engineering consultancy services in malaysia · g&p professionals sdn bhd () engineering...

G&P Professionals Sdn Bhd G&P Professionals Sdn Bhd ((www.gnpgroup.com.mywww.gnpgroup.com.my))

ENGINEERING CONSULTANCY ENGINEERING CONSULTANCY SERVICES IN MALAYSIA SERVICES IN MALAYSIA ––

CHALLENGES & STRATEGIESCHALLENGES & STRATEGIESBy : Ir. Dr. Gue See Sew

Date: 6 July 2011


CONTENTS

A. CHALLENGES• Engineering Consultancy Firms

� Stagnant / Decline in size• Brain Drain / Talent Lost• Quality of Graduates• Lack of Support Staff


CONTENTS

B. STRATEGIES• Grooming of Engineering Consultancy Firms• Talentcorp Malaysia• Overhaul of Higher Education• Harmonisation of Human Resource and

Education


The StoryThe Story

• One of the main issues is SUSTAINABILITY frequently affected by retirement or decease of Directors

• Capacity of large Engineering Consultancy Firms (ECF) in Malaysia has been stagnant for the last 25 years


Large ACEM Panel FirmsLarge ACEM Panel FirmsNo. Name of Firm Total No. of Staff

1990 2000 2010

1 Sepakat Setia Perunding (M) Sdn Bhd 400 373 503

2 Minconsult Sdn Bhd 509 473 450

3 Ranhill Bersekutu Sdn Bhd 290 450 450

4 HSS Integrated Sdn Bhd - 330 370

5 SMHB Sdn Bhd - 304 300

6 G&P Professionals Sdn Bhd - 20 220

7 Kumarasivan Tan & Ariffin Sdn Bhd 193 341 205

8 Jurutera Konsultant (SEA) Sdn Bhd 262 - -

NOTE: Some disappeared from ACEM Directory


Top Engineering Consultancy Firm in Netherlands

Population of Netherlands: 16.7 Million

Arcadis: 16,000 staff

World Rank: Top 10


Reasons1. Mismatch


Reasons2. Brain Drain


Reasons3. Cyclical Market

19861998

2008


Lessonslearned

ExperienceKnowledge

Don’t you want to retain these ?


Engineeringdesigns

………………………….

Methods of constructions

…….………………..

Checklists……………….………………..

Do’s & Don’ts……………….………………..

Planning………………………..

Architecturedesigns

………………………….

Qualitycontrol

………………………….

and many more………..


Challenging Issues On The Quality Of Graduates

• Attitude

• Command of English

• Adequacy of Fundamentals

• Creativity/Innovations


“…it is disappointedabout the quality of Malaysian engineers.”



• Poor command of English andcommunication skills

REASONS:• Old Policies on Education• Teachers & Lecturers• Usage



• Lack fundamental knowledge

REASONS:• Too much political influence• Compromise on recruitment

– Lecturers lack passion– Support staff

• Lenient in setting exams and giving grades• Accept students below par


Challenging Issues On Technical Support Staff

• Technologists/TAs

• Technicians

• Draftpersons

SERIOUS SHORTAGE!


STRATEGIES


Do you want to Do you want to groomgroom MalaysianMalaysianEngineering Consultancy Firms to Engineering Consultancy Firms to

deliverdeliver QualityQuality Service and to Service and to doubledoubletheirtheir capacitycapacity or size in 3or size in 3--5 years 5 years

without extra budget to the without extra budget to the Government?Government?


Potential Growth of ECFPotential Growth of ECF


How to do it?How to do it?• Government or government-linked

companies to align the projects to SUSTAINABLE firms with capability and capacity


Construction Sector OutlookConstruction Sector Outlook• CIDB expects RM70b of construction &

infrastructure projects to be implemented in 2011 with 3.7% annual growth until 2015

Source:YB Dato’ Shaziman Abu Mansor, Minister of Works

Malaysia, The Construction Sector at the Onset of the 10th Malaysia Plan, The 7th MalaysiaConstruction Sector Review and Outlook Seminar, 3 Aug 2010


What defines a SUSTAINABLE firm?What defines a SUSTAINABLE firm?

1. Ownership structure that encourage sharing or grooming of engineers to be partners

2. Proper QA/QC system e.g. ISO9001

3. Comprehensive Training and Knowledge Management system


What about those smaller What about those smaller companies?companies?

