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NEWSLETTER

JULY - DECEMBER

2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 Background and Inception Liberalization is a relaxation of government restrictions, usually in areas of social or economic policy. This is achieved through reduced government involvement in business and the removal of barriers to doing business. Services liberalization In ASEAN has been Implemented progressively under the ASEAN Framework Agreement on Services (AFAS) and 2015 will be the end-date for the liberalization of all services sectors with flexibilities. In addition to liberalization, several Mutual Recognition Arrangements (MRAs) have also been negotiated including the ASEAN MRA on engineering services which was concluded in December 2005. Malaysia’s liberalization efforts are predominantly focused within Asia Pacific and nearby regions. Liberalization benefits the economy by creating a more favorable investment environment characterized by ease of conducting business. Liberalization will attract foreign investments, specialized expertise and high-end technology; inject competitiveness and enhance productivity; enhance innovation, build capacity and upgrade skills of workforce. Professional service is the second fastest growing services sector and one of the high growth sectors is the accredited professionals services sector including engineering and architecture. There is high hope that liberalization will be able to drive real growth with the end objectives of the nation becoming a regional hub for niche areas Including professional engineering services. However, opening markets to foreign lnvestment raises concerns on equity and ensuring business interest will never supersede the need to ensure safety, health and quality. The challenges of liberalization include finding the right balance between liberalization and protectionism and the need for safeguard measures. Hence, the need for a platform to deliberate on the challenges and opportunities of liberalization and what it means to the engineering and related industries [Source: Proceedings of RCLSS 2013]. The idea of organizing a Regional Conference on Liberalization of Services was first mooted by The President of The Institution of Engineers, Malaysia (IEM), lr. Choo Kok Beng. Considering the importance of the services sector to a nation’s economy, the AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 President felt that it is most timely that IEM and AFEO take the initiative to organize a regional conference to deliberate on issues related to the development of trade liberalization of the services sector within ASEAN. He suggested that as Johor is developing into a strong and sustainable state of international standing, IEM (SB) should take the challenge in bringing together professionals in the engineering and related Industries to deliberate on important issues of liberalization so engineers may be ready to further enhance their competitiveness. After much deliberation, the IEM (SB) Committee Members under the leadership of lr. David Lee Hoke Hai, finally decided to take up the challenge to host the regional conference.

Implementation With the services sector being a new frontier in trade liberalization, the engineering and related industries now face the dawn of a new era and the RCLSS 2013 conference is apartly organized as a platform for the dissemination of information on the development of liberalization of services sector within ASEAN. The RCLSS 2013 will enable essential issues pertaining to liberalization of services to be highlighted as there will be opportunities as well as competitive challenges ahead. This conference would provide professional service providers opportunities to identify the hurdles and gold mines that are available across the region. With participation from professionals within the ASEAN countries, this conference will also provide an opportunity to promote and establish network of partnership and cooperation among the key players in engineering related industries within the region.

Opening Ceremony With greater consciousness today on trade liberalization, the conference had attracted about 300 participants from within Malaysia and the ASEAN countries. The Minister of International Trade and Industry had given his consent to officiate the conference and he was represented by Y.B. Datuk lr. Hj. Hamim Samuri, the Deputy Minister of International Trade and Industry who also read the Minister’s keynote address. AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 Among others, he stressed that in order to strengthen the services sector to face the challenges of globalization, there is a need to make them more internationally competitive so that the services sector is exportable while at the same time able to withstand competition. The MITI Minister also explains that the role of MITI as the coordinator of the liberalization initiative depends very much on the support and contribution from other stakeholder Ministries, industry associations and professional bodies such as IEM and others. In line with that, a number of important services sub-sectors have been opened up to foreign participation, either through binding commitments multilaterally, bilaterally or unilaterally through autonomous liberalization. He noted that with each commitment or autonomous liberalization being made to a service sector, extensive consultation and engagement is always carried out with relevant sub-sectors. He further explained that today, Malaysia is fully at par with the liberalization required under ASEAN and WTO commitments. Malaysia had completed on schedule the elimination of duties for intra-ASEAN trade and liberalized 96 services sub-sectors. According to MITI, further strengthening of professional services is in line with the objective of the Government to develop the industry: i. towards more knowledge-intensive and higher-value added sectors; ii. to create synergistic linkages between sectors that would further contribute to other sectors of the economy; and iii. to generate high income jobs, which is linked to higher labour productivity. The Minister also explained that regionally in ASEAN, services liberalization has been implemented progressively under the AFAS and 2015 will be the end-date for the liberalization of AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 all services sectors with flexibilities. In the context of liberalized regional market under the AEC, there will be greater economic opportunities for ASEAN member countries as intra-regional barriers to market access are expected to be removed. To complement liberalization, ASEAN members have negotiated several Mutual Recognition Arrangements or MRAs among themselves, including the ASEAN MRA on engineering services in December 2005, architecture and quantity surveying in 2007. Despite these preferential arrangements, he noted that ASEAN Members still face the challenge of reducing regulatory barriers and enhancing market access, which is the objective of AEC. He assured that the Government will continue to undertake further outreach and export promotion programmes to create awareness among Malaysian services suppliers of the opportunities and export potential in the services sector, particularly in ASEAN.

