Country Paper Presentation MALAYSIA

Ir Ahmad ‘Asri Abdul Hamid

Construction Industry Development Board (CIDB) Malaysia

2nd March 2012

CONTENTS

• About CIDB

• Liberalisation of Professional Services

• Economic Transformation Programme

BACKGROUND PSDC

Established in 2002 as a company under Company Act 1965

Placed under supervision of the Ministry of Works

100% owned by the Ministry of Finance

Scopes of

Clients

Medical &

Health Legal

Accountancy

Architectural

Engineering Surveying

Interior Decoration

Landscaping

Town Planning

Project Management

Enhancing Capacity &

Competitiveness of Malaysian

Professional Services Firms to face

the challenges of liberalization

Major Role

BACKGROUND PSDC

Winding up of PSDC in April 2011

Transfer of

Functions

CIDB take over the roles of PSDC to assist Professional Services

related to construction

•A Statutory Body

•Under The Ministry of Works, Malaysia

•Established in 1994 under the Act of

Parliament – ACT 520

•Chairman

•6 members representing private

sector

•4 members representing public sector

PRIVATE SECTOR DRIVEN

Major Stakeholders

Developers

Contractors

Sub contractors

Manufacturers

Suppliers

Consultants

To accelerate Economic Development,

Malaysia has embarked on:

• Liberalisation

• Transformation

(ETP, Economic Corridor, MRT, River of Life)

The proposed amendments to the

Registration of Engineers Act is

Primarily Driven by the Government’s Commitments in

International Trade….

What needs to be done for the Registration of Engineers Act Taking the next step…

PROFESSIONAL SERVICES SECTOR IN THE

CONSTRUCTION INDUSTRY

(Foreign Equity)

AFAS Threshold for Equity (Asean Framework Agreement on Services)

2008 : 49%

2010 : 51%

2015 : 70%

AFAS 8th Package

Multi-disciplinary Practice(MDP) : 30% open to anybody/persons

(Architectural, Engineering & Quantity Surveying)

Single-disciplinary Practice(SDP)

Architectural (CPC 8671) : 0%

Engineering (CPC 8672) : 0%

Integrated Engr (CPC 8673) : Unregulated

Quantity Surveying(None yet) : 0%

Cabinet Decision 14 November 2008

2012 : 100%

Budget 2012 Announcement by YAB Prime Minister

7 October 2011

Architectural : 100% by 2012

Engineering : 100% by 2012

MALAYSIA’S COMMITMENTS

Till to-date the professional acts have not been fully amended to reflect Malaysia’s commitments and SDP firms have not been offered in any agreements….

Engineering services involved movement of natural persons and commercial presence will require the Acts to be amended namely in two areas;

Registration of Professional Engineers Sections of the ACT to be amended to automatically recognize the qualifications, experience and

registration of an engineer from another country through MRAs. • Section 7 Restrictions on unregistered persons etc. • Section 8 Only Professionals may submit plans, drawings etc. • Section 10 Qualifications for registration • Section 10A Registration of Temporary Professionals

Registration of Engineering Consultancy Practices Sections of the ACT to be amended in the registration of Companies to be less restrictive especially

with regards to shareholdings and ownership. • Section 7A Single Disciplinary Practice (SDP) • Section 7B Multi-disciplinary Practice (MDP)

CURRENT SECTIONS IN THE REGISTRATION OF ENGINEERS ACTS TO BE AMENDED IN VIEW OF LIBERALISATION

PROPOSED AMENDMENTS The Supply of Professional Engineering Services

As the Boards can register professionals of any nationality, the firms

under which they provide the services may have 100% foreign equity

HOW PROFESSIONAL SERVICE IS PROVIDED

REGISTRATION WITH THE BOARD OF ENGINEERS MALAYSIA

INDIVIDUAL ENGINEERS Engineers of any nationality can be

registered with the Board.

