15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-1 of 8

Sustainable Development in the Building Sector: Green Building Framework in Malaysia

Suhaida Mohd Sood, Dr. K. H. Chua, Dr. Leong Yow Peng
Institute of Energy Policy and Research, Universiti Tenaga Nasional, 43000 Kajang, Malaysia

suhaida@uniten.edu.my

ABSTRACT The Green Building Index (GBI) has been promulgated by Malaysian Architect Association and the Association of Consulting Engineers Malaysia (ACEM). Since its inception in 2009, it has been applied on a voluntary basis by developers and alike for residential and commercial buildings. Recently it has also been extended to the manufacturing buildings. The Malaysian government has shown its support through many incentives for the implementation of GBI. There are indications to make GBI mandatory. This paper explores the framework in which GBI operates in Malaysia. The paper will shed some light on the harmonization of key aspects in the framework to ensure the effectiveness of GBI implementation for the sustainable development of the building sector. Keywords: Green Building, GBI, Policy Framework, Regulation, Assessment criteria

1.0

Introduction

The World Commission on Environment and Development (WCED,1987) entitled Our Common Future has raised the sustainability idea in the agenda of socio-economic and environmental dimensions of development to new heights (Hezri & Hasan, 2004). According to Redclift (1987), sustainable development addresses three major areas; i. People living today are entitled to justice and equal rights; ii. Environmental degeneration must be alleviated or eliminated; and iii. Future generations must not be impoverished as a result of current actions. The report suggests that sustainable development is development which meets the needs of the present without compromising the ability of future generations to meet their own needs. Government and policy makers must make themselves ready to manage and mould the development towards creating positive benefits for all. At the International Green Buildings Conference in Singapore (October 2009), a United Nations Environment Programme (UNEP) expert, Dr Arab Hoballah stated that almost no country in the world can hope to achieve carbon dioxide-reduction targets without including the building sector into their plan of action (The Star Online, December 15, 2009). Building industry has been identified as one of the big resource user as buildings converge in themselves major indexes of energy and water consumption, raw material employment and usage of land (Melchert, 2007). Improving energy efficiency in buildings is one of the most cost-effective measures for reducing carbon dioxide (CO2) emission. CO2 is one of the main causes of global warming (Lombard etal.,2008; Omar and Mohammed, 2004; Jaber et al.,2003; Chow,2001; Farhanieh and Sattari,2006; Uchiyama,2002; Radhi, 2008; Yangetal.,2008; Yamtraipat et al., 2006 ; Saidur, 2009). Countries that have embarked on green building sustainable development are many. It began in the 1990s with BREEAM (UK, 1990) and later LEED (US, 1996). The lists of countries with their green/sustainable building indicators/measures are as follow: Country
Australia Brazil Canada

Measurement system
Nabers / Green Star AQUA / LEED Brasil LEED Canada / Green Globes / Built Green Canada

Country
Netherlands New Zealand Philippines

Measurement system
BREEAM Netherlands Green Star NZ BERDE / Philippine Green Building Council

15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-2 of 8

China Finland France Germany Hong Kong India Indonesia

GBAS PromisE HQE DGNB / CEPHEUS HKBEAM Indian Green Building Council (IGBC) / GRIHA Green Buildng Council Indonesia (GBCI) / Greenship

Portugal Republic of China (Taiwan) Singapore South Africa Spain Switzerland United State

Lider A Green Building Label Green Mark Green Star SA VERDE Minergie LEED / Living Building Challenge / Green Globes / Build it Green / NAHB GBS / International Green Construction Code International Green Construction Code (IGCC) BREEAM Estidama Pakistan Institute of Architecture Pakistan Green Sustainable Architecture EDAMA SBToolCZ
ource: Wikipedia, 2011

Italy Japan Korea

Protocollo Itaca / Building Counsil Italia CASBEE KGBC

Green

United Kingdom United Arab Emirates Pakistan

Malaysia Mexico

GBI Malaysia LEED Mexico

Jordan Czech Republic

These countries may have either fully regulated, voluntary adoption of guidelines and standards or a mix of both for the green building sector. Malaysia has begun to embark on the green building practices. With the Malaysian building sector 1 consuming nearly 8,000 GWh of energy in 2008, if nothing is done to optimize energy utilization, the sector will continue to contribute significantly towards the greenhouse gas emissions (GHG).

