PAPER1 (Background REA)
PAPER1 (Background REA)
PAPER1 (Background REA)
CONTENTS
PART 1 THE REGISTRATION OF ENGINEERS ACT The history WHO IS THE BOARD OF ENGINEERS MALAYSIA The Board exists because of the Act .. WHAT IS THE PURPOSE OF THE ACT ? To protect .. WHICH TYPE OF ENGINEERING SERVICES ARE REGULATED Or do it need to be regulated ? IS THE ENGINEERS ACT OVER-REGULATING THE ENGINEERING INDUSTRY ? That may stifle Malaysias growth ..
PART 2
PART 3
PART 4
PART 5
RegistrationofEngineersAct1967(Act138) ListofAmendments
Amending Law Act A132 Act A173 Act A218 Act A662 Act A1158 Act A1288 Short Title Registration of Engineers (Amendment) Act 1972 Registration of Engineers (Amendment) Act 1973 Registration of Engineers (Amendment) Act 1974 Registration of Engineers (Amendment) Act 1987 Registration of Engineers (Amendment) Act 2002 Registration of Engineers (Amendment) Act 2007 In Force From 7.7.1972 23.8.1972 22.2.1974 16.1.1987 1.12.2002 1.4.2007
TheRegistrationofEngineersActwasenactedin1967asActNo.66of1967over fourdecadesago...
Before1967therewasnoEngineersActsimilartotheLaws intheUK(whichuntiltodaythereisnoEngineersAct)
Bukit Antarabangsa
Jaya Supermarket
SincethenmanyothersimilarActsrelatedtothe Construction/BuildingIndustrywereenacted
Street, Drainage & Building Act 133 1974 Uniform Building By-Law 1984
Apart from the Common Law (& laws related to professional services), other laws related to the Building & Construction Industry were enacted;
Town & Country Planning Act Sewerage Services Act Drainage Works Act Local Government Act Fire Services Act CIDB Act etc. etc. etc. Occupational Safety & Health Act Electricity Supply Act Strata Title Act Housing Development Act Gas Supply Act Water Supply Act etc. etc. etc.
Alllawsenactedweretosafeguardpublicinterest¬the..
WhatistheDifferenceBetweenACEM, BEMandIEM?
BOARD OF ENGINEERS MALAYSIA (BEM) TheBoardofEngineersMalaysia(BEM)isastatutorybodyconstitutedunder theRegistrationofEngineersAct1967.Itsprimaryroleistoregulatethe practiseofengineeringundertheAct.Itregistrars15,000Professional Engineersand55,000GraduateEngineers.
ASSOCIATION OF CONSULTING ENGINEERS MALAYSIA (ACEM) AprofessionaltradeorganisationregisteredundertheRegistrarof Companies comprisingof700memberswhoareDirectors,CEOs,Chairmans orOwnersofEngineeringConsultingPractisesemploying20,000peoplein thisknowledgebasedindustry. INSITIUTION OF ENGINEERS MALAYSIA (IEM) Aprofessional&learnedbodyregisteredundertheRegistrarofSociety to promotescience&professionofengineeringinanyofitsdisciplines,to facilitatetheexchangeofinformation&ideasrelatedtoengineering,and withamembershipcomprisingof32,000,inclusiveof12,000students.
BEM
President
Permanent Staff
Many functions of the Board is undertaken by the Standing Committees under the Board. Working Groups under a Standing Committee are sometime formed to address specific issues in depth. Members of Standing Committee & Working Groups are appointed by the Board
Standing Committees of BEM Examination & Qualification Quality Application Accredited Checkers Management Engineering Accreditation Council Scale of Fees Training & Education Engineers Act Information Technology National Monitoring Publications Professional Practice
The accreditation of the undergraduate engineering degree is under the purview of the BEMs Engineering Accreditation Council
The Professional Assessment Examination (PAE) is under the purview of BEMs Examination & Qualification Committee
The Act has not clearly explained this fundamental issue of its existence.
OrhavewelostsightwhyanActshouldbeenactedorexist
Theaboverecommendationsin2007arenowembodiedintheamended EngineersAct
Theengineeringindustryissovastandwide.
Mechanical
454
931
Civil
2877
7469
Electrical
2933
Civil Electrical Mechanical Chemical Others
will determine on the type of professional services need to be regulated Category 1 Products: Produced in large numbers by manufacturing processes, sampled tested for quality and safety and governed by other legislation. Generally these are consumer goods and regulated by many other laws. Products that are uniquely designed and built for specific owner purposes and each being a prototype itself which cannot be sampled tested for fitness for purpose. These are generally fall into the construction/building industry and are critical to public safety.