SINGLE DISCIPLINARY

PRACTICE

Sole Proprietorship

Partnership

Body Corporate

100% foreign equity allowed with 30 % equity

open to all and 70% for Professional

Engineers with Practicing Certificate for

body corporate

MULTI-DISCIPLINARY

PRACTICE

Body Corporate

100% foreign equity allowed with 30% equity

open to all and 70% equity for Prof.

Eng/Arch/QS

MANAGEMENT OF THE FIRM

OR BODY CORPORATE

At least 2/3s of the Directors in the Board of

Directors must be Professional Engineers

with Practicing Certificates

PROPOSED AMENDMENTS Temporary Registration & Others

REGISTRATION WITH THE BOARD OF ENGINEERS MALAYSIA

TEMPORARY REGISTRATION OF

FOREIGN PROFESSIONALS

Section 10A deleted since engineers of

any nationality can be registered.

QUALIFIED PERSON UNDER THE

STREET DRAINAGE & BUILDING

ACT

Local or foreign Professional

Engineers with Practicing Certificate

REQUIREMENTS FOR

REGISTRATION

Graduate Engineers qualifications to

meet the Washington Accord

requirements.

Takes 3-4 years to be registered as a

Professional Engineer after passing

Professional Assessment Examination

Additional 2 years to obtain a

Practicing Certificate on passing the

Professional Competency Examination

AMENDMENTS TO THE ENGINEERS’ ACT IN A NUTSHELL

Notes:

Registration with the BEM as a Graduate Engineer is straight-forward provided

that conditions such as the basic qualifications are met (eg. Engineering

degrees recognised under the Washington Accord).

Registration as a Professional with BEM after passing the 1st. tier examination.

However if the foreign professionals can demonstrate the same applies to their

home countries the Boards may consider them to be registered without sitting

the 1st. tier of examination or at least undergo the interview process.

To ‘practise’ and supply professional services BEM will issue licenses upon

passing the Professional Competency Exams i.e. the 2nd. tier of registration.

This is compulsory for all professional engineers wishing to supply professional

services.

1st. Tier of Examination

REGISTRATION WITH

THE BOARDS AS A

PROFESSIONAL

Apply to register

Degree/ Qualification

Accreditation by the

Boards to register as

a Graduate

4 YEARS

WORKING

EXPERIENCE

EXISTING 1st TIER OF EXAMINATION RETAINED.

LICENSED TO SUBMIT

PLANS UNDER ‘S.D.B.

ACT’

Professional

Competency

Examinations

2 YEARS

ECONOMIC CORRIDORS IN MALAYSIA

REGIONAL ECONOMIC CORRIDORS IN MALAYSIA

ISKANDAR MALAYSIA

NCER : NORTHERN CORRIDOR ECONOMIC REGION

SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY

ECER : EAST COAST ECONOMIC REGION

SDC : SABAH DEVELOPMENT CORRIDOR

ISKANDAR MALAYSIA

Logistics, Manufacturing (esp High Tech and aerospace related),

Tourism (Luxury Destination Shopping),

Cybercity

SENAI-SKUDAI

Education & Medical Tourism, Entertainment & Recreation,

State Administration & Finance Biotechnology

NUSAJAYA

Cultural and Urban Tourism

JB CITY CENTRE Logistics, Regional Distribution, International

Procurement

TANJUNG PELEPAS

• Focused Development at Five Flagships

• 2,217 km2 or 550,000 acres

• 3 times the size of Singapore

• 1.4 million population

Manufacturing – Electronics,Petrochemicals

and oleochemical)

PASIR GUDANG / TANJUNG LANGSAT

E

D A B

C

INVESTMENTS IN ISKANDAR MALAYSIA

Projects Sector

Puteri Harbour, Nusajaya Leisure

Johor Premium Outlets, Kulaijaya Premium retail

Regency Specialist Hospital Healthcare

Pinewood Iskandar Malaysia Studios Creative

Management Development Institute

of Singapore (MDIS)

(EduCity)

Education

Raffles University

(EduCity) Education

Raffles American School

(Nusajaya, EduCity) Education

Excelsior International School

(Bandar Seri Alam) Education

Legoland Theme Park

Technocom Systems E&E

Bahru Stainless Sdn Bhd Manufacturing

Investment Opportunities :-

Agriculture,

Manufacturing

Tourism & Healthcare

Education & Human capital

Social Development

NORTHERN CORRIDOR ECONOMIC REGION (NCER)