Exhibition The opening ceremony was followed by an Exhibition. The exhibition presented a show case from the Property Development, Construction Industry, Manufacturing Industry, Professional Services, Engineering Education, Health, Safety & Environment and Medical Technology.

Visit To Iskandar Malaysia 22 August 2013 (Thursday)

The purpose of the visit is to get an insight of the development of Flagship B in Nusajaya. The development of Flagship B - Nusajaya is focused on Educational & Medical Tourism, Entertainment & Recreation, State Government Administration, Finance and Biotechnology. IRDA:s Head of Projects & Programme Management Office, En. Mohamad bin Sa’elal gave an eye-opening briefing at AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 IMIC, Danga Bay. The participants then had a chance to learn more about the development in the five flagship areas in Johor by visiting the exhibition area within the building. After the briefing at IMIC, the participants went on three buses to depart for Puteri Harbour. The visit included Puteri Harbour which comprise of the Traders Hotel, CIQP & Ferry Terminal and Indoor Theme Park. The participants had a fabulous time at the conference welcome reception held at The LAT’s place where they were entertained by a welcome dance and performance. They also had an opportunity to interact with the LAT Cartoon characters in an interactive session which was creatively tailored to the engineering profession by the LAT’s place personnel. Among other attractions, the area covered in the visit includes EduCity@lskandar which comprise of several top universities and faculties in the world such as Newcastle University Medicine Malaysia, University of Southampton Malaysia Campus, Netherlands Maritime Institute of Technology (NMIT), Malborough College Iskandar Malaysia and Raffles University Iskandar. Another major attraction in Nusajaya is Legoland Malaysia with a size of 76 acres and an annual target of 1 million visitors. Legoland is the first Legoland Park in Asia with 40 rides & attractions, F&B and retail outlets. The visit ended at Kota Iskandar which is the State Government of Johor Administration Centre. Kota Iskandar comprise of various state government departments and agencies such as the State Secretariat Office, State Legislative Hall and the office of the Chief Minister of Johor.

AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 Conference Sessions A total of 15 papers were presented in 3 sessions ­ - Plenary Sessions, Invited Papers, and Forum Panelists Paper Presentation.

Conference Summary The conference delegates were presented with a wealth of information and many opportunities for deliberations. The plenary papers set the scene for the delegates to have a better picture of the concept and implementation of liberalization of the services sector in Malaysia and the ASEAN region and the efforts of the Government through policy oversight and coordination. The invited papers were more focused on the business opportunities as a result of liberalization. There was ample discussion on the role of SMEs in the services sector especially since the services sector is mainly dominated by small firms Including professional services. There was also the discussion on the amendments of the Engineers Registration Act which Is primarily driven by the Government’s Commitments In International Free Trade Agreements (FTA). This was viewed by some as one that should allow engineering to grow and not hampered by unnecessary legislation. The forum discussion was focused on the crossborder engineering experience with inputs from countries including Malaysia, Singapore, Myanmar, Cambodia, Philippines and Thailand. The forum ended with a look at the way forward and the possibility and challenges for the proposal on the formation of a one-stop-center for coordinating the promotion of investment for services activities such as MIDA within the ASEAN region.

AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 IEM Southern Branch Annual Dinner and AFEO Awards Night 2013

The IEM (Southern Branch) Annual Dinner & Awards Night 2013 was held in-conjunction with the RCLSS 2013 conference on the 23rd August 2013 at Persada Johor Bahru. The Honorable Menteri Besar of Johor YAB Dato’ Mohamed Khaled bin Nordin was invited as the guest of honour. Y.B. Datuk lr. Haji Hasni Bin Haji Mohammad, Chairman of Johor Executive Committee for Public Works, Rural and Regional Development was also invited to the dinner. Other VIPs and Heads of Department from the local authorities were also invited to the dinner. It was a memorable night for IEM (Southern Branch) as it took the opportunity to award Honorary memberships to some of the outstanding and deserving individuals from the engineering industry as well as those who contributed tremendously to the engineering profession in the state of Johor.

AFEO Honorary Fellow The AFEO Honorary Fellow is awarded to distinguished persons of acknowledged eminence who had rendered outstanding services and had shown selfless service without expecting public recognition. They had contributed to the advancement of the engineering profession, the Institution and/or the nation and had shown outstanding greatness AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Regional Conference on Liberalization of Services Sector: A New Era for Engineering & Related Industries, RCLSS 2013 of spirit, integrity and devotion to the engineering professions, the Institution and/or the nation. In recognition of YAB Dato’ Mohamed Khaled bin Nordin’s contributions and services to engineering, entrepreneurship, higher education, and the public in general, The ASEAN Federation of Engineering Organizations (AFEO) is honoured to award the AFEO Honorary Fellowship to YAB Dato’ Mohamed Khaled bin Nordin, Menteri Besar of Johor.

Conclusion With meticulous planning, concerted effort of the organizing committee, superior leadership by IEM (Southern Branch) Chairman, great support from IEM President. IEM (Southern Branch) Past Chairmen, IEM Headquarters and IEM (Southern Branch) Secretariat, the RCLSS 2013 Conference and Annual Dinner and Awards Night 2013 were successfully conducted. The response to both the conference and dinner was overwhelming with approximately 300 conference participants and 800 dinner guests. IEM (Southern Branch) is grateful to the Ministry of International Trade and Industry (MITI), the State Government of Johor and members of the ASEAN Federation of Engineering Organizations (AFEO), generous sponsors and numerous organizations as well as individuals of whom without their support and commitment, the RCLSS 2013 Conference and IEM (Southern Branch) Annual Dinner and Awards Night 2013 would not have become a reality. n

AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the WHY PROFESSIONAL RegionalARE Conference on Liberalization ofETHICS IMPORTANT TO ENGINEERS Services Sector: »» It is a HALLMARK of professionalism A New Era for Engineering & Related Industries, »» A BASIC qualifying requirement RCLSS 2013 »» »» »»

An EDGE in competition Guidance to GOOD conduct Ultimate BENEFIT of the profession

The value of professional engineering services is enhanced when the public has greater confidence in the credibility of the engineers. By adhering to the engineering professional ethics, the profession will benefit in promoting its reputation, credibility and respect. This will result in the preservation of the engineering profession by maintaining its attractiveness as a rewarding and respectable profession.

CODES OF ETHICS The critical areas where the responsibilities of the Asean Engineers demand the practice of professional ethics are: -

»»

The Profession

An Asean Engineer shall at all times uphold the dignity, standing and reputation of the profession by his or her behaviour, actions or words.

»»

With Colleagues

An Asean Engineer shall not maliciously or recklessly harm or attempt to harm whether directly or otherwise the professional reputation of another engineer, but small however foster the reputation of colleagues for the advancement of the profession.

»»

Towards Employers and Clients

An Asean Engineer shall serve employers and clients with honesty, loyalty and integrity in conformity to the highest standard expected of their respective community.

»»

The Public

An Asean Engineer in providing his services shall be at all times governed by the paramount interest of the public, in particular their environment, welfare, health and safety.

»»

To Oneself

An Asean Engineer shall maintain or enhance his or her health and competency in subscribing to self and continuous professional development. AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the INFORMATION AND Regional Conference on ABBREVIATION Liberalization of FOR AER Services Sector: The minimum for an applicant to be admitted into the A New Era requirements for Engineering & Related Industries, ASEAN RCLSSEngineering 2013 Register (AER) are as stated below: Engineers with 7 years’ experience (A)

ASEAN ENGINEER (ASEAN Eng)

(B)

ASEAN ENGINEERING TECHNOLOGIST (AET)

i.

