61 per Sarawak showed similar aggregate price with Peninsular
tonne; Central Region at RM37.69 per tonne; Southern Region Malaysia, at RM38.69 per tonne. Kuching, Sibu and Miri each
at RM37.43 per tonne; and East Coast at RM35.79 per tonne. All recorded aggregate prices of RM37.72, RM38.33 and RM40.03
areas in Peninsular Malaysia recorded minimal price increase, per tonne, respectively in 2016. Year-on-year, in each district
except for Central Region which declined by -9.2%. Northern showed a decrease in aggregate price on a quarterly basis. The
Region also surpassed Central Region, for the priciest aggregate most interesting price movement, was in Sibu, whose prolonged
in 2016. price decrease is seen from Q4 2015 to Q3 2016.
CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 37

Prices of Major Construction Materials
Figure 3.1.1.a | Price of Aggregate in Malaysia
Source : CIDB
Figure 3.1.1.b | Price of Aggregate in Peninsular Malaysia
Source : CIDB
Figure 3.1.1.c | Price of Aggregate in Sabah
Source : CIDB

Figure 3.1.1.d | Price of Aggregate in Sarawak
Source : CIDB
Bricks 2016 had the distinguished month of having the highest brick
The price of bricks climbed by 4.2% to RM0.44 per piece (2015: price at an average of RM0.48 per piece.
RM0.42 per priece). The trend indicated higher prices in the first
half of 2016 (RM0.45 per piece), that stabilised in the second In Sabah, bricks were more expensive in Tawau at RM0.45 per
half of 2016 (RM0.43 per piece). In 2016, bricks was priced at piece against RM0.44 per piece in Kota Kinabalu and Sandakan.
RM0.42 per piece in Peninsular Malaysia, against RM0.44 and Between the districts, Kota Kinabalu registered had the highest
RM0.46 each in Sabah and Sarawak. A decline in brick price growth of bricks’ prices at 13.6% (2015: RM0.39 per piece). In
was observed in Peninsular Malaysia and Sabah, contrary to contrast, Sandakan saw the price of bricks fall by -1.7% (2015:
Sarawak’s ascending brick prices especially in Q2 2016. RM0.45 per piece).
All regions in Peninsular Malaysia registered a decline in bricks The price of bricks jumped the most, by 11.8% to RM0.46 per
price, particularly the East Coast where prices fell by -5.4% to piece (2015: RM0.42 per piece) in Sarawak. Both Kuching and
RM0.44 per piece (2015: RM0.46 per piece). Nevertheless, East Sibu each registered an increase of 13.3% to RM0.47 per piece
Coast had also the priciest bricks in Peninsular Malaysia. The (2015: RM0.42 per piece), while Sibu registered an increase of
cheapest bricks were found in Northern Region with an average 9.0% to RM0.45 per piece (2015: RM0.42 per piece). The price
price of RM0.40 per piece, while Central and Southern Region of bricks hovered between RM0.44 and RM0.50 per piece in
registered the same average price of RM0.41 per piece. April Sarawak.
Figure 3.1.2.a | Price of Bricks in Malaysia
Source : CIDB

Figure 3.1.2.b | Price of Bricks in Peninsular Malaysia
Source : CIDB
Figure 3.1.2.c | Price of Bricks in Sabah
Source : CIDB
Figure 3.1.2.d | Price of Bricks in Sarawak
Source : CIDB

