Country Paper Presentation MALAYSIA. Ir Ahmad Asri Abdul Hamid Construction Industry Development Board (CIDB) Malaysia 2 nd March 2012
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1 Country aper resentation MALAYSIA Ir Ahmad Asri Abdul Hamid Construction Industry Development Board (CIDB) Malaysia 2 nd March 2012
2 CONTENTS About CIDB Liberalisation of rofessional Services Economic Transformation rogramme
3 BACKGROUND SDC Established in 2002 as a company under Company Act % owned by the Ministry of Finance laced under supervision of the Ministry of Works Major Role Enhancing Capacity & Competitiveness of Malaysian rofessional Services Firms to face the challenges of liberalization roject Management Medical & Health Legal Town lanning Landscaping Scopes of Clients Accountancy Architectural Interior Decoration Surveying Engineering
4 BACKGROUND SDC
5 Winding up of SDC in April 2011 Transfer of Functions CIDB take over the roles of SDC to assist rofessional Services related to construction
6 A Statutory Body Under The Ministry of Works, Malaysia Established in 1994 under the Act of arliament ACT 520 RIVATE SECTOR DRIVEN Chairman 6 members representing private sector 4 members representing public sector
7 Developers Consultants Contractors Major Stakeholders Suppliers Sub contractors Manufacturers
8 To accelerate Economic Development, Malaysia has embarked on: Liberalisation Transformation (ET, Economic Corridor, MRT, River of Life)
9 The proposed amendments to the Registration of Engineers Act is rimarily Driven by the Government s Commitments in International Trade. What needs to be done for the Registration of Engineers Act Taking the next step
10 MALAYSIA S COMMITMENTS ROFESSIONAL SERVICES SECTOR IN THE CONSTRUCTION INDUSTRY (Foreign Equity) AFAS Threshold for Equity (Asean Framework Agreement on Services) 2008 : 49% 2010 : 51% 2015 : 70% AFAS 8 th ackage Cabinet Decision 14 November 2008 Budget 2012 Announcement by YAB rime Minister 7 October 2011 Multi-disciplinary ractice(md) : 30% open to anybody/persons (Architectural, Engineering & Quantity Surveying) Single-disciplinary ractice(sd) Architectural (CC 8671) : 0% Engineering (CC 8672) : 0% Integrated Engr (CC 8673) : Unregulated Quantity Surveying(None yet) : 0% 2012 : 100% Architectural : 100% by 2012 Engineering : 100% by 2012 Till to-date the professional acts have not been fully amended to reflect Malaysia s commitments and SD firms have not been offered in any agreements.
11 CURRENT SECTIONS IN THE REGISTRATION OF ENGINEERS ACTS TO BE AMENDED IN VIEW OF LIBERALISATION Engineering services involved movement of natural persons and commercial presence will require the Acts to be amended namely in two areas; Registration of rofessional 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 rofessionals may submit plans, drawings etc. Section 10 Qualifications for registration Section 10A Registration of Temporary rofessionals Registration of Engineering Consultancy ractices 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 ractice (SD) Section 7B Multi-disciplinary ractice (MD)
12 ROOSED AMENDMENTS The Supply of rofessional 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 ROFESSIONAL SERVICE IS ROVIDED INDIVIDUAL ENGINEERS SINGLE DISCILINARY RACTICE Sole roprietorship artnership Body Corporate MULTI-DISCILINARY RACTICE Body Corporate MANAGEMENT OF THE FIRM OR BODY CORORATE REGISTRATION WITH THE BOARD OF ENGINEERS MALAYSIA Engineers of any nationality can be registered with the Board. 100% foreign equity allowed with 30 % equity open to all and 70% for rofessional Engineers with racticing Certificate for body corporate 100% foreign equity allowed with 30% equity open to all and 70% equity for rof. Eng/Arch/QS At least 2/3s of the Directors in the Board of Directors must be rofessional Engineers with racticing Certificates
13 ROOSED AMENDMENTS Temporary Registration & Others TEMORARY REGISTRATION OF FOREIGN ROFESSIONALS REGISTRATION WITH THE BOARD OF ENGINEERS MALAYSIA Section 10A deleted since engineers of any nationality can be registered. QUALIFIED ERSON UNDER THE STREET DRAINAGE & BUILDING ACT REQUIREMENTS FOR REGISTRATION Local or foreign rofessional Engineers with racticing Certificate Graduate Engineers qualifications to meet the Washington Accord requirements. Takes 3-4 years to be registered as a rofessional Engineer after passing rofessional Assessment Examination Additional 2 years to obtain a racticing Certificate on passing the rofessional Competency Examination
