L E M B AG A J U R U TE R A M A L AY S I A

KDN PP 11720/4/2013 (032270) B OA RD OF E NGI NEERS MALAYSIA

THE VOL.71
JULY - SEPTEMBER 2017
INGENIEUR
M A G A Z I N E O F T H E B O A R D O F E N G I N E E R S M A L A Y S I A

FACILITY MANAGEMENT

Photo Courtesy of Ir Tan Bee Hong

 LEMBAGA JURUTERA MALAYSIA
BOARD OF ENGINEERS MALAYSIA

EDITORIAL BOARD
2016-2017

PRESIDENT EDITORIAL BOARD

Dato’ Sri Ir. Dr Roslan bin Md Taha
ADVISOR
BOARD MEMBERS Dato’ Sri Ir. Dr Roslan bin Md Taha
Datuk Wira Ir. Md Sidek bin Ahmad
Datuk Ir. Hj. Amrullah bin Kamal CHAIRMAN
Dato’ Ir. Abdul Rashid bin Maidin Dato’ Prof. Ir. Dr Hassan bin Basri
Dato’ Ir. Mohtar bin Musri
Dato’ Prof. Ir. Dr Hassan bin Basri EDITOR
Ir. Zainal Abidin bin Saidun Dato’ Ir. Fong Tian Yong
Ir. Zuraimi bin Hj Sabki
Ir. Prem Kumar EDITORIAL MEMBERS
Ir. Dr Ahmad Anuar bin Othman Prof. Ir. Dr K S Kannan
Ir. Tan Yean Chin Ir. Prem Kumar
Ir. David Lai Kong Phooi Ir. Chan Boon Teik
Ir. Ishak bin Abdul Rahman
Ir. Lai Sze Ching
Ar. Zuraina Leily binti Awalludin
PUBLICATION OFFICER
Pn Nik Kamaliah Nik Abdul Rahman
Sr. Nik Zainal Alam bin Hasan

SECRETARY
Ir. Ruslan bin Abdul Aziz

REGISTRAR
Ir. Hizamul-din bin Ab. Rahman

The Ingenieur is published quarterly by the Board of Engineers Malaysia (Lembaga Jurutera Malaysia) and is
distributed free to registered Professional Engineers. The statements and opinions expressed in this publica-
tion are those of the writers. BEM invites all engineers and readers to contribute relevant articles and views
to the Publisher.

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1
 INGENIEUR

70

CONTENTS

4 President’s Message Do You Know

42 Facility Management
Announcement
6 Publication Calendar Feature
44 Escalator – Gracious
Cover Feature Vertical Transporter
8 Optimising Energy Cost in 46 Top Trends in Facility
Government Complexes Management
22 Revisit to Guidelines on
Periodical Inspection of
Buildings
28 Lift & Escalator Safety
34 Issues in Air Conditioning
and Mechanical Ventilation
System Design

44 61

MASTER PLAN ON
ASEAN CONNECTIVITY 2025

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 Report 8
50 Malaysian Rural School
Electrification Programme
Using Solar PV-Diesel
Hybrid System
61 Master Plan on ASEAN
Connectivity 2025
– Opportunities for
Engineers

Conference
70 ACPECC Vision 2025
73 BEM Roadshow 2017

Engineering & Law

76 Arresting the Crisis
of Confidence in
Arbitration – A Malaysian
Perspective 28

Engineering Nostalgia
80 “Gotong Royong” Road
Building Works, 1966

80 50

3
 INGENIEUR
PRESIDENT’S MESSAGE
Facility
Management
F
acility Management (FM) is gaining more
attention and importance along with the large
accumulation of building stocks, especially
shopping complexes and office towers. Higher
expectation on the quality of building services
from affluent customers and the complexity of
M&E services have led to the growing number of
FM firms and personnel to match this demand.
According the National Property Information
Centre (NAPIC) report, as of the first quarter of
2017, there were 20,956,585 sq m of office
space, 14,851,287 sq m of shopping complex
space and 2,886 hotels in the country.
The World FM Day celebrated on May 17,
2017 carried the theme of ‘Enabling Positive
Experiences’. It is a good reminder to all
stakeholders including engineers who are involved
in FM to discharge their roles and responsibilities
in the safe upkeeping and efficient maintenance
of the buildings under their care.
For this, the article on “Revisit to Guidelines
on Periodical Inspection of Buildings” is a timely
refresher to practicing engineers who are engaged
in the inspection of buildings of more than five
storeys, every 10 years. Of equal importance,
building owners of high rise buildings who often
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alter the usage of their buildings should consult
engineers to check against the design loading of
the particular floors to ensure the overall integrity
of the structure.
The article by the Department of Safety and
Health (DOSH) on lifts and escalators narrates
its regulating mechanism to ensure that these
facilities are safe for users. It is comforting to
note that incidences involving these machineries
are relatively small compared with the total stock
of 60,000 lifts and 12,000 escalators installed
throughout the country.
A good FM should also take into account
green building index aspects as contribution
to the Sustainable Development Goal of the
United Nations. The article from Jabatan Kerja
Raya on “Optimising Energy Cost in Government
Complexes” is one good example of strategies
to reduce energy consumption in building
complexes.
As we approach 2020 as a developed nation,
all property owners and stakeholders will treat
treat FM as a priority.
Dato’ Sri Ir. Dr Roslan bin Md Taha
President BEM
 INGENIEUR
PUBLICATION CALENDAR
CALL FOR ARTICLES
The Ingenieur is published quarterly by the Board of
Engineers Malaysia. The following are the themes
L E M B AG A J U R U TE R A M A L AY S I A
KDN PP 11720/4/2013 (032270) BO ARD O F ENG INEERS M A L AY S I A

INGENIEUR
ANNOUNCEMENT

THE VOL.70
for the coming issues.
APRIL-JUNE 2017

M A G A Z I N E O F T H E B O A R D O F E N G I N E E R S M A L A Y S I A
• Vol. 72, Oct-Dec 2017
Engineering Education
• Vol. 73, Jan Mac 2018
Digital Economy
• Vol. 74, Apr-June 2018
Future Transportation

ROAD SAFETY • Vol. 75, July-Sept. 2018

Future Energy
• Vol. 76, Oct-Dec 2018
Forensic Engineering

Articles and other contributions relevant to the

themes are welcomed, but the decision to publish
rests with the Editorial Board.
Advertising inquiries are also welcomed. Please
refer to the BEM advertisement in this issue for the
Cover photo courtesy of Ir. Fong Chew Chung
latest rate card and booking form.

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 INGENIEUR

OPTIMISING ENERGY
COST IN GOVERNMENT
COVER FEATURE

COMPLEXES
By Building Facility Branch, Public Works Department

Buildings consume a very high

percentage of energy compared
with other economic sectors.
Although the percentages vary
among countries, buildings are
responsible for between 30% and
45 % of global energy demand. The
high rate of energy consumption
and carbon dioxide emission in
building environments have made
energy efficiency and cost-saving
strategies a priority objective for
energy policies for most countries.

E
fficient use of electricity in Government
buildings is one of the Malaysian
Government’s efforts to manage the
country’s energy resources efficiently and
effectively. This is important because our country
has seen rising energy consumption in line with
its rate of economic development. The world is
facing challenges due to decreasing fossil energy
sources such as oil, gas and coal, while prices are
rising. Therefore, the Government must lead the
effort to use energy efficiently.
The typical portion of energy in Malaysian
office buildings is 50% for air-conditioning, 25%
for electrical lighting and 25% for small power
consumption i.e. electrical equipment. In addition,
air-conditioning energy consumption is not only
due to solar heat in the building, but also due to
heat emission from electrical lighting, electrical

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equipment, conduction (through the building
fabric), fresh air in the building and human
occupancy. These are the significant factors in air-
conditioning energy consumption.
The Malaysian Government is committed to
cutting carbon emissions by 40% by the year
2020 to help tackle issues related to climate
change and global warming. On August 11,
2011, the outcomes of a meeting regarding
these issues, chaired by the Prime Minister,
were set so that immediate steps will be taken
to use energy efficiently in all Government
buildings. One of the initiatives directed was
the implementation of the internal environment
temperature in all Government buildings to a
minimum of 24°C. This setting is a measure
of energy saving without any cost that can be
implemented immediately. The Ministry of
Energy, Green Technology and Water (KeTTHA)
has prepared guidelines on the implementation
of this energy-saving measure.
Correspondingly, the Government benefits from
this instruction in terms of saving utility expenses.
The private sector has not currently made any
policy measures mandatory in terms of minimum
temperature settings. However, the private sector
is encouraged to adopt similar energy-saving
measures implemented by the Government to
realize its effort in the sustainable development of
resources and to minimize wastage.
Following the August 2011 meeting on green
technology and climate change, a set of guidelines
was issued by the Prime Minister’s Department
Photo by CEphoto, Uwe Aranas / CC-BY-SA-3.0
on January 27, 2014. These guidelines are
intended to guide Government agencies on the
implementation of energy-saving methods in
all Government buildings to mitigate the cost of
utilities by 5%.
ENERGY EFFICIENCY PROGRAMMES
The new buildings designed by the Public Works
Department (JKR) have a low Building Energy Index
(BEI) target of around 135 to 150 Kwh/m2/year.
BEI is the ratio of total energy used yearly (kWh)
to the total built-up air-conditioning area (m2).
In addition, most existing Government buildings
have been characterized by energy efficiency in
design and specification aspects such as Building
Automation Systems, Lighting Control Systems,
Variable Speed Drives and Variable Air Volume
systems for air conditioning and building insulation
to reduce the rate of heat coming into the building
through the concrete roof.
Besides active systems in a building, passive
systems such as the exterior of a building or the
‘building envelope’ play a role as a climate filter.
We need to assess and understand the materials
used specifically for roofs and walls. If the
building material is wrongly selected, the indoor
temperature could increase by more than twice
the temperature outside. We need to understand
that every piece of building material has its
own attributes and performance and needs to
be researched before applying in the passive
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 INGENIEUR
system design of buildings. Each material used a) Programmes on green practice awareness
has its own criteria. Therefore, it should be placed c ampaigns among re sident s and
according to its nature and performance. maintainers of buildings where a series
Understanding the choice of building materials of basic training has been carried out in
that meets local needs is essential in the relation to green technology practices;
design, building detail and specification writing b) Retrofit programmes by the Public Works
stage. Lightweight steel materials are good heat Department and KeTTHA in the 11 th
conductors and require insulation if used. Using Malaysia Plan. For example, by the end of
wicks iron roofing i.e. zinc instead of the nipah 2016, retrofit works had been carried out at
roofing used in Malay houses is a major mistake. the Prime Minister’s Department Complex
The heat streamed by this roof causes an increase (JPM) (Block B1 to Block B8) and completed
in internal temperature. The use of this material on January 31, 2017 with energy savings
requires additional insulation materials to block evident after the work. It is estimated that
the heat flow and requires additional roof height an amount of RM750,000 will be saved
so that the heat can be reduced. for the first five months of 2017 with 20%
These are basic principles that need to be electricity savings;
understood before we take further action on c) Implementing energy efficient management
energy conservation. Some initial steps concerning practices in tender specifications for facility
the basic design of the building need to be taken management contractors executed by the
at the planning, designing and construction stage. Public Works Department. This is to ensure
Consideration needs to be made on micro climate that the contractors managing the facilities
control and passive control before considering in Government buildings implement energy-
the use of active controls. Using an active control efficient management practices throughout
method such as air conditioners, without taking their contract period;
into account other forms of prefixing are a mistake d) Incorporate minimum requirements of
and the root cause of much wastage. In summary, MS1525: Code of Practice on Use of
understanding the basics of building design is a Energy Efficiency and Renewable Energy
must before any other steps are undertaken to for Non-residential Buildings in design
minimize energy wastage. specifications to ensure the design of new
Most sophisticated modern buildings employ buildings meets the characteristics of
almost 90% of their control through active energy-efficient buildings; and
controls involving electricity to function. This e) Guidelines on the implementation of
is proven when almost all these buildings use energy conservation directives through
air conditioning devices to control the internal temperature setting at a minimum of 24°C
environment, elevators and escalators for vertical in all Government’s buildings need to be
connectivity, lighting and computerized equipment distributed to all Government Ministries,
to operate. It is therefore desirable to think about departments and agencies as a measure
how to save energy costs through a variety of of reducing Government utility costs.
methods that will ultimately help reduce the cost
of building operations and maintenance. In most
cases of institutional and administrative buildings,
BUILDING CASE STUDIES
the cost of energy alone is almost 50 to 60 % of
In order to support the Government’s energy saving
the total cost of building maintenance.
objectives, the Ministry of Works (KKR) energy-
Apart from taking into account passive
saving initiatives, with and without costs, with
and active design features of buildings, the
5% savings on the cost of utilities of its agencies
Malaysian Government, in collaboration with other
has been achieved. The Public Works Department
Government agencies, has also implemented
(JKR) has responded to the recommendations of
various initiatives of green technology that could
the KKR to make the Ministry of Works Complex
help save energy and reduce carbon emissions.
and JKR Complex as models for other Government
Included among them are:
agencies.

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 INGENIEUR
1. MINISTRY OF WORKS COMPLEX
Building Description
The KKR Complex building is located at Jalan
Tun Ismail, Kuala Lumpur. The building, which
was completed in 1996, serves as a Federal
Administration Office for the Ministry of Works
Malaysia (KKR). The building has three building
blocks, namely Block A (6 floors), Block B (14
floors) and Block C (3 storeys).
The whole area is as follows:
- Total area of the building Blocks
A-C: 41,843 m2
- Spacious air-conditioned area in Blocks
A-C: 33,322 m2
Data Collection  average energy consumption of electricity per
The data from all blocks in the complex was
collected from June 10-17, 2015. The overall
Index of energy consumption for the building is
shown in Table 1:-
Referring to Figure 1, the Building Energy
Intensity (BEI) of KKR Complex in 2014 was 12%
higher when compared with the average for office
buildings in Malaysia. However, we believe that
KKR Complex has the potential to achieve energy-
efficient office building BEI if the saving measures
proposed in this report are implemented.
The breakdown of the overall energy
consumption of the buildings in Figure 2 shows the
highest percentage (70.8%) was consumed by the
air-conditioning and ventilation systems and the
second highest (22.6%) was the internal lighting
followed by office equipment and domestic uses
(4.3%) and the elevators (1.2%).
Energy balance analysis was conducted to
ascertain and confirm the current consumption
rate of electricity during the audit by using a
power logger installed on the meter and making
comparisons with TNB’s electricity bill. The
month based on TNB’s electricity bill in the year
2014, was 597,058 kWh.
According to the Energy Audit data bill, the
difference in energy usage data is 7,743.64 kWh
monthly. This low 1.3% difference indicates that
the data obtained during the audit is reasonable
and acceptable (See Table 2).

NO ARTICLE KKR COMPLEX (WHOLE BLOCK)

1 Building Energy Intensity (BEI) (kWh/m2/year) 215.00
2 Building Energy Cost (BEC) (RM/m2/year) 105.62
3 Lighting Power Intensity (LPI) (W/m2) 18.89
4 Lighting Energy Intensity (LEI) (kWh/m2/year) 52.40
5 Lighting Cost Intensity (LCI) (RM/m2/year) 16.35
6 Air-Conditioning Cost Index (ACCI) (RM/m2/year) 53.77
7 Air-Conditioning Power Index (ACPI) (W/m2) 48.47
8 Air-Conditioning Energy Intensity Index (ACEII) (kWh/m2/year) 147.30

Table 1: The Overall Building Energy Consumption Index

BUILDING ENERGY PARAMETERS 2012 * 2013 * 2014 2015 2016 * *

SUMMARY (2014-2016)
Annual Electricity Consumption, 7,925,168 7,482,365 7,164,692 6,978,154 6,590,586
kWh
Annual Electricity Bill, RM 3,151,066 3,000,194 3,378,458 3,322,766 3,173,889
Building Energy With NFA = 189.4 178.8 171.2 166.8 157.5
Intensity (BEI), 41, 843m2
kWh/m /year
2
With the ACA 237.8 224.5 215.0 209.4 197.8
= 33,322 m2
Table 2: Building Energy Parameters Summary * Data obtained from 2015 audit report
* * 2016 full year kWh and bill are estimated to 12 months

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 Figure 1: Comparison of BEI between KKR and other buildings

Figure 2: Breakdown of energy consumption of the whole KKR Complex

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 INGENIEUR
Energy Saving Measures
The recommended energy saving measures, ‘with
cost’ and ‘without cost’, are in the two tables below.
The BEI readings of Ministry of Works Complex
has decreased since the year 2016 after the cost
saving measures were made during the year. In
2017, some cost saving proposals are being made
including the electrical scope of items 1 to 3 and
the mechanical scope of items 1 to 3. Provision
of these retrofit works has been funded by the
Ministry of Energy, Green Technology and Water
(KeTTHA) at a cost of RM5.86 million. 