2.0

Current Development in Malaysia

With global concerns on the environment and sustaining the world resources for the future generations, Malaysia has also embarked on initiatives for sustainable development. Malaysias framework for energy development in terms of energy diversification and efficient utilisation as well as emphasis on sustainable environmental started when the National Energy Policy 1979 (NEP79), National Depletion Policy 1980 (NDP80), Four Fuel Diversification Policy 1981 (4FDP81) and Fifth Fuel Policy 2000 (5FP2000) were formed (Chua and Oh, 2011). The launch of the National Green Technology Policy (NGTP) in 2009 is a manifesto of the governments seriousness in implementing green initiatives for the country. These include among others intensification of green technology research and innovation towards commercialization, promotion and public awareness of green technology. Specifically for buildings, the government promotes the application of renewable energy (RE) and energy efficiency (EE) in buildings such as solar photovoltaic (PV), rainwater harvesting, phasing out of incandescent lights, and the application of green building index. Green Technology Financing Scheme (GTFS) [13] was announced in the National Budget 2010 that supports GT and green buildings. The National Policy on Climate Change (2009) through the Strategic Thrust for RE and EE champions the energy efficiency through promotion of green buildings in commercial / institutional, industrial and residential sector. This is achievable through: Application of low or zero energy concept in the design and
1

According to definition by the UNDP (BSEEP, 2009), the building sector in Malaysia includes commercial, government, and high-rise residential buildings.

15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-3 of 8

construction of new buildings; lighting systems; Energy conservation practice in buildings Retrofitting existing buildings to include EE features and generate RE; and Development of a green building index. Retrofitting of efficient ventilation and cooling systems as well as

The government embarked on demonstration building projects that exhibit energy efficiency and other criteria for green buildings. The Low Energy Office (LEO) of Ministry of Energy, Green Technology and Water (MEGTW), Zero Energy Office (ZEO) of Malaysian Green Technology Corporation (GTM) and Diamond Building of the Energy Commission (EC) of Malaysia are examples of implementation of energy efficiency for buildings (Fig. 1).

Green Energy Office (GEO) building, MTGC, Bangi

Low Energy Office (LEO) Building, MEGTWs building, Putrajaya

Energy Efficiency Building, Suruhanjaya Tenaga, Putrajaya Malaysias GBI Platinum Rating Building

Figure 1: Malaysia Demonstration Project: Energy Efficient Buildings

In April 2009, Malaysian Institute of Architects (PAM) and the Association of Consulting Engineers Malaysia (ACEM) supported by Malaysia Green Building Confederation (MGBC), together with the building industry launched the Green Building Index (GBI) to enable green grading and certification of Malaysian buildings. GBI which was formulated and promoted by PAM and ACEM, assesses the impact of a new building on its environment based on six criteria namely; energy efficiency, indoor environment quality, sustainable site and management, materials and resources, water efficiency, and innovation. The 10th Malaysia Plan 2 also introduces the AFFIRM framework of Awareness, Faculty, Finance, Infrastructure, Research and Marketing to develop a complete ecosystem for environmental sustainability, which covers green building initiatives, including ; i. Green townships (starts with Putrajaya and Cyberjaya) ii. Revision of the Uniform Building By-Laws to incorporate the Malaysian Standard: Code of Practice on Energy Efficiency and Renewable Energy for Non-Residential Buildings (MS1525)3 iii. Wider adoption of the Green Building Index (GBI) to benchmark energy consumption in new and existing buildings The government also supports the green building initiatives through income tax deduction equivalent to the additional capital expenditure incurred by building owners in obtaining Green Building Index (GBI) certification from 24 October 2009 to 31December 2014, and stamp duty exemption for the first owner of GB. The Building Sector Energy Efficiency Project (BSEEP) is a new initiative implemented by the Government of Malaysia through funding from Global Environment Facility (GEF). The objective of this
2

Chapter 6: Building an Environment that Enhances Quality of Life, 10th Malaysia Plan - 2011-2015.

