Business

Petra Modular aims to fulfil labour housing demand in line with Act 446

Proper accommodation urgently needed for up to 1.94 million workers in Malaysia, says MD Rick Singh

Updated 5 years ago · Published on 04 Mar 2021 9:00AM

Petra Modular aims to fulfil labour housing demand in line with Act 446
Petra Modular’s sample modular home at its Telok Gong facility in Port Klang. – SADIQ ASYRAF/The Vibes pic, March 4, 2021

by G. Surach

PORT KLANG – The application of the modular industrial building system technology will be pivotal for employers seeking to build centralised labour quarters (CLQs) in compliance with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) within a short time frame. 

In line with these demands, Petra Modular, the creative engineering division of Petra Group, aims to build CLQs for various employers in the local market.

Managing director Rick Singh said while Petra Modular has already made its mark in the international sector, Act 446 is seen as a window of opportunity for the company to expand its local market.

“At present, there is an immediate need for proper accommodation for up to 1.94 million workers in the country.

“It was also reported that over 90% of worker accommodation is presently not in compliance with Act 446,” he told The Vibes during a visit to the factory premises recently.

The modular technology gives employers a better alternative to ensure proper housing for workers without having to worry about a lack of suitable accommodation, and compliance- and land-related issues.

“Employers will be able to lease land gazetted as industrial, commercial or agricultural land with the state or local councils at a lower cost instead of purchasing the land.

“Since modular buildings are classified as ‘temporary structure’, it enables approval within one month from local authorities.

“For construction projects, once they’re near completion, the CLQs can be easily transported to a new location for the next project.”

Workers assembling modular units at Petra Modular’s facility in Telok Gong. – SADIQ ASYRAF/The Vibes pic, March 4, 2021
Workers assembling modular units at Petra Modular’s facility in Telok Gong. – SADIQ ASYRAF/The Vibes pic, March 4, 2021

Compared to conventional construction, Rick pointed out that modular technology allows the construction of accommodation modules at half the usual time frame.

“It also negates unnecessary costs in renovating present accommodation space and providing amenities.”

With 30 years’ experience in the construction industry, he said, Petra Modular will be able to rapidly complete accommodation between six and 12 months, catering to up to 50,000 workers per year.

“The best part is the similarity of modular-based buildings in design when compared with conventionally built apartments.

“Most importantly, the modular builds for the worker accommodation comply with the regulations set by the Human Resources Ministry through Act 446, and even meet international standards.”

He said the challenge for the industry in addressing the worker accommodation problem in Malaysia is balancing between what employers or workers can pay on a monthly basis, and whether it is sufficient economically for a provider of quality accommodation.

“I’m pleased to note that modular accommodation being movable enables location flexibility. This significantly reduces the chances of building ‘white elephants’ when the industry relocates and the need for worker accommodation no longer exists there.

“A provider merely moves their asset to the next location. This now allows a provider to lease land on the short to medium term, rather than purchase land, which can be very expensive and make the project economically unviable.

“I’m excited that we have a solution that is economically viable and lowers risks based on accepted rental rates today for worker accommodation in Malaysia.”

Petra Modular managing director Rick Singh says modular technology allows the construction of accommodation modules at half the usual time frame. – File pic, March 4, 2021
Petra Modular managing director Rick Singh says modular technology allows the construction of accommodation modules at half the usual time frame. – File pic, March 4, 2021

Petra Modular’s 9,290 sq m plant in Telok Gong can manufacture 4,000 modules annually, depending on the requested specification.

Rick said the company is in the midst of delivering its modules to Australia, New Zealand and the United Kingdom, with plans to expand its global presence to countries such as the Philippines and Papua New Guinea.

“The modular building technology is popular in other countries due to the cost-effective measures, durability and mobility of the modules themselves.

“As I’ve mentioned, the quality of our build is more rigid and robust than conventional build, hence, our accommodation is sought after in many developed countries, such as the UK, Australia and New Zealand, among others.

“We’ve built apartments, houses and hotels, to name a few. Recently, we’ve had enquiries closer to home, from the Philippines and Indonesia, as these potential clients see real value in our structure’s rigidity against seismic and gale-force winds.”

In addition to fulfilling government requirements, Rick believes that proper living conditions that improve workers’ well-being eventually lead to increased productivity.

Petra Modular employees putting the finishing touches on modular units at the company’s Telok Gong facility. – SADIQ ASYRAF/The Vibes pic, March 4, 2021
Petra Modular employees putting the finishing touches on modular units at the company’s Telok Gong facility. – SADIQ ASYRAF/The Vibes pic, March 4, 2021

“Workers who are living in squalid conditions would not be able to give 100% in their jobs, as they struggle to cope with their living conditions. Therefore, by improving their living conditions, by setting up modules for accommodation, in addition to integrated amenities, this could significantly increase their productivity, which benefits the employer as well.”

The move to engage employers in the local market comes on the heels of Human Resources Minister Datuk Seri M. Saravanan’s announcement that a certificate of accommodation will be a prerequisite for employers who intend to hire new foreign workers, effective July 1. These provisions apply to local workers’ accommodation as well.

Act 446 also specifies the provision of a “bedroom” with a minimum floor area of 3.6 sq m for each employee, if the provided accommodation is not a dormitory.

If the accommodation is a dormitory, a “sleeping area” with a minimum floor space of 3 sq m for each worker is required, in addition to other specifications, all of which can be fulfilled by Petra Modular. – The Vibes, March 4, 2021

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