Cement Peninsular Malaysia were priced between RM16.73 to RM19.55 per

Among the major construction materials, cement prices were bag in 2016.
most stable with only a slight increase of 2.4% to RM19.34 per
bag (RM18.89 per bag). Relatively, there were little differences Cement prices in Sabah increase dropped marginally by -0.9% to
in the price of cement between the three regions. The price of RM19.36 per bag (2015: RM19.53 per bag). Between the districts,
cement seemed to increase most in Q1 to Q2 2016. All regions cement prices in Kota Kinabalu fell by -4.8% to RM17.92 per bag
show little price changes except for Sarawak, which also had the (2015: RM18.82 per bag). Tawau and Sandakan each saw minimal
steepest increase of cement prices between quarter Q2 to Q3 2016. changes in cement price with an increase of 0.4% to RM20.09 per
In Peninsular Malaysia and Sabah, the price of cement moderated bag (2015: RM20.02 per bag) and 1.6% to RM20.07 per bag (2015:
towards the end of 2016. RM19.75 per bag). The price of cement in the second half were
constant and remained unchanged.
After experiencing low prices in 2015, the price of cement rose by
2.3% to RM18.29 per bag (2015: RM17.89 per bag) in Peninsular At RM20.37 per bag, Sarawak had the highest price of cement. Miri
Malaysia. East Coast and Central Region had the most price had the cheapest cement at RM19.97 per bag, against RM20.12 and
increase at 3.6% and 2.5% each. This was followed by Southern RM21.01 per bag respectively in Kuching and Sibu. Between the
and Northern Region at 1.7% and 1.2% respectively. The monthly districts, Sibu had the highest price of cement while Miri outstripped
prices were mixed throughout 2016, but showed an upward trend Kuching as the place with the lowest cement prices in Q2 2016.
towards the end of 2016. In retrospective, the price of cement in Cement prices showed an upward trend throughout 2016, after
peaking in Q3 2016 and remained firm to Q4 2016.
Figure 3.1.3.a | Price of Cement in Malaysia
Source : CIDB
Figure 3.1.3.b | Price of Cement in Peninsular Malaysia
Source : CIDB
Figure 3.1.3.c | Price of Cement in Sabah
Source : CIDB
Figure 3.1.3.d | Price of Cement in Sarawak
Source : CIDB
Glass the other hand, East Coast and Southern Region had a closer range of
In this section, glass refers to the commonly used clear float glass prices at RM48.48 and RM50.22 per square metre, respectively.
glass with 5 metre square thickness. Glass prices registered Even though Kota Kinabalu had a relatively cheaper glass price,
an increase of 6.5% to RM54.44 per metre square (2015: the city also saw a notable price increase. Glass price rose by
RM51.10 per metre square). The price of glass rose by 8.6% to 14.2% to RM57.87 per square metre (2015: RM50.67 per square
RM49.69 per square metre (2015: RM45.74 per square metre) metre) in Kota Kinabalu, against an increase of 6.0% and 1.4%
in Peninsular Malaysia, compared to an increase of 6.9% to in Sandakan (2016: RM61.71 per square metre; 2015: RM58.21
RM59.61 per square metre (2016: RM55.78 per square metre) in per square metre) and Tawau (2016: RM59.25 per square metre;
Sabah; and 4.3% to RM54.01 per square metre (2015: RM51.77 2015: RM58.45 per square metre).
per square metre).
In Sarawak, the pricier glass was in Sibu at RM58.61 per square
On a comprehensive analysis, the prices of glass were varied in metre. Miri and Kuching had relatively cheaper prices, each
Peninsular Malaysia. Unlike other construction materials, Central at RM51.33 and RM52.09 per square metre. Prices of glass
Region registered the steepest glass price at RM61.13 per square continued to rise in Q1 2016, which began in 2015. Based on
metre. That was more than RM20 in price difference to the cheapest trend, it is possible that glass prices in the three districts could
glass price of RM38.92 per square metre in the Northern Region. On moves more closely for 2017.

Figure 3.1.4.a | Price of Glass in Malaysia
Source : CIDB
Figure 3.1.4.b | Price of Glass in Peninsular Malaysia
Source : CIDB
Figure 3.1.4.c | Price of Glass in Sabah
Source : CIDB

Figure 3.1.4.d | Price of Glass in Sarawak
Source : CIDB
Paint the Northern Region. Prices were higher at the beginning of 2016
Paint refers to the standard colour-external acrylic emulsion and moderated towards Q4 2016.
weathershield paint, priced in 5 litres packaging. Paint was the
only exception, of which Sarawak registered a lower price than in Paint registered the most price increase at 6.8% in Sabah.
Peninsular Malaysia and Sabah. The most affordable paint could Among the districts, paint was much cheaper in Kota Kinabalu
be found in Sarawak at RM128.11 per 5 litres, against RM133.73 and Tawau at RM136.47 and RM138.55 per 5 litres each. Paint
and RM140.19 per 5 litres each found in Peninsular Malaysia price was markedly higher in Sandakan, averaging RM145.55
and Sabah. After constant increase from Q2 2015, paint prices per 5 litres. The highest paint price was recorded at RM150.00
stabilised in 2016, a trend that may continue towards 2017. per 5 litres beginning June 2016 in Sandakan, which continued
towards December 2016. In the meantime, the cheapest price
Southern Region is the only region in Peninsular Malaysia, was registered at RM129.67 per 5 litres on May 2016, in Kota
where paint price fell by -3.1% to RM137.49 per 5 litres (2015: Kinabalu.
RM141.82 per 5 litres). Central Region and East Coast had
lower paint price at RM129.39 and RM131.31 per 5 litres, In general, Sarawak had reasonable paint prices. Miri and Sibu
respectively. In between was Northern Region, which had on had basically the same price of paint at RM129.62 per 5 litres.
average recorded RM136.71 per 5 litres. Paint prices in the East Paint was cheaper in Kuching, at RM125.09 per 5 litres. Paint
Coast, Southern and Central regions moved in tandem, against price looks to be on the mend in Q2 2016, after increasing
continuously since Q1 2015.
Figure 3.1.5.a | Price of Paint in Malaysia
Source : CIDB
Figure 3.1.5.b | Price of Paint in Peninsular Malaysia
Source : CIDB
Figure 3.1.5.c | Price of Paint in Sabah
Source : CIDB
Figure 3.1.5.d | Price of Paint in Sarawak
Source : CIDB