Area of Coverage : 17,816 sq km

Panasonic

Ibiden

Agilent Phillips

Investment Opportunities :-

Tourism

Oil, Gas & Petrochemical

Manufacturing

Agriculture

Education

EAST COAST ECONOMIC REGION (ECER)

Area of Coverage : 66,736 sq km

HICOM Automotive Manufacturers

Master-Builders (M) Sdn Bhd

ATS Mfg. Services Sdn Bhd

Johnson Controls Automat. Inter (M) Sdn Bhd

Investment Opportunities :-

Tourism

Logistics

Agriculture

Manufacturing

Area of Coverage : 73,997 sq km

SABAH DEVELOPMENT CORRIDOR (SDC)

Bandtree Sdn Bhd (Brunei)

Sabah Biofuel

Golden Green Synergy

SARAWAK CORRIDOR OF RENEWABLE ENERGY (SCORE)

The core of the Corridor is its energy resources

(28,000 MW), particularly hydropower (20,000 MW), coal

(5,000 MW), and others (3,000 MW). This will allow Sarawak to

price its energy competitively and encourage investments in

power generation and energy-intensive industries.

Area of coverage : 70,709 sq km

Tokuyama Corporation

State Grid Corporation of China

Leader Universal Aluminium

DESCRIPTION Total

Final

Length (km) 51.0

(41.5 Elev + 9.5 UG)

Station (nos) 31

(24 Elev+ 7 UG)

Provisional Station (nos) 3 Elev

Park & Ride 16

SUNGAI BULOH

KG BARU

SUNGAI BULOH

KOTA

DAMANSARA

TAMAN

INDUSTRI

SG. BULOH

PJU 5 DATARAN

SUNWAY

THE

CURVE

ONE UTAMA

SEKSYEN 16

PUSAT

BANDAR

DAMANSARA

SEMANTAN

KL SENTRAL MERDEKA

BUKIT BINTANG

CENTRAL

COCHRANE

MALURI

TAMAN BUKIT RIA

TAMAN BUKIT MEWAH

LEISURE MALL

PLAZA PHOENIX

TAMAN SUNTEX

TAMAN CUEPACS

BALAKONG

TAMAN KOPERASI

BANDAR TUN

HUSSEIN ONN

BANDAR

KAJANG

KAJANG

P

P

DBKL

P

P

P

P

MPKj

MPAJ

MPS

MBSA

MBPJ

MPSJ P

P

P P

P

RRI

TEKNOLOGI

TTDI

BUKIT

KIARA

P

Legend

KTM

KJ LRT

AG LRT

MONOREL

ERL

Park n Ride P

P

`

PASAR

SENI PASAR RAKYAT

SAUJANA

IMPIAN P

P

P

P

THE APPROVED FINAL SBK ALIGNMENT – MRT 1

Multiplier Impact

Based on infrastructure projects of this type and magnitude, the Government estimates the construction multiplier impact will be in the region of 2.5 times which translates to approximately RM213 billion flowing into the economy till 2020.

This is based on the impact of money going into the economy from the construction of the 3 MRT lines, the stations and the rolling stock.

The construction sector will benefit from the various opportunities available in Ground Works, M&E, ICT Systems, Viaducts, Stations and many others.

HSS Integrated Sdn Bhd and SNC-Lavalin (Malaysia) Sdn Bhd JV. ICE to provide oversight of the MRT Project and to assist MRT Corp in ensuring

that PDP delivers a safe and efficient transportation system that meets the requirement of MRT Corp and the Government.

ICE to monitor the progress of the MRT Project and its input/verification is required before WPCs are paid.

Independent Consulting Engineers (ICE)

Conclusion

• Participation of Malaysia locally and international projects has produced world class consultancy firms in Malaysia.

• This firms are in the position to share knowledge and experience with others for technology transfer.

THANK YOU