1) ENERGY SAVING MEASURES WITHOUT COST

No. RECOMMENDED ESTIMATED YEARLY ESTIMATED ANNUAL
ENERGY MEASURES SAVING (kWh) SAVINGS (RM)
THE SCOPE OF ELECTRICITY
1 Reduce the load in the evening in block A 38,016.00 13,875.84
2 Reduce the load in the evening in block B 31,680.00 11,563.20
3 Switch off lights and equipment domestic at lunch 12,672.00 4,625.28
hour for 1 hour in block A
4 Switch off lights and equipment domestic at lunch 28,512.00 10,406.88
hour for 1 hour in block A
THE SCOPE OF MECHANICAL
1 Closing doors and windows to prevent the infiltration 40,603.20 14,820.17
of external air to air conditioned space
2 Reduction of operating hours of the air conditioning 369,132.72 134,733.44
from 11 hours to 10 hours
3 Do water-balancing and coordinating the 40,603.20 14,820.17
temperature to 24 º C at each work space
4 Allow only 2 elevators (for block A and B) on standby 12,472.20 4,552.35
during off-hours and holidays compared with 12
elevators during office hours currently. It is estimated
that 65% of energy consumed can be saved.
TOTAL 573,691.32 209,397.33

2) ENERGY SAVING MEASURES WITH COST

No. RECOMMENDED ESTIMATED YEARLY ESTIMATED ANNUAL
ENERGY MEASURES SAVINGS (kWh) SAVINGS (RM)
THE SCOPE OF ELECTRICITY
1 Fix timer switches in the parking area in block A 8,383.00 3,059.62
2 Put switch lighting controls in each room at block A 10,644.48 3,885.24
and B
3 Put switch lighting controls in the parking area 39,783.74 14,521.07
THE SCOPE OF MECHANICAL
1 Chiller replacement at block A and B that complies 1,396,048.90 145,826.30
with the Minimum requirements of MS1525:2014
2 Replacement motor for the chilled water pump for 5,169.12 1,886.73
blocks A and B
3 Replacement of the condenser water pump for 12,801.36 4,672.49
blocks A and B
4 Fan motor replacement AHU for blocks A and B 19,489.22 7,113.57
TOTAL 1,492,339.82 180,965.02

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 INGENIEUR
ENERGY SAVING MEASURES AT THE KKR COMPLEX

PARAMETERS 2016 * ESM NO COST ESM WITH COST ESM NO COST + COST
(BASELINE) Est (Amt). Saving% Est (Amt). Saving% Est (Amt). Saving%
Usage, kWh 6,590,586 6,016,894.68 9% 5,117,735.4 22% 4,544,044.08 31%
COVER FEATURE

Bills, RM 3,173,889 2,964,491.67 7% 3,000,037.55 5% 2,790,640.22 12%

Location Area 33,322 m2
Est BEI 197.8 181 8.5% 154 22% 141 27%

Figure 3: Comparison of Building Energy Index (BEI) after saving measures taken
(without cost, with cost and both)

Figure 3 shows the BEI readings when energy
saving measure were taken in different conditions,
i.e. with cost, without cost and both with and
without cost. The BEI reading shows an estimated
reduction to 141BEI when the cost cutting
measures were carried out at the end of the year
2016, i.e. when chiller replacement and energy
efficient lighting works were completed.
2. JKR COMPLEX HEADQUARTERS
Building Description
The JKR Complex building is located at Jalan
Sultan Salahuddin, Kuala Lumpur. It serves as the
Public Works Department Headquarters (JKR). The
building has six building blocks, namely Block A,
Block B , Block C, Block D, Block E and Block F (17
storeys).
The whole area is as follows:
- Total area of the building Blocks
A-F: 34,068 m2
- Spacious air-conditioned area in Blocks
A-F: 30,993 m2
Data Collection 
Data was collected for all six blocks of the JKR
Complex during 2013. The overall building energy
consumption index is shown in Table 3:-
Referring to Figure 4, the Building Energy
Intensity (BEI) of the JKR Complex in 2013 was

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NO ARTICLE JKR COMPLEX
(WHOLE BLOCK)
1 Building Energy Intensity (BEI) (kWh/m2/year) 154.40
2 Building Energy Cost (BEC) (RM/m2/year) 48.17
3 Lighting Power Intensity (LPI) (W/m2) 10.65
4 Lighting Energy Intensity (LEI) (kWh/m2/year) 29.41
5 Lighting Cost Intensity (LCI) (RM/m2/year) 9.17
6 Air-Conditioning Cost Index (ACCI) (RM/m2/year) 53.77
7 Air-Conditioning Power Index (ACPI) (W/m2) 45.51
8 Air-Conditioning Energy Intensity Index (ACEII) (kWh/m2/year) 86.38

Table 3: The Overall Building Energy Consumption Index

Figure 4: Comparison of BEI between JKR and other buildings

Figure 5: Breakdown of energy consumption of the whole JKR Complex 17

 INGENIEUR
lower when compared with the average office
building in Malaysia. However, we believe
that JKR Complex still has the potential to
achieve an energy-efficient office building BEI
if saving measures proposed in this article are
implemented.
The breakdown of the overall energy
consumption of the buildings shown in Figure 5
above shows the highest (66.14%) was consumed
by the air-conditioning and ventilation system
and the second highest was the internal lighting
(21.53%) followed by office equipments and
domestic usage (7.5%) and the elevators (3.65%).
Energy Saving Measures
The recommended energy saving measures, ‘with
cost’ and ‘without cost’, in mid-year 2016 until
June 2017, to reduce the existing BEI of 127 kWh/
m2/year, are shown in the two tables below.
After the ‘without cost’ cost-saving measures
have been taken and those in item 2 of the ‘with
cost’ section have been made, the BEI readings
of JKR Complex may be reduced from a BEI 127
reading to an even lower BEI reading if the cost
savings for items 1 and 3 in the ‘with cost’ section
are executed.
In June 2017, the JKR Building Maintenance
Facility Branch in collaboration with the Building
Sector Energy Efficiency Project (BSEEP)
agreed to carry out item no. 4 - to install the
Online Monitoring System. The objective of this
installation is to monitor the energy consumption
of each block at the JKR Complex and to provide

1) ENERGY SAVING MEASURES WITHOUT COST

No. RECOMMENDED ENERGY MEASURES ESTIMATED YEARLY
SAVINGS (kWh)
1 Air Conditioner at Prayer Room/Surau Block F to operate only 936.00
from 12 pm to 5 pm.
2 Operating time adjustment of air conditioning system 10,731.00

3 Implementation of energy saving programmes:

Awareness Programme
Role of Level Officer to switch off the lights during the 15,876.00
afternoon break
Periodic inspection
4 Turning off 80% of indoor lighting during lunch break. 72,915.14
TOTAL 100,458.14

2) ENERGY SAVING MEASURES WITH COST

No. RECOMMENDED ENERGY MEASURES ESTIMATED YEARLY
SAVINGS (kWh)
1 Replacement of 2 chiller units and 3 cooling units in the 182,520.00
cooling tower
2 Replacement of 4,763 existing lighting units in Block F to LED 233,348.00
energy-efficient lamps.
3 Replacement of air ducting at Block F 224,238.00
4 Online monitoring system for energy consumption of each block
at JKR Complex
TOTAL 640,106.00

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ENERGY SAVING MEASURES AT THE JKR COMPLEX

BUILDING ENERGY PARAMETERS 2012 * 2013 * 2014 2015 2016

SUMMARY (2014-2016)
Annual Electricity Consumption, 4,975,376 4,785,469 4,585,502 4,313,068 3,934,225
kWh
Building Energy With the ACA = 160.5 154.4 147.9 139.2 127.0
Intensity (BEI), 30,993 m2
kWh/m /year
2

Figure 6: Comparison of Building Energy Index (BEI) after saving measures taken (‘without cost’ and
‘with cost’)

consumers with a sense of energy saving if there
is a higher than ordinary usage in the mentioned
blocks.  responsibilities in order to save energy in
Figure 6 shows the BEI reading can be reduced
to 113 when the ‘with cost’ and ‘without cost’
energy saving measures such as the chiller,
ducting and cooling tower replacement works.
CONCLUSION
In conclusion, to achieve the Government’s
objective of reducing 40% of carbon dioxide
emissions by 2020, all parties within the
Government, agencies and the staff themselves
must take on their respective roles and
Government buildings.
In designing new buildings, the designer’s
role should first emphasize the passive systems
followed by the active systems. Passive systems
such as the exterior of a building or “building
envelope” protect the building from direct solar
heat that permeates into the building. Good
passive systems in building design will lead to
a reduction in the use of electricity in the active
systems. For example, the use of air-conditioning
can be reduced when the direct heat to the

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 ‟
INGENIEUR
building is also reduced by considering the building
orientation. This will help to reduce high energy
demand in the long run. To get an estimate of the
Apart from new building design, energy-saving
awareness programmes and the efficient usage
of energy should be implemented so that more overall energy savings, the
savings can be made. There are several methods
that can be carried out as shown in the energy-
saving recommendations. Energy saving measures
savings from both active
‘without cost’ as proposed in this article can help
reduce energy consumption with immediate
returns.
and passive systems must
To get an estimate of the overall energy
savings, the savings from both active and passive be accounted for to realize
systems must be accounted for to realize the
value of the planned savings programmes. Also
the involvement of residents is necessary so that the value of the planned
energy saving targets may be achieved.
This study also concludes that in order
to optimize the cost of electrical energy, the savings programmes. Also
involvement of society in energy saving is
important as it will not only benefit every consumer
in the country, but will also prepare for future
the involvement of residents
energy saving.
is necessary so that energy
REFERENCE
saving targets may be
D.A. Asimakopoulos, M. Santamouris, I. Farrou,
M. Laskari, M. Saliari, G. Giannakidis, K. Tigas,
J. Kapsomenakis, C. Douvis, S.C. Zerefos, T.
achieved.
Antonakaki, C. Giannakopoulos
Modelling the Energy Demand Projection of the
Building Sector in Greece in the 21 st century;
Energy Build.,49(2012),pp. 488-498)

L. Perez-Lombard, J. Ortiz, C. Pout

A Review on Buildings Energy Consumption
Information; Energy Build., 40(2008),pp.394-398
C.P. Au-Yong, A.S. Ali, F. Ahmad
Improving Occupants’ Satisfaction with Effective
Maintenance Management of HVAC System in
Office Buildings; Autom. Constr., 43(2014),pp.31-
37
S. Wu, K. Neale, M. Williamson, M. Hornby
Research Opportunities in Maintenance of Office
Building Service Systems; J.Qual. Maint. Eng.,16(1)
(2010),pp.23-33
Surat Pekeliling Am Bilangan 2 Tahun 2014-
Jabatan Perdana Menteri
Garis Panduan Kaedah Penjimatan Tenaga di
Pejabat dan Premis Kerajaan
JKR Malaysia Energy Audit Team
KKR Complex Energy Audit Report (2015)
KCJ Engineering Energy Audit Team
KKR Complex Energy Audit Report (2016)
JKR Malaysia Energy Audit Team
JKR Complex Energy Audit Report (2013)

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 INGENIEUR
Revisit to Guidelines on
Periodical Inspection of
COVER FEATURE
Buildings
By Ir. Fong Tian Yong
T
he question of what is the expected life
span of a building has attracted different
views from different experts. For Reinforced
Concrete buildings, it generally depends on the
quality of materials used and the standard of
maintenance. The New Zealand Building Code
requires the structural elements of a building,
with only normal maintenance, to satisfy the
performance requirement of the Code: ‘for the
lesser of the specified intended life span of a
building to be not less than 50 years’.
It is common for owners, especially new
owners, to undertake renovation and make
alterations incorporating additional loads, without
taking into consideration the structural integrity
of the building. The findings in the cases of the
collapse of Hotel New World, Singapore in 1986
and Sampoong Department Store, Korea in 1995,
pointed to major changes in the usage of the
buildings with additional loads added. These are
just examples of the misuse of buildings that have
resulted in weakened structures.
Subsequent to the Highland Tower collapse in
Malaysia in 1993, the Street, Drainage and Building
Act (Act 133) was amended in 1994 to introduce a
provision for the periodical inspection of buildings
of more than five storeys every ten years.
The Ministry of Housing and Local Government
in December 1996 produced detailed ‘Guidelines
on the Periodical Inspection of Buildings’ to
streamline the manner in which such inspections
should be carried out and included a standard set
of forms for submission purposes.
However, there are still owners of high rise
buildings who are not aware of their obligations to
perform the periodical inspection of their building
or appreciate the importance of such directives.
The question of failure to perform the
periodical inspection of a Penang office building
on Jalan Macalister by the owner was raised
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during the Penang State Government Commission
of Enquiry when the 200 ton fin wall fell from the
top of the 21-storey building, hitting a passing car
on June 13, 2013.
With the increasing stock of high rise buildings
accumulated over the last 30 years, it may be
worthwhile to revisit the guidelines to remind
the owners of buildings of their legal and social
obligations to comply with the Street, Drainage and
Building Act to perform the periodical inspections of
buildings of more than five stories every ten years.
GENERAL GUIDELINES ON PERIODICAL
INSPECTION OF BUILDINGS
The requirements for mandatory periodical
inspection of buildings are stipulated under
Section 85A of the Street, Drainage and Building
Act (Amendment) 1994, Act A903.
The parties involved in the inspection process
are:
●● The local authority whose responsibility it is
to ensure that the inspections are carried
out according to the requirements of the
Act;
●● The building owner who is responsible for
the appointment of an engineer to carry out
the inspections; and
●● The engineer who is appointed to inspect
the building.
BUILDING TO BE INSPECTED
The requirement for inspection as provided under
the Act shall apply to all buildings exceeding five
storeys. Any storey of a building which is at a level
lower than the ground storey shall be deemed to
be a storey.
 The owners under this provision include:
PROCESS FLOWCHART OF PERIODICAL
a) The Joint Management B o dy or
INSPECTION OF BUILDING
Management Corporation having control of
the building; or LOCAL AUTHORITY
b) The person receiving any rent or charge for
the maintenance of the common property Serve notice to building
of the subdivided building. owner or M.C.
OWNER

NOTICE TO OWNER TO CARRY OUT Appoint P.E.

INSPECTION
PE
The local authority shall by notice in writing serve Perform visual inspection
on the owner of a building that it is required that
the building is inspected every ten years from the Visual inspection
date of issuance of CFO or CCC of the building. If
the owner fails to perform the inspection after the Issue report to L.A.
notice is issued, the local authority may appoint
an engineer to perform the inspection and recover LOCAL AUTHORITY
the expenses from the owner.
If report finds
building
INDEPENDENCE OF AN ENGINEER structurally stable
LA forward report
An engineer shall not be appointed by the local to building owner
authority or owner of a building for the purpose
of carrying out an inspection of a building under
Section 85A if the engineer has any professional
or financial interest in the building, for example:- If report finds doubt on
a. he has been responsible for the design or building structure stability/
construction of the building or any part integrity, LA authorise PE to do
thereof; full structural investigation
b. he or any nominee of his is a member, PE
officer or employee of a company or other
body which has a professional or financial PE perform full structural
interest in the building or any part thereof; investigation
c. he is partner or is in the employment of a
person who has a professional or financial Full structural inspection
interest in the building or any part thereof;
d. he holds any interest in the building or any PE prepare report with
part thereof; recommendation for repair
e. a person shall be treated as having a and strengthening works or
professional interest in the building event demolition
if he has interest only as a trustee for the
benefit of some other person; and LOCAL AUTHORITY
f. in the case of married people living Issue order to repair as per
together, the interest of one spouse shall, recommendation by PE or
if known to the other be deemed to be also order for demolition
an interest of the other.
OWNER

23
 INGENIEUR
THE MANNER OF INSPECTION OF A
BUILDING UNDER THE ACT
The inspection of a building may consist of one or
both or the following:
●● Visual inspection, or
●● Full structural investigation.
VISUAL INSPECTION
Conducting a visual inspection includes:
●● A visual inspection of the building, including
a visual survey of the condition of the
building, its structural elements and any
addition or alteration to the building and its
structural elements;
●● A visual inspection of the surrounding areas
including the slopes and drainage system
and any alteration to the slope retaining
structures;
●● The preparation and submission to the
local authority of a report of the result of
the visual inspection;
●● If, having regard to the results of the
visual inspection, the engineer reasonably
suspects or is of the opinion that there are
defects, deformations or deterioration in
the building and its structural elements
that will or are likely to endanger or reduce
the structural stability or integrity of any
part of the building, he shall inform the
local authority of the need to carry out
a full structural investigation, including
investigation in respect of its structural
elements; and
●● Details and guidelines on Visual Inspection
and the Submission of the report are in the
sidebar.
FULL STRUCTURAL INVESTIGATION
The local authority may after considering the
report of the engineer, authorise the engineer to
carry out a full structural investigation which shall
include the following:
a) taking all reasonable steps in obtaining
information relating to the design,
construction, maintenance and history of
the building;
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b) with reasonable diligence checking
the structural plans of the building and
the calculation therein if the plans are
not available and reconstructing such
structural plans where the local authority so
requires, with a view to the determining of
any inadequacy in the structural elements
of the building; 
c) carrying out or causing to be carried out
tests on the structural elements of the
building with reasonable care so as not to
damage any part thereof;
d) carrying out tests on the materials used in
the construction of the building; and
e) carrying out tests on such parts of
the building as the engineer considers
necessary.
The engineer shall then prepare and submit to
the local authority a report of the results of the full
structural investigation carried out together with
his recommendations.
REPORT OF THE RESULT OF AN
INSPECTION
A report of the result of an inspection of a building
shall comprise:
a. a detailed description of the visual
inspection and any full structural
investigation of the building conducted by
the engineer;
b. an analysis of observations and tests
conducted in the course of any full
structural investigation of the building; and
c. recommendations by the engineer as to any
remedial works as are necessary to ensure
the structural stability or integrity of the
building.
The local authority may, if after evaluating the
inspection report, accept it in full, reject it, accept
part of it or obtain a second opinion on it.
The local authority shall thereafter:-
a. issue an order to the owner of the building
to take the appropriate measures to
rectify or remedy any defect, deformation
or deterioration as recommended by the
engineer within such period as the local
authority may specify; or
b. may issue, in place of an inquiry under
section 83, of the Act 133, closure or
Details on Visual Inspection and the Submission of the report
Objective:
The emphasis of the inspection is not on the
architectural aspects, but on the structural
elements of the buildings and the surrounding
area so that any misuse, abuse, defect, sign of
structural distress, deformation and deterioration
can be identified. The owner will get the
professional advice from the engineer so as to
initiate further structural investigation or to take
appropriate remedial action.
Visual Inspection
The engineer is expected to carry out, with
reasonable diligence, a visual inspection of :
a. the condition of the structure of the building
- to identify the type of structural defects
- to identify any sign of structural distress
and deformation
- to identify any sign of material deterioration
b. the loading on the structure of the building
- to identify any misuse, abuse and change
of the use which can result in overloading
c. any addition or alteration affecting the
structure of the building
- to identify any addition or alteration which
can result in overloading or adverse effects
on the structure
d. Other conditions that may affect the safety of
the occupants
- to assess the state and condition of the
water tank
- to assess the stability of the surrounding
areas. The condition of slopes and
drainages within the same catchment area
which have a stability effect on the building
should be checked against the overall
stability and functionality. Earth retaining
structures and soil stabilisation within the
building lot boundary should be inspected
against possible failure.
Extent of Inspection
a. Due to the difficulty of access and other
practical problems, it is sometimes not
possible to inspect 100% of all the areas in a
building. The engineer should therefore identify
critical areas of the structure and pay special
attention to them.
b. However, in a building where the loading is
light, where the usage is fairly uniform and
where it is unlikely to subject to overloading, a
reasonable sampling of a certain percentage
of inspection may well suffice. However if the
engineer detects the possibility of abuse or
overloading and detects signs of structural
defects and possible deterioration, he should
consider inspection of the structure in full.
c. In a building where loading is high, the usage
varied and where it is subject to likely abuse
and overloading, the engineer should carry out
inspection of all units or parts of the building.
d. All exposed common areas in any building shall
be inspected fully.
e. All parts of the building with special and critical
structural elements shall be inspected fully.
f. All drain components shall be inspected fully.
g. All slopes should be inspected for signs of
lateral movement and instability if there are
any changes in the condition of the slope.
h. All retaining structures should be checked
against stability, alteration of loading patterns
and the possibility of weakening of the toe due
to other construction activities.
The scope and standard of visual inspection
a. In general, a report on the results of a visual
inspection of a building shall comprise:
i. A detailed record and description of the
visual inspection.
ii. Assessment of the observations in
regard to the condition of the structure
of the building, the loading on the
structure of the building, and any addition
or alteration affecting the structure of the
building. The seriousness of any structural
problems detected should be assessed.
iii. Recommendation by the engineer on
such remedial actions or full structural
investigation to ensure the structural
stability and integrity of the building.
b. A report should therefore reflect that the
engineer has in fact carried out inspection in a
professional manner with reasonable diligence
expected of him as a professional engineer.
25
 INGENIEUR
a demolition order to the owner of the
building if the local authority is satisfied
that the structure cannot be restored to
a safe condition for the occupants or the
surroundings.
IMPLEMENTATION OF REPAIR WORK
a. Major repair and strengthening work,
where necessary, shall be treated as
building works. Examples include the
replacement of corroded reinforcement
bars, reconstruction of the main water tank
and underpinning works are considered
as major works. As such, all relevant
applications for approval of plans, permits
to carry out building works and supervision
of building works shall apply.
b. Minor repairs can be treated as routine
maintenance and will not require plan
submissions or permit applications.
CONCLUSION
As the nation approaches the target date of a
developed nation status by 2020, the big building
stock that has been accumulated should be
maintained in a safe and stable condition. While
the Street, Drainage and Building Act provides
for local authority to issue a notice to owners of
buildings of more than five storeys to inspect their
buildings every five years, it should be the onus of
these owners to inspect the buildings irrespective
of such notices.
REFERENCE
Guidelines on Periodical Inspection of Buildings
issued by Jabatan Kerjaan Tempatan, KPKT.
Street, Drainage and Building Act 1974
(Amendment 1994), Act A903