• Solution – to merge


G&P PROFESSIONALS (Consulting Group)

WATER(SINGAPORE)

G&P-AA(Hanoi, Vietnam)

STRUCTURES INFRAPROJECTMANAGEMENT

CLAIMS & CONTRACTSMARITIME

SARAWAK

HIGHWAYS & TRANSPORTATION

GEOTECHNICS

G&P R INT. (CAMBODIA)

R&D

MECHANICAL& ELECTRICAL WATER

DAMS & WATER

NGI - G&PZED - G&P

SABAH


Macro Implementation PlanMacro Implementation Plan

1. Enlist of service providers

2. Grooming3. Export of Services


Enlisting of ECF with capacity pointsEnlisting of ECF with capacity points

Company Level• SUSTAINABILITY elements

Individual Level• Capacity and capability of professional staffs

in different fields of engineering such as Highway & Transportation, Geotechnical, Drainage, etc.


Company Level PointsCompany Level Points

3 main SUSTAINABILITY elements are:

• Ownership (60 points)• QA/QC System (15 points)• Training & Knowledge Management (25

points)

Recommended minimum of 60 points


Ownership StructureOwnership StructurePercentage of Profit Share by

total professional staffPoints

<10% 010% to <15% 1015% to <20% 2020% to <25% 3025% to <30% 4030% to <35% 50

>35% 60Note : Staff strength must be > 20 people.


QA/QC SystemQA/QC System

Description Points

ECF without ISO9001:2000 Certification

up to 10

ECF that maintain certification of ISO9001:2000

15

Note : For companies without ISO9001, the points are to be based on the quality of the existing system.


TrainingTraining ProgrammeProgrammeNumber of Technical Training Events

Per YearPoints

<12 012 to 24 1025 to 36 1537 to 48 20

>49 25Note: Technical Training includes in-house or external engineering talks, presentation, colloquium, conference, seminar on engineering aspects of works (including KM)


Individual Level PointsIndividual Level Points

3 main components are:

• Experience of Professional Staff• Professional Qualification• Additional Professional Recognition


Experience of Professional StaffExperience of Professional Staff

Points (N) 1 point for every full year of relevant work experience up to a maximum of

15 points

Note: The total professional staff shall include all engineering graduates as well as graduates in related specialist skills area such as geologist and hydrologist.


Professional QualificationProfessional QualificationBasic Professional

RecognitionMultiplying Factor

(M)Engineer without P. Eng. and

other professional staff1.0

Engineer with P. Eng (with “Ir.”)

2.0

Note: Professional staff who are non-engineers but hold a degree in the relevant fields such as geologist, hydrologist, environmental scientist may be considered.


Additional Professional RecognitionAdditional Professional RecognitionAdditional Professional Recognition &

Bumiputra ParticipationValue Added (V)

to Multiplying Factor

BEM Accredited Checkers 0.2Professionally registered with regional or international engineering organisations

0.1 each up to a maximum of 0.2

Peer Recognition eg presentation, lecture or technical papers�If nos. >5 but 10�If nos. >10 but 15�If nos. >15

0.10.20.3

Bumiputra staff 0.1


Grooming of Sustainable ECFGrooming of Sustainable ECF

• This is < 3.5% of yearly allocation based on 3% fees on $40b of projects

To groom a firm with 500 to 1,000 staff

• Cost for extra 500 persons per year= 500 x 6,000 x 12 x1.1 = RM40m


MatchingMatching• Capability

– Experience– Field of specialisation

• Capacity– Number of key staff required


How Sustainability Points System How Sustainability Points System Work?Work?

• Company size to have at least 1.5x numberof staff required

Total Sustainability Points = Company Points x � Individual Points

100


Example of ProjectExample of ProjectProject

ProponentJabatan Kerja Raya, Cawangan Jalan

Project Brief Construct a 10-km two-lane dual carriageway through hilly terrain

Project Stage Detailed Design

Estimated Man-power Required from Designer

1 no. Project Director with minimum 10 years of experience in Road Construction

Team of Designers (each consists of 1 Senior Engineer with at least 5 years experience and 2 Engineers ):

�2 teams of Road Works and Drainage Designer (6 nos.)

�2 teams of Geotechnical Designer (6 nos.)

�1 team of Bridge Designer (3 nos.)

Hence total number of professional staff required is = 16 nos.