Ready-Mixed Concrete each in Central Region and East Coast, and RM208.90 and
Ready-mixed concrete price dropped by -0.3% to RM263.39 RM210.71 per cubic metre registered in Northern and Southern
per cubic metre (2015: RM264.15 per cubic metre). Ready- Regions.
mixed concrete prices in Sabah and Sarawak experienced a
decline throughout Q1 to Q3 2016, despite the price increases Kota Kinabalu, Sandakan and Tawau each recorded ready-
in Peninsular Malaysia. Nevertheless, ready-mixed concrete was mixed concrete prices of RM297.07, RM313.34 and RM327.91
still cheaper in Peninsular Malaysia and Sarawak at RM211.56 per cubic metre respectively in 2016. The lowest and highest
and RM265.55 per cubic metre each, against RM312.77 per monthly prices were recorded in Kota Kinabalu and Tawau, each
cubic metre each in Sabah. at RM285.33 (June to December 2016) and RM357.20 per cubic
metre (March to April 2016). Sandakan reflects the average price
All four regions in Peninsular Malaysia registered an increase in Sabah, moving in between the high and low prices in Tawau
in ready-mixed concrete price during Q2 2016, but remained and Kota Kinabalu.
unchanged from Q3 to Q4 2016. There were little difference
between the ready-mixed concrete prices in between the four In Sarawak, Kuching had the cheapest mixed-ready concrete at
regions. Ready-mixed concrete prices were almost similar from RM258.30 per cubic metre, followed with Miri and Sibu, each at
Q2 to Q4 2016 in the East Coast and Central Region, compared RM264.02 and RM274.31 per cubic metre. There were moderates
to Southern and Northern Region. On average, ready-mixed price changes in Sarawak, and reflects the stability of ready-
concrete registered RM212.67 and RM213.96 per cubic metre mixed concrete supply in the state.
Figure 3.1.6.a | Price of Ready-Mixed Concrete in Malaysia
Source : CIDB

Figure 3.1.6.b | Price of Ready-Mixed Concrete in Peninsular Malaysia
Source : CIDB
Figure 3.1.6.c | Price of Ready-Mixed Concrete in Sabah
Source : CIDB
Figure 3.1.6.d | Price of Ready-Mixed Concrete in Sarawak
Source : CIDB

Sand Even though Sabah had the highest price of sand at RM49.52 per
In 2016, the prices of sand increased by 4.1% to RM42.59 per tonne, the increase was minimal at 3.1% (2015: RM48.04 per
tonne (2015: RM40.91 per tonnes). Among the regions, Sabah tonne). Between the districts, Sandakan and Kota Kinabalu had
had the costliest sand, compared with Peninsular Malaysia and the highest and lowest price of sand of RM54.00 and RM43.04 per
Sarawak. There were not much regional price movement, except in tonne. The highest price in Sandakan was also the highest price
Sarawak. On average, the prices of sand were RM37.90, RM49.52 registered since 2013. Tawau registered moderate price of sand at
and RM40.36 per tonne in Peninsular Malaysia, Sabah and RM51.52 per tonne. In terms of growth, the price of sands in Kota
Sarawak respectively. Kinabalu declined by -1.0%, while Sandakan rose by 5.5%.
All four regions in Peninsular Malaysia had fewer changes in sand Based on trends, the sand prices in Sarawak showed an upward
prices. On average, Southern and Central Regions had the most trend during the first half of 2016, but moderated towards Q4 2016.
expensive sand at RM41.61 and RM40.88 per tonne respectively. The price of sand in Kuching and Miri each rose by 11.5% to
The least expensive sand were in Northern Region and East Coast RM38.24 per tonne (2015: RM34.31 per tonne) and by 8.4% to
at RM36.82 and RM32.29 per tonne. On a monthly basis, East RM40.94 per tonne (2015: RM37.79 per tonne). Sibu had the least
Coast registered the lowest sand price at RM31.17 per tonne (June price movement, after an increase of 0.9% to RM41.90 in 2016
2016), while the highest price was in Southern Region at RM41.93 (2015: RM41.52 per tonne). It was interesting to note that the sand
per tonne (January 2016). prices in Sibu and Miri seemed to converge in Q3 and Q4 2016.
Figure 3.1.7.a | Price of Sand in Malaysia
Source : CIDB
Figure 3.1.7.b | Price of Sand in Peninsular Malaysia
Source : CIDB

Figure 3.1.7.c | Price of Sand in Sabah
Source : CIDB
Figure 3.1.7.d | Price of Sand in Sarawak
Source : CIDB
Steel Reinforcement tonne in Peninsular Malaysia, Sabah and Sarawak, respectively.

Steel reinforcement was the only construction material to The highest monthly steel reinforcement prices were recorded
increase double-digit by 16.6% to RM2,437.19 per tonne (2015: on December 2016 at RM2,842.97 and RM2,737.82 per tonne
RM2,089.64 per tonne) in 2016. This follows the safeguard each in Sabah and Sarawak. Whilst steel reinforcement peaked
measures introduced by the Ministry of International Trade and at RM2,531.03 per tonne on April 2016 in Peninsular Malaysia,
Industry on steel imports. A total of 13.42% of duties were before moderating throughout 2016.
imposed on imported steel wire rods and deformed bars in coils,
as well as 13.9% of duties were imposed on steel reinforced bar. After three consecutive years of dwindling prices, steel
This was on top of the existing 5% imposed on steel imports. reinforcement price grew by 7.4% to RM2,159.41 per tonne
The safeguard measures were imposed for 200 days from 27 (2015: RM2,010.47 per tonne) in Peninsular Malaysia. The prices
September 2016. did not differ much regionally. On average, Central Region, along
with East Coast each recorded almost similar steel reinforcement
All three regions showed the same price movement throughout prices at RM2,165.82 and 2,165.63 per tonne. Whilst, Southern
2016. The lowest steel reinforcement prices, were all registered and Northern Region had RM2,102.43 and RM2,203.75 per
on January 2016 at RM1,728.07, RM1,85.84 and RM1,858.19 per tonne of steel reinforcement prices in 2016.

