Abstract/Summary

The government of Malaysia recently introduced the National Green Technology Policy together with a proposed RM 1.5 billion (USD 500 million) Green Technology Financing Scheme to promote green and sustainable technologies. This policy is predicated on the belief that regulatory change is a key driver of innovation as local firms compete to develop new products that are more efficient, greener and safer. For the construction sector, the National Green Technology Policy complements the previous thrust to adopt Industrialised Building System (IBS) as a means to deliver high quality building and to reduce the reliance of the sector on migrant labour. The abundance of cheap low-skilled migrant labour has hindered investments in mechanisation and innovation. The current exemption levy for building with 50% IBS elements is 0.125% of construction cost. In order to encourage the construction industry to deliver high quality and environmentally sustainable housing, the government in 10th Malaysia Plan (2011 – 2015) stated to review tax incentives for the design of buildings that are built in a more sustainable manner. This study aims to investigate the influence of government policies toward the use of sustainable technologies and Industrialised Building System (IBS) in the Malaysian construction industry. Primary data has been collected by questionnaire survey of design consultants. The responses on how these policies affect design and construction decisions were analysed by employing descriptive and analytical methods. The findings of this study concluded that government policies play an important role in influencing the adoption of IBS in the construction industry. The most significant way of promoting the use of this innovated method is through incentives