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27
 INGENIEUR
LIFT & ESCALATOR SAFETY
By Supian Bin Alias,
Department of Occupational Safety & Health
COVER FEATURE
T
he Depar tment of
Occupational Safety and
Health (DOSH) is one
of the enforcement agencies
under the Ministry of Human
Resources Malaysia. Briefly, the
role of the DOSH is to secure
the safety, health and welfare
of persons at work and others in
the place of work, against risks
to safety or health arising out of
the activities of those who are
working.
In order to realise its
mission to ensure safety and
health at work, DOSH conducts
three main activities – setting
standards, enforcement and
promotion. Enforcement
activities are based on three
main Acts, namely the Factories
and Machiner y Act 1967,
Occupational Safety & Health
Act 1994 and Petroleum
(Safety Measure) Act 1984.
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One of the regulations under
the Factories and Machinery
Act 1967 enforced by DOSH is
the Factories and Machinery
(Electric Passenger and Goods
Lift) Regulations, 1970 which
governs the installation and
operation of lifts.
Section 19 of the Factories
and Machiner y Act 1967,
established the need for
those machineries to have
a valid Certificate of Fitness
(COF) before the machineries,
including lifts and escalators
can be operated. Factories
an d M ac hin e r y (El e c t r i c
Passenger and Goods Lift)
Regulations, 1970 is the
specific regulation under the
Factories And Machinery Act,
1967 which covers the control
of machineries with regard to
matters relating to the to the
installation, registration and
inspection of machinery and for
matters connected therewith.
It also provides the control on
matters relating to the safety,
health and welfare of persons at
factories and workplaces.
In the process of obtaining
permission to install a lift and/
or escalator, DOSH reviews the
design of the machine prior to
installation before operation
is allowed. The Factories and
Machinery (Electric Passenger
and Goods Lift) Regulations,
1970 serves as a key reference
in the review of an application
to install machineries. If there
is any non-compliance with
the prescribed rules, the
applicant must apply for an
exemption from complying
with the regulations. The
only exceptions that will be
considered, are if they comply
with the requirements specified

in the code for related matters.
In the case of lifts, the code
used is EN81-1: 1998 (Safety
rules for the construction and
installation of lifts) and EN 115-
1: 2008 (Safety of escalators
and moving walkways). If the
application does not strictly
comply with the requirements
specified in the code, it will be
rejected. The applications must
be submitted by a Competent
Person (CP) Grade 1 registered
with DOSH and who is employed
by an Approved Firm registered
with DOSH.
The installer company or
Approved Firm shall submit
to the Chief Inspector of
Factories and Machinery the
required documents for such
an application (permission
to install, PTI) which includes
detailed data, specifications
and measurements as required
Chart 1
in the First Schedule (for lifts) of
the Act; a complete drawing plan
showing the installation details
of the lift and/or escalator at
the site and certificates issued
by the lift and/or escalator
manufacturer stating that
it has been designed and
constructed in accordance with
the specified rules and codes
so far as these provisions are
applicable. All of the above
activities are conducted by
DOSH headquarters, under the
arm of Industrial Safety Division.
Af ter approval for the
installation is granted, inspection
and testing activities are carried
out on site. The inspection and
testing by the state DOSH officer
together with the Competent
Person from the Approved Firm
is to ensure all installation
activities and safety features
comply with the approved
drawings and standards. Among
the tests conducted are the
safety component tests of gears,
governors etc. A Certificate of
Fitness (COF) will only be issued
after the equipment has passed
all inspection and testing criteria.
The COF will be valid for a period
of 15 months and must be
renewed for a further period of
15 months. In addition, DOSH
also conducts investigations
into complaints relating to any
lifts and/or escalators. This is
an indirect method of monitoring
the operation of the equipment,
particularly those in public
places.
The Process Flow Chart
for permission to install an
escalator and lift is shown in
Chart 1.
The installation of lifts
and e scalator s must be
undertaken by an Approved
29
 INGENIEUR
Firm approved by DOSH
Headquarters. The firm needs
to have Competent Persons of
Grades 1, 2 & 3 whereby they
have specific duties to perform
in accordance with their
competency level. Competent
Persons and Approved Firms
can only be approved after
going through a verifying and
certifying process and strict
control from DOSH to ensure
quality and the installation
of lif ts and/or escalators
meets the requirements of
the established codes and
regulations. For operating
purposes, an Approved Firm
shall be appointed by the
owner to maintain the lift and/
or escalator. A maintenance
agreement shall be agreed
upon by both parties and
shall be valid for a minimum
of one year. In addition, it is
also necessary to ensure that
the lifts and/or escalators are
inspected and maintained by
an Approved Firm in accordance
with the time interval set by the
regulations. For example, they
must be serviced and adjusted
once a month, and thoroughly
examined at least once in every
three months. Failure to ensure
that lifts and/or escalators
are maintained in accordance
with the requirements as
stipulated by the regulation
could compromise the safety
of the people using it. Currently
there are about 60,000 lifts
and 12,000 escalators installed
t hrou g h ou t t h e c o un t r y.
Out of those, about 44,300
units, (61.5%) of the lifts and
escalators are located in Klang
Valley area.
The owners of lifts and
escalators have an important
duty to ensure that such
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machineries are properly
maintained as stipulated in
Regulation 31 of the said
regulation by an Approved
Firm. Although the machineries
may have been maintained
and periodically inspected by
an Approved Firm, it does not
relieve the owner from the
responsibility of maintaining
the lifts and escalators in good
order as a whole throughout
their operation.
In recent years, there have
been a number of issues
regarding the safety of lifts
and escalators in public
places. There are many factors
contributing to these incidences
including vandalism, improper
operation, lack of maintenance,
misuse, etc. However, when
compared with the number of
lifts and escalator installed in
Malaysia, these incidences are
considered to be under control.
In fact, DOSH has been carrying
out studies to further control
and improve the condition and
operation of lifts and escalators
in order to prevent these
incidences from recurring.
For instance, the lift car door
locking device (CLD) has been
made compulsory to prevent any
person (especially children) from
opening the lift car door when it
is not moving thus, preventing
him or her from falling down into
the lift pit during a breakdown
or other unplanned problems.
In 2011, the installation of skirt
deflectors or skirt brushes and
yellow demarcation lines on
escalator steps has been made
compulsory to prevent travellers’
feet being trapped between
the skirt and step, especially
those of children. DOSH is also
in the midst of revising the
legal framework for the safety
of lifts and escalators to cope
with current developments
in technology and changes
in operating environments.
Basically there are no specific
laws or regulations on public
safety at shopping malls
(because public safety is not
under DOSH purview per se).
However when it comes to lifts
and escalators, operations
and maintenance of these are
covered by the Factories and
Machinery (Electric Passenger
and Goods Lift) regulations,
1970.
Escalators are the most
common equipment used as
a mode of transport in public
areas, such as shopping malls,
public transport hubs etc. Those
using escalators should know the
safety features attached to them
and how to activate them in a
case of emergency. Each feature
has its own function to safeguard
the safety of users. Diagram 1
shows the main components
and some of the safety switches
on an escalator. Safety features
that are required for escalators
include:
1. Handrail Guard Safety
Device,
2. Comb-plate Switch,
3. Skir t Guard Safet y
Device,
4. Step Broken Chain
Safety Device,
5. Emergency Stop Button
at the Top and Bottom
Landings,
6. Clear Yellow Coloured
Demarcation lines,
7. Anti-Climbing Device,
8. Railings,
9. Anti-Slide Device,
10. Deflector Brush or
Rubber Lining, and
11. Tr i a n g u l a r G u a r d s
(where applicable).

Other aspects that need
to be looked into include the
possibility of people coming into
contact with the outer edges of
a handrail at both the upper and
lower landings and being drawn
into a hazardous situation, such
as toppling over the balustrade.
Thus appropriate preventive
measures have be taken, such
as prevention of entry into the
space by placing permanent
barriers, increasing the height
of the building structure of
the fixed balustrades in the
hazard area by at least 100 mm
above the handrail level and
positioned between 80 mm and
Diagram 1
120 mm from the outer edge of
the handrail (as shown in the
Figure 1).
All these features have
their own function to prevent
or reduce the risk of accidents
when using escalators. In
addition to the installation of
safety devices such as those
outlined above, compliance with
existing requirements as well as
additional measures will ensure
the safety of users:
1.
T h e ow n e r o f t h e
escalators must ensure
an Approved Firm is
appointed to carry out
work on the installation
and maintenance of
escalators, and ensure
they can operate safely.
2. Aspects of engineering
controls such as the
installation of a railing
and safety switches as
those listed earlier, have
been made after taking
into account all factors
that could pose a risk to
users. These have been
adopted and practiced
around the world to
p r e ve n t o r r e d u c e
accidents.
What is still lacking and
could be improved is raising
31
 INGENIEUR
Figure 1
public awareness about the
safe use of escalators as well
as enhancing understanding
and re sponsibilit y of the
owner to ensure that the
escalators are safe before
use. In addition, DOSH could
take stronger enforcement
measures against owners to
ensure escalators are in a safe
condition for use.
A lift and/or escalator is
a machine designed for the
purpose of transport and it
should be used in the way
that it has been designed for.
Responsibility is on the users
to be more careful and cautious
when using them. For example,
users of an escalator must
supervise their children so that
they stand in the correct position
where their feet are always in
the designated area, between
the yellow demarcation lines,
and they adhere to instructions
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and procedures provided by the
owner.
Parents also have to play
their role in educating their
children on what they can and
can’t do when using a lift and/
or escalator, especially in busy
premises such as shopping
complexes, malls and other
attractive places. If all these
measures can be practiced
by the owner and the user,
accidents could be avoided. In
addition, the use of soft shoes
or slippers by children should
be properly monitored by their
guardians, as they are more
easily pulled or snagged by a
moving escalator. DOSH, either
at its headquarters or state
level has organised several
promotions, campaigns and
events which aim to promote
awareness among the public
on the safe use of lifts and
escalators. For a number of
years now, the department
in collaboration with The
Malaysian Lift and Escalator
Association (MALEA) and also
the owners of shopping malls
have organised awareness
programmes on safety in the
use of escalators.
The most important thing
to do now is for all the relevant
par ties including owners,
authorities and the public to work
together to solve these issues.
From DOSH investigations and
findings, most incidents could
have been prevented if the lifts
and escalators were properly
used, operated and maintained.
The public also should be aware
of the danger of using these
machines and take reasonable
care especially with their
children when using escalators.
As far as lifts and escalators
are concerned, the standards
of design and construction
should meet and comply with
Fac torie s and Machiner y
(Electric Passenger and Goods
Lift) Regulations, 1970 and
international standards such as
EN81-1 and EN115-1.
However, public safet y
does not solely depend on
codes or standards. Again, it
is the question of operation,
maintenance and proper use
of the equipment. DOSH has
been putting all its efforts
into minimising any ‘unsafe
conditions’ by looking into
design, ensuring maintenance
by qualified personnel and
inspecting the machiner y
regularly. DOSH urges the public
as users of lifts and escalators
to be more disciplined when
using them by following any
instructions or signage provided
to prevent ‘unsafe behaviour’.
 SETARA 2013 MyQUEST 2014/2015
SEGi University, SEGi College Subang Jaya 6 Star Rating:
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 INGENIEUR

Issues in Air Conditioning

and Mechanical Ventilation
COVER FEATURE

System Design
By Low Cheng Yee, Ow Chee Sheng, Abu Hashim Abd Ghani,
Hazran Husain, Tan Chee Fai

A
ir-Conditioning and Mechanical Ventilation
(ACMV) systems provide thermal comfort
and acceptable indoor air quality to the
occupants of a building. Such systems are
important in the structural design of residential,
commercial, leisure, healthcare and industrial
buildings where safe and healthy building
conditions are regulated with respect to
temperature, humidity and the introduction of
conditioned fresh air from the outdoors.
Air conditioning [1] is the process of controlling
the temperature and humidity in a building typically
to maintain a cool atmosphere to suit human
comfort. It is a system that removes heat from the
air inside an occupied space, thus lowering the
air temperature. The cooling is typically achieved
through a refrigeration cycle. Air conditioning is
also intended to maintain air cleanliness through
a filtering element as well as its distribution within
the space.
Ventilation is the process of introducing
and circulating fresh air in any space to provide
high indoor air quality. This process involves
temperature control, oxygen replenishment and
removal of moisture, odours, smoke, heat, dust,
airborne bacteria and carbon dioxide. In addition,
ventilation includes both the exchange of air to
the outside as well as circulation of air within the
building. It is one of the most important factors
for maintaining acceptable indoor air quality within
buildings.
ACMV System & Design Process
There are various types of air conditioning
systems. Table 1 lists these and their cooling
capacity. A typical system installed in Malaysia
is the Water-Cooled Chilled Water System. It is a
large system with design capacity in most cases
above 200 Tons of Refrigerant (TR). The system
architecture is illustrated in Figure 1.
The basic equipment for Water-Cooled Chilled
Water System includes a Chiller, a Chilled Water
Pump, a Condenser Water Pump, a Cooling
Tower, Air Handling Units (AHU) and Fan Coil Units
(FCU). Heat exchange takes place between the
Condenser Water Open Loop, Chilled Water Closed
Loop, and as well as between the Chilled Water
Closed Loop and Air Circulation.

Type Application Tons of Refrigerant (TR)

Window Unit/Split Unit Small room/space <5
Air-Cooled Package Unit Small room and difficult to get 5-20
water supply
Water-Cooled Package Unit Medium system 20-40
Air-Cooled Chilled Water System Medium large system 40-100
Water-Cooled Chilled Water System Large system >100
District Cooling Large system >2000
Source: JKR’s Guideline on Air-Conditioning System Design [2]
Table 1: Types of Air-Conditioning Systems

6
34 VOL
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 Figure 1: System architecture of a water-cooled chilled water plant.
For conventional Water-Cooled Chilled Water
Systems, the total chiller capacity must meet the
building space peak load. The building space peak
load has to be estimated to provide the basis for
selecting the plant equipment. Thus, the design
flow for a chilled water system can be divided into
two phases, i.e. (i) cooling load estimation and (ii)
selection of plant equipment. The main steps in
each phase are shown in Figure 2.
Common Design Issues
Generally, during the design of an air conditioning
system, the design concerns include the cooling
load required for the building space, the physical
size of the equipment, energy consumption,
maintenance, capital investment and operating
costs.
During the cooling load estimation phase, the
main concern is heat load over-conservatism,
i.e. over estimation. A poor estimate may result
in the selection of the wrong equipment, causing
Plant System over sizing and may eventually lead
to challenges in meeting the objectives of energy
efficiency, environmental stewardship, operating
costs and maintainability.
Over sizing is a critical engineering design issue
for ACMV systems in Malaysia. Typical challenges
faced by mechanical engineers during the design
of an ACMV system include:
●● Malaysia's climate is equatorial, hot and
humid throughout the year. Owners of
buildings do not want to receive comfort
complaints from the occupants and then
have to call back the contractors to solve
the complaints.
●● M&E consultants do not have control over
the building envelope and it is challenging
to accurately estimate how much infiltration
a large building allows.
●● Frequent last minute design changes are
often received from the architect or client.
●● Buildings are rarely built to detailed design
specifications.
System over sizing issues should not be
taken lightly because they may cause numerous
disadvantages to all parties, including the owner
of the building and its occupants, for example:
●● High investment costs.
●● High energy consumption.
●● High operating costs, in term of higher
electricity bills for the operator.
●● High carbon dioxide footprint.
●● Shorter lifespan of equipment due to
frequent chiller start/stop modes.
●● High humidity in cooling space resulting in
the formation of mould and fungus growth.
●● Poor Indoor Air Quality due to high humidity
in cooling space. The energy efficiency
of ACMV systems is interrelated with the
over sizing issue. The Green Building Index
35
 6
36
VOL
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55JULY
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JUNE 2013
- SEPTEMBER 2017
Figure 2: Design flow for a water-cooled chilled water plant.
 tool was introduced by the authorities for
potential owners of buildings to facilitate
the improvement of energy efficiency of
their buildings. However, compliance is on
a voluntary basis and it is not currently
compulsory for owners of buildings to
apply for the Green Building Index. The
other issues related to ACMV include
the environmental stewardship of the
refrigerant used, noise pollution and safety
issues during the construction phase.
Design Guidelines and Best Practices
In Malaysia, due to the hot and humid tropical
climate, air-conditioning system design is critical
in ensuring thermal comfort and providing
indoor air quality for the occupants. To achieve
this, a reasonably accurate estimation of the
cooling load is of paramount importance in
ensuring thermal comfort to occupants and
maintaining environmental stewardship. To deal
with the aforementioned design issues, the
ACMV design methodology, equipment selection
and specifications have to be in line with good
engineering practice, and give due regard to the
following criteria:
●● Simplicity of design and installation.
●● Ease of operation and maintenance.
●● Energy efficiency and impact on the
environment.
●● System flexibility and adaptability.
The following standards and guidelines are
generally applicable in the design of an ACMV
system:
●● American Society for Heating, Refrigerating,
and Air Conditioning Engineers (ASHRAE)
Standards [3].
●● Malaysia Standard MS 1525:2014 [4].
●● JKR’s Guideline on Air Conditioning System
Design [2].
●● Uniform Building By-Laws.
M al ay si a S t an d ard M S 1525:2014
recommends acceptable indoor conditions for
comfort cooling to be designed as follows:
(i) Recommended dry bulb temperature
= 24°C ― 26 °C.
(ASHRAE Standard: 20°C ― 24°C)
(ii) Recommended relative humidity
= 50% ― 70%.
(ASHRAE Standard: 40% ― 60%)
(iii) Recommended air movement
= 0.15 m/s ― 0.50m/s.
(ASHRAE Standard: same)
The recommended outdoor air condition
is 33.3°C DB and 27.2°C WB as stated in MS
1525:2014.
According to the Jabatan Kerja Raya (JKR)
Guidelines for Air Conditioning System Design,
engineers have to propose an air-conditioning
system according to the cooling load required
to serve the peak load of the building. The type
of a suitable air-conditioning system should be
selected according to Table 1. If a different type of
system is selected, it must be justified.
Two common practices for cooling load
estimation are:
1. Estimation of cooling load using computer
software such as the Carrier E20
programme [5] with detailed inputs. This
approach is commonly applied in large
scale projects, in some cases after a
client’s request. Many M&E consultants
use their self-developed cooling load
spreadsheet which is very similar to E20
but very practical and user friendly.
2. Estimation of cooling load using check
figures and rule of thumb [6] for common
buildings and structures. It is often used for
the purpose of design verification.
The check figures and rule of thumb approach
provides a practical and time-efficient method for
industry players. The check figures are especially
helpful when it comes to verifying the design
of an ACMV system for existing and common
buildings and structures. Compliance with the
check figures is important in order to avoid over
sizing.
When engineers are required to design
something that is not listed in the check figures
table they need a detailed input from the E20
programme to estimate the cooling load. The
check figures are not accurate enough unless the
engineers run the E20 programme in detail. The
cooling load calculation is based on cooling load
temperature difference (CLTD) method. The five
37
 INGENIEUR
main factors to be considered during cooling load
calculation are:
1. Conduction (heat gain from walls, roofs,
windows, etc).
2. Radiation (solar heat radiated through the
glass).
3. Internal heat gain (from people occupying
the building, the lighting and other heat
generating equipment, e.g. servers).
4. Infiltration (air leaking into or out of a space
through doors, windows and small cracks).
5. Ventilation (introduction of outdoor air into
a space to dilute or remove contaminants
from the indoor air).
For conduction and radiation, the climate data
used is based on the geographical location and the
orientation of the building. For instance, for a row
of terraced shop houses in which the building is
located with a west facing wall, the afternoon heat
load will be more significant than the morning heat
load. On the other hand, in the case of internal
heat gain, the schedules of occupancy have to
be taken into consideration when estimating the
cooling load. Estimating the cooling load taking
into account these detailed inputs will ensure that
the equipment is sized according to the real peak
load of the building space to be air-conditioned.
The cooling load estimation phase is followed
by the equipment selection phase. This process
involves sizing the Cooling Tower, Chiller, Air
Handling Units, Condenser Water Pump, Chilled
Water Pump, Air-Side Ducting and Water-Side
Piping. Engineers are challenged to make
energy efficiency a top priority during equipment
selection and to select the latest energy efficient
technologies which can meet the design
specifications. One of such technologies is the
variable speed drive design for the motors on
Chillers, Pumps, Cooling Towers and Fans which
can save a significant portion of the energy
consumption in ACMV systems. Furthermore,
equipment that use chlorofluorocarbon (CFC)
and hydro-fluorocarbon (HCFC) refrigerants
must be avoided as they cause harm to the
environment.
Another issue is the location for the installation
of the Cooling Tower because it requires an open
space to discharge heat to the environment, a
substantial amount of water, chemical treatment
handling and generates noise. If there are
6
38 VOL
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residential buildings adjacent to the Cooling Tower,
then noise pollution is a design concern.
Last but not least, during the construction
phase, safety requirements must be adhered to in
order to avoid site accidents. Safety officers must
be in place to enforce the safety requirements.
The ACMV system shall be installed in accordance
with the requirements of the local authorities
having jurisdiction over the work. These include:
●● Tenaga Nasional Berhad (TNB).
●● Jabatan Bomba dan Penyelamat Malaysia
(BOMBA).
●● Jabatan Kesihatan dan Keselamatan
Pekerja Am (DOSH).
●● Jabatan Alam Sekitar (DOE).
Summary
In summary, this article describes the common
design issues concerning ACMV systems in
Malaysia. It highlights the design guidelines and
best practices for ACMV design with the objective
of reducing design errors, omissions and providing
ACMV services that better meet the needs of the
society. This should lead to improvements in both
the efficiency of the design process and in the
subsequent implementation of ACMV design.
REFERENCE
[1] W. S. Stoecker & J. W. Jones. Refrigeration
and Air Conditioning. New York, NY: McGraw-
Hill, Inc., 1982.
[2] Jabatan Kerja Raya Malaysia. Guideline on
Air-Conditioning System Design (Bab 3 –
Kerja M&E). Unit Ukur Bahan CKM Ibu Pejabat
JKR Kuala Lumpur, 2005.
[3] 1997 ASHRAE Handbook: Fundamentals.
American Society of Heating, Refrigerating
and Air-Conditioning Engineers, 1997.
[4] Malaysia Standard MS 1525:2014. Energy
Efficiency and Use of Renewable Energy for
Non-Residential Buildings - Code of Practice.
Department of Standards Malaysia, 2014.
[5] System Design Manual. Carrier Air
Conditioning Company. Carrier Corporation,
1972.
[6] Arthur A. Bell Jr.. HVAC Equations, Data, and
Rules of Thumb. McGraw-Hill, 2000.
 Where Engineers Excel THE
ING JANU
ARY- VOL. KD