Company to have at least 24

staff for capacity


Companies bidding for projectCompanies bidding for projectCompany A• large multi-disciplinary design consultant with 100 professional staff• Profit shared by 15% to <20% of total professional staff strength• ISO 9001 certified• Company arranged more than 49 events of technical training a year

Company B• medium-sized specialist firm dealing with road works with 30 professional

staff• Profit shared by 25% to <30% of total professional staff strength• ISO 9001 certified• Company arranged 25 to 36 events of technical training a year


Companies bidding for projectCompanies bidding for projectCompany C• large multi-disciplinary design consultant with 100 professional staff• Profit shared by <10% of total professional staff strength• ISO 9001 certified• Company arranged more than 49 events of technical training a year

Company D • small to medium-sized specialist firm dealing with road works with

20 professional staff• Profit shared by 30% to <35% of total professional staff strength• ISO 9001 certified• Company arranged 12 to 24 events of technical training a year

Company not qualified as its capacity is < 24 staff


Company Level AssessmentCompany Level AssessmentCriteria Company Points Allocated

Company A Company B Company C

SustainableOwnershipProgramme

20 40 0

QA/QC System 15 15 15Training and Knowledge

Management

25 15 25

Total 60 70 40

Company to have at least 60 Company

Level Points


Individual Level AssessmentIndividual Level Assessment

Staff Detail Individual Points AllocatedYears of

ExperienceMultiplyingFactor, M

Value added to Multiplying Factor, V M+V Sub-totalAccredited

CheckerRecog-nition

Papers Bumiputra

ProjectDirector

15 2 - 0.1 0.1 0.1 2.3 34.5

Road Works 1

SeniorEngineer

Engineer

13

6

1

2

2

1

-

-

-

0.2

-

-

0.2

0.1

-

0.1

-

-

2.5

2.1

1.0

32.5

12.6

1.0


Total Sustainability PointsTotal Sustainability PointsCriteria Company Points Allocated

Company A Company B

Company Level Points 60 70

Individual Level Points 271.5 254

Final Sustainability Points 60 x 271.5 = 162.9100

70 x 254 = 177.8100

Company B will be awarded the

contract


Key BenefitsKey Benefits

• Building up expertise, capabilities and quality of local Engineering Consultancy Firms

• Improve earning potential through increased capacity, productivity and export of services

• Better positioned to navigate through regional economic cycles


• It is possible to groom Malaysian ECF to deliver quality service and to double their capacity in 3-5 years

• This can be done without extra budget to the Government by aligning <3.5% of yearly allocation

• Grooming of SUSTAINABLE firms can bring great benefits to the country


Brain Drain vs. Brain Gain

• Pluge Brain Drain

• Brain Gain : Talentcorp Malaysia


Success Attributes On Brain Gain

• Improve Working Environment– Chief/Leadership

• Remuneration Package– Part 1 – Basic – Similar to IEM’s Survey– Park 2 – 45% Net Profit e.g. G&P

• Reward the Chief and Team

G&P Professionals Sdn Bhd G&P Professionals Sdn Bhd ((www.gnpgroup.com.mywww.gnpgroup.com.my))G&P Professionals Sdn Bhd

G&P Professionals Sdn Bhd G&P Professionals Sdn Bhd ((www.gnpgroup.com.mywww.gnpgroup.com.my))G&P Professionals Sdn Bhd


PART 2

e.g. In G&P Geotechnics Sdn Bhd

• 45% of net profit for directors/partners


StrategiesImprove English and communication skills

• Teachers – recruit good retired teachers (template)

• Lecturers– Improve recruitment strategies– Structured training to existing lecturers– Improved usage

• Drama, debating clubs, toastmaster club– Raise the entry bar


StrategiesImprove Fundamentals

• Recruit lecturers with passion– Template– Recruit practitioners as lecturers

• Raise entry qualifications– Increase Diploma/certificate courses

• Review LAN subjects• Develop lecture modules

– IEM input


UNDERGRADUATE UNDERGRADUATE TRAININGTRAINING


UNDERGRADUATE TRAININGUNDERGRADUATE TRAINING

Review and update the undergraduatesyllabus to meet industry needs

Assisted by active & experienced practitionersPooling resources from universities & practitioners

Knowledge sharing between lecturers and practitioners through workshops and forums


UNDERGRADUATE EDUCATIONUNDERGRADUATE EDUCATION

StructuredModules/Lectures(Uni/IEM/ACEM)

Lecturers

P.Eng With Practice Exposure

Improvement toImprovement toUndergraduateUndergraduate

EducationEducation

StrengthenFundamentals


Strategies

Creative / Innovation


CURRENT STATUS OF R&D• Malaysia lagging far behind countries

such as US, Japan, China, India, Singapore and Brazil.

3.6 times>M’sia(After MASTIC, 2006)


CURRENT STATUS OF R&D

• GERD/GDP Ratio

1996

0.22%

2004

0.63%

2010

???0.7%

More needs to be DONE!!!

