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EU Professionals in the Malaysian Construction Industry: Engineering, Architectural and Quantity Surveying Services
Symposium on Thursday, 10 September 2015 + Business Matching on Friday, 11 September 2015
We offer you:• Symposium in front of a qualified industry
audience free of charge• Business Matching Sessions free of charge• Per diem Subsidiary for hotel accommodation
and allowance
JOIN US
Meet the Malaysian construction industry stakeholders and decision makers and find new business opportunities and new markets to explore. Grab the opportunity from individual and tailored business matching sessions with local companies of this sector. Benefit from a great visibility, the EU Financing and an easy access to leaders in the industry.
Co-funded by: Implemented by:
You are:• A European small-and-medium sized professional
service provider (Engineer, Architect, QuantitySurveyor, Energy Manager or related) in theconstruction Industry
• Active in Green Building / Energy Efficiency• Interested in the Malaysian / ASEAN market
PROGRAMDate
Wednesday, 9th September 2015 Arrival of Participants in Kuala Lumpur Potential Company and Site Visits
Thursday, 10th September 2015
Symposium on “Potential of European SMEs in
the Malaysian Construction Industry” in
conjunction with the Greentech Exhibition
IGEM 2015
Official Welcoming and full-day Presentation of
European SMEs
Friday, 11th September 2015
Full-day individual Business Matching Sessions
with potential Malaysian business partners in
conjunction with the International Construction
Week 2015
You wish to: • Discover the market, institutions, access and
various stakeholders of the market; • Test your offer in Malaysian market;• Meet local partners • Actively prospect to acquire new business
networks
TARGET GROUP
REGISTER NOW!
Any Questions? Please contact:Ms. Katja SchulzeTel: +60 3 9235 1821E-mail: [email protected]
MGCC / AHK Malaysia Level 47, Menara AmBank8, Jalan Yap Kwan Seng50450 Kuala Lumpur, Malaysia.
Co-funded by:Implemented by:
While in Kuala Lumpur, you can also take the opportunity to visit:
ECOBUILD/International Construction WeekIGEM
IGEM 2015 at Kuala Lumpur Convention Centre will look to provide a platform for the key drivers within the Malaysian Government’s Green Technology mandate. IGEM’s ultimate goal is towards positioning Malaysia as a Green Technology Hub for the ASEAN Region. Bearing the theme “Powering the Green Economy”, IGEM 2015 will be focusing on five key areas: Green Energy; Green Transport; Green Building; Solid Waste Technology & Management and Clean Water Technology & Management.
Project Organized by:
The exhibition Ecobuild Southeast Asia 2015 & International Construction Week which is hosted by Construction Industry Development Board Malaysia (CIDB) will be held from 9 – 11 September 2015 at the Putra World Trade Centre (PWTC), Kuala Lumpur, Malaysia with themed “Advocating Eco-Efficiency, Advancing Businesses”.
SIGN UP FOR OUR PRE-EVENT: INTERACTIVE WEBINARS
Learn more about your Business Opportunities in the Malaysian
construction industry
12th May 2015 –Engineering Services26th May 2015 –Architectural Services
Supporting Organization:
Please register at www.malaysia.ahk.de.
Co-funded by: Implemented by:
Factsheet Malaysia
Symposium and B2B-Matching for European SMEs
10th & 11th September 2015, Kuala Lumpur/Malaysia
Professional Services in the Construction Industry
Engineering, Architectural and Quantity Surveying Services
(Focus Green Construction and Energy Efficiency)
Co-funded by: Implemented by:
Why Malaysia? An Introduction
Malaysia is centrally located within the Association of South-East Asian Nations (ASEAN) and
consists of two regions separated by the South China Sea — Peninsular Malaysia and East
Malaysia. Malaysia is a federation of 13 states and three federal territories. The capital city is
Kuala Lumpur. The official language of Malaysia is Bahasa Malaysia, but English as well as
Chinese are also widely spoken.
As of January 2015, the country recorded a total population of approximately 30 million
inhabitants. Malaysia is a multi-ethnic, multicultural and multilingual society. Islam is the
largest and official religion. The country participates in international organizations such as the
United Nations (UN), the Asia-Pacific Economic Cooperation (APEC), the Developing 8
Countries, and the Non-Aligned Movement (NAM). In 2015, Malaysia will be leading ASEAN
and the ten member countries as its Chairman, while growing together as the ASEAN
Economic Community (AEC). AEC follows previously existing over regional economic zones,
namely ASEAN + China (ASEAN+1) as well as ASEAN + China, Japan and Korea (ASEAN
+3), thereby, further fueling business cooperation in the region.