3 The GBI Rating tool for Non-Residential Existing Building, launched on 26 April 2010 has been turned to The Code of Practice on the Use of Renewable Energy and Energy Efficiency in Non-Residential Buildings under MS 1525:2001.

15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-4 of 8

project is to improve energy utilization efficiency in the Malaysian building sector. The success of this project will be evidenced with Energy Efficiency being more widely practiced and implemented in the building sector and more EE buildings being constructed (BSEEP, UNDP, 2011). According to BSEEP report, it indicates that there are barriers towards the wide spread implementation of energy efficiency for buildings. These include: i. Institutional barriers ii. Policy and regulatory barriers iii. Financial barriers iv. Information and awareness barriers v. Technical barriers With these barriers in mind and the focus on sustainable development goals, this paper explores a framework that incorporates the key elements to ensure success in achieving the sustainable objectives in the building sector.

3.0

The Building Sector Framework

The direct translation of Western models of regulatory framework designs could compromise the potential success in Asian countries such as Malaysia. This paper suggests that the framework requires the involvement of all stakeholders to meet the sustainable development objectives, improve building design, ensures smooth implementation of regulatory reforms and effective delivery of services from the building sector to the society and country. Taking examples from marketing, engineering and economics models, the suggested framework is depicted in Figure 2.

Figure 2 Proposed Regulatory Framework for Green Building Sector in Malaysia

15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-5 of 8

3.1 The Stakeholders In this framework, the stakeholders include the policy makers, developers, building product manufacturers/suppliers, building professionals, local authorities, through to home and building owners, investors, landlords, and tenants, and property managers and public at large. The regulatory bodies would include among others the key players such as the Ministry of Housing and Local Government, Ministry of Works, Ministry of Energy, Green Technology and Water (MEGTW), and Ministry of Natural Resources and Environment (NRE). The professional bodies should include the Board of Engineers Malaysia (BEM), Institution of Surveyors Malaysia (ISM), Malaysian Institute of Architect (PAM), Malaysian Institute of Estate Agents, Other organizations, associations and research institutes could also be included such as the Real Estate and Housing Developers' Association Malaysia (REHDA), Malaysia Property Incorporated, Construction Industry Development Board (CIDB), and Construction Research Institute of Malaysia (CREAM). The Government as the key player influences the overall building sector performance, the quality of building and housing, and the built environment. The tasks covered among others are: i. ii. iii. iv. v. regulating building and housing standards and systems regulating building and construction building consumer awareness providing information and services conducting research and evaluation, and providing technical advice

3.2 The Government and Self Regulation The framework suggests that the government regulation and self-regulation must work together. The proportion of each type of regulation varies as the sector matures over time. At early stage of the green building concept adoption, voluntary basis maybe suitable as not many are aware of the importance and the attractiveness of the green building market. This is true as a study in China found that the majority of the building sector players are laggards and not innovators (Geoff, 2009). The governments hand in the matter should not be pushed away. If voluntary basis is left alone, we might see a slow-paced embracement of the green building practices. For the current building sector development in Malaysia, it is suggested to adopt a top down combined with bottom-up approach The top-down approach requires that the policies and regulations must be in place, and more importantly effectively and efficiently enforced. The policies will set the minimum standard for the builders/ developers to follow. The local governing bodies must play an important role in the enforcement of the green building policies and regulation. The bottom up approach on the other hand encourages innovations and best practices from the builders and developers for the green building applications. When the bottom up and top down approaches are combined, we will get consistent improvements in environmental performance across the market, from the top end to the bottom end, from innovators to laggards. In order to ensure an effective regulatory environment, all constituents of the building sector regulation had to have ownership in the promulgated standards, and hence the involvement of the government was necessary to overcome the issue of enforcement. This can be done through the formation of an independent body with representatives from all the stakeholders involved, to formulate the policies, regulations and standards. The government could then provide a platform for dialogue and collective action from the buildings sector stakeholders to address sustainability issues and the structure in which the green building sector operates.