In Sabah, steel reinforcement was priced at RM2,542.77 per Steel reinforcement cost more in Sarawak. More than 20% of
tonne. Kota Kinabalu had traditionally been the district with low price increase were recorded in Kuching, Sibu and Miri, with
steel reinforcement price compared with Sandakan and Tawau. an average of RM2,597.08, RM2,612.76 and RM2,618.29 per
Kota Kinabalu, Sandakan and Tawau each registered RM2,445.68, tonne each. Overall, Sarawak had a 22.5% of price increase at
RM2,585.80 and RM2,596.84 per tonne of steel reinforcement RM2,609.38 per tonne in 2016.
prices in 2016.
Figure 3.1.8.a | Price of Steel Reinforcement in Malaysia
Source : CIDB
Figure 3.1.8.b | Price of Steel Reinforcement in Peninsular Malaysia
Source : CIDB

Figure 3.1.8.c | Price of Steel Reinforcement in Sabah
Source : CIDB
Figure 3.1.8.d | Price of Steel Reinforcement in Sarawak
Source : CIDB
Steel & Metal Sections RM3,118.17 per tonne). Steel & metal sections were the only
There was an 0.8% increase in steel & metal sections price material which was pricier in Peninsular Malaysia, than in Sabah
in Malaysia to RM3,177.24 per tonne (2015: RM3,150.78 and Sarawak. Southern Region had the most price increase at
per tonne). Steel & metal sections cost less in Sabah, than in 7.4% to RM3,124.58 per tonne (2015: RM2,908.51 per tonne),
Sarawak and Peninsular Malaysia. The low price in Sabah could against a moderate increase of 3.9% and 2.4% in East Coast
be attributed to the steep drop in steel & metal sections prices and Northern Region respectively. The only price decrease was
trend since Q1 2016. Prices in Sarawak seemed to move closer recorded in Central Region, where prices dropped by -1.6% to
to the average national prices. In contrast, steel & metal section RM3,131.36 per tonne (2015: RM3,181.96 per tonne).
prices continued on a steady climb in Peninsular Malaysia
throughout 2016. Metal & steel sections price contracted marginally by 0.8% to
RM3,151.52 per tonne (2015: RM3,177.08 per tonne) in Sabah.
Peninsular Malaysia registered a 3.0% increase of steel & The highest and lowest monthly prices were also recorded in
metal sections prices (2016: RM3,210.46 per tonne; 2015: Sabah, at RM3,317.58 (January to April 2016) and RM3,036.98

per tonne (June 2016) respectively. In comparison to with with differing price variances. The monthly prices range between
2015 prices, metal & steel sections prices fell in Tawau (2016: RM3,020.00 to RM3,319.05 per tonne in 2016. The cheapest
RM3,160.59 per tonne; 2015: RM3,284.79 per tonne) and Sibu metal & steel sections can be found in Kuching at RM3,064.28
(2016: RM3,124.08 per tonne; 2015: RM3,245.18 per tonne), but per tonne, against RM3,173.31 and RM3,271.60 per tonne in
increase in Kota Kinabalu (2016: RM3,169.89 per tonne; 2015: Sibu and Miri respectively.
RM3,001.26 per tonne).
Sarawak registered a slight steel and metal section price increase

of 0.4% to RM3,177.24 per tonne (2015: RM3,150.78 per
tonne). All districts showed a similar price movement, though
Figure 3.1.9.a | Price of Steel & Metal Section in Malaysia
Source : CIDB
Figure 3.1.9.b | Price of Steel & Metal Section in Peninsular Malaysia
Source : CIDB

Figure 3.1.9.c | Price of Steel & Metal Section in Sabah
Source : CIDB
Figure 3.1.9.d | Price of Steel & Metal Section in Sarawak
Source : CIDB
Timber All four regions in Peninsular Malaysia showed almost similar