ENI
MA
RCH 6
2015 1
NP
KDN PP 11720/4/2013 (032270)
L E M B AG A J U R U TE R A M A L AY S I A
P1
B OA RD OF E NGINE E RS MA LAY S IA
17

INGENIEUR
20

The Board of Engineers Malaysia (BEM),

/4/2

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IN 27

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VOL.63 T LE

formed in 1972, is a statutory body

H BO M B A
JULY-SEPTEMBER 2015 E AR
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OF J U R
B
M A G A Z I N E O F T H E B O A R D O F E N G I N E E R S M A L A Y S I A O EN U T
GI E
A

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constituted under the Registration ofof

IN
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ION
R
S
M
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Engineers Act 1967. BEM falls within the

IA

ambit of responsibility of the Minister of of

Works. Its primary role is to facilitate the
CAPACITY
registration of engineers and regulate the the BUILDING
professional conduct and practice of
registered engineers in order to
safeguard the safety and interest of of the
the
public.
ingenieur 2015 July-FA.indd 1 7/31/15 8:46 PM

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41
 INGENIEUR

Do You
Know?

Facility Management
By Pang Soo Mooi

World Facility Management Day 2017

This year World Facility Management (FM) Day was celebrated on May 17, 2017. The theme was
‘Enabling Positive Experiences’ with the aim to highlight how facilities management plays an integral
role in positive customer, client and employee experience in all sectors, whether it is residential,
sport, workplace, healthcare or any other facility.
World FM Day celebrates the importance of the Facilities Management profession. It aims to raise
the profile of FM around the globe, promoting facilities management’s ideals, not only within the
profession and industry but also among Governments and the general business community.
Duncan Waddell, Chairman of Global FM, said: “The 2017 theme emphasises facilities
management’s significant role in setting and managing the scene for and delivering exceptional
customer experiences worldwide across multiple sectors. The breadth of sectors impacted by FM is
everywhere and there are examples in travel and tourism, residential, entertainment, leisure, health,
education and commerce, as well as the wider workplace.
The often unforeseen and disruptive forces in today’s world must be anticipated and managed
to ensure stability and success in whatever sectors people seek the deliverables of the FM and their
teams to ensure that outcomes and outputs of facilities meet expectations to enhance life whether
it is at work, rest or play.”

Facility Condition Index

The Facility Condition Index (FCI) is an industry standard indicator of the overall condition of a
building. The number is the ratio of the total amount of Deferred Maintenance Projects divided by
the current building’s Current Replacement Value. The FCI is used in facilities management to provide
a benchmark to compare the relative condition of a group of facilities.

FCI = (Maintenance, repair and replacement deficiencies of the facilities)

divided by (current replacement value of the facilities).

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42 VOL
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 For example, in Ontario, the Ministry of Education hires independent, third-party facility inspectors
to get detailed information. Each assessment team is comprised of two engineers — one with
expertise in building design and construction, and the other with expertise in building systems (e.g.
mechanical and electrical systems).
The inspectors review essential structures and systems for each school building. They also review
wear and tear to building interiors.
Based on the findings of each school inspection over a five-year period, the Ministry can
determine a school’s repair and renewal costs. The cost of a school’s repair and renewal needs are
then compared against the cost of rebuilding that same school from the ground up. The results of
this comparison — fixing a school or rebuilding it — give the school its FCI, which is measured as a
percentage. A school with a low FCI rating needs less repair and renewal work than a school with a
higher FCI rating.

Global Infrastructure Facility

The World Bank Group launched a New Global Infrastructure Facility (GIF) in 2014 to pave the way
for institutional investors to help fill infrastructural gaps in the developing world, where US$1 trillion
a year in extra investment is needed through 2020.
The heads of some of the world’s largest asset management and private equity firms, pension
and insurance funds, and commercial banks joined multilateral development institutions and donor
nations to work as partners in a new GIF that has the potential to unlock billions of dollars for
infrastructure in the developing world.
The World Bank Group President Jim Yong Kim said the presence of a broad range of institutional
investors at the signing to launch the GIF sent a powerful message, with the most recent data showing
that private infrastructure investment in emerging markets and developing economies dropped from
US$186 billion in 2012 to US$150 billion last year.
“We have several trillions of dollars in assets represented today looking for long-term, sustainable
and stable investments,” said Kim. “In leveraging those resources, our partnership offers great
promise for tackling the massive infrastructure deficit in developing economies and emerging
markets, which is one of the fundamental bottlenecks to reducing poverty and boosting shared
prosperity.
“The real challenge is not a matter of money but a lack of bankable projects – a sufficient supply
of commercially viable and sustainable infrastructure investments.”

The Carbon Partnership Facility

The Carbon Partnership Facility (CPF) is one of the World Bank’s major new carbon finance instruments
targeting the post-2012 period (the Kyoto Protocol's first commitment period ends on December
31, 2012). The CPF's objective is to develop emission reductions and support their purchase, on a
larger scale through the provision of carbon finance to long-term investments. In order to scale up
carbon finance, the CPF will collaborate with Governments and market participants on investment
programmes and sector-based interventions that are consistent with low-carbon economic growth
and the sustainable development priorities of developing countries.

43
 INGENIEUR

ESCALATOR – GRACIOUS
VERTICAL TRANSPORTER
By Ir. Lum YL, Vice President, Persatuan Pengurusan Kompleks Malaysia
FEATURE

“An escalator can never

break down: it can only
become stairs. You should
never see an Escalator
Temporarily Out Of Order
sign, just Escalator
Temporarily Stairs. Sorry
for the convenience.” -
Mitch Hedberg

T
he escalator is one of the
most amazing pieces of
engineering design in the
history of science, it is able to
move thousands in an hour from
floor to floor without having the
passengers’ walking experience
impaired. This is totally unlike
riding lifts, where passengers’
experience in a shopping
mall is drastically affected by
getting into a “cage” and being
“released” from it after having
arrived at their destination
floor. It may or may not be
realised by many, the existence
of escalators in shopping malls
is more than just science, it
is an art, and it has its own
philosophy.
YOU SEE WHERE YOU ARE
GOING
The journey of one entering a
“lift” is a quantum leap of faith,
which most of us have taken for
granted. We have been taught
to believe that once we enter a
lift and press the button, we are
“assured” that the intelligence
system hidden somewhere
in the building will definitely
deliver us to our floor. Without a
doubt, we expect that once the
lift doors open, we are assured
that we will be walking on the
landing instead of being in the
middle of the ocean. We have
faith in this piece of machinery
that we are stepping in and out
of, because we believe there are
tens of thousands or millions of
hours spent by scientists and
engineers behind this 150 year-
old invention.
But riding an escalator is a
whole new level of excitement
compared with a lift in terms of
its technological complexity. The
escalator is less dramatic and
there is nothing much horror
movie directors can do about

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it. Movies can feature creatures
emerging in lifts and start eating
up the passengers, or some
horror movies even feature
bloody water gushing into the lift
and drowning the victims – but
they cannot create such dramas
with escalators.
When the rope attached
to the lift cage snaps, the lift
cage falls. But when the lift
cage falls the brakes take over
and stop the fall – this means,
movie directors have to create
a scene where all the brakes
fail in order to create a free fall
scene out of it. On the contrary,
the most damage you can do to
an escalator is to make it stop,
and turn it into a staircase –
that’s it!
The escalator is a beautiful
piece of equipment, the ride
on an escalator gives the
passenger an uninterrupted
shopping experience with a
vertical moving journey having
a full 360° visual and audio
environment. This is unlike
getting into a lift, where you
are visually disconnected from
the environment as you go
from floor to floor. If you want
to get to your destination faster
when riding an escalator, just
walk from step to step, and
this gives you a good sense of
“achievement” and satisfaction,
that you are a person who
would not settle with the pace
of the world.
BREAKDOWN
‘Man trapped’, this is one of
the greatest nightmares of
mall operators. It is definitely a
disastrous shopping experience
getting trapped in a lift while
holding bags of merchandise,
shoulder to shoulder with
strangers – before people start
to sweat or pass gas…
An escalator will never have
this problem; broken down
escalator? it just becomes a
staircase, just walk up or down.
CLEITHROPHOBIA
In the Asian context, riding a
lift is a socio-emotive thing
in a culture where we do not
greet strangers, neither do we
show happy faces entering a
lift full of strangers. If we were
tucked at the back of the lift
car, instead of asking someone
to press the floor button for
us, we would rather stretch out
our hand to press it ourselves
– very Malaysian. A quiet lift is
bad, mirrors in the lift are bad,
those few seconds of journey
in the lift feel like years of
silence. We cannot wait to get
it over with and just get out of
the lift once we have reached
our floor. We are at the mercy
of luck, depending on where we
are positioned in the lift, where
the only pastime is to count the
number of moles the person in
front of us has on his neck.
BUT IT AIN’T ALL
SUNSHINE AND
RAINBOWS
Ju s t like any p ie c e o f
mechanical equipment, things
that move need maintenance,
including vertical transportation
equipment with more than a
thousand moving parts. In a
country with more than 550
shopping centres, the total
number of lifts and escalators
adds up to a very large number,
and at any one moment of time,
these machines are serving
thousands and thousands of
passengers. There are a few
processes in the industry that
would help us to minimise lift and
escalator accidents or defects
- firstly, consulting engineers
and architects must choose
the right specifications and
placement of these equipments
strategically at different parts of
the mall, factoring in the volume
of passengers, that’s “doing
things the right way”.
When lifts and escalators are
installed and maintained under
the original manufacturer’s own
best practices, and DOSH’s
in sp e c tion and approval
guidelines for installations
are followed, this is when
the installation of lifts and
escalators is being “done
the right way”. Nevertheless,
accidents do happen and
when they happen, it saddens
everybody. Therefore, best
engineering practices must
be enforced throughout the
entire value chain from design,
installation and operation
of ver tical transpor tation
equipment. Over the years,
the industry has progressed
from “compliance” based
applications to “best practice”
models. There are some great
new features which were
voluntarily implemented and
promoted by lift manufacturers
and mall operators, such as
energy saving escalators with
sensors, or escalators with
audible warnings on top of the
existing visual warning signs and
stickers on the equipment.
So for best practices, mall
management must ensure
escalators do not become stairs
at any time.
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 INGENIEUR
TOP TRENDS IN FACILITY
MANAGEMENT
FEATURE
F
acility management was previously perceived
as operation and maintenance of buildings.
It has evolved to a higher level whereby
facility managers (FMs) ensure that the built
environment (residential, commercial, industrial
and institutional) function satisfactorily, involving
people, financial, technological and managerial
expertise. As it covers multi disciplines, this field
is subject to numerous and constant changes.
The practice and standard of facility management
varies significantly between developed and
developing countries around the world.
Various websites and blogs on facility
management have outlined challenges and top
trends that have significant impact on its future.
We highlight the key areas:-
New environment
New work environments with unique functionality
create challenges that many FMs will have to
manage. Prompted by the need to attract millennial
employees, the trend is towards using open
office spaces and innovative workplace designs
to encourage collaboration and build a sense of
community. This can range from purpose-driven
conference rooms to open-seated areas and quiet
or ”contemplative” spaces to workstations with
modern furniture like sit/stand desks.
Driven by staff retention and marketing
efforts, many facilities such as offices and
shopping complexes are getting a facelift to
better reflect the desired image of the owner or
tenant. Companies are adding building features
like concierge desks and creating spaces like
cafes and workout facilities to drive employee
satisfaction and improve work/life balance.
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New technology
Technology and software play a large part in
facility management. Sophisticated FMs use
multiple building automation systems (BAS) to
oversee many areas (heating, security, lighting,
waste management, etc.) The trend is rapidly
moving towards integration, driven by the need for
efficiency and integrated resource management.
Building Information Modelling (BIM) creates a
virtual information model that can be passed from
design team to contractor, building owner and FM.
A lot of information is coming together through
software such as the Integrated Workplace
Management System (IWMS). It integrates five
key components of functionality, operated from
a single technology platform and database
repository. These functional areas are:
●● Real estate and lease management
●● Facilities and space management
●● Maintenance management
●● Project management
●● Environmental sustainability
Emerging technologies and tools are expected
to assist FMs in their work:
●● Virtual reality – Allow FMs to simulate an
environment for design or maintenance
purposes
●● Machine Learning – Enable computer
systems to do more with less management.
●● Robots - Cleaning robots, for instance,
can carry out their duties automatically,
receiving instructions (via building
management software) on where they are
needed. Rather than relying on manual
human input to a digital system, many tasks
can take place entirely on the network,
increasing response time and reliability.
 ●● Drones – Offer a safer way to monitor or
make repairs to building exteriors
●● Big Data – Increased computer power and
connectivity are providing FMs the ability
to quickly collect and analyse all sorts of
building data. This data can be used to
show what equipment will need proactive
maintenance and when, or to predict and
manage energy consumption in different
parts of a facility.
Focus on Green & Wellness
Going green is gaining traction in facilities
maintenance. According to the US Green Building
Council, commercial building owners will invest
US$960 billion on greening existing buildings
by 2023. In their daily operations, FMs look for
ways to be environment-friendly through recycling,
waste reduction and the use of green cleaning
products.
Besides cleanliness and comfort for building
users, FMs will be further challenged with a
higher standard in indoor environment quality,
namely wellness. There is the added emphasis
on wellness as big companies see a clear link
between the workplace and productivity. In the
US, there is a WELL Building Standard, a rating
system offering a comprehensive set of criteria
that measures indoor environment quality to
improve the wellbeing of workers.
WELL is administered by the International
WELL Building Institute (IWBI), a public benefit
corporation launched in 2013 whose mission is to
improve human health and wellbeing through the
built environment.
The standard is based on seven years of
research in partnership with scientists, doctors
and architects exploring the connection between
the buildings where people spend a lot of their
time, and the health and wellbeing impacts those
buildings have on their occupants. It is third-party
certified by Green Business Certification Inc.
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 INGENIEUR