15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-6 of 8

3.3 The Building Sector Life-Cycle Referring to Figure 2, the regulatory in suggested framework covers all stages of the building sector. Within the circle, through the application of life cycle analysis model, the building sector could be divided into three (3) phases; Development period- Concept, design construct Operating period - Maintain, operate, Retrofit Decommission period - demolition, waste, reuse of site This should cover from conception of the idea to the stage where the building is no longer in use and the site is made ready for other purpose or for a new building. 3.4 The criteria. The existing GBI as used in Malaysia is viewed to be adequate for use in the industry with the current situation. The existing ones are as follows: 1) Energy Efficiency (EE) Improve energy consumption by optimising building orientation, minimizing solar heat gain through the building envelope, harvesting natural lighting, adopting the best practices in building services including use of renewable energy, and ensuring proper testing, commissioning and regular maintenance. Indoor Environment Quality (EQ) Achieve good quality performance in indoor air quality, acoustics, visual and thermal comfort. These will involve the use of low volatile organic compound materials, application of quality air filtration, proper control of air temperature, movement and humidity. Sustainable Site Planning & Management (SM) Selecting appropriate sites with planned access to public transportation, community services, open spaces and landscaping. Avoiding and conserving environmentally sensitive areas through the redevelopment of existing sites and brownfields. Implementing proper construction management, storm water management and reducing the strain on existing infrastructure capacity. Materials & Resources (MR) Promote the use of environment-friendly materials sourced from sustainable sources and recycling. Implement proper construction waste management with storage, collection and re-use of recyclables and construction formwork and waste. Water Efficiency (WE) Rainwater harvesting, water recycling and water-saving fittings. Innovation (IN) Innovative design and initiatives that meet the objectives of the GBI.
(Ref: Green Building Index Sdn Bhd)

2)

3)

4)

5)

6)

3.5 The outcomes When wide spread adoption of green building practices is achieved (with the ideal full adoption of the practices), three major outcomes are identified as follows: i. Security of supply ii. Increased competitiveness iii. Green development success With the combined approach of the government and self-regulations, it is expected that the performance of green building practices will be better across the market. This push will eventually lead to snowballing in these markets, causing transformations that result in green building becoming the norm. the supply of green buildings will be sufficient with an acceptable equilibrium level being met between the demand and supply. This means that the price of green buildings will be affordable to the masses.

15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-7 of 8

While that is achieved, the green buildings would also be susceptible to innovations and new technology at a faster pace, when competition among the suppliers increases. The suggested framework will encourage the innovators to lead the market while reducing the laggards/followers that will only apply the minimum requirements of the regulations. As for the government, this will only mean that the sustainable developments goals could be achieved. The control over the building sector can be loosened as the sector and market for green buildings matures.

4.

Conclusion

This paper has explored the framework in which GBI operates in Malaysia. The paper hoped to shed some light on the harmonization of key aspects in the framework to ensure the effectiveness of GBI implementation for the sustainable development of the building sector. It is hoped that as Malaysia heads towards a more comprehensive implementation of green development in the country, the building sector could champion the cause, by maturing fast enough, moving from government regulated to self-regulated framework. However, the green initiative requires strong support from all the stakeholders. The awareness campaigns need to be intensified. Interestingly, the green building campaign tends to focus on top and middle management but little is conducted on the site workers that execute the project. Hence the site workers have no affinity with the green initiative and provide a lackluster respond. It should be introduced across various level of community that involve in building industries. A cohesive approach will provide better implementation. Sustainable development in building industries requires cooperation from all the stakeholders. By properly implementing sustainable development concept in building industries, a country can achieve social and economic advancement and also able to allow future generations to be able to meet their needs too.

