IN today’s globalised economy, foreign workforce plays a critical role in ensuring the stability and growth of various industries.
Their contributions are vast, spanning multiple sectors and offering unique advantages that are hard to ignore. However, their presence brings along a stigma that needs to be carefully managed.
That management comes in the form of Purpose-Built Workers Accommodations (PBWA), which is crucial to serve Malaysia’s growing industrial sectors, in particular, manufacturing and construction.
Employers are now prioritising quality accommodation to ensure compliance with government regulations, attract talent, and enhance worker welfare.
The Covid-19 workplace clusters have magnified the inadequate living conditions of workers among many others.
In other words, the pandemic pushed through regulatory changes that initiated growing demand for better quality workers’ accommodations.
There is a huge untapped opportunity to ramp up delivery of PBWA across Malaysia, and ISP Group is here to lead the charge.
Not a business, but a force of good for humanity
An investment holding company based in Selangor, ISP Group has a diversified portfolio comprising PBWA, logistics warehouses and manufacturing hubs.
“Seeing the opportunity to create a positive social impact while aligning with Malaysia’s regulatory changes, we realised PBWA could transform workforce management while fostering a sustainable and productive environment for workers,” said ISP Group chief executive officer Eric Ng to FOCUS Malaysia during an exclusive interview.
The decision to venture into PBWA was driven by a need to address a critical gap in the market. Workers’ accommodations have often been overlooked, leading to substandard living conditions and compliance issues for employers.
According to Eric, the PBWA sector in Malaysia holds immense potential, especially with increasing government scrutiny on unregulated accommodations.
“ISP aims to lead the way by delivering scalable, purpose-driven projects that align with employers’ needs and regulatory standards. Our PBWA Kapar project is a model we plan to replicate and expand across key industrial hubs in Malaysia,” he said.
Also, sustainability is at the heart of ISP Group’s projects which come with eco-friendly designs, energy-efficient utilities, and green spaces.
“Additionally, our focus on well-being ensures that workers have access to recreational areas, healthcare facilities, and communal spaces, fostering a healthier, more productive workforce,” said Eric.
The goal of ISP Group is to enhance the living conditions of workers while ensuring that employers can provide accommodations that meet government standards.
“Our innovative financing strategies, such as the RM2 bil ABS Sukuk Wakalah Programme, allow us to remain financially robust while delivering high-quality projects,” said Eric, adding that projects are designed to seamlessly integrate into local communities, reducing social stigma and fostering inclusivity.
Towards sustainability, Eric points to the PBWA Kapar project which integrates features such as spacious living conditions, robust security, recreational amenities, and energy-efficient systems.
He said all PBWAs by ISP Group adhere strictly to the Worker’s Minimum Standards of Housing and Amenities (Amendment) Act 2019 (Act 446), hold certification from Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM) and comply with the requirements of Responsible Business Alliance (RBA).
“As part of our ESG commitment, our PBWAs are green-certified buildings,” he said.
Revolution in sustainable financing
To recap, ISP Group lodged Malaysia’s first sustainability industrial asset-backed securitisation (ABS) sukuk Wakalah programme back in December.
The sukuk proceeds will primarily fund the development of PBWA projects and other strategic real estate initiatives.
This includes expanding ISP Group’s portfolio of sustainable assets, upgrading existing facilities, and exploring new growth opportunities in Malaysia.
Additionally, part of the proceeds will be used to enhance operational efficiency and incorporate smart technologies into these projects.
“It provides us with a Shariah-compliant financing option that appeals to a broader investor base while ensuring transparency and accountability,” said Eric, adding that this approach not only strengthens the company’s financial position but also demonstrates their commitment to sustainability and inclusivity.
Innovation, the language of the future
ISP currently has strategically located landbanks in high-demand industrial areas, including Kapar, Selangor, where their flagship PBWA project is under development.
Eric said their landbank strategy focuses on acquiring sites with strong growth potential, ensuring proximity to industrial zones to meet employer demands.
Moving forward, ISP Group aims to expand its landbank portfolio in other key regions to support the scalability of the PBWA developments.
They plan to expand their footprint in high-demand regions, leveraging their expertise and partnerships to roll out more PBWA projects.
“Additionally, we aim to explore smart technology integration, such as IoT for energy management and enhanced security, to make our accommodations even more efficient and attractive,” said Eric.
He believes PBWA is not just a compliance measure. It is a game-changer in workforce management.
“Our commitment to innovation, sustainability, and community integration will help us shape the future of PBWA in the country,” said Eric. —Feb 7, 2025
Main image: ISP Group