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(GBCI), which administers the Leadership in Energy
and Environmental Design (LEED) programme.
Spaces can become WELL Certified by
achieving a defined score in each of seven
categories:
●● Air
●● Water
●● Nourishment
Light
●●
●● Fitness
●● Comfort
●● Mind
Security & Health Risks Management
In this age of globalisation, FMs have to recognise
and prepare responses to potential terrorism
that can disrupt operations and lives. This risk
has heightened with several incidents of bomb
explosions at train stations, restaurants and
concert grounds in Europe and the US.
There are also enhanced health threats in
facilities such as airports and hospitals that
congregate large crowds. Scares triggered by
H1N1 and Zika virus and other public health
threats have made people more sensitive to
general cleanliness. In the past, a comprehensive
restroom sanitation programme was sufficient,
but now the trend is moving towards touch-free
technologies, paperless hand dryers, hands-free
hand sanitizer dispensers and automatic toilet
flushers.
Return on Investment
The retail sector poses additional challenges for
facility management as it has to complement
corporate strategy, branding, tenancy retention,
rental rates and consequently return on
investment. The Professional Retail Store
Maintenance Association (PRSM) in the US
highlighted some of these challenges for the
retail facility maintenance industry. The 2017
report outlines five major trends including: the
facility manager of the future, relationship selling,
rapidly evolving technology, the regulatory tidal
wave hitting the industry and the revolution in the
shopping environment (see graphic).
‟
Cost-effective facility
management results in
low lifecycle costs through
reduced operations and
maintenance costs, extended
lifespan of facilities, improved
indoor environmental quality
and sustainability of assets.
The greatest challenge relates to the need to
maintain flexibility, knowing with certainty that
functionality, technology and customer demands
will change dramatically over time. Emphasis will
be on maximising usage and practicality while
adapting to new technology and trends that offer
return on investment.
Conclusion
Facility management is very complex. The multiple
disciplines and constant changes necessitate a
holistic professional approach to ensure proper
functioning of the built environment. Cost-effective
facility management results in low lifecycle costs
through reduced operations and maintenance
costs, extended lifespan of facilities, improved
indoor environmental quality and sustainability of
assets. - Inforeach
REFERENCE
www.foresight-trendscan.blogspot.my
http://www.ifmafoundation.org/
www.prsm.com
www.dpmcare.com
www.TotalFacilities.com.au
www.servicefutures.com
49
 INGENIEUR
Malaysian Rural School
Electrification Programme
using Solar PV-Diesel
Hybrid System
REPORT
By Dr Abdul Muhaimin Mahmud
Electrical Engineering Branch, Public Works Department
Alternative energy technology has been used
widely in Rural Electrification Programmes
(REPs) all over the world for many years.
Renewable energy sources, such as solar, wind
and biomass, are the preferred choices given
the abundant resources available on site and
the sophistication of the technologies involved.
Combinations of two or more of the resources,
together with an energy storage system and
occasionally a conventional energy generator,
create a hybrid system, which is reliable and
durable. In Malaysia, solar photovoltaic (PV)
based systems, implemented on a large scale,
can provide round-the-clock electricity services
for areas that are inaccessible by the electricity
grid network. One of Malaysia’s REP initiatives
is a solar PV-diesel hybrid system for 160
schools in rural Sabah. This article provides
an overview of the programme, challenges in
implementing the initiatives and how it benefits
the educational environment in rural areas.
R
enewable energy technology has long
been used as an alternative stand-alone
electricity power supply for rural and remote
areas that are not connected to an electricity grid
network. More than 1.4 billion people still live
in areas without electricity, mostly in South Asia
and Sub-Saharan Africa [1]. Meanwhile, almost
1.2 billion will still be without electricity by 2030
[2]. It is unlikely that an area without electricity
can be developed economically, as it is an
important factor in modernisation. In rural areas,
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geographical conditions, the smallness of village
sizes and the remoteness of the locations mean
that the extension of an electricity grid network
is considered to be expensive, uneconomical and
not attractive as an investment, either by the
Government or the private sector.
Rural Electrification Programmes (REP)
encompass the process, plans, programmes
and initiatives overseen by the Government, the
private sector, and institutions or organisations in
the name of fighting poverty, enhancing economic
growth and balancing out the development
between urban and rural areas. People and
communities can embrace modern civilisation if
electricity is made available because it can benefit
their lifestyle by improving health, education, the
economy and technology [3]. Renewable energy
sources, such as solar, wind and biomass, are the
preferred choices given the abundant resources
available on site and the sophistication of the
technologies involved. Combinations of two or
more of the resources, together with an energy
storage system and occasionally a conventional
energy generator, create a hybrid system, which
is reliable and durable. Among all the renewable
energy technologies that are available, the solar
PV system is a popular option in off-grid rural
areas [4].
In Malaysia, solar photovoltaic (PV) based
systems, implemented on a large scale, can
provide round-the-clock electricity services for
areas that are inaccessible by the electricity grid
network. One of Malaysia’s REP initiatives was a
51
 INGENIEUR
solar PV-diesel hybrid system for 160 schools in
rural Sabah.
This article presents a study that has been
conducted on an REP installed in rural schools
in Sabah, Malaysia. The objectives are to
provide insight and information about the REP
implementation in Malaysia, explain Jabatan Kerja
Raya’s contributions in implementing the REP
and analyse the challenges in achieving reliable
electricity services and a sustainable programme
from solar PV system technology.
REVIEW OF MALAYSIA’S REPS
Infrastructure and human capital are two basic
requirements that can improve the quality of
life, at a socio-cultural and socio-economic level,
of rural communities. Services such as road
access, clean water supply and electricity will
certainly effect economic growth and quality of
life, as well as transform rural communities in the
direction of modernisation. In the past 10 years,
the Government of Malaysia (GoM) has allocated
RM41.08 billion for rural development, of which
RM14.47 billion was used to improve electricity
and clean water services.
REP using renewable energy system technology
was also part of the initiatives carried out by the
GoM to support its policies in this area. The first
renewable energy system – using a decentralised
stand-alone solar PV system - was implemented
in the 1980s by an electricity utility company [5].
In 1995, two pilot REPs, of 10 kWp and 100 kWp
respectively, were implemented in Sabah. The
projects were supported by the New Energy and
Industrial Technology Development Organisation
(NEDO) of Japan [6]. In 1996, the Rural Electricity
Supply Programme (RESP), using a solar home
system (SHS), was implemented in 10,000 homes.
Presently, the RESP is implemented either by
extending the electricity grid line to villages or,
in cases where the locations are very remote, by
using a solar PV hybrid system, a solar PV stand-
alone system, generator sets, and/or a mini or
micro hydroelectric and wind energy generator.
In 1998, a trust fund called the Malaysia
Electricity Supply Industry Trust Account (MESITA)
was introduced. The fund provides financial
assistance to the RESP, as well as to energy
efficiency and renewable energy programmes. The
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fund was in part created by Independent Power
Producers (IPPs) and Malaysian utility companies.
The fund is made up of a 1% contribution of all
electricity utility companies’ annual audited
revenue. To date, almost 60% of the fund has
been spent on the RESP1 [7].
Jabatan Kerja Raya involvement in solar
photovoltaic system technology
Jabatan Kerja Raya (JKR) has made tremendous
contributions to the implementation of the REPs
by giving support and consultation to the GoM
in executing the project. Its main tasks include
system design, advising in the procurement
process, and supervision during the installation
and warranty period. JKR involvement started in
the year 2004 where Cawangan Kejuruteraan
Elektrik (CKE) was given the responsibility by the
Kementerian Tenaga, Air dan Komunikasi (KTAK)
to implement a 1 kWp stand-alone solar PV system
for 114 rural Information and Communication
Technology (ICT) centres (Figure 1). In 2006, JKR
was involved in another KTAK project which was
to build 5 kWp stand-alone solar PV systems for
260 school computer labs (Figure 2). Later in
2008, the Ministry of Education (MOE) appointed
JKR to manage their rural school electrification
project in Sabah using a solar PV hybrid system.
The project was divided into two phases. The
first phase involved 78 schools (Figure 3) while
84 schools were installed with the system in the
later phase (Figure 4). The school electrification
programme is on-going in 2017 for another 369
schools in Sarawak and shall be completed in
2019. JKR’s continued involvement in the solar PV
system project for rural areas is testimony to JKR’s
expertise in renewable energy technology.
The JKR project team faced challenges and
risks during the implementation in terms of
hardship and difficulties to access the school
due to poor road conditions, natural disasters
like landslides and floods especially during the
rainy season as shown in Figure 5. No matter
what difficulties were encountered by the team,
1 Presently, there are two major REPs in Malaysia. The RESP
is implemented by the Ministry of Rural and Regional
Development and focuses on electrifying rural communities.
The solar PV-diesel hybrid project for rural schools is
implemented by the Ministry of Education.
Figure 1. Universal Service Provision (USP) Figure 2. Schoolnet project at SK Poring, Sabah.
project at Long Jekitan, Sarawak.

Figure 3. 20 kWp solar PV hybrid system (Phase Figure 4. 30 kWp solar PV hybrid system (Phase
1) at SK Penontomon, Sabah. 2) at SK Pulau Bait, Sabah.

Figure 5. Challenges and risks experienced by the project team during the implementation of the solar
PV hybrid system in Sabah.

53
 INGENIEUR
the works were delivered successfully. JKR’s
involvement in the rural area electrification project
provided expert input in the renewable energy
system for the GoM project, specifically in solar
PV system technology. The highly experienced
JKR project team ensured a cost-effective and
technically reliable system. The commitment and
determination shown in delivering the project has
made JKR the preferred choice in the field of solar
PV system technology.

SUSTAINABLE ELECTRICITY SERVICES

FOR SCHOOLS

System profile
The solar PV-diesel hybrid system is uniquely
designed to suit the school loading and daily
energy demand profile. The system relies on
renewable energy through a solar PV array, which
is used to generate the electricity required by
the school, and a battery bank for the purpose
of energy storage in order to supply electrical
power to the loads, mostly during the night.
Figure 6 shows examples of the installation and
components of the system. Two types of systems,
AC-coupled and DC-coupled systems, are used.
A total of 74 systems involve DC-coupling, while
another 86 systems are formed by an AC-coupling
configuration. The energy storage system uses
lead acid batteries of the following types: flooded
vented lead acid (VLA) and valve-regulated lead Figure 6. (top) Solar PV with a capacity of 40.32
acid (VRLA) batteries. A diesel generator functions kWp at SK Matupang, Ranau, (center) a grid
as the backup to the system in case energy inverter system at SK Sungai sungai, Beluran and
generated from the solar PV or the battery system (bottom) 1,750 Ah vented lead acid battery bank
at SK Kuala Kahaba, Keningau.
is insufficient to meet the energy demand from
the load, as well as charges the battery system.
The operation of the system is controlled by an and other buildings within the school boundary.
inverter system (a combination of several modular Figure 7 presents examples of school buildings
inverters) which also converts DC voltage to AC and the surrounding areas.
voltage (and vice versa for bidirectional inverters).
For the DC-coupled system, a charge controller System design criteria and characteristics
regulates the current generated by the solar PV. Designing a solar PV system, which is high in quality
and specification and uses the latest technology
System application available, should be taken into consideration in
The system is designed to supply electricity to relation to the local context and local participation
every school building, i.e., classrooms, the office, [8]. This approach should guarantee the long-term
the computer laboratory, teachers’ quarters, the sustainability of an REP. JKR has taken initiatives
student hostel, the dining room, the guard house to develop solar PV system design concepts and

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Figure 7. (top) Teachers’ quarters at SK Sungai-
Sungai, Beluran, (center) school buildings at SK
Luasong, Taway and (bottom) classroom at SK
Pangas, Keningau.
characteristics to ensure the system is technically
reliable and durable as well as benefits end users.
Several criteria and characteristics of the system
design are defined as follows:-.
a) Future electricity grid network
Some rural areas in Malaysia may be connected
to the electricity service by the grid network in the
near future. Thus, the system is designed with
the capacity to be integrated into the electricity
network by the grid, should the service be made
available in the future. This approach guarantees
that the system components can be used for the
whole of their lifetime and enable the electrical
energy produced by the system to be sold to the
electricity grid network.
b) System with a modular concept
The remoteness of the school and the access
conditions to the area in which it is located
created challenges and risks, especially in terms
of delivering equipment and components. To ease
this risk, the system was designed with a modular
concept. The solar PV system and structure
were designed and manufactured with a system
capacity of 10 kW, 15 kW and 20 kW per structure.
For example, a 30 kWp solar PV system consists
of two solar PV structures, each of 15 kWp. This
characteristic eased the delivery process and
made the manufacturing process quicker.
c) Elevated solar PV structure and powerhouse
The solar PV structure was built at a minimum
height of 4 m from the ground for several reasons.
Much of the school has a limited area and the land
is sometimes shared with the community. As the
only available space is the school playing field,
using the field for the solar PV system restricts the
school’s activities. Therefore, the elevated solar PV
structure allows the space under the structure to
be used for school activities as shown in Figure 8.
Some of the schools are located near rivers.
In the rainy season, which takes place from
November to February each year, the areas are
prone to flooding. Raising the solar PV structure
and the powerhouse ought to prevent damage to
the system components, as shown in Figure 9.
Furthermore, raising the solar PV structure
higher than ground level helps to prevent
vandalism, which could damage the solar PV
modules.
d) Rain water harvesting system
Malaysia has achieved the Millennium
Development Goal (MDG) to provide half of
its population with access to water supply and
improved sanitation [9]. However, some areas are
still having difficulties accessing the water supply
especially in Sabah and Sarawak. In line with the
aim by the GoM, the design of the solar PV system
facilitates water supply to the schools. A roofing
system was built beneath the solar PV array to
collect rain water which is stored in a water tank
as shown in Figure 10.
55
 INGENIEUR
e) Energy management
All loads are only turned on when required.
All the loads in the school buildings are turned
off when there are no occupants in the room,
except for equipment that is required to operate
round–the-clock, such as refrigerators. For
the teachers’ quarters, a load limiter device is
installed to manage the extra load that may be
used. The electricity cuts off automatically when
the maximum allowable electricity power and/or
daily energy use reaches the allocated quota.
The adaptation of the system design concepts
has led CKE to be awarded the ASEAN Energy
Award 2016 under the Renewable Energy: Best
Practice Off-Grid Power category as shown in
Figure 11.

Figure 8. (Top left) Badminton court at SK Luasong, Tawau, (top right) temporary classroom at SK
matupang, Ranau (school buildings were damaged by storms), (bottom left) night time at SK Pulau
Denawan, Semporna and (bottom right) car park at SMK Timbua, Ranau.

Figure 9. The elevated

solar PV structure and
powerhouse.

Figure
10. An
example of
rain water
harvesting
system at
SK Pulau
Libaran, Figure 11.
Sandakan. ASEAN Energy
Award 2016.

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 IMPLEMENTATION CHALLENGES DESCRIPTION
STAGE
Planning stage Implementation Inadequate feasible implementation models for sustainability,
model especially if the programme or project is Government-subsidised.

Adequate Most load demand assessments are conducted on assumptions about

information the hourly use of each appliance in a day. This approach is common
from site practice as real load demand is rarely available on site. Thus, this could
assessment sometimes lead to an oversized or undersized system capacity.

Organisational Several stakeholders, such as the Government and private companies

management (e.g., utilities), may be involved in several REP initiatives, which
and governance could lead to problems in co-ordinating them. Some may take credit
for political mileage. Commonly, it is the quantity of implemented
systems that is highlighted the most, while the quality of services
once a system is operational, is neglected.

Knowledge The concerned stakeholders, especially the consultants and project

implementers, must have sufficient know-how in designing a system
by adapting to social, economic and technological aspects.

Financial Conflicts abound between making returns on investment, in particular

scheme and if the project is privately financed, and ensuring affordable tariff
tariff rate rates which customers can pay, as most communities in rural areas
are poor. Although there needs to be schemes that are suitable and
affordable, financial institutions are reluctant to implement them in
order to avoid the failure of REP initiatives.

Local Local conditions, such as weather and geography, must be taken

conditions into consideration at the very beginning of project planning in order
to avoid delays. Involving local communities and understanding local
culture are also essential.

Future Some rural areas will probably be supplied with electricity from
connectivity the grid network in the future. It should be possible to integrate
the chosen technology into the electricity grid network. Good co-
ordination and planning among the electricity utility companies are
crucial.

Land In many cases, land acquisition and ownership issues are challenging
acquisition and and time-consuming. The installation of a power supply system
ownership requires land, which could raise public concern and conflict with the
land owner.

Legal and Regulatory enforcement and product standards need to be addressed

standard clearly to ensure quality. Negligence in enforcing regulations can
issues result in poor system performance and give a bad reputation to
renewable energy technology as a whole. Costs of renewable
components do not reflect retail prices. Non-existence of standard
prices as references can be manipulated resulting in higher rates.

Table 1. List of challenges in REPs [4], [10], [16]–[24].

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 INGENIEUR
IMPLEMENTATION CHALLENGES DESCRIPTION
STAGE
Installation Logistics Rural areas, due to their remoteness, have improper access and poor
stage road conditions. A rainy season could make the road inaccessible
and difficult to transport the materials to the site. The length of time
involved in transportation processes increases especially for areas
that are only accessible by river or sea. These conditions can affect or
damage products if improperly handled.

Technical Consultants and project implementers must have adequate

knowledge of installing the relevant system, as well as the supervision
needed to prevent the incorrect installation and improper handling of
equipment by general workers.
Post- Load Energy demand growth is very subjective and difficult to determine
installation uncertainty accurately, which could lead to insufficient energy supplied to the load
stage or the system capacity being over-designed.

System or The failure of components may disrupt the service and create
components dissatisfaction among the end users. The disruption and unavailability
failure of components locally may affect the entire system if the repair
process takes too long.

Quality of Ensuring that a service is high in quality is challenging when the

service isolated nature and poor access conditions of rural areas are
involved. Operators need appropriate training in order to perform well
and provide quality maintenance service.

Community If involving the local community is not defined clearly from the
involvement beginning, this may lead to power theft, over-consumption and
and uncontrollable load use. The relevant local community should be
sustainable provided with a continuous awareness programme and appropriate
elements training.

End-of-life Ageing components greatly impact the energy service and supply. Any
components discontinued model should be replaced with new components, which
and sometimes have different specifications.
discontinued
models

Payment Common payment schemes include cash sales, credit and fees for
scheme for electricity services. Some communities face difficulties in making
electricity payments (monthly or one-time) due to poverty. It may be necessary
services, to extend the payment period into the longer term to finance the initial
operation and cost and reduce monthly commitments. This however, would also
maintenance result in higher cumulative payments for consumers and a prolonged
return on investment for financiers. Some service providers have to
deal with problematic customers who do not make monthly payments,
which increases administrative costs.

Table 1. List of challenges in REPs [4], [10], [16]–[24] (continued).