The Malaysian public sector spearheads the construction industry development, develops the
policies, its enforcement, as well as creates the incentives and promotions required. However,
the construction industry is a sector largely led by a vibrant private sector, comprising of the
development of residential, commercial and industrial construction projects. This includes
social infrastructures, such as schools, hospitals and stadiums, and government initiatives.
The number of public-private-partnerships, privatization and commercialization within the
social infrastructure sub-sector have been increasing in recent years.
In 2014, the construction sector accounted a 3.9% share in the overall GDP production of the
country and registered a growth of 10.7%. Growth was driven mainly by expansion in the high-
end residential sub-sector, retail and industrial projects and the completion of a few large
infrastructure and oil and gas projects. In the Malaysian Budget 2015, the government
announced to push public and private investment in the construction sector, wherein seven
major infrastructure projects will be implemented this year, mainly express and highways as
well as mass transport projects.
Co-funded by: Implemented by:
Economical Key Facts - Malaysia
Currency 1 Ringgit (RM) = 100 Sen
Exchange Rate 1 EURO = RM 3.9923; 1 USD = RM3.6988 (as on 10 March 2015)1
GDP (billion USD) 304.7 (2012); 312.4 (2013); 324.5 (est. 2014)
GDP – Real Growth Rate 5.6 % (2012); 4.7 % (2013); 4.9 % (est. 2014); Forecast 2015: 4,5% – 5,5%2
Inflation Rate 1.7 % (2012); 1.9 % (2013);3 1.0 % (January 2015)4
Exports RM 698.44 billion (2014)5
Exports - Commodities Electrical & electronic products 33.3%; petroleum products 9.3%; LNG 8.3%; chemical products 6.7%; palm oil 6.2%; crude petroleum 4.5%; machinery, appliances & parts 3.9%; manufactures of metal 3.4%; optical & scientific equipment 3.1%; rubber products 2.4%; other products 2.4% (2014)6
Exports – Partners Singapore 14.2%, China 12.0%, Japan 10.8%, EU 9.5, USA 8.3%, Thailand 5.3%, Australia 4.4%, Indonesia 4.2%, Republic of Korea 3.6%, Taiwan 3.3% (January – November 2014)7
Imports RM624.52 billion (2014)8
Imports - Commodities Electrical & electronics products 27.9%, petroleum products 11.8%, chemical products 9.1%, machinery, appliances & parts 8.3%, manufactures of metal 6.0%, transport equipment 5.5%, crude petroleum 3.8%, iron & steel products 3.7%, optical & scientific equipment 3.0%, processed food 2.5%, other products 18.3% (2014)9
Imports – Partners China 16.7%, Singapore 12.6%, EU 10.4%, Japan 8.0%, USA 7.6%, Thailand 5.8%, Taiwan 5.0%, Republic of Korea 4.7, Indonesia 4.0, Australia 3.0% (January – November 2014)10
1 http://www.xe.com, accessed on 10 March 2015 2 http://www.gtai.de/GTAI/Content/DE/Trade/Fachdaten/MKT/2008/07/mkt200807555611_159700.pdf 3 http://ieconomics.com/malaysia-inflation-rate 4 http://www.tradingeconomics.com/malaysia/inflation-cpi
5 http://www.matrade.gov.my/en/malaysia-exporters-section/33-trade-statistics/3188-components-of-malaysias-exports-2014
6 http://www.matrade.gov.my/en/malaysia-exporters-section/33-trade-statistics/3184-top-10-major-export-products-2014
7 http://www.statistics.gov.my/portal/images/stories/files/LatestReleases/trade/trade/2014/External_Trade_Nov14_BI.pdf
8 http://www.matrade.gov.my/en/malaysia-exporters-section/33-trade-statistics/3185-top-10-major-import-products-2014
9 Ibid
10 http://www.statistics.gov.my/portal/images/stories/files/LatestReleases/trade/trade/2014/External_Trade_Nov14_BI.pdf
Co-funded by: Implemented by:
EU – Malaysia Trade Relations:
European Union accounts for about 10% of Malaysia’s total external trade
In 2013, the European Union was the third largest source of Foreign Direct
Investment into Malaysia
Over 2,000 EU companies are present in Malaysia
In 2013, EU investments grew by over 28 % compared to 2012
GOVERNMENT PROGRAMS TO BOOST THE CONSTRUCTION INDUSTRY
Construction Industry Master Plan (CIMP), 2006-2015
charting the strategic position and future direction of the Malaysian construction
industry over a period of 10 years;
to make this sector more productive, more effective, more technologically pervasive,
less labor intensive and more confident to venture beyond the local shores and thus
become more resilient;
CIMP II’s (2016-2020) four principal directions: Productivity, Sustainability,
Internationalization and Professionalization
Industrial Master Plan 3 (IMP 3), 2006-2020
Aims at transforming and innovating the manufacturing and services sector;
Goal is to increase the manufacturing sector by 5.6% per year to a total contribution of
28.5% of the GDP till 2020 and the non-government services by 7.5% per year to a
total contribution of 57.9% of the GDP till 2020;11
In order to enhance Malaysia’s position as a trading partner, exports will be enhanced
through the integration of corresponding international standards and by fostering
Malaysian companies to expand globally;
Market will be liberalized progressively, to position the service sector (including
professional services) as a major growth source; furthermore the role of private sector
institutions will be strengthened.12
Budget 2015
In 2013, the services sector contributed 55.2 % to GDP;
It is the target of the government to reach 60 % by 2020
As one measure to achieve this, the government plans to accelerate public and private
investment, wherein several infrastructure projects will be implemented.