Behind the country’s target of 1.5% by 2010


BENEFITS OF R&D

• Reduction in delivery time & construction costs � IncreasedProfit

• Increased competitiveness without compromising HSE

• Improve safety • Better quality of life

G&P Professionals Sdn Bhd G&P Professionals Sdn Bhd ((www.gnpgroup.com.mywww.gnpgroup.com.my))Courtesy of Judin Abdul Karim (2006)



• American Inventor

American Inventor

OCCUPIED


Challenge The Norm Thru Innovation To Excel


THE WAY FORWARD

Roles of Stakeholders


R&D RELEVANT TO INDUSTRY NEEDS


Current Issues• No significant licensing revenues for the

universities (after Hii HH, 2003)

• No R&D output from universities has been commercialized yet on a national scale (after Hii HH, 2003)

Example of Successful R&D:�University of Strathclyde, UK - £42 million in

royalty income (www.strath.ac.uk/research)


PUBLIC-PRIVATE SECTOR LINKAGES

• Private companies should form strategic alliances with research institutions

• Research institutions should actively seek partners from the industry

• Strong relationship between universities and industry – alumni, adjunct professors from industry


CULTURE OF EXCELLENCE• System for sharing of information

• Environment which encourages creativity and innovation

• Allocation of time for R&D

• R&D incentives and reward scheme


R&D BY CONSULTANT

Case History


R&D CULTURE• R&D Wish List / Suggestion Box

• Policy of minimum 1 hour/day for R&D

• Internal colloquium

• Yearly R&D Achievement Award

• R&D Committee to monitor wish list and output


R&D Wish ListResearch & Development (R&D)Subsurface Investigation

Wish-lists / Issues R&D Topics

1.Could percussion method of advancing casing be used for normal SI for SPT test and collect undisturbed samples for consolidation and triaxial tests?

1.The effect of percussion method of advancing boreholes the results of SI?

1.Is foam drilling a must for failure investigation on landslide sites?

2. The effects of foam or new stabilising method for drilling.

1.What is the correlation between Su and results of JabatanKerja Raya (JKR) probe for marine deposits of different composition?

3. Correlation between Su and results of Jabatan Kerja Raya (JKR) probe for marine deposits of different composition.

1.Do we have DOs and DON’Ts on subsurface investigation (SI) - Borehole- Piezocone- Consolidation test- CIU test

4. DOs and DON’Ts and Checklists on SI- Borehole- Piezocone- Consolidation test- CIU test

1.What are the new developments on SI? 5. Review on the development of SI.

1.Does Malaysia have calcareous sand? 6. Properties of calcareous sand in Malaysia.

1.How to de-air porous stone for piezocone and maintain the saturation of porous stone for piezocone?

1.Method to ensure full saturation of porous stone for piezocone.



2500 Ton Siloon Very Soft Marine Deposits


OUTCOME• Development of Software

• Original PIGLET software– Limited pile numbers and pile of

equal length

• Development of PIGEON software– Unlimited pile numbers and pile of

unequal length


KNOWLEDGE MANAGEMENT SYSTEM

• Transfer of knowledge

Directors

Partners

Engineers

Geologists

Support Staff

On the job training

Coaching

R&D

Sharing of knowledge through colloquium

Spreadsheet,software, operating procedures, etc.

Structured Training

Leadership / Commitment

Shareholders

Value to Shareholders

Industry

Value to Industry



STRUCTUREDSTRUCTUREDTRAINING FOR TRAINING FOR

PRACTITIONERSPRACTITIONERS


STRUCTURED TRAINING FOR STRUCTURED TRAINING FOR PRACTITIONERSPRACTITIONERS

Adopt Continuing Professional Development(CPD) Scheme (by BEM)

Collaborate with IEM, technical agencies, academia, local governments, private industry, NGOs, etc

Implement certification and accreditationsystem to update competency of stakeholders


STRUCTURED TRAINING FOR STRUCTURED TRAINING FOR PRACTITIONERSPRACTITIONERS

Approval of Training

Projects by Steering

Committee

TargetStakeholders

Implementation (Internal & External)

Certification & Accreditation

Knowledge Transfer

Training Topic

Available Expertise

Available Facilities

Budget

PanelReviewer

CKC/SEA

Government Agencies

Universities / Institutions

Consultants/ Specialist Contractors

Workshops

Conferences

Seminars

KPIs

Interviews

Drills

To Local Authority

ToGovernment Agencies

To Consultants / Specialist Contractor

To Universities / Institutions

To Property Owner

PolicyImplementation

PolicyImplementation

ImprovePractice

Capacity Building

PublicAwareness

Review Training Direction

InsuranceInstitution

To Insurance Institution

ImproveConfidence

PropertyOwner

Emergency Service Agency

LocalAuthority

To Emergency Service Agency

ImproveRescue Operation

Exam

Courses


MAJOR OVERHAUL IS NEEDED ON HIGHER EDUCATION


Harmonisation Of HR/Education

• HR Need– Study of need of Technologists, TAs and

Technicians– Direct 30% STPM/SPM students to Diploma and

Certificate Courses


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