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CHALLENGES IN IMPLEMENTING REPS
The achievements and benefits of implementing
REPs have been widely discussed in literature,
such as improved electricity services, reduced
energy poverty, improvements in living standards,
cleaner environments and economic benefits [3],
[10]–[15]. Round-the-clock availability of electricity
increases the opportunity for more activities,
especially at night, and enables quality electrical
appliances to be used. Thus, for example, the
usage of the indoor air-polluting and health-
hazardous kerosene lamps have been phased out.
However, the biggest challenges for REPs are still
concerned with ensuring that the programmes are
sustainable and make electrical services reliable.
The challenges can be categorised in terms of
three stages, which are planning, installation and
post-installation, as presented in Table 1.
CONCLUSION
This article offers an insight into the rural school
electrification programme in Malaysia. While
conventional fossil fuel resources are still the
major contributor to electricity generation in
the country, renewable energy sources have
recently been considered as part of the energy
generation mix. Although electricity reaches most
inhabitants, there are significant, relatively small,
patches that cannot be served by the electricity
grid network. Hence, the use of stand-alone and
renewable energy technology systems is essential.
However, challenges and barriers exist along the
project timeline, which require close attention by
each party involved in an REP. The success of an
REP is achievable if all parties address the issues
needed to make the programme sustainable and
the services reliable. Sustaining any REP is crucial
and can be achieved by applying the principles
of fundamental project design [8]. Long term
sustainability of the REP is not guaranteed by the
technical aspect of the technology of choice alone,
but the programme’s future also relies on the
social, organisational, and economic aspects, as
well as the local conditions and communities of the
rural areas. Thus, selecting a high quality design
of a system must comprise the establishment of
a management model, regulations for electricity
‟
Local context, local
participation, technical
expertise, management capacity,
and financial resources can
ensure the sustainability of the
services if combined together as
early as the project’s planning
stage and continued until the
end of the project’s lifetime.
quality and service, and an economic model.
Local context, local participation, technical
expertise, management capacity, and financial
resources can ensure the sustainability of the
services if combined together as early as the
project’s planning stage and continued until the
end of the project’s lifetime. Merging all these
elements can provide better services and quality
of the programme, thus minimising the risks and
challenges in implementing REPs.
Acknowledgement
The author would like to thank officers at Electrical
Engineering Branch, Public Works Department,
for their assistance and support during the study,
especially to Abdul Quyyum, Rosdam, Awang
Husni and Ms Sarina. The author wishes to thank
the Public Service Department for sponsoring the
study.
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Master Plan on ASEAN
Connectivity 2025 –
Opportunities for Engineers

REPORT
By Lim Tau Wee

T
he word “connectivity” seems to be the
buzzword of major global conventions for
the new economic order of this millennium.
Asia-Pacific Economic Co-operation (APEC)
leaders in 2013 declared the APEC CONNECTIVITY
BLUEPRINT 2015-2025 with aspirations to reach
a seamlessly and comprehensively connected and
integrated Asia-Pacific through the three pillars of
connectivity, i.e. Physical Connectivity, Institutional
MASTER PLAN ON
Connectivity and People-to-People Connectivity.
The Belt and Road Forum for International
ASEAN CONNECTIVITY 2025
Co-operation in Beijing on May 14, 2017 focused
on the five areas of connectivity, i.e. Policy
Connectivity, Infrastructure Connectivity, Trade
Connectivity, Financial Connectivity and People-to-
People Connectivity. An observer commented that
the Belt and Road Initiative offers the Association
of Southeast Asian Nations (ASEAN) a golden
opportunity to co-operate using complementary
capabilities across countries.
For the ASEAN Community, the Master Plan on
ASEAN ASEAN
Connectivity 2010 was replaced with the
ASEAN

Master OFPlan on ASEAN Connectivity 2025 (MPAC

A COMMUNITY@ASEAN

www.asean.org
one vision
one identity
OPPORTUNITIES one community

2025) when ASEAN leaders met in Vientiane,

Laos in 2016. It focuses on five strategic areas:
sustainable infrastructure, digital innovation,
seamless logistics, regulatory excellence and
population mobility. Vision, Objectives and Initiatives for
Taking cognisance of the significance of ASEAN Connectivity 2025
the mechanism of connectivity in the current
economic order, it will be of interest to the The vision for ASEAN Connectivity 2025 is to
engineering fraternity to understand the elements achieve a seamlessly and comprehensively
of MPAC 2025 that are related to them. connected and integrated ASEAN that will

61
 to achieving the political-security, economic, and socio-cultural pillars of an
integrated ASEAN Community.
INGENIEUR
EXhIBIT 6

Vision and strategic objectives

ASEAN Connectivity 2025

Vision

To achieve a seamlessly and comprehensively connected and

integrated ASEAN that will promote competitiveness, inclusiveness,
and a greater sense of Community
People-to-people
Physical connectivity Institutional connectivity
connectivity

Strategic objectives
▪ Increase public and private infrastructure investment in each ASEAN Member State,
Sustainable as needed
infrastructure
▪ Significantly enhance the evaluation and sharing of best practices on infrastructure
productivity in ASEAN
▪ Increase the deployment of smart urbanisation models across ASEAN
▪ Support the adoption of technology by micro, small and medium enterprises (MSMEs)
Digital ▪ Support financial access through digital technologies
innovation ▪ Improve open data use in ASEAN Member States
▪ Support enhanced data management in ASEAN Member States
Strategies

Seamless ▪ Lower supply chain costs in each ASEAN Member State

logistics ▪ Improve speed and reliability of supply chains in each ASEAN Member State

Regulatory
▪ Harmonise or mutually recognise standards, conformance, and technical regulations for
products in key sectors
excellence
▪ Reduce number of trade-distorting non-tariff measures across ASEAN Member States
▪ Support ease of travel throughout ASEAN
People mobility ▪ Reduce the gaps between vocational skills demand and supply across ASEAN
▪ Increase the number of intra-ASEAN international students

Figure 1
2. The following criteria were used to prioritise strategies to support the articulated
vision
promote statement: inclusiveness, and a iii. Relevance. The strategic areas must be within
competitiveness,
greater sense of Community (Figure 1). Greater the scope of the connectivity agenda, including
connectivity is the foundational supportive and being regional in nature.
i . Significance. The strategic areas must
facilitative means to achieving the political- Iv. Timeliness. have the The potential to have
strategic areas material
must have the
impact and
security, economic, on socio-cultural
the connectivity
pillars ofagenda
an in ASEAN.
potential In other
to achieve words, impact
demonstrable it must overbe
integratedcritical to achieving the vision and goals
ASEAN Community. outlinedperiod.
the 2016-2025 for ASEAN Connectivity.
Based on these criteria and consultations
The following criteria were used to prioritise with Government officials of ASEAN Member
strategies to support the articulated vision States, Dialogue Partners, academics, multilateral
statement: institutions, business associations, private
i. Significance. The strategic areas must have sector representatives and other relevant
the potential to have material impact on the stakeholders, the following five strategic areas
connectivity agenda in ASEAN. In other words, have been prioritised for MPAC 2025: sustainable
itMASTER
must bePLAN ON ASEAN
critical CONNECTIVITY
to achieving and 39
the vision2025 infrastructure, digital innovation, seamless logistics,
goals outlined for ASEAN Connectivity. regulatory excellence, and people mobility.
ii. Complementarity. The strategic areas relate The five strategic areas cover and support
to opportunities to complement other ASEAN different ASEAN Connectivity dimensions and
sectoral work plans. This could include issues ASEAN Community pillars. In particular, there is
that span multiple sector working groups, wide coverage of the physical and institutional
which may not be adequately addressed by any dimensions; as well as significant alignment with
existing group (e.g., infrastructure financing). the ASEAN Community priorities.

6
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 infrastructure will support logistics and people mobility; and the support for visa
facilitation (under “people mobility”) will create demand for infrastructure. The
full set of linkages between strategies is described in Exhibit 8.

EXhIBIT 8
Relevance

Linkages among MPAC 2025 strategies Large

Medium
Limited
Impact on other strategies N/A

ASEAN
Connectivity Sustainable Digital Seamless Regulatory
2025 strategies infrastructure innovation logistics excellence People mobility

Development of Development of Development of

1 Sustainable ICT-related infrastructure to aviation, road, rail
infrastructure
infrastructure support logistics and maritime links

Support growth of
Development of Support ICT
new digital
regulatory solutions for
2 Digital innovation frameworks to logistics growth
education
solutions through
support ICT (e.g., IoT)
open data

Provide objective
‘Soft infrastructure’
measures of
focus to support Support
3 Seamless efficiency of development of
progress and
logistics bottlenecks by
infrastructure e-commerce
ASEAN Member
usage
States

Support on
Regulatory
4 addressing NTBs
excellence
and standards

Visa liberalisation
creates demand
5 People mobility for travel and
related
infrastructure

Figure 2
B . ThE VALUE CONTRIBUTION OF MPAC 2025 TO EXISTING ASEAN
SECTORAL
Interactions WORK
between PLANS
the prioritised Value Contribution of MPAC 2025 to
strategies existing ASEAN sectoral work plans
6. As discussed in the introduction, MPAC 2025 seeks to add value by
Each of the five strategies relate to different MPAC 2025 seeks to add value by complementing
aspectscomplementing and synergising
of the three dimensions of ASEANtheandASEAN Community
synergising Blueprints
the ASEAN Community 2025,
Blueprints
ASEAN
Connectivity sectoral
(i.e., physical,work plans, and
institutional, and the Initiative
2025, ASEAN for ASEAN
sectoral Integration
work plans, (IAI)
the Initiative
people-to-people connectivity) to reflect the for ASEAN Integration (IAI) Work Plan III, as well as
comprehensiveness of the ASEAN Connectivity enhancing synergies with other sub-regional and
agenda. In addition, they are mutually reinforcing. inter-regional frameworks, in five ways:
For example, the “regulatory excellence” strategy i. Additionality. MPAC 2025 creates new
supports harmonisation of standards and initiatives (not in the ASEAN sectoral work
addressing of non-tariff barriers, which can help plans) that are considered crucial for improving
promote logistics. Similarly, the development of physical, institutional, or people-to-people
MASTER PLAN ON ASEAN CONNECTIVITY 2025 41
infrastructure will support logistics and people connectivity.
mobility; and the support for visa facilitation ii. Breadth. MPAC 2025 expands the coverage
(under “people mobility”) will create demand for of initiatives in existing ASEAN sectoral
infrastructure. The full set of linkages between work plans so that they include the areas
strategies is described in Figure 2. identified to be important from a connectivity
perspective.

63
 INGENIEUR
EXhIBIT 9
Strong focus
Majority of proposed initiatives add value through enhanced Some focus

coordination between existing ASEAN sectoral initiatives Limited focus

Area of value

MPAC 2025 initiatives Additionality Breadth Coordination Depth Emphasis

Sustainable Establish a rolling priority pipeline list of potential ASEAN infrastructure

projects and sources of funds
infrastructure
Establish an ASEAN platform to measure and improve infrastructure
productivity

Launch sustainable urbanisation strategies in ASEAN cities

Digital Enhance the MSME technology platform

innovation
Develop the ASEAN digital financial inclusion framework

Establish an ASEAN open data network

Establish an ASEAN digital data governance framework

Seamless Strengthen ASEAN competitiveness through enhanced trade routes

and logistics
logistics
Enhance supply chain efficiency through addressing key chokepoints

Regulatory Complete harmonisation of standards, mutual recognition, and

technical regulations in three prioritised product groupings
excellence
Increase transparency and strengthen evaluation to reduce trade-
distorting non-tariff measures

People Enhance ASEAN travel by making finding information easier

mobility
Ease ASEAN travel by facilitating visa processes
Establish new vocational training programmes and common
qualifications across ASEAN Member States, in accordance with
national circumstances of each ASEAN Member State

Support higher education exchange across ASEAN Member States

Figure 3

I . SUSTAINABLE
iii. Co-ordination. MPAC INFRASTRUCTURE
2025 helps ensure groups, and also through adding additional
effective co-ordination of initiatives that cut depth to existing ASEAN sectoral work plans
8. across
More multiple
than working
US$110groups to needs
billion (Figure
maximiseto be 3).
invested in infrastructure annually in
the likelihood of successful implementation.
ASEAN in order to meet the needs of the ASEAN Member States30. This is
iv. Depth. For those initiatives that are considered
roughlyfortwo
important to six times
connectivity, MPACthe annual
2025 aims amount spent historically.
SUSTAINABLE INFRASTRUCTURE Not only does
expenditure need to increase,
to maximise the likelihood of successful but the productivity of the infrastructure itself
needs to improve
implementation rapidly;
by helping to addatdetail
the tosameMore
time new
than approaches
US$110 billion needstotodealing within
be invested
thethe growthand
initiatives of outlining
middleweight
how to cities in ASEAN
deal with need to
infrastructure be implemented
annually to ensure
in ASEAN in order to meet
potential barriers to success. the needs of the ASEAN
that their growth does not come at the expense of the environment or quality Member States. This is
v. Emphasis. For initiatives that are considered roughly two to six times the annual amount spent
important for connectivity, and for which a historically. Not only does expenditure need to
clear action plan is already in place, MPAC increase, but the productivity of the infrastructure
2025 seeks to highlight the importance of itself needs to improve rapidly; at the same
these initiatives. time, new approaches to dealing with the growth
Across the 15 initiatives in MPAC 2025, the of middleweight cities in ASEAN need to be
main channel by which ASEAN Connectivity adds implemented to ensure that their growth does not
value to existing ASEAN sectoral work plans is come at the expense of the environment or quality
through enhanced co-ordination across working of life. The strategic objectives are:

30 ASEAN Investment Report 2015 and McKinsey Global Institute’s Southeast Asia at the Crossroads: Three
6 Paths VOL
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to Prosperity
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- SEPTEMBER
2013 2017 infrastructure investment needs amounting to USD 110 billion (for the
period of 2015-2025) and USD 196 billion (for the period of 2014-2030), respectively.
Increase public and private infrastructure
investment in each ASEAN Member State, as
needed.
Following the Asia Financial Crisis of 1997–1998,
a significant infrastructure deficit emerged as
ASEAN Member States sought to rein in current
account deficits and capital account flows. As
a result, investment as a share of GDP has not
returned to pre-1997 levels in most ASEAN
economies. Although both private and Government
infrastructure investment have been ramping up
in recent years, given the scale of infrastructure
needs across ASEAN, there remains a large
challenge ahead. A minimum aspiration could
be for private sector infrastructure spending to
surpass pre-Asia Financial Crisis levels.
Significantly enhance the evaluation and sharing
of best practices on infrastructure productivity
in ASEAN.
Past academic work has found opportunities for
reducing the cost of infrastructure by around 40%
through better project selection, more efficient
delivery and greater accountability, an emphasis
on maximising the life span and capacity of
existing assets, strong infrastructure governance,
and a robust financing framework. ASEAN
Member States vary widely on their performance
in relation to these different elements, suggesting
opportunities to improve productivity through
greater sharing of relevant best practices. As
part of the proposed initiatives in this area, a
new assessment framework and a platform
will be established to measure infrastructure
productivity and share best practices in ASEAN
Member States
Strategic Objective
Support the adoption of technology by micro, small
and medium enterprises (MSMEs)
Support financial access through digital
technologies
Improve open data use in ASEAN Member States
Support enhanced data management in ASEAN
Member States
Figure 4
Increase the deployment of smart urbanisation
models across ASEAN.
The growth of cities across ASEAN is generating
economic momentum—but it also poses
enormous challenges. Although income and
prosperity are rising, many of the region’s cities
are struggling with quality-of-life issues. Some of
the region’s largest cities are feeling the strains of
rapid population growth, which has led to traffic
congestion, pollution, and other urban issues. The
objective is to enhance the rate of deployment of
sustainable urbanisation strategies, particularly
in the growing middleweight cities in ASEAN. To
measure progress against this ambition, it would
be essential to work on sustainability measures
for a range of cities across ASEAN. The initiatives
to achieve these strategic objectives are:
Initiative 1: Establish a Rolling Priority Pipeline
List of Potential ASEAN Infrastructure Projects
and Sources of Funds.
Initiative 2: Establish an ASEAN Platform
to Measure and Improve Infrastructure
Productivity.
Initiative 3: Develop Sustainable Urbanisation
Strategies in ASEAN Cities.
DIGITAL INNOVATION
Disruptive technologies (particularly mobile
Internet, big data, cloud technology, the Internet
of Things, the automation of knowledge work and
social, mobile, analytics and cloud or SMAC) could
unleash some US$220 billion to US$625 billion
in annual economic impact in ASEAN by 2030.
Key Initiative
Enhance the MSME technology platform
Develop the ASEAN digital financial inclusion
framework
Establish an ASEAN open data network
Establish an ASEAN digital data governance
framework
65
 INGENIEUR
The strategic objectives and initiatives for digital
innovation are outlined in Figure 4.
Support the adoption of technology by micro,
small and medium enterprise(MSMEs).
While the number of Internet users has grown at
a brisk 16% annually from 2008 to 2013, a large
proportion of businesses in ASEAN still lag in
terms of technology readiness and usage. There
are opportunities for enabling MSMEs to fully
adopt digital technologies through addressing
key barriers that prevent them to do so, such
as awareness of potential benefits, technology
capability, ease of adoption, access to finance, and
availability of different solutions and platforms.
MSMEs’ adoption of digital technologies will allow
them to achieve significant uplift in productivity,
efficiency, and market expansion within the region.
Support financial access through digital
technologies.
A large share of the ASEAN population remains
unbanked. The opportunity exists to significantly
increase financial access by leveraging digital
technologies. However, capturing this opportunity
may require creating an enabling policy and
regulatory environment that allows digital financial
inclusion to flourish, which include developing
new banking requirements, addressing several
barriers that may affect the uptake of mobile
banking services (for instance, data infrastructure,
regulations requiring customers to visit a branch
to open accounts), as well as risks consideration.
Improve open data use in ASEAN Member
States.
Open data—machine readable information, which
may include Government and private sector data,
that is made publicly available to others—has
generated a great deal of excitement around the
world for its potential to empower peoples, change
how Government works, and improve the delivery
of public services. At a global level, open data
can help unlock US$3 trillion to US$5 trillion in
economic value annually across seven sectors.
ASEAN Member States are at different levels of
maturity in terms of data production as well as
open data development, which suggests a large
potential for further growth. The focus of MPAC
2025 is on Government-level open data.
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Support enhanced data management in ASEAN
Member States.
Data management (predominantly company and
individual level data), including issues relating to
data privacy, data analysis and interpretation,
data storage, and cross-border data transfers,
has a significant implication on the development
of businesses in ASEAN. Progress varies
considerably among ASEAN Member States in
this area and there is a significant opportunity
to improve transparency and accountability on
requirements and identify areas to enhance
performance.
Initiative 4: Enhance the MSME Technology
Platform.
This initiative will support the plan of the ASEAN Co-
ordinating Committee on MSMEs (ACCMSME) to
promote key technology usage and its application
to business by detailing the steps required to
achieve the strategic objective. Additionally, MPAC
2025 will enhance co-ordination among different
stakeholders to achieve this initiative, including:
ACCMSME, ASEAN Telecommunications Senior
Officials Meeting (TELSOM), business associations
and councils, and others.
To ensure that MSMEs in ASEAN leverage
digital technologies and encourage their adoption
among MSMEs, a first step will be to address the
current lack of understanding on barriers to digital
adoption for MSME in the region. A survey will be
conducted among MSMEs in each ASEAN Member
State to gain a deeper understanding of the
current situation in relation to digital adoption, as
well as the key barriers preventing adoption. This
survey will also examine the current approaches
being used in each ASEAN Member State to
support digital adoption by MSMEs. A forum will be
established for Government officials in the MSME
and ICT space to understand the current barriers
and share lessons on successful interventions
currently being used in ASEAN.
A key component for addressing digital
adoption will be to strengthen the existing
ASEAN SME service portal by responding to
the insights from the MSME survey, as well as
developing a digital technology platform which
draws on best practices offerings from within and
outside ASEAN. Potential areas of opportunity