Timber price opened at RM2,991.67 per tonne (January 2016), timber price in 2014 and 2015, but deviated gradually in
before ending higher at RM3,055.81 per tonne (December 2016). 2016. Timber prices were stable during Q1 2016 and started to
Cumulatively, timber price rose by 5.9% to RM3,031.75 per tonne increase towards the end of 2016. The Northern Region had the
(2015: RM2,861.98 per tonne). Timber cost much less in Sabah most expensive timber at RM4,020.29 per tonne in Peninsular
and Sarawak at RM2,637.32 and RM2,627.07 per tonne each, Malaysia. The highest and lowest monthly timber prices were
compared to RM3,830.86 per tonne in Peninsular Malaysia. All registered at Northern Region and East Coast, each at RM4,179.50
three locations had similar movement of prices, pointing to an (June 2016) and RM3,601.11 per tonne (January to April 2016).
upward trajectory for 2017.
Sandakan and Tawau had relatively cheaper timber prices at
RM2,597.95 and RM2,575.41 per tonne. In the meantime, timber

cost RM2,640.12 per tonne in Kota Kinabalu. Since Q2 2015, and lowest monthly timber prices were not that different, at
the variances in timber prices between Kuching and Sandakan/ RM2,630.19 (June 2016) and RM2,632.12 per tonne (January to
Tawau had widened. Prices were higher in the beginning of 2016, April 2016). Timber in Sibu was priced at RM2,555.89 per tonne,
but gradually decreased in Q3 2016. compared with RM2,640.12 and RM2,685.21 per tonne each in
Kuching and Miri.
There were not much changes of timber price in Sarawak, and all
3 districts registered stable monthly prices. In fact, the highest
Figure 3.1.10.a | Price of Timber in Malaysia
Source : CIDB
Figure 3.1.10.b | Price of Timber in Peninsular Malaysia
Source : CIDB
Figure 3.1.10.c | Price of Timber in Sabah
Source : CIDB
Wage Rates of Construction Personnel CHAPTER 3
Figure 3.1.10.d | Price of Timber in Sarawak
Source : CIDB
Wage Rates of Construction Construction Workers

Skilled and semi-skilled workers wage rates grew by 3.2%
Personnel to RM103.33 per day (2015: RM100.08 per day) and 4.6% to
Construction personnel were commonly paid according to their RM90.98 per day (2015: RM87.00 per day). Under the skilled
daily wage rates. For this report, the analysis was based on the category, Plumber – Reticulation had the highest wage rates at
common wage rates unless stated otherwise. There are three RM117.09 per day, while General Construction Worker – Building
categories of wage rates collected; the minimum (lowest); had the lowest wage rates at RM68.83 per day. Under the semi-
maximum (highest); and common (most usual) wage rates. skilled category, Bricklayer and Building Wiring Installer each
The data were collected twice a year, with the collaboration of registered the lowest and highest wage rates at RM79.16 and
construction associations. The exercise involves gathering RM110.96 per day respectively. In 2016, all categories enjoyed
information from a minimum of five quotations at selected states, a strong wage rates growth, ranging between 0.3% to 6.4% for
except for Perak, Melaka and Pahang where only a minimum of skilled workers, and between 3.0% to 5.5% for semi-skilled
three quotations were required. The lesser quotations are due to workers. Electrical Wireman PW2 and PW4, each registered
the smaller resources capacity at the three states. The data are moderate wage rate growth by 1.8% to RM2,454.59 per month
categorised according to locations as listed below: (2015: RM2,412.37 per month) and 0.3% to RM3,174.75 per
• Peninsular Malaysia: month (2015: RM3,166.32 per month).
- Central Region: Selangor
- Northern Region: Perak and Pulau Pinang The difference between the minimum and maximum wage rates
- East Coast Region: Kelantan and Terengganu was more prominent in skilled workers at RM40.31, compared
- Southern Region: Johor with semi-skilled workers at RM34.54. On average, minimum
• Sabah: Kota Kinabalu, Tawau and Sandakan wage rates range from RM52.79 to RM96.83 per day in the skilled
• Sarawak: Kuching, Miri and Sibu workers, and RM63.83 to RM93.46 per day in the semi-skilled
workers. On the other hand, maximum wage rates ranged from
The data is summarised into 3 main regions of Peninsular RM90.75 to RM147.69 per day for skilled workers, and RM93.47
Malaysia, Sabah and Sarawak. to RM132.72 per day for semi-skilled workers.

Wage Rates of Construction Personnel
Figure 3.2.1.a | Skilled Construction Workers Wage Rates in Peninsular Malaysia
Source : CIDB
Figure 3.2.1.b | Semi-Skilled Construction Workers Wage Rates in Peninsular Malaysia
Source : CIDB
Construction workers were paid less in Peninsular Malaysia, There were similar wage rates within the four regions in Peninsular
compared with those in Sabah and Sarawak. Skilled workers and Malaysia. Skilled workers earned the best wages in Central
semi-skilled workers each earned RM97.94 and RM82.26 per Region at RM102.30 per day (Northern Region: RM100.04 per
day. Semi-skilled workers’ wage rates experienced contraction in day; East Coast: RM99.22 per day; Southern Region: RM90.21
two categories (Building Wiring Installer : -0.4%; General Welder: per day). While semi-skilled workers were paid more in the East
-1.0%) against eight categories in skilled categories (Carpenter- Coast at RM88.53 per day (Central Region: RM80.54 per day;
Formwork: -4.5%; Roofer : -0.3%; Carpenter – Joinery : -1.5%; Northern Region: RM83.47 per day; Southern Region: RM76.51
Steel Structure Fabricator : -2.2%; General Welder : -3.0%; per day). Central Region offered the best wages for Electrical
Plumber - Building & Sanitary : -0.1%; Electrical Wireman PW4 Wireman PW2 and PW4, each at RM2,944.50 and RM3,293.00
: -4.4%; Electrical Wireman PW2 : -0.8%; Plasterer; -0.3%). per month.