Category 2 Products:
Quote One has to watch out for Engineers; they begin with the sewing machine and end-up with the atomic bomb unquote
Overregulationcanstifletheengineeringindustry
(b)
The above early concepts would have created of a two-tier registration of professional engineers; Tier 1:Professional Engineers will still keep the title Ir. Tier 2:Professional Engineers with the title Ir. with Practice Certificate renewable yearly based on Continuous Professional Development (CPD)
Partoftheaboverecommendationsin2005arenowpartofthe amendedEngineersAct
The theory for open market is that consumers benefits i.e. it encourages competition & lower the costs of the services to be provided to the public. Why not in Malaysia ? Is the public ready to accept self-regulation by Engineers ? Is our current Laws (and the justice system) sufficient to protect the public ? The Engineers Act was in response to a building failure four decades ago. After more than 40 years of its existence; is Malaysia mature enough for self-regulation ?
AndyetothercountriessuchasCanada,USA&NewZealandconsiderthatan EngineersActisstill
(2)
(3)
BEM
Qualification meets the Washington Accord reqds. Sit and pass the Professional Assessment Examinations
Takes 3 to 4 years of practical experience before a Graduate Engineer can qualify to sit for the Professional Assessment Examination.
Thecitizenshiprequirementswasintroducedinanamendmentin1987, foreignengineerscanregisteronlyasTemporaryEngineer
Commercial presence
Only Malaysian engineers can register with BEM under Section 10 & hence can set-up a business entity registered with BEM.
EngineeringConsultancy Practice(Section7A)
Sole Proprietorship
Partnership
Partners must be Malaysian Professional Engineers For multi disciplinary practice 30% of equity can be held by any other persons, 70% by Malaysian Professionals. Board of Directors must all be Malaysian Professional Engineers, Architects and/or Quantity Surveyors.
Equity must be held by Malaysian Professional Engineers & Board of Directors must all be Malaysian Professional Engineers
Theregulationofabusinessentitywasintroducedasanamendmentin1974, andsubsequentlyin1987formultidisciplinarypractice
Perceived Hidden Impediments for Foreign Engineering Professionals & Firms to Practice in Malaysia
1. 2. 3. 4. 5. Registrationrequirementofindividualswhereregistrationislinked tocitizenshipandresidencyrequirements. Localrequirementsrelatingtoqualificationandexperiencediffer fromforeignstandards. Mandatory requirement for membership of local professional institutions. Registration of professional service corporate bodies, where Directors are required to be registered professionals. Restrictive conditions on employment of expatriates, namely short and onerous visa conditions; restrictive work permit regulations; and limitation on the numbers as a percentage of workforce. Government assistance to local professional services firms in terms of matching grants and soft loans Restriction on formation of local subsidiaries Restriction on foreign equity in local firms and joint ventures
6. 7. 8.
Perceived Hidden Impediments for Foreign Engineering Professionals & Firms to Practice in Malaysia (Cont d)
9. 10. 11. 12. 13. 14. 15. RegulationsonsettingupthefirmsBoardandmanagement composition Marketingandadvertisingrestrictionsforprofessionalservices providers Competitiveconditions,suchastenderbidding,arebiasedagainst foreignfirms Prequalification(restrictive)requirementswhicharedifficult for foreignfirmstomeet Impositionoflocalcontentruleswhichfavourslocalservices providers Designtolocalspecificationsandnonrecognitionsof foreign standards Disputeregulationmechanism,suchaslocalarbitrationandlegal proceedings,thatfavourslocalfirms. SuchaccusationsleveledagainstMalaysiahasitsmeritsand demerits
At the same time Malaysia has signed-up on many International Agreements on Trade
Pull factor:
Government has made international commitment in bilateral and multilateral agreements and after careful study indicate, on balance, more benefits will be generated to the country as a whole, since Malaysia is a trading nation (one of the top 20th largest trading nation in the world). It will create a competitive environment that provides improve quality, in line with international standards, accessibility to wider choice and more expertise and lead to more competitive pricing, which in the end benefits consumers and the Malaysia citizens in general.
Push factor:
Cabinet directive thorough the Ministry of Works letter dated 4th. March 2010 to the Board of Architects, Board of Engineers and Board of Quantity Surveyors for foreign equity in companies shall be; up to 70% by 2010 and up to 100% by 2012
Then came along the issue of liberalization & how does it benefit ..
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