References
Chua, S.C., Oh,T.H., (2011) Green progress and prospect in Malaysia, Renewable and Sustainable Energy Reviews,15, pp. 2850 2861 Hezri, A.A., Hasan, M.N. (2004) Management framework for sustainable development indicators in the State of Selangor, Malaysia, Ecological Indicators, 4, pp. 287304 Melchert, L. (2007), The Dutch sustainable building policy: A model for developing countries? Building and Environment 42, pp. 893901 GreenbuildingIndex Sdn Bhd, 2011) GBI Criteria, Available from http://www.greenbuildingindex.org/index.html [Accessed 29 Jun 2011] Geoff, (2009) China Green Buildings, Available from http://chinagreenbuildings.blogspot.com/2009_04_01_archive.html [Accessed 29 Jun 2011] Kerajaan Malaysia. Bajet 2010. Kementerian Kewangan Malaysia. Available from: http://www.treasury.gov.my [Visited: 9 Jun 2010] Update: 02 November 2009 Kerajaan Malaysia. Rancangan Malaysia ke-10. Unit Perancang Ekonomi, Jabatan Perdana Menteri. Economic Planning Unit, (2010) Malaysia 10th Plan, Available from: http://www.epu.gov.my/rmk10 [Accessed 28 Jun 2011] China Green Building (2011) Available from http://www.feedagg.com/feed/870855/China-Green-Buildings [Accessed 29 Jun 2011] Available from http://en.wikipedia.org/wiki/Green_building The Star Online (2009), Need to tackle building sector, The Star Online, [Internet], Kuala Lumpur, Available from http://thestar.com.my/lifestyle/story.asp?file=/2009/12/15/lifefocus/5274439&sec=lifefocus Building Sector Energy Efficiency Project, (2011) Building Sector Energy Efficiency ProjectBSEEP [Internet], Kuala Lumpur, Available from http://www.undp.org.my/uploads/Procurement/IC/110603_IC%20Procurement%20Notice_DBD_A K.pdf

15-ICIT 26-28/7/11 in Malaysia

ST-8: Best Practices & SD in Construction

Paper #: 08-02

P-8 of 8

Authors Background Ms. Suhaida Mohd Sood is a lecturer in Universiti Tenaga Nasional, teaching accounting subjects such as Managerial Accounting and Business Accounting for business and Engineering Economics for engineering programmes . Currently she is seconded to the Institute of Energy Policy and Research, Universiti Tenaga Nasional, responsible for research, consultancy relating to energy policies and environment. Her current research interests are on energy policy, environment-mitigations for greenhouse gases and housing. She graduated from Lincoln University, New Zealand for B. Commerce & Management, Victoria University of Wellington, New Zealand for B. Commerce & Administration (Hons.), and Lincoln University, New Zealand for Master of Commerce and Management (Accounting). Dr. K. H .Chua is principal lecturer in College of Engineering Universiti Tenaga Nasional (UNITEN ) and assigned to Institute of Energy Policy and Research, UNITEN as Head of Unit for Energy and Sustainable Development. He has been in academic field since 1990 as research engineer in University College Dublin, Ireland. His current research interests are on waste management, environmental education, energy and environment. He holds a PhD and Master Engineering Science in Water and wastewater engineering from University College Dublin Ireland and B.Sc in Civil Engineering from University of Glasgow, UK. Dr. Leong Yow Peng is currently the Director of the Institute of Energy Policy and Research, UNITEN and lectures at Universiti Tenaga Nasional (UNITEN). He has vast industry experience with the Utility Company in Malaysia spanning more than 31 years within the realm of the Energy Industry, Utility Business, Marketing and Customer Relationship Management. His current research interests are on Energy Policy; Energy Economics; Energy Security; Energy and Environment. He holds a PhD (Industry & Business Studies) from Warwick Business School, UK; MBA from University of Ohio-Athens and B.Sc in Electrical Engineering from University of Missouri-Columbia, US. Professionally, he is a member of the Board of Engineers Malaysia.