Central and Northern Regions each registered a drop in the RM62.80 per day (General Construction Worker – Building). In
average wage rates in the skilled category, each at -9.5% and contrast, semi-skilled workers earned the most in the East Coast
0.8%. Under the semi-skilled category, only Central Region at RM108.56 per day (Building Wiring Installer), and were paid
posted an 8.7% fall in wage rates. Skilled workers had the highest less in Central Region at RM67.15 per day (Concretor) (Appendix
and lowest wage rates in Central Region, at RM122.70 (Tiler) and 3.1.1.a and 3.1.1.b).
Figure 3.2.1.c | Skilled Skilled Construction Workers Wage Rates in Sabah
Source : CIDB
Figure 3.2.1.d | Semi-Skilled Construction Workers Wage Rates in Sabah
Source : CIDB

Sabah registered an increase of 6.3% to RM106.54 per day Tiler and General Construction Worker – Building earned the
(2015: RM100.23 per day) and 7.9% to RM94.78 per day (2015: highest and lowest wage rates at RM129.95 (Kota Kinabalu) and
RM87.88 per day) in wage rates for skilled and semi-skilled RM66.84 per day (Sandakan) in skilled category. The most and
construction workers respectively. Skilled workers in Sabah least wage rates in the semi-skilled category were registered in
also enjoyed the highest wage rates, against those in Peninsular Building Wiring Installer and Bricklayer at RM122.25 per day
Malaysia and Sarawak. All districts in Sabah enjoyed strong (Kota Kinabalu) and RM77.50 per day (Sandakan). Electrical
growth in the wage rates for skilled and semi-skilled workers, Wireman PW4 in Kota Kinabalu also earned the highest compared
notably semi-skilled workers’ wage rates in Sandakan which grew with other districts/ cities in Malaysia at RM3,376.55 per month
double-digit by 11.0% to RM88.48 per day (2015: RM78.74 per (Appendix Appendix 3.1.1.c and 3.1.1.d).
day).
Figure 3.2.1.e | Skilled Construction Workers Wage Rates in Sarawak
Source : CIDB
Figure 3.2.1.f | Semi-Skilled Construction Workers Wage Rates in Sarawak
Source : CIDB

At RM95.90 per day, semi-skilled construction workers earned and Bricklayer had the highest and lowest wages at RM118.75
the most in Sarawak. Meanwhile, skilled construction workers and RM78.92 per day, respectively in the semi-skilled category
earned RM105.50 per day. All districts in Sarawak enjoyed (Appendix 3.1.1.e and 3.1.1.d).
positive wage rates growth, except for skilled plasterer in Sibu
which fell by -1.2% to RM107.75 per day (2015: RM109.08 per Construction Plant and Machinery Operators
day). Sibu also registered the highest growth in skilled Plumber Wage rates for construction plant and machinery operators grew
- Building & Sanitary which rose by 7.2% to RM109.50 per positively, at 5.2% to RM101.81 per day (2015: RM96.77 per
day (2015: RM102.18 per day). All categories in semi-skilled day). Tower Crane Operators posted the highest wage rates
workers enjoyed positive wage rate growth and that range from each at RM123.01 and 93.98 per day against Slinger/ Dogger
0.5% to 6.5%. Operators which were paid the least at RM91.88 per day. Forklift
Truck Operators had the highest growth at 8.6% while the lowest
There was not much variance between the wage rates in the growth was observed on Mobile Crane Operators at 1.6%.
skilled and semi-skilled categories between the three districts Overall, construction plant and machine operators registered
in Sarawak. Among the district, Sibu had the lowest and highest strong wage rates in all three regions in 2016. On average, the
paid for skilled and semi-skilled workers. General Construction highest wage rates for construction plant and machine operators
Worker – Building and Plumber – Reticulation earned the most were RM108.66 and RM106.01 per day registered in Peninsular
and the least wages at RM122.34 and RM66.09 per day each in Malaysia and Sarawak, respectively. Sabah had the lowest wage
the skilled category. On the other hand, Building Wiring Installer rates at RM90.74 per day.
Figure 3.2.2.a | Plant & Machinery Operators Wage Rates in Peninsular Malaysia
Source : CIDB