for the portal include establishing functionality
on business networking— enabling MSMEs to
connect and do business with technology vendors
across the region— and including more materials
on maximising the benefits of digital adoption by
drawing on the work of existing business councils
and private sector players.
Initiative 5: Develop the ASEAN Digital Financial
Inclusion Framework.
This initiative aims to promote financial inclusion
by delivering financial products and services to a
wider community that is currently under-served,
including MSMEs. It also seeks to promote the
ASEAN ICT Master Plan 2020, which, among
others, seeks to raise awareness of digital trade
and use of electronic payment among businesses
so that they can better transact with suppliers and
customers, including online consumer protection.
Strategic Objective
Lower supply chain costs in each ASEAN Member
State
Improve speed and reliability of supply chains in
each ASEAN Member State
Figure 5
MPAC 2025 aims to enhance co-ordination among
different stakeholders in this area and provide
further support on the detailed approach that
could be adopted by the Working Committee
on Financial Inclusion (WC-FINC) and Working
Committee on Payment Systems and Settlement
(WC-PSS).
Initiative 6: Establish an ASEAN Open Data
Network.
This initiative builds on the ASEAN ICT Master
Plan 2020, which has identified a number of
potential actions for supporting open data and
big data development from different sources,
including awareness building and education in
standards, usage, and development especially
ICT infrastructure to support the statistical
analysis. Proposed actions include: establishing
a forum or platform for the private sector to
share developments and activities in big-data
management and analysis; developing guides for
standardising the type and standards for machine-
readable open data; and supporting open data
development through hosting of competitions
where innovative uses and application of
open Government data are encouraged (e.g. a
hackathon). MPAC 2025 will support the ASEAN
ICT Master Plan 2020 to achieve its objective
of open data by expanding the impact beyond
the private sector to Government, as well as by
enhancing cross-sectoral co-ordination between
TELSOM and other ASEAN Sectoral Bodies.
Initiative 7: Establish an ASEAN Digital Data
Governance Framework.
This initiative aims to support The ASEAN ICT
Master Plan 2020, which calls for creating a
coherent and comprehensive framework for
personal data protection, by enhancing co-
Key Initiative
Strengthen ASEAN competitiveness trade
enhanced trade routes and logistics
Enhance supply chain efficiency through addressing
key chokepoints
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 INGENIEUR
ordination across many sectors and providing
details on the approach to ensure success.
SEAMLESS LOGISTICS
The region’s customs and logistics costs remain
far higher than international benchmarks.
Improving logistics competitiveness will be
crucial if ASEAN is to maintain its recent strong
manufacturing growth as wages rise across the
region. The strategic objectives and initiatives for
seamless logistics are outlined in Figure 5.
Lower supply chain costs in each ASEAN
Member State.
At present, there are large divergences among
ASEAN Member States across different areas of
logistics, including green logistics. The aim is to
lower logistics costs by drawing on appropriate
metrics for trading across borders.
Improve speed and reliability of supply chains in
each ASEAN Member State:
Similar to the cost of logistics, the speed and
reliability of logistics in terms of time spent in
ports, customs, and in-land transport need to
be improved considerably by assessing various
bottlenecks in the supply-chain process. Currently,
ASEAN Members States’ speed of logistics based
on World Bank’s metrics for trading across borders
shows divergence in performance and they are well
below global benchmarks (e.g. the Organisation
for Economic Co-operation and Development, or
OECD average.)
Initiative 8: Strengthen ASEAN Competitiveness
through Enhanced Trade Routes and Logistics.
This initiative aims to conduct an analysis of time
and costs for different stages of priority trade
routes in ASEAN in order to identify bottlenecks.
There is a lack of detailed information on key
logistic networks in ASEAN. For example, the World
Bank Logistics Performance Index (LPI) has a
country-specific focus (rather than regional focus)
and lacks granularity on specific bottlenecks. The
Japan External Trade Organisation (JETRO) ASEAN
Logistics Network map was an attempt to provide
more granular information on seven priority trade
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routes in ASEAN, but has not been updated
recently or expanded to cover more of ASEAN’s
trade routes. The lack of detailed logistical
information for ASEAN makes it difficult to identify
specific bottlenecks and prioritise actions.
The ASEAN Economic Community Blueprint
2025 and the ASEAN Strategic Transport Plan
2016-2025 have called for the construction of
a database covering the ASEAN land transport
network and conducting time release studies to
measure the time required for goods vehicles
crossing the border. There is an opportunity
for MPAC 2025 to support this by working with
academic institutions, multilateral organisations,
the private sector and Dialogue Partners to
conduct an analysis of time and costs for different
stages of the trade route and identify bottlenecks.
To establish the database, the first step is to
identify the priority trade lanes or economic
corridors to be analysed under the database.
Priority commodities then need to be selected for
monitoring. Selection criteria could include the
relevance of the corridors and products for trade
flows, their importance to the private sector, their
relevance to multiple ASEAN Member States, and
the coverage of both maritime and land corridors.
To ensure continuity in the development and
updating of the database on a regular basis,
identification of research partners will be an
essential component of this initiative. As a step
towards developing this database, the pilot ASEAN
Custom Transit System project involving Malaysia,
Singapore, and Thailand, as identified under the
Senior Transport Officials Meeting (STOM) could be
a starting point. This can then be used to inform
priority reform areas over time. The information
generated through the database could then be
made widely available to the private sector, as well
as the countries’ logistics councils and national
logistics industry associations, to inform decisions
on how to clear bottlenecks in relation to various
speed and cost issues.
Initiative 9: Enhance Supply Chain Efficiency
through Addressing Key Chokepoints.
This initiative focuses on developing a supply
chain framework that will provide a holistic
measure of supply chain performance in ASEAN.
It would begin by identifying specific trade

KUALA LUMPUR
TRANSPORT
STRATEGIC PLAN
(ASEAN TRANSPORT STRATEGIC PLAN)
2016-2025
one vision
one identity
one community
corridors (ideally matched to those selected for
the logistics database initiative) in ASEAN and
then understanding “chokepoints” in the supply
chain processes related to these corridors.
Measures can then be initiated to address these
barriers, such as establishing a mechanism to
support and implement border management
measures to manage cross-border movement of
passengers and goods, e.g. procedures of border
management (customs, immigration, quarantine
or CIQ); enhancing and creating procedures,
formalities and practices in border management
and ensuring their harmonisation to the highest
extent possible; and joint border management in
pursuing “One Single Inspection and Processing
Point”. This should also consider both business-to-
business (B2B) and business-to-consumer (B2C)
goods flow in light of the increasing importance
of e-commerce in the region. The identification
of chokepoints would be based on existing data
sources (e.g. the World Bank’s LPI), as well as input
from private sector and Government officials.
An agreed action plan would then be
developed with the logistics co-ordinating councils
(or equivalent bodies) for each of the ASEAN
Member States involved in the prioritised trade
routes to deal with the identified chokepoints. A
range of outcome and input indicators would be
established to track performance on these action
plans. Initially, these outcome indicators would
draw on existing data sources (e.g. the World
Economic Forum’s Enabling Trade Index, or ETI).
But over time this would be replaced with more
specific and granular information from the ASEAN
logistics database (described above). The input
indicators would be developed to track progress
on the specific initiatives developed in the corridor
action plan. Forums would be organised, with key
officials from the logistics co-ordinating councils
(or other relevant bodies) and representatives
from the private sector invited to be present, to
share lessons and best practices learnt during the
process.
The ASEAN Strategic Transport Plan 2016-
2025 intends to establish a formal platform/co-
operation mechanism for exchanging information
on implementation of regional cross-border
operations. Given the variety of different working
groups engaged in logistics, MPAC 2025 can
play a critical co-ordinating role to support
implementation.
Conclusion
ASEAN will be celebrating its Golden Anniversary
on August 8, 2017. Malaysia at the centre of the
ASEAN Region has played many leading roles
in the past five decades as one of its founding
members especially in the ASEAN Economic
Community.
The concerted move by the global caucus such
as APEC, ASEAN and Belt-and-Road Initiative in
pushing for more co-ordinated and integrated forms
of connectivity across the greater region will mean
more opportunities for the engineering fraternity
especially in infrastructure connectivity.
REFERENCE
APEC: APEC Connectivity Blueprint 2015 -2025
Belt and Road Forum 2017
Acknowledgement
The contents of this article on ASEAN are extracted
from the Master Plan on ASEAN Connectivity 2025
issued by The ASEAN Secretariat, Jakarta.
69
 INGENIEUR
ACPECC VISION 2025
Keynote Address By Dato’ Sri Ir. Dr Roslan Md Taha,
President, Board of Engineers Malaysia
CONFERENCE
At the ASEAN Chartered Professional Engineers Coordinating Committee (ACPECC)
Roundtable Discussion/Colloquium held in Kuala Lumpur on May 15, 2017
I
t is indeed an honour for the
Board of Engineers Malaysia to
host this auspicious event - the
ASEAN Chartered Professional
Engineers Coordinating
Committee (ACPECC)
Roundtable Discussion. On
behalf of the Board of Engineers
Malaysia, it is my pleasure to
extend a warm welcome to all
ACPECC delegates and guests -
“Selamat Datang” as we say in
Malaysia.
Our meeting today, in this
year of 2017, coincides with
a historic milestone event -
the 50th Anniversary of the
founding of ASEAN in 1967.
Our community of nations has
since matured into a community
focused on economic integration
and growth, and consensus-
building. This is the “ASEAN
Way”, and it has resulted in
unprecedented growth - ASEAN
is now the world’s seventh-
largest market and third-largest
labour force, and has been
projected to become the fourth-
largest economic bloc by 2030.
This is further reinforced by
the launch in 2015 of ASEAN
Economic Community (AEC),
to create a single market and
production base–facilitating
even closer economic, political,
social and cultural cooperation.
Appreciating the significance
of AC EP C C in ec onomic
integration, the Board of
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BEM President delivering his
address
Engineers Malaysia took the first
step to amend its Registration
of Engineers Act 1967 towards
full liberalisation of engineering
consultancy services whereby
foreign consultancy firms can
hold 100% equity in Malaysia.
We are pleased that several
firms from ASEAN Member
States, or in short AMS, have
indicated their interest in
registering their business
presence here. We hope more
firms in AMS will set their
bases in Malaysia as an early
harvest for full liberalisation
of engineering services in
Malaysia.
Likewise, we hope other AMS
will correspondingly liberalise
the engineering services at
the earliest possible dates in
order to achieve the goal of
AEC integration in the services
sector. This will be in tandem
with the recently concluded
30 th ASEAN Summit in Manila
on April 29, 2017 which,
among others, point towards
the main deliverables for 2017,
which are to make ASEAN a
model of regionalism, as an
effective global player. It is
thus imperative that all ASEAN
Member States accelerate the
process of liberalisation to meet
the recently concluded ASEAN
Summit objective.
The Manila Summit also
i d e n t i f i e d in c lu s i ve an d
innovation–led growth as one of
the deliverables for 2017. This
is understandable as innovation
holds the key to economic and
sustainable growth in the current
global competitive environment.
ASEAN as a Community should
collaborate closely towards that
direction since ASEAN is already
enjoying high growth within the
global context.
Speaking about innovation,
as we are now in the 4th
Industrial Revolution stage,
Malaysia is proud to be the
world’s first digital free trade
zone, launched in March
2017 together with the global
Internet company Ali Baba. We
envisage that this new economic
transformation will spur new
economic activities for the
engineering sector especially
Proceedings of the Roundtable Discussion/Colloquium
in the logistic industry and
physical connectivity work such
as transportation, warehousing
and IT talents.
As the organiser of today’s
Roundtable Discussion, we
have taken the liberty to assign
the theme of the Colloquium
- “ACPECC Vision 2025”. This
theme has reference to the
“ASEAN Economic Community
Blueprint 2025”, a 10-year
prospective plan agreed by
ASEAN leaders at the 2015
Kuala Lumpur Summit. It
outlines the aspiration of all
AMS to take AEC to an inclusive
and progressive, people centric
common market as well as a
borderless production base
by deepening and broadening
regional integration.
The outcome of Cross
Border Trade in Engineering,
Technology and Innovation
Services is the delivery of CPC
8673: Integrated Engineering
Services; carried out by the
Engineering Team that consists
of three to four categories of
“engineering practitioners” [a
term used by the International
Engineering Alliance (IEA)],
or alternatively, “engineering
services professionals” the
term used in ASEAN MRA. The
integrated engineering services
(CPC 8673) practised both
the Demand and the Supply
sides of the project delivery
equation. On the Demand
Side, Integrated Engineering
Services is practised as: Project
Management C onsult ancy
Services; and on the Supply Side,
Integrated Engineering Services
is practised as: Engineering,
Procurement, Construction and
Commissioning (EPCC) Services.
In line with the “ACPECC
Vision 2025” theme, it is hoped
that our work and effort in the
coming years, will be directed
towards generating suitable and
relevant deliverables to meet
the expectations of the AEC
Blueprint 2025.
I must say that ASEAN
Member States have done well
in taking various initiatives to
move towards the goal of a
highly integrated and cohesive
region, as well as staying
competitive, innovative and
dynamic. However, in spite of
the current global economic
situation, ASEAN has attracted
much attention from developed
nations in view of her higher
growth potential in the global
context. The Asian Development
Bank (ADB) reports of the need
for US$8 trillion to develop
ASEAN’s infrastructure in the
next 20 years. This signifies
great potential and bodes well
for engineering services in this
sector.
The One Belt One Road
initiative backed up by the Asia
Infrastructure Investment Bank
(with a fund size of US$100
billion) and the Maritime
Silk Road Fund (with US$40
billion) will focus on massive
infrastructure work in countries
along the belt and road.
Particular focus will be given
to the ASEAN region in view
of its strategic geographical
location, political stability and
economic growth potential.
This massive infrastructure
development works will need
strong participation from the
engineering fraternity.
It is thus vital that ASEAN
Member States work in full
collaboration for greater synergy
in respect of engineering
ser vices and mobilit y of
professionals in order to cope
with demand and sharing of
resources and expertise.
In lig ht of thi s new
opportunity, we should also
be mindful of the level of
professionalism and skills in
meeting the above challenges.
It is our duty as ASEAN
engineering professionals to
71
 INGENIEUR
demonstrate our professional
standards and competence
to potential investors and
key players, and also of our
capability to deliver engineering
services par excellence. Towards
this end, I am glad that ACPECC
is developing, monitoring,
maintaining and promoting
mutually acceptable standards
and criteria for facilitating
practice by ASEAN Chartered
Professional Engineers
throughout the participating
ASEAN Member States.
I hope this colloquium
will give more thought on the
above and produce more policy
guidelines to guide Member
States.
The Board of Engineers
Malaysia views the delivery
of engineering services as
teamwork, performed by the
Engineering Team, rather than
by individual engineers alone.
In line with this, the Board
has amended its Registration
of Engineers Act to include
Engineering Technologist s
and Inspector of Works in
view of their important role in
achieving the right quality of
engineering services delivered
by the team. This is a form of
professional self-regulation
where all members of the
Engineering Team must shoulder
accountability and responsibility
in their respective roles,
rather than on the shoulder of
engineers alone.
Also on the subject of self-
regulation, Malaysia practises
a self- cer tification system
for completion of building
construction with the issuance
of a Certificate of Completion
and Compliance or CCC.
For example, a Professional
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Q & A Session
Eng ineer with Pr ac tising
Cer tificate who submits a
building plan for a factory is
authorised to issue the CCC. I
am glad to inform that since
its implementation in 2007,
we have only received a few
complaints much to the Board’s
surprise. This system has given
investors more assurance of
timely delivery. In fact, this
system has elevated Malaysia’s
ranking in the Global Index for
“Ease of Doing Business”.
With regards to engineering
education in Malaysia, the
Board of Engineers Malaysia is a
full signatory of the Washington
Accord since June 2009, which
was an important milestone
in the context of achieving
an internationally accepted
education standard. With this
status, Malaysian engineering
programmes are now legally
deemed as having reached
substantial equivalence with
those of advanced nations.
The B oard’s Eng ineering
Accreditation Council (EAC)
has continued to benchmark
its criteria with international
practices in other signatory
nations of the Washington
Accord.
In this regard, the private
institutions of higher learning
are benefiting even more than
the public universities. It means
that these institutions can
market their products better
outside Malaysia with the
Washington Accord label as a
mark of quality in engineering
education.
With the Washington Accord
standards as benchmark, the
EAC is engaging the institutions
of higher learning to excel in
their provision of engineering
education based on graduate
outcomes as stipulated in the
Graduate Attributes criteria
adopted by the International
Engineering Alliance. The
progress in outcome -
b a s e d e du c at ion among
the engineering education
institutions has significantly
exceeded those in the non-
engineering programmes.
In conclusion, I hope you will
have a meaningful colloquium
wherein many ideas will be
mooted for the ACPECC to take
into consideration in the way
forward towards 2025.
A s we c elebr ate our
shared success for the last 50
years, the ASEAN engineering
fraternity can look to the future
with optimism, as we work hand
in hand as partners to drive
technological and economic
development. This ACPECC
meeting is indeed an occasion
for us to set the tone for ASEAN
in the decades ahead.
I also hope that you will find
time to visit fascinating places
and enjoy delicious cuisine in
Malaysia, and have an enjoyable
experience and stay here.
BEM ROADSHOW 2017
Opening Speech by YAB Datuk Amar Abang Haji Abdul Rahman Zohari Bin Tun
Datuk Abang Haji Openg, Chief Minister, Sarawak on July 4, 2017

CONFERENCE
I
am ver y delighted and
honoured to be given the
opportunity today, to officiate
the Board of Engineers Malaysia
Road Show for 2017 in Kuching.
It is a rare opportunity indeed
to be surrounded by so many
engineers from Sarawak whom I
consider to be the prime movers
for the development of the
state, considering that Sarawak
is moving at a fast pace in
enhancing our industry and
infrastructure with the latest
technology.
From the national Chief Minister of Sarawak addressing the audience
perspective, I must also
record my appreciation to the which spans across from water distribution works.
engineering community for east to west, from Sarawak to This is where the engineers’
their massive contribution Sabah, will be the main spine professional service will be
to nation building, from the of the state that is expected to called to task, and for this,
time when the British colonial spur further new development may I thank the engineering
administration left Malaysia. along many stretches of community in advance your
For Sarawak, the footprints of the highway. This vital road invaluable contribution to the
engineers are found all over the connectivity will attract more economic growth of the state as
state; from the vast network investors participating in various well as for the well-being of the
of roads, ports, airports, water development projects, thus people of Sarawak.
and electrical power supply, to further unlocking the potential In our endeavour to speed up
telecommunications and many of more parts of the hinterland and enhance the development
other hi-tech services which are that will then help to further status of Sarawak, the State
essential for the development of drive the economic activities for Government has embarked upon
a state. the state. several important plans. These
Being a big state with We will expect a hive include the implementation and
almost the size of the whole of of economic activities that commissioning of more power
Peninsular Malaysia, Sarawak will thrive, and that will plants, dams, port expansion,
has set a target of a complete be necessarily and amply an LRT line, as well as projects
road network by 2030 for the supported by infrastructure under the Sarawak Corridor of
state to be fully connected. The and utility projects, such as Renewable Energy. I am happy
Pan Borneo Highway project electrical power supply and to note that as of now, many

