Exclusive
Part 6 of 8

Every Day, At Least One Contractor Loses Licence Over Fraudulent Documentation

CIDB says it has received fraudulent technical certificates during registration, and complaints from government agencies about alleged falsification detected during tender evaluations.

By Aliza Shah | 14 Apr 2026

Every day, at least one contractor loses their licence for failing to verify credentials submitted during registration

The figure adds weight to SAYS' findings that unqualified players may be entering the construction industry by exploiting what has been described as a loose registration system.

In its response to SAYS, the Construction Industry Development Board said 159 contractors had their Contractor Registration Certificates cancelled, while 245 others were suspended for two years.

159 PPK certificates
cancelled
245 Contractors suspended
for two years

"These actions were taken based on audit findings, particularly in cases where contractors were unable to produce or verify the authenticity of original documents, as well as from verification outcomes obtained from certificate-issuing bodies."

— CIDB, in response to SAYS

The board said recent screenings found only two in every 100 applications contained incorrect or inaccurate declarations, and argued that this did not indicate systemic misuse.

It also said it had received complaints from government agencies about alleged document falsification detected during the tender evaluation stage.

Technical certificate used for contractor licence application
⊕ Click to enlarge

Technical certificate used by the journalist to apply for contractor licences.  ·  Image via SAYS

Technical certification verification is not a one-off process

CIDB said it does not assess or evaluate the technical competency or eligibility of personnel, as its role is limited to document verification.

It said the technical certification verification process is split into three components — digital, human, and institutional assurance.

Infographic
The three-component verification system
01
Digital assurance All external technical certificates uploaded into CIMS are cross-checked with issuing bodies, including those from the Malaysian Construction Academy, government bodies, utilities, and other recognised agencies.
02
Human assurance CIDB officers review security features, serial numbers, and official formats, while identifying altered documents, mismatched signatures, irregular accreditation stamps, and inconsistent course durations or assessment methods.
03
Institutional assurance CIDB verifies certificates issued by non-recognised providers and checks whether the claimed skills align with the training content submitted.

CIDB conducts audits and spot checks on external technical certifications

These checks are triggered when unusual submission patterns are detected, including inconsistencies between training records and declared experience, a high volume of certificates from the same provider, or submissions from new or unfamiliar training bodies.

"These checks are conducted even after registration approval to maintain the integrity of the Contractor Skills Certification system."

— CIDB

CIDB cross-compares provider and contractor records to verify attendance at technical courses

CIDB said it can request the candidate's name, course or certification title, training duration, assessment method, date of issuance, and certificate reference number.

It may also ask contractors for supporting documents such as attendance records, assessment results or transcripts, employer verification letters, and proof of practical experience.

Infographic
What can happen if contractors fail to prove attendance

Verification also includes checking employment status with the EPF

CIDB said this is done to ensure that technical personnel declared by construction companies are genuinely employed and properly qualified.

The check follows claims that consultants were submitting forged EPF statements to secure SPKK registration.

The CIMS platform was introduced to support direct registration and reduce reliance on agents

The CIMS system used by contractors to register their licences
⊕ Click to enlarge

The CIMS system used by contractors to register their licences.  ·  Image via SAYS

CIDB said the system is supported by mobile service counters, a dedicated CIDB Careline platform, structured training programmes, instructional videos, and user manuals.

"These initiatives are designed to minimise reliance on agents, promote transparency, and ensure that contractors fully understand and take ownership of their regulatory obligations."

— CIDB

CIDB said it also works closely with other government agencies, including the Contractor Service Centre, to identify procedural and regulatory loopholes within registration and compliance systems.

"Through these collaborative platforms, CIDB continuously reviews and refines its registration processes, enforcement frameworks, and digital systems to prevent unqualified or non-compliant individuals from entering or remaining in the industry, while ensuring that registration procedures remain efficient and facilitative for compliant contractors."

— CIDB
End of Part 6