All regions in Peninsular Malaysia posted an increase in Meanwhile, Northern Region and East Coast recorded moderate
construction plant and machine operators’ wage rates, except for wage rates at RM103.16 and RM66.77 per day and RM106.22
Northern Region which fell by -1.7%. East Coast had the highest and RM74.25 per day in skilled and semi-skilled categories,
wage rate growth at 10.9%, followed by Central and Southern respectively. Roller/Compactor in Southern Region had the
Region, each at 7.5% and 3.5%. lowest wage rates at RM81.70 per day. Tower Crane Operators
were paid the most in Central Region at RM161.05 per day
Construction plant and machinery operators earned the best (Appendix 3.1.2.a).
wages in Central Region at RM128.75 per day. However,
Southern Region paid the lowest wage rates at RM96.12 per day.
Figure 3.2.2.b | Plant & Machinery Operators Wage Rates in Sabah
Source : CIDB
Each district in Sabah posted a positive increment in wage RM95.96 per day in wage rates. On the other hand, Sandakan
rates, which ranges from 2.0% to 9.3%. Overall, Kota Kinabalu, had the lowest payout, at RM85.78 per day. Construction plant
Sandakan and Tawau registered an increase of 5.5%, 5.2% and and machinery operators earned reasonably in Tawau at RM90.50
7.2% in construction plant and machine operators’ wages. per day (Appendix 3.1.2.b).
In Sabah, Tower Crane Operators earned the most, at RM112.83

per day, whilst Wheel Loader Operators were paid the lowest, at
RM80.76 per day. Among the districts, Kota Kinabalu was the
best site for construction plant and machinery operators, with

Figure 3.2.2.c | Plant & Machinery Operators Wage Rates in Sarawak
Source : CIDB
Construction plant and machine operators in Sarawak saw the RM80.45 per day. Construction plant and machinery operators
wage rate rise by 4.5%. All categories had consistent wage rate were more preferred in Sibu, after registering the highest wage
growth, notably Forklift Truck Operators which registered the rates in, at RM116.96 per day. In comparison, Kuching and Miri
highest increment at 5.5%. There were little differences between each registered RM99.19 and RM67.53 per day, respectively
the wage rates growth among the districts in Sarawak, which (Appendix 3.1.2.c).
points to a balanced demand of plant and machinery operators.
The best wage rates in Sarawak were the Tower Crane Operators
at RM124.02 per day. Forklift Truck Operators were paid the
least in skilled and semi-skilled categories at RM93.24 and
IBS Component Installer The differences between the minimum and maximum wage rates
In 2016, IBS Precast Concrete Installers registered the highest were more obvious in skilled workers. IBS Precast Concrete
common wage rates for both skilled and semi-skilled categories, Installers and Lightweight BlockWall Installers had the most
each at RM152.84 and RM123.68 per day. In contrast, Roof and least differences at RM71.97 and RM42.83 per day. Under
Truss Installers – (Wood) had the lowest common wage rates semi-skilled workers category, the differences were much lesser
for both skilled (RM125.37 per day), and semi-skilled categories at RM43.22 and RM38.17 per day, each registered under IBS
(RM106.26 per day). All IBS components installers posted an Lightweight Panel Installers and Lightweight BlockWall Installers
increase in their wage rates, ranging from 7.5% to 10.2% for respectively. The larger differences between the minimum and
skilled workers, and ranging from 9.3% to 12.4% for semi- maximum wage rates point to a larger deviation from the average
skilled workers. wage rates, and vice versa.

Analysing across the regions, IBS installers were much more Installers was the highest paid skilled worker in all three regions
demand in Sabah and Sarawak compared with Peninsular (Peninsular Malaysia: RM115.28 per day; Sabah: RM172.75 per
Malaysia. On average, skilled IBS component installers in Sabah day; Sarawak: RM170.50 per day). At the same time, semi-skilled
and Sarawak each earned RM147.68 and RM144.54 per day in IBS Precast Concrete Installers had the highest wage rates in
standard wage rates, against RM110.68 per day in Peninsular Sabah and Sarawak, each at RM140.92 and RM139.61 per day.
Malaysia. This were the same for semi-skilled workers. Semi- In contrast, semi-skilled IBS Lightweight Panel Installers had the
skilled IBS installers earn much better rates in Sabah and Sarawak, highest wage rates in Peninsular Malaysia at RM90.80 per day.
each at RM125.85 and RM123.83 per day, against merely
RM88.68 per day in Peninsular Malaysia. IBS Precast Concrete
Figure 3.2.3.a | Skilled IBS Installers in Peninsular Malaysia
Source : CIDB
Figure 3.2.3.b | Semi-Skilled IBS Installers in Peninsular Malaysia
Source : CIDB