MUST possess an Engineering/Engineering Technologist degree recognized by the home country;

ii.

MUST be a full member of the Engineering or Technological Association and licensed to practice in the home country; and

iii.

MUST have a minimum of seven (7) years post-graduate working experience in an engineering environment, of which a minimum of two (2) years will be of substantial charge.

(C)

ASEAN TECHNICIAN (AT)

i.

MUST possess an Engineering Technologist diploma recognized by the home country. Such diploma programs must be able to meet the requirements of the Dublin Accord or equivalent;

ii.

MUST be a full member of the Engineering or Technological Association and licensed to work in home country;

iii.

MUST have a minimum of seven (7) years post-qualification working experience in an engineering environment, of which a minimum two (2) years will be of substantial charge; or

iv.

For candidate with a certificate in Engineering, the minimum post-qualification working experience is 10 years for which two (2) years are in substantial charge.

Young Graduate Engineers without experience (D)

ASSOCIATE ASEAN ENGINEER (AAE)

(E)

ASSOCIATE ASEAN ENGINEERING TECHNOLOGIST (AAET)

(F)

ASSOCIATE ASEAN TECHNICIAN (AAT)

MUST be a full time Graduate Member of the Engineering or Technical Association

AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the Definition of Substantial Charge of Regional Conference on Liberalization Services charge Sector:is considered when one is in a responsible Substantial charge significant engineering work in a responsible position. A NewofEra for Engineering & orRelated Industries, RCLSS 2013 To be eligible for the entry into the Register, one must have spent at least two years in significant engineering work or two years of substantial charge or has been in responsible position for the two years. Responsible charge of significant engineering work or substantial charge is :“The definition of significant engineering work will vary between economies and disciplines. As a general guideline, the work should have required the exercise of independent engineering judgment, the programs concerned should have been substantial in duration, cost, or complexity, and the applicant should have been personally accountable for their success or failure. In general, an applicant may be taken to have been in responsible charge pf significant engineering work when they have: a) planned, designed, coordinated and executed a small project, or b)

undertaken part of larger project based on an understanding of the whole project, or

c) undertaken novel, complex and/or multi-disciplinary work The specified period of two years may have been completed in the course of the seven years practical experience since graduation”

Dear Members of the ASEAN Engineering Register,

YOUR DATA PRIVACY IS IMPORTANT TO US AER is committed to always safeguard the privacy of your personal data. In line with this, all of your data is handled in full compliance with the Personal Data Protection Act (PDPA) 2010. Our information data of AER members are solely •

to enable us to communicate with you including but not limited to notify you about benefits and changes to the features of the Register and any additional information

AER NEWSLETTER • July - December 2014


A Special Report on a Challenge to Host the • To provide services to you Regional Conference on Liberalization of • To respond to any of your inquiries, complaints etc Services Sector: A New Erayou foronEngineering & internal Relatedactivities Industries, • To brief the conduct of such as technical talks, seminars/courses, technical visits etc RCLSS 2013 •

To conduct AER inhouse market surveys and trend analysis’

To provide you with information on our latest development

To better manage our business and your relationship with us

To update, consolidate and improve the accuracy of our records

Notwithstanding the above, we may obtain your personal data information from yourself or is to be collected from the IEM Membership register, application/registration form that you may provide us, when making your membership submission, taking part in our surveys, activities and events from time to time. Documentation could also be taken from third parties connected with you such as employers, fellow engineers, subject to your prior consent and/or from such other sources in respect of which you have given your consent to disclose information relating to you and/or where not otherwise restricted. You have the right to request access to and to request corrections of your personal data and to contact us with any inquiries or complaints in respect of your personal data (including the possible choices and means for limiting the processing of your personal data). We may need to transfer your personal data to a place outside Malaysia and your consent would be sought for any of this purpose. You are therefore responsible for ensuring that the information you provide to us is accurate, complete no misleading and is kept up to date. Kindly read this notice carefully and should you have any questions or queries, do contact our Secretariat via phone at 03-79684001 / 4010 or email is at aer@iem.org.my Thank you Yours sincerely, Dato Ir. Andy Seo Kian Haw, AER Head Commissioner

AER NEWSLETTER • July - December 2014


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