73
 INGENIEUR
foreign investors have relocated
their manufacturing plants to
Sarawak, taking cognizance of
the size of our land mass, sea
route connectivity with adequate
support by ports, generous
Government incentives and
most important of all, the
existing industry infrastructure
and utilities support that are
already available.
These projects and
plans will involve intensive
and continuous input from
engineers as well as the
whole eng ine ering team.
While we appreciate the
engineers’ contribution to
the implementation of these
projects and other essential
services, one must not lose
sight that the quality and safety
of the works must be ensured,
and this has to be delivered
through the highest standards
of professionalism. This is
particularly compelling with
the recent spate of building
failures and shortcomings in
the construction industry as
reported in the papers, and
the public’s expectation that
it should be addressed and
mitigated.
In this context, the BEM
Road Show will provide a
timely reminder to all practicing
engineers of their heav y
responsibility and accountability
entrusted to them. In tandem
with the tide of rapid economic
expansion and the resulting hive
of construction activities for the
state of Sarawak, it is important
that all infrastructure facilities
and buildings are constructed in
full compliance with established
standards, as they are designed
to last a long time.
In the light of the above
considerations, the Sarawak
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State Government has placed a
heavy emphasis on stepping up
Human Capital Development in
the recent 2017 State Budget
speech. Priority is placed
on technical and vocational
e duc ation, such as the
implementation of Centres of
Technical Excellence (CENTEX)
in Kuching, Lundu and Lawas.
The emphasis by the President
of the Board of Engineers
Malaysia in the preceding
speech, on the need for
regulating the engineering team
as a whole ties up well with the
State Government’s strategy in
producing not only whole teams
of technical talent, but also
human capital with the right
quality, competence and ethical
conduct, on the supply side of
the demanding job market.
The BEM President’s speech
has also highlighted the effect of
liberalization of the engineering
ser vices in respect of
competition with foreign talents.
I fully agree with him and this is
a good reminder for Sarawak, to
intensify our effort in producing
the necessary talent pools to
match the challenging demands
of the future. Moving forward, we
should not rest on our laurels,
as the way forward requires
constant updating of knowledge
and nurturing of innovative
minds.
Taking cognizance of the
fact that innovation is the way
forward for economic growth
within the current competitive
economic environment, the
Sarawak Government has also
embarked on an action plan to
kick-start the digital economy,
for which a significant budget
has been allocated. With the
sweeping changes expected
from the impact of the 4 th
Industrial Revolution, we cannot
be left behind in its wake. It
is important that local human
resource should not only keep
up with its current demands, but
also move further up the curve
to be more competitive in this
rapidly changing world.
We may have to invest
in manufacturing our own
equipment. We are currently
committed to invest RM1 billion
to start with to ensure that our
ICT infrastructure is fit enough to
support new digital industries,
commerce and investment that
we expect to be attracted to
come to Sarawak. In particular
we shall embark and embrace
state-of-the-art technology in
data transmission – the Optical
Transport Network at Edge – to
spur the growth of Sarawak’s
economy
The State of Sarawak
is fully committed to the
comprehensive implementation
of various major development
programmes and projects in
2017 and beyond. There are
broadly four sectors which
critically require the services of
engineering team; they are:
1. Firstly, improvement of
the connectivity of the
State by constructing
more roads and bridges;
2. Secondly, extending the
coverage of water supply
especially to the rural
population;
3. Thirdly, the development
of industrial estates;
4. And finally, the provision
of affordable housing for
the rakyat
Sarawak is richly endowed
with natural resources. Our
people have been living in peace
and quiet for many centuries,
relying on land, sea and rivers
for all their basic needs. It is
very fortunate that the state is
further blessed with significant
oil and gas resources offshore
along our long coastline, as well
as natural resources in timber
and plantations. We also have
plentiful potential for hydro and
solar power development as we
are in the humid tropics region.
It is therefore of strategic
impor tance that Sarawak
should optimise as much
as possible our energy and
natural resources for our
own economic development
and industrialisation. The
Bakun Dam for example, is a
commercially viable project
where the repayment of the
project is covered by the stream
of revenues from industries.
Also, the Sarawak Corridor of
Renewable Energy (SCORE) can
potentially be extended to other
parts of Sarawak especially the
major urban centres.
This is where we need
engineering practitioners to
tap the potential and utilize
our natural resources in the
interest of propelling further
S a r a w a k ’s d e v e l o p m e n t .
While acknowledging that the
challenges ahead are becoming
more complex and competitive,
we must remain focused in our
development agenda. We are
now operating in a world which
is highly dynamic and volatile. In
order for us to be competitive,
we ought to continuously
broaden our economic base,
enhanc e our knowle dge,
upgrade our skills, and be
more efficient, productive and
innovative. I am happy to note
that BEM has taken positive
steps towards not only in
upgrading the knowledge of
engineers but also inculcating
a more pervasive culture of
good governance and upholding
the highest level of integrity
amongst the professionals.
Finally, on this concluding
note, I hope you will have a
fruitful exchange of ideas and
gain as much information
and up date s from BEM
representatives present. I
hereby declare the BEM Road
Show 2017 officially open.

MOU With Four

Universities in Sarawak

At the BEM Roadshow 2017,

BEM signed Memorandum of
Understanding (MOU) with four
universities in Sarawak, namely
●● U n i v e r s i t i M a l ay s i a
Sarawak
●● Swinburne University
of Technology Sarawak
Campus
●● Cur tin University
Malaysia
●● University College of
Technology Sarawak
The four universities will each
receive a sum of RM10,000
for five years to be awarded
to outstanding engineering
graduates on convocation day.

75
 INGENIEUR

ARRESTING THE CRISIS

ENGINEERING & LAW

OF CONFIDENCE IN
ARBITRATION – A
MALAYSIAN PERSPECTIVE
By Lam Wai Loon
Chartered Arbitrator
Partner at Harold & Lam Partnership
Chairman, Chartered Institute of Arbitrators, Malaysia Branch
Deputy President, Society of Construction Law, Malaysia
Vice President, Malaysian Society of Adjudicators

I
s there a crisis in arbitration? Whilst,
according to Kuala Lumpur Regional Centre for
Arbitration’s (KLRCA) Statistics on Arbitration
Cases Registered, although there was a marked
increase in the number of arbitration cases
registered with KLRCA since 2010, we see a
decrease in the number of cases registered with
KLRCA after year 2013. Based on the statistics,
there were a total of 22 cases handled by KLRCA
in year 2010; 52 cases in year 2011; 135 cases
in year 2012; 156 cases in year 2013; but in
year 2014, the number dropped to 112; and in
year 2015 (up to end of July) only 63 cases were
registered with KLRCA.
I submit that the decline is likely due to two
reasons. The first reason is the improved efficiency
in the speed of case disposal by the judicial
court system in recent years, which now make
arbitration proceedings seem to take a much
longer time and cost more than court proceedings,
and therefore less attractive compared to court
proceedings. The second reason is the enactment
of the fairly new Act called the Construction
Industry Payment and Adjudication Act 2012,
also popularly known as “CIPAA”, which came
into force on April 15,2014. CIPAA introduces a
statutory adjudication regime which provides for
an interim, speedy and relatively cheap method
of resolution of construction payment disputes in
Malaysia. CIPAA allows the claimant to commence
an adjudication proceeding for a payment claim
under a construction contract during or after the
completion of the project works, separately or
concurrently with arbitration or court litigation on
the same subject matter.
Courts have become more efficient in terms
of speed of resolution of disputes since the
transformation exercise of the Malaysian judicial
system led by our previous Chief Justice Tun Zaki
bin Tun Azmi in 2009, and continued by our current
Chief Justice Tun Arifin bin Zakaria. Cases are
being disposed of faster, and this has in turn cut
down the legal costs incurred by litigants in court
proceedings. Today, commercial and civil cases
are generally completed within 9 – 12 months
from the date of filing, with only a small percentage
of cases dragged longer than 12 months. This has
invariably further raised the expectation of users
in arbitration - an alternative dispute resolution
(ADR) method which has long held itself out as
a more efficient and cost effective alternative to
litigation.

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 David Rivkin and Samantha Rowe in their
article titled “The Role of the Tribunal in
Controlling Arbitral Costs” featured in Volume 82
of the Chartered Institute of Arbitrators (CIArb)
Arbitration Journal, made this pertinent comment
on the need for speedier and cheaper resolution
of disputes by arbitration:
A two-year proceeding and excessive legal
and arbitration fees are unacceptable
in this era of the 24-hour news cycle and
tightened belts. Resolution, closure and
certainty are the order of the day.
The improvement in ef ficiency and
effectiveness in the resolution of cases by our
judicial courts system has at the same time
brought about growing dissatisfaction and erosion
of confidence in arbitration among users in
arbitration. But this phenomenon is not peculiar
only to Malaysia. Voices of such ‘dissatisfaction’
and ‘crisis of confidence’ in international
arbitration have been growing louder in recent
years.
Sundaresh Menon, the Chief Justice of
Singapore, at the London CIArb Centenary
Conference earlier this year, made this
observation:
Murmurs of disaffection among users of
arbitration have been mounting in recent
years, and it is unlikely to be a coincidence
that commercial courts around the world
are gaining prominence at the same time.
[1]
The decrease in arbitration cases could
also be due to the introduction of CIPAA, which
provides for an interim summary procedure for the
resolution of construction payment disputes. It is
worthy to note that at this juncture, construction
arbitrations represent a significant percentage of
the total number of arbitrations in Malaysia.
Based on the KLRCA’s Statistics on
Adjudication Cases registered with the KLRCA,
there were a total of 29 cases registered with the
KLRCA in 2014. As at end of July 2015, there have
been 90 adjudication cases registered with the
KLRCA [2].
According to the statistical analysis provided
by other jurisdictions, such as Singapore, the
[1] “Safeguarding the Future of Arbitration”, by Daniel Waldek, Herbert Smith Freehills.
[2] Information provided by the Kuala Lumpur Regional Centre of Arbitration.
[3] See Chow Kok Fong’s Security of Payments and Construction Adjudication [2nd Edition, 2013].
United Kingdom and Australia which have
similar statutory adjudication regimes in their
jurisdictions, the introduction of the statutory
adjudication regime in their jurisdictions have
contributed to a significant drop in construction
arbitration and litigation cases. In Singapore, there
was a drop of about 30% - 40% in construction
arbitration and litigation cases since the
introduction of the statutory adjudication regime;
in the United Kingdom, a drop of about 70% was
seen; and in New South Wales, Australia, a drop of
about 90% was seen [3].
A decline in the number of arbitration cases
registered with KLRCA in the years 2014 and
2015, and at the same time, a marked increase in
adjudication cases, reinforced the adverse impact
on arbitration brought about by the introduction of
the statutory adjudication regime.
The Main Causes of the Crisis of
Confidence in Arbitration
What are the main causes of the crisis of
confidence in arbitration? In 2010 the White and
Case Survey identified two of the main reasons in
users’ disappointment in arbitration as “excessive
or failure to control the process” and delay caused
by the arbitrator, and these ultimately traced back
to: a lack of control by arbitrators in arbitration
proceedings.
The 2010 White & Case Survey also made this
observation:
It was per vasive throughout the
questionnaire results and the interviews
that parties prefer pro-active arbitrators
who take control of proceedings. This is
seen as an effective mechanism to limit
cost and delay and reduce risks of later
challenges.
There may be many reasons for lack (or
perceived lack) of control by arbitrators in
arbitration proceedings, but they may be grouped
into three main categories. The first is the lack
of courage on the part of the arbitrator. The
second is the lack of skill and quality required
of an efficient and effective arbitrator, and this
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may be due to the arbitrator’s lack of experience,
insufficient appreciation of the extent of his
powers, or perceived lack of power. The third is
the arbitrator’s unwillingness to take charge or
control of the proceedings, and this may be due
to internal politics, the arbitrator’s over-emphasis
on party autonomy, and his trying to please both
parties or counsel or reluctance to offend any of
the parties or counsel in the proceedings.
What are the Other Possible Responses
to the Crisis?
In their article “The Role of the Tribunal in
Controlling Arbitral Costs”, David Rivkin and
Samantha Rowe advocated the view that
arbitrators must control the proceedings to avoid
excessive costs and delay in the proceedings
before them. The authors argued that:
[…] arbitrators who simply sit back and let
the parties control the agenda are letting
those same parties down. Moreover, they
are letting the system down […].
In fact, it is clear that parties want active
intervention. They want an arbitrator to
save the parties from themselves, or
sometimes from their external counsel.
Michael Schneider, when mounting his
criticism on the International Bar Association (IBA)
Guidelines on Party Representation, argued that,
instead of implementing various rules on counsel
conduct, what we instead need are arbitrators
willing to intervene as necessary to ensure
efficiency of proceedings; he said “we need
arbitrators with courage to discipline parties.”
But is having pro-active arbitrators the
solution to the crisis? I respectfully submit
that it is not. Whilst the promotion of the ‘pro-
activeness’ of arbitrators is laudable, it would
unfortunately not be the solution to the crisis;
for the ability of arbitrators to apply ‘pro-active’
measures effectively and efficiently in arbitration
proceedings to bring about the benefits in terms
of cost and time, would depend on the individual
arbitrator’s experience, confidence, ability and
willingness to control the proceedings, and it
is an unfortunate fact that there are not many
arbitrators who possess the qualities required to
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achieve the objective of a cost and time efficient
arbitration.
To build a sustainable future for arbitration and
regain the confidence of the users, I submit that
we shall not only rest our hope on the arbitrators,
parties and counsel to do the right thing, but rather
we must have a legal framework which provides a
clear guidance as to what the arbitrators and the
parties or their counsel, should do, which matches
the current expectation of the users. .
In recent years, we have seen a coherent effort
by various leading arbitration institutions like
the United Nations Commission on International
Trade Law (UNCITRAL), the London Court of
International Arbitration (LCIA), the International
Centre for Dispute Resolution (ICDR), the
Singapore International Arbitration Centre (SIAC)
and the Hong Kong International Arbitration
Centre (HKIAC), to amend their arbitration rules
to allow more power to the arbitrator to control
the proceedings to ensure a fair, expeditious,
economical and final determination of the dispute,
departing from the previous regime which focuses
more on the parties’ consensus on the procedure
or running of the proceedings. By examining
the amendments, we see an enlargement of
power of the arbitrator, and at the same time, a
circumscribed parties’ autonomy. The intention of
these institutions for making the amendments is
clear. However, despite these amendments, the
users’ discontent remains.
We have in the past left the procedure for
the running of the proceedings to the parties
under the philosophy of party autonomy; it did
not work. We have then shifted our emphasis to
giving more power to arbitrators, and promoting
creative methods and procedures in conducting
arbitral proceedings but the problems of costs
of and delays in arbitration persisted. Perhaps
it is time for a major overhaul to our arbitral
legal framework as well as the mind-set of the
stakeholders, and let the rules and the legal
framework dictate clearly how the arbitration
proceedings should be properly run. We need an
arbitral legal framework which would rejuvenate
the confidence of users in arbitration; instil
confidence in arbitrators in the management of
arbitration proceedings; and ensure consistency
in the efficiency of arbitration, both in terms
of time and cost. In other words, we need an
arbitral legal framework which provides a clear
guide on the proceedings for both the arbitrators
and the parties or their counsel to follow, aimed
at reducing time and cost in arbitration. In this
respect, we should perhaps consider having
a legal framework which provides for certain
mandatory rules, amongst others:
a. Fixed timelines for submission of pleadings,
documents, factual witness statements,
expert reports, and final submissions.
Variation of any such fixed timeline can
only be made with the permission of the
arbitrator, upon an application by either or
both parties;
b. Expressly conferring discretion to arbitrator
to direct the order of proceedings,
bifurcate proceedings, exclude cumulative
or irrelevant testimony or other evidence
and direct parties to focus on their
presentations of issues the decisions of
which could dispose of all or part of the
case;
c. That it is mandatory for parties to agree on
issues for determination after the close of
submission of case/defence by the parties,
but before the commencement of hearing;
d. Fixed timeline for arbitrator to deliver his
decision, with corresponding penalty of
reduction of entitlement in arbitrator’s fees;
e. That notwithstanding the arbitration
agreement, disputes involving claim of less
than a certain amount shall be referred to
a sole arbitrator, unless otherwise agreed
by the parties subsequent to the referral to
arbitration.
In addition, we should also consider
implementing arbitration-annexed mediation
as part of the management of the arbitration
cases. One must not forget that one of the main
attractions of court litigation is the success of their
court-annexed mediation. Based on the statistics
provided by our Chief Justice for the year 2013,
there were 251 cases registered with the First
Instance Courts in Johor Bahru, with 47.6% of the
cases settled through court-annexed mediation;
in Kuala Lumpur, 571 cases were registered, with
28.3% cases settled, and in Kuantan, 80 cases
were registered, with 25% cases settled.
The same success story is also seen in other
jurisdictions in Asia. In New South Wales, Australia,
in year 2013, there were a total of 671 cases filed,
with 55% of cases settled through court-annexed
mediation; in year 2014, 486 cases were filed,
with 51% of cases settled.
In Hong Kong, in year 2014, 632 cases were
filed at First Instance Courts (excluding family
cases and land tribunal matters), with 65% of
cases either fully or partially settled. And at the
District Court level, 397 cases were filed, with 65%
of cases either fully or partially settled.
In Singapore, statistics based on both civil and
criminal cases registered, but excluding family
cases – in year 2013, show that 7,292 cases were
sent for mediation, with a 92% success rate; In
year 2014, 6,420 cases were sent for mediation,
with a 89% success rate.
Finally, in Thailand, in year 2011, a total of
163,926 cases were filed, with 79% of cases
settled through mediation. While in year 2012, a
total of 180,607 cases were filed, with also 79%
of cases settled through mediation.
Seeing the success of cour t-annexed
mediation, perhaps we should also move
to implement our own arbitration-annexed
mediation, with express power to be given to the
arbitrator to direct parties to attempt mediation
at any stage of the arbitral proceedings. The
power of the arbitrator should include the power
to forfeit a winning party its costs award if the
losing party demonstrated that its opponent had
‘unreasonably’ been uncooperative or refused to
mediate.
Conclusion
Some, particularly the purists in arbitration, may
argue that these suggestions would destroy the
notion of party autonomy, which forms a very
important ingredient and pillar of success and
popularity of arbitration, but I believe that in the
current climate, if we are to continue to give more
prominence to the notion of party autonomy than
it should deserve, it will not be too long until we
see the demise of arbitration in the hearts of the
users.
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“Gotong Royong” Road
ENGINEERING NOSTALGIA
Building Works, 1966
Kuala Sungai Duan, Yan, Kedah
By Cheo Hong Keyong
Historical Background on Gotong Royong
Gotong Royong was strongly emphasized in the
Government’s National Rural Development plans
in the 1960s. On August 31, 1966, the Deputy
Prime Minister and Minister of National and Rural
Development, Tun Abdul Razak spoke on this topic
over Radio Malaysia in relation to the National
Rural Development Round-up. Excerpts of his
speech include the following:
“Highlight of the development progress today
is Gerakan Maju or ‘Operation Progress’. This is
a follow-up of the various facilities and amenities
which the Government provided the rakyat when
Phase One of the National Rural Development
programme was launched. And, over the years
numerous projects have been implemented
to raise the standard of living and economic
position of the people, particularly those in the
rural areas.
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Deputy Prime Minister
and Minister of National
and Rural Development
Tun Abdul Razak
accompanied by the
District Officer of Yan,
Kedah, had a close-up
look of the villagers
at work for the gotong
royong road works at
Kuala Sungai Duan,
Kedah on September 4,
1966
Source: Jabatan
Penerangan Malaysia
Gerakan Maju, the theme of our development
today, is aimed at mobilising the spirit and energy
of the rural people in bergotong royong or ‘self-
help’ in bettering themselves and the nation.
Broadly, the Government’s National Rural
Development Programme has a four-pronged
strategy to develop the country economically and
socially, namely the Government’s implementation
and participation in development projects;
Community Development programmes through
the rakyat’s participation in ‘gotong royong’ or
‘self-help’; improvement in marketing facilities of
primary and rural produce through the setting up
of the Federal Agricultural Marketing Authority
(Fama) in October 1965, and thereby correcting
the imbalance between the urban and rural
sectors of the economy by the establishment of
Bank Bumiputra and MARA or the Council of Trust
of the Indigenous People.”
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