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 Major Role under Company Act 1965 Enhancing Capacity & 100% owned by the Ministry of Competitiveness of Malaysian Finance Professional Services Firms to face the challenges of liberalization Placed under supervision of the Ministry of Works Medical Project & Legal Management Health Accountancy Town Planning Scopes of Landscaping Clients Architectural Interior Engineering Decoration Surveying BACKGROUND PSDC Transfer of Functions CIDB take over the roles of PSDC Winding up of PSDC in April to assist Professional Services 2011 related to construction •A Statutory Body •Under The Ministry of Works, Malaysia •Established in 1994 under the Act of Parliament – ACT 520 PRIVATE SECTOR DRIVEN •Chairman •6 members representing private sector •4 members representing public sector Developers Consultants Contractors Major Stakeholders Sub Suppliers contractors Manufacturers 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… MALAYSIA’S COMMITMENTS PROFESSIONAL SERVICES SECTOR IN THE CONSTRUCTION INDUSTRY (Foreign Equity) 2008 : 49% AFAS Threshold for Equity 2010 : 51% (Asean Framework Agreement on Services) 2015 : 70% Multi-disciplinary Practice(MDP) : 30% open to anybody/persons (Architectural, Engineering & Quantity Surveying) AFAS 8th Package Single-disciplinary Practice(SDP) Architectural (CPC 8671) : 0% Engineering (CPC 8672) : 0% Integrated Engr (CPC 8673) : Unregulated Quantity Surveying(None yet) : 0% Cabinet Decision 2012 : 100% 14 November 2008 Budget 2012 Announcement Architectural : 100% by 2012 by YAB Prime Minister Engineering : 100% by 2012 7 October 2011 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…. 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 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) 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 REGISTRATION WITH THE BOARD OF SERVICE IS PROVIDED ENGINEERS MALAYSIA Engineers of any nationality can be INDIVIDUAL ENGINEERS registered with the Board. SINGLE DISCIPLINARY PRACTICE 100% foreign equity allowed with 30 % equity Sole Proprietorship open to all and 70% for Professional Partnership Engineers with Practicing Certificate for Body Corporate body corporate MULTI-DISCIPLINARY 100% foreign equity allowed with 30% equity PRACTICE open to all and 70% equity for Prof. Body Corporate Eng/Arch/QS At least 2/3s of the Directors in the Board of MANAGEMENT OF THE FIRM Directors must be Professional Engineers OR BODY CORPORATE with Practicing Certificates PROPOSED AMENDMENTS Temporary Registration & Others REGISTRATION WITH THE BOARD OF ENGINEERS MALAYSIA Section 10A deleted since engineers of TEMPORARY REGISTRATION OF any nationality can be registered. FOREIGN PROFESSIONALS QUALIFIED PERSON UNDER THE Local or foreign Professional STREET DRAINAGE & BUILDING Engineers with Practicing Certificate ACT Graduate Engineers qualifications to meet the Washington Accord requirements. Takes 3-4 years to be registered as a REQUIREMENTS FOR Professional Engineer after passing REGISTRATION 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 EXISTING 1st TIER OF EXAMINATION RETAINED. REGISTRATION WITH Degree/ Qualification THE BOARDS AS A Accreditation by the 4 YEARS PROFESSIONAL Apply to register WORKING Boards to register as 1st. Tier of Examination a Graduate EXPERIENCE 2 YEARS 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. Professional However if the foreign professionals can demonstrate the same applies to their Competency home countries the Boards may consider them to be registered without sitting Examinations the 1st. tier of examination or at least undergo the interview process. To ‘practise’ and supply professional services BEM will issue licenses upon LICENSED TO SUBMIT passing the Professional Competency Exams i.e. the 2nd. tier of registration. PLANS UNDER ‘S.D.B. This is compulsory for all professional engineers wishing to supply professional ACT’ services. ECONOMIC CORRIDORS IN MALAYSIA REGIONAL ECONOMIC CORRIDORS IN MALAYSIA NCER : NORTHERN CORRIDOR ECONOMIC REGION SDC : SABAH DEVELOPMENT CORRIDOR ECER : EAST COAST ECONOMIC REGION SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY ISKANDAR MALAYSIA ISKANDAR MALAYSIA • Focused Development at Five Flagships Logistics, Manufacturing • 2 (esp High Tech and 2,217 km or 550,000 acres aerospace related), • 3 times the size of Singapore Tourism (Luxury • Destination Shopping), 1.4 million population Cybercity SENAI-SKUDAI E Manufacturing – Electronics,Petrochemicals and oleochemical) PASIR GUDANG / TANJUNG LANGSAT Education & Medical Tourism, Entertainment & Recreation, State Administration & Finance Biotechnology B A D NUSAJAYA Cultural and Urban Tourism Logistics, Regional C JB CITY CENTRE Distribution, International Procurement TANJUNG PELEPAS 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) Education (EduCity) Raffles University Education (EduCity) Raffles American School Education (Nusajaya, EduCity) Excelsior International School Education (Bandar Seri Alam) Legoland Theme Park Technocom Systems E&E Bahru Stainless Sdn Bhd Manufacturing NORTHERN CORRIDOR ECONOMIC REGION (NCER) Area of Coverage : 17,816 sq km Investment Opportunities :- . Agriculture, . Manufacturing . Tourism & Healthcare . Education & Human capital . Social Development Panasonic Ibiden Agilent Phillips EAST COAST ECONOMIC REGION (ECER) Area of Coverage : 66,736 sq km Investment Opportunities :- . Tourism . Oil, Gas & Petrochemical . Manufacturing . Agriculture . Education HICOM Automotive Manufacturers Master-Builders (M) Sdn Bhd ATS Mfg. Services Sdn Bhd Johnson Controls Automat. Inter (M) Sdn Bhd SABAH DEVELOPMENT CORRIDOR (SDC) Area of Coverage : 73,997 sq km Investment Opportunities :- . Tourism . Logistics . Agriculture . Manufacturing Bandtree Sdn Bhd (Brunei) Sabah Biofuel Golden Green Synergy 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 THE APPROVED FINAL SBK ALIGNMENT – MRT 1 MPS P SUNGAI BULOH KG BARU SUNGAI BULOH KOTA RRI DBKL DAMANSARA TAMAN P INDUSTRI P THE SG. BULOH DATARAN CURVE MPAJ PJU 5 SUNWAY ONE UTAMA SEMANTAN BUKIT BINTANG TEKNOLOGI CENTRAL PASAR BUKIT PASAR RAKYAT P SENI TTDI KIARA ` PUSAT MERDEKA COCHRANE P P BANDAR KL SENTRAL DAMANSARA MALURI SEKSYEN 16 P P MBPJ TAMAN BUKIT RIA TAMAN BUKIT MEWAH MBSA P LEISURE MALL PLAZA PHOENIX Legend P TAMAN SUNTEX KTM P KJ LRT P TAMAN CUEPACS AG LRT BANDAR TUN MONOREL P HUSSEIN ONN ERL MPSJ P Park n Ride BALAKONG Total P TAMAN KOPERASI DESCRIPTION Final MPKj SAUJANA 51.0 Length (km) P IMPIAN (41.5 Elev + 9.5 UG) BANDAR 31 KAJANG Station (nos) (24 Elev+ 7 UG) P KAJANG Provisional Station (nos) 3 Elev P Park & Ride 16 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