Peninsular Malaysia had always registered low wage rates for registered in the East Coast which rose by 15.4% to RM130.60
IBS installers. For skilled and semi-skilled workers, IBS Precast per day (2015: RM113.18 per day), while Central Region dropped
Concrete Installers and Roof Truss Installers - (Light Steel by -7.9% to RM106.99 per day (2015: RM116.18 per day). Both
Gauge) had the highest and lowest common wage rates. The best regions also posted the same results under the semi-skilled
wage rates were found around the East Coast at RM142.96 and workers. Wage rates in the East Coast jumped by 16.6% to
RM113.04 per day for skilled and semi-skilled workers. Southern RM105.58 per day (2015: RM90.58 per day), against a decline of
Region had the least wage rates for skilled and semi-skilled -1.4% to RM84.52 per day (2015: RM85.68 per day) experienced
workers at RM83.55 and RM69.30 per day, respectively. Between in Central Region (Appendix 3.1.3.a and 3.1.3.b).
the regions, the highest growth for skilled workers wage rates was
Figure 3.2.3.c | Skilled IBS Installers in Sabah
Source : CIDB
Figure 3.2.3.d | Semi-Skilled IBS Installers in Sabah
Source : CIDB
The highest wage rates of IBS component installers is in semi-skilled workers had robust growth in wage rates, notably in
Sabah.Tawau and Kota Kinabalu registered the highest and Sandakan and Tawau. The registered wage rates also do not vary
lowest common wage rates, both under the skilled and semi- much between the districts, unlike in Peninsular Malaysia. Based
skilled category. Skilled and semi-skilled IBS Precast Concrete on the data collected, IBS Precast Concrete Installers and IBS
Installers had the highest wage rates at Tawau, each at RM173.59 Lightweight Panel Installers enjoyed better wage rates, both in the
and 143.17 per day. In Kota Kinabalu, skilled and semi-skilled skilled and semi-skilled category (Appendix 3.1.3.c and 3.1.3.d).
Roof Truss Installers - (Wood) had the lowest wage rates at
RM131.50 and RM111.20 per day. On a closer look, skilled and
Figure 3.2.3.e | Skilled IBS Installers in Sarawak
Source : CIDB
Figure 3.2.3.f | Semi-Skilled IBS Installers in Sarawak
Source : CIDB

Skilled and semi-skilled workers registered the highest wage wage rates for skilled System Formwork Installers (RM126.20
rates in Sarawak. Between the districts, Miri had the highest per day) and semi-skilled Lightweight BlockWall Installers
wage rates in skilled and semi-skilled categories at RM178.50 (RM110.15 per day). Semi-skilled workers had more stable wage
and RM145.50 per day, respectively. Both were recorded in IBS rates, in which the relative differences were less evident between
Precast Concrete Installers. In contrast, Kuching had the lowest the districts (Appendix 3.1.3.e and 3.1.3.f).

CHAPTER 4 CONSTRUCTION
Introduction
INDUSTRY PROSPECTS 2017

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CHAPTER 3

PRICE, WAGE AND HIRE RATES

Prices of Major Construction

Table 3.2 | Average Price of Major Construction Materials in Malaysia

36 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Aggregate Conventionally, aggregate is more expensive in Sabah than in

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 37

Figure 3.1.1.a | Price of Aggregate in Malaysia

Figure 3.1.1.b | Price of Aggregate in Peninsular Malaysia

Figure 3.1.1.c | Price of Aggregate in Sabah

38 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Figure 3.1.1.d | Price of Aggregate in Sarawak

Figure 3.1.2.a | Price of Bricks in Malaysia

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 39

Figure 3.1.2.b | Price of Bricks in Peninsular Malaysia

Figure 3.1.2.c | Price of Bricks in Sabah

Figure 3.1.2.d | Price of Bricks in Sarawak

40 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Cement Peninsular Malaysia were priced between RM16.73 to RM19.55 per

Figure 3.1.3.a | Price of Cement in Malaysia

Figure 3.1.3.b | Price of Cement in Peninsular Malaysia

Figure 3.1.3.c | Price of Cement in Sabah

Figure 3.1.3.d | Price of Cement in Sarawak

42 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Figure 3.1.4.a | Price of Glass in Malaysia

Figure 3.1.4.b | Price of Glass in Peninsular Malaysia

Figure 3.1.4.c | Price of Glass in Sabah

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 43

Figure 3.1.4.d | Price of Glass in Sarawak

Figure 3.1.5.a | Price of Paint in Malaysia

Figure 3.1.5.b | Price of Paint in Peninsular Malaysia

Figure 3.1.5.c | Price of Paint in Sabah

Figure 3.1.5.d | Price of Paint in Sarawak

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 45

Figure 3.1.6.a | Price of Ready-Mixed Concrete in Malaysia

46 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Figure 3.1.6.b | Price of Ready-Mixed Concrete in Peninsular Malaysia

Figure 3.1.6.c | Price of Ready-Mixed Concrete in Sabah

Figure 3.1.6.d | Price of Ready-Mixed Concrete in Sarawak

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 47

Figure 3.1.7.a | Price of Sand in Malaysia

Figure 3.1.7.b | Price of Sand in Peninsular Malaysia

48 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Figure 3.1.7.c | Price of Sand in Sabah

Figure 3.1.7.d | Price of Sand in Sarawak

Steel Reinforcement tonne in Peninsular Malaysia, Sabah and Sarawak, respectively.

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 49

Figure 3.1.8.a | Price of Steel Reinforcement in Malaysia

Figure 3.1.8.b | Price of Steel Reinforcement in Peninsular Malaysia

50 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017

Figure 3.1.8.c | Price of Steel Reinforcement in Sabah

Figure 3.1.8.d | Price of Steel Reinforcement in Sarawak

CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017 51

Sarawak registered a slight steel and metal section price increase

Figure 3.1.9.a | Price of Steel & Metal Section in Malaysia

Figure 3.1.9.b | Price of Steel & Metal Section in Peninsular Malaysia

52 CONSTRUCTION INDUSTRY REVIEW & PROSPECT 2016/2017