14 AMENDMENTS TO THE ENGINEERS ACT IN A NUTSHELL EXISTING 1 st TIER OF EXAMINATION RETAINED. Apply to register Degree/ Qualification Accreditation by the Boards to register as a Graduate 4 YEARS WORKING EXERIENCE 1 st. Tier of Examination REGISTRATION WITH THE BOARDS AS A ROFESSIONAL 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). 2 YEARS Registration as a rofessional with BEM after passing the 1 st. 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 1 st. tier of examination or at least undergo the interview process. To practise and supply professional services BEM will issue licenses upon passing the rofessional Competency Exams i.e. the 2 nd. tier of registration. This is compulsory for all professional engineers wishing to supply professional services. rofessional Competency Examinations LICENSED TO SUBMIT LANS UNDER S.D.B. ACT
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17 ECONOMIC CORRIDORS IN MALAYSIA
18 REGIONAL ECONOMIC CORRIDORS IN MALAYSIA NCER : NORTHERN CORRIDOR ECONOMIC REGION SDC : SABAH DEVELOMENT CORRIDOR ECER : EAST COAST ECONOMIC REGION SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY ISKANDAR MALAYSIA
19 ISKANDAR MALAYSIA Logistics, Manufacturing (esp High Tech and aerospace related), Tourism (Luxury Destination Shopping), Cybercity SENAI-SKUDAI E Focused Development at Five Flagships 2,217 km 2 or 550,000 acres 3 times the size of Singapore 1.4 million population Manufacturing Electronics,etrochemicals and oleochemical) Education & Medical Tourism, Entertainment & Recreation, State Administration & Finance Biotechnology B A ASIR GUDANG / TANJUNG LANGSAT D NUSAJAYA Logistics, Regional Distribution, International rocurement TANJUNG ELEAS C Cultural and Urban Tourism JB CITY CENTRE
20 INVESTMENTS IN ISKANDAR MALAYSIA rojects uteri Harbour, Nusajaya Johor remium Outlets, Kulaijaya Regency Specialist Hospital Sector Leisure remium retail Healthcare inewood Iskandar Malaysia Studios Creative Management Development Institute of Singapore (MDIS) (EduCity) Raffles University (EduCity) Raffles American School (Nusajaya, EduCity) Excelsior International School (Bandar Seri Alam) Legoland Technocom Systems Bahru Stainless Sdn Bhd Education Education Education Education Theme ark E&E Manufacturing
21 NORTHERN CORRIDOR ECONOMIC REGION (NCER) anasonic Ibiden Agilent hillips Area of Coverage : 17,816 sq km Investment Opportunities :- Agriculture, Manufacturing Tourism & Healthcare Education & Human capital Social Development
22 EAST COAST ECONOMIC REGION (ECER) Area of Coverage : 66,736 sq km Investment Opportunities :- Tourism Oil, Gas & etrochemical Manufacturing Agriculture Education HICOM Automotive Manufacturers Master-Builders (M) Sdn Bhd ATS Mfg. Services Sdn Bhd Johnson Controls Automat. Inter (M) Sdn Bhd
23 SABAH DEVELOMENT CORRIDOR (SDC) Area of Coverage : 73,997 sq km Investment Opportunities :- Tourism Logistics Agriculture Manufacturing Bandtree Sdn Bhd (Brunei) Sabah Biofuel Golden Green Synergy
24 SARAWAK CORRIDOR OF RENEWABLE ENERGY (SCORE) Area of coverage : 70,709 sq km 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. Tokuyama Corporation State Grid Corporation of China Leader Universal Aluminium
25 THE AROVED FINAL SBK ALIGNMENT MRT 1 SUNGAI BULOH MS KOTA DAMANSARA TAMAN INDUSTRI SG. BULOH TEKNOLOGI KG BARU SUNGAI BULOH JU 5 RRI DATARAN SUNWAY THE CURVE MBJ ONE UTAMA ` TTDI SEKSYEN 16 SEMANTAN BUKIT KIARA USAT BANDAR DAMANSARA DBKL ASAR SENI KL SENTRAL MERDEKA BUKIT BINTANG CENTRAL ASAR RAKYAT COCHRANE MALURI TAMAN BUKIT RIA MAJ MBSA TAMAN BUKIT MEWAH LEISURE MALL Legend KTM KJ LRT AG LRT MONOREL ERL ark n Ride MSJ LAZA HOENIX TAMAN SUNTEX TAMAN CUEACS BANDAR TUN HUSSEIN ONN BALAKONG DESCRITION Length (km) Station (nos) rovisional Station (nos) Total Final 51.0 (41.5 Elev UG) 31 (24 Elev+ 7 UG) 3 Elev MKj TAMAN KOERASI SAUJANA IMIAN BANDAR KAJANG KAJANG ark & Ride 16
26 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 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. Independent Consulting Engineers (ICE) HSS Integrated Sdn Bhd and SNC-Lavalin (Malaysia) Sdn Bhd JV. ICE to provide oversight of the MRT roject and to assist MRT Corp in ensuring that D 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 roject and its input/verification is required before WCs are paid.
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30 Conclusion articipation 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.
31 THANK YOU
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