11 http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.section.Section_8ab58e8f-7f000010-72f772f7-dbf00272 12 http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.section.Section_8ab58e8f-7f000010-72f772f7-dbf00272
Co-funded by: Implemented by:
Industry Overview
In Q3/2014, the construction sector registered a growth of 10.7 %, marking a 0.5% quarter-on-quarter percentage change compared to the previous quarter
Growth was driven mainly by expansion in high-rise and high-end residential properties projects in Klang Valley, Penang and Johor), retail and industrial projects and large infrastructure and oil & gas projects
The civil engineering sector has seen a healthy expansion, due to ongoing engineering projects in O&G, electricity power stations and transmission lines.
Traditionally, Malaysia has used the British Norm Standard System, however, it is expected that the European Norm (EN) Standards Systems is going to be more applied in the future
The Malaysian government and its newly established National Housing Council has spearheaded nationwide schemes (“MyHome”) for the low-income group with the objective to affordably own adequate homes by subsidizing the building of housing units
In April 2014, the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) came into force in Malaysia, facilitating regular and timely payment and providing a mechanism for speedy dispute resolution
As for the property market, the sale, purchase and rental of residential properties will be exempted from the newly implemented 6% Goods and Sales Tax; however, no such exemption is granted for the sale and purchase of goods and services used in residential construction
Malaysia offers a new market for Green Building Products and Services, such as architectural building materials, energy efficiency and renewable energy
Ongoing Full Liberalization of the Professional Services Sector and proposed Amendments in the Engineering and Architecture Act 1967 will create a more favorable investment environment characterized by ease of conducting business
Malaysia aspires to tap the potential of professional services as a key enable for businesses -> opens new opportunities also for foreign professionals
Co-funded by: Implemented by:
Regulatory Environment for Engineering, Architectural and Quantity Surveying
Professional Services
I. Engineering Services: Registration and Equity
Currently
very difficult for foreign companies and professionals to enter the highly regulated
professional service sector in Malaysia due to high restrictions by several laws like the
Engineers Act 1967
only Malaysian citizens are able to register as an engineer
for foreign engineers there is only the possibility of a temporary placement over the
duration of one year (can be extended)
restrictions on foreign ownership of professional services firms and the entry of foreign
professionals
I. Architectural Services: Registration and Equity
Currently
foreign architects who intend to practise must apply for temporary registration with The
Board of Architects, and must fulfil the following pre-requisites:
o Possess necessary qualification recognised for the practice of architecture as
an architect in the country where he normally practises; and
o Possess necessary expertise and have been physically present in Malaysia for
not less than one hundred and eighty days in one calendar year or that he/she
is a resident representative of the foreign component of a joint-venture
Foreign professionals can only hold up to 30% foreign equity in an architectural firm;
they cannot hold the directorship of an architectural firm.
Ongoing Liberalization of the Professional Service Sector
The liberalization process of the architectural, engineering and quantity surveying services
as part of the service sector is in full process
The amended Engineering and Architecture Act is expected to be signed by the Minster
of Works by May 2015
it will enable foreign professionals to register and work in Malaysia and also to fully own a
company
engineering consultancies do not need to be owned 100% by professional engineers
anymore
This intends to solve the problem of financing and make it easier for those companies to
expand internationally.
Co-funded by: Implemented by:
Implications:
Create a more favorable investment environment characterized by ease of doing
business
Improved mobility of foreign professionals in Malaysia
Tier system aligned with international practices
Recognition of Qualified and Experienced Professionals via expedited Registration
Processes
Competency exams to ensure the quality of services rendered
Malaysia to become a regional engineering hub, thereby attracting increased levels
of FDI and knowledge workers
