INGENIEUR
interest, welfare and safety of the public and not
engineers, a basic principle which many engineers
have forgotten.
The Ministry of Works (the REA is under their
purview) has agreed with the Professional Boards
to allow equity to be open to another body or
individuals up to a maximum of 30% as a start
including those involved in allied professionals;
architects and quantity surveyors. Since 30%
equity is open, the Board of Directors of a body
corporate is allowed to include another body or
individuals. These fundamental amendments
together with non-citizenship requirements undo
the previous amendments of 1974 and 1987.
The issue of opening equity should also
be positively viewed from the perspective that
the professional engineering service firms can
be employee -owned. When the employees
themselves own the firm they strive harder for the
firm, they become committed and they produce
better work as they now have a stake in it. Many
firms in developed countries operate in this
manner and pride themselves for being employeeowned. Whilst public listed firms operate on the
basis that the public from all walks of life have the
opportunity to share the wealth of the country and
be able to enjoy and be a part of the successes of
an engineering service firms.
The “battle” on liberalisation has been raging
ever since the idea was mooted by the Government.
There are pros and cons of liberalisation; critics
of liberalisation are concerned that the entry of
foreign engineers will flood the local market with
cheap but lower standard of services. They pose
questions and uncertainties such as:
●●
Flooding of local market with cheaper
foreigners. Is it ‘safe’ to allow foreign
engineers to become the ‘Submitting
Person’ under Street, Drainage and
Building Act (SDB) and Uniform Building
By-laws (UBBL)?
●●
Lower foreign standards with competitive
prices may lead to lower local standards.
By adopting the lower foreign standards, it
will create hazards through the importation
of these services. Can foreign engineers
from less developed countries provide the
services that safeguard public interest?
●●
Can local Engineering Consultancy
Practices be able to compete with foreign
6
74
VOL
– DECEMBER 2015
VOL64
55OCTOBER
JUNE 2013
firms from developed countries? And
if not, this may create unemployment
amongst local professionals.
●●
Engineering Consultancy Practices can be
owned by non-engineers. Is Malaysia ready
for this and can it lead to unprofessional
engineering decisions?
●●
In a ‘free market’ the consumers may not
be sufficiently protected where standards
and quality may be compromised.
Looking at the bigger picture, BEM believes
that there are many benefits and opportunities
proffered by liberalisation, such as:
●●
Consumers benefit from wider choices
and cheaper services, i.e. it encourages
competition and lower the cost of services,
●●
Mutual recognition agreements imply
reciprocity. Allowing access to our markets
imply access to their markets;
●●
Malaysian engineers are more competitive
than those from developed countries,
leading to increased opportunity for the
export of professional services;
●●
Competitiveness of Malaysian engineers
can be increased and aligned to
international practices;
●●
Expertise not locally available can be
imported to enhance local capabilities i.e.
technology transfer from foreign experts;
●●
Multinational firms can set up professional
services bringing in foreign investment
and make Malaysia as the regional
headquarters for professional services
and attract talent;
●●
Malaysian firms can grow and allow their
shares to be traded e.g. the growth of
the medical profession which is the most
liberalised profession in the country; and
●●
High tech and emerging services industries
(e.g. green technology, aeronautical
technology) can be fully developed when
professional services are liberalised with
the inflow of foreign capital into Malaysia.
This is important for the country to be a
knowledge-based economy.
BEM organised two series of road shows
during 2012/2013 and 2014/015 throughout
the country. The purpose was to engage
individual engineers on the rationale behind
the amendments to the REA in allowing foreign