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This article forms the second part of a three-parts article. The first part were publish in January 2009 Bulletin pages 5 to 9
Bangunan Ingenieur for RM13.5 6.2 ROYAL CHARTER AND allow IEM to use the CEI Graduate Ex-
million to provide better services to its PROFESSIONAL RECOGNITION BY
amination papers but the response was
members. IEM started with a founder THE GOVERNMENT
still negative. Then, using my personal
membership of only 39 in 1959 and now Immediately following the formation of
contact with the Secretary of ICE UK,
the total membership is well over 20,324 IEM, in early 1960, IEM applied to the
I was able to get CEI UK to agree to al-
including graduates and students. It Government for a Royal Charter follow-
low IEM to use CEI Examination papers.
has 17 divisions of engineering with ing the footstep of professional institu-
civil engineering the major division. tions in the UK as well as recognition by However, they wanted IEM to make ad-
For the advancement of the profes- the Government that graduate member- ditional ‘special’ payment for the privi-
sion, IEM conducts regular meetings, ship of IEM would be accepted for em- lege of using their papers in addition to
courses, conferences and seminars for its ployment as engineers in Division 1 of their normal examination fees.
members to assist them in accumulating the Government service. It was not right to pass on the
CPD points as part of the requirement Although the Government confirmed additional ‘special privilege payment’ to
for the renewal of the annual registration that IEM graduate membership was rec- IEM candidates who wanted to sit for the
with the BEM. ognised for employment as engineers in IEM Graduate Examinations. In view of
Division 1 of the Government service, the the good relationship between BEM and
6.1 IEM’S GOLDEN Government, however, could not grant IEM, I approached the Board to defray
ANNIVERSARY 2009 the Royal Charter as in the UK which the cost of the privilege payment to CEI.
This year, IEM shall be celebrating its was issued under the common law. In The Board readily agreed to do so and
Golden Anniversary since its official the Federation of Malaya, the King was the examination was then called IEM/
registration with the Registrar of appointed under the Federal Constitu- BEM Graduate Examinations. These
Societies on 1 May 1959. Specifically, tion and has no power to grant a Royal examinations have been held since 1977
IEM was founded towards the end of Charter. The letter further stated that and I understand that starting in 2009,
1958 following the establishment of the with the approval of the Government in IEM/BEM Graduate Examinations will
Faculty of Engineering in Pantai Valley, Parliament of the Registration of the En-
where many informal meetings of local be conducted locally with the papers set
gineers Act, IEM’s position was well pro-
engineers were held. by local IEM Examiners.
tected by law and, as such, IEM did not
Although the number of candidates
pursue further on their
who passed the Graduate Examinations
application for a Royal
is not many, it is important that the
Charter.
local professional body has provided
another avenue for those who wanted
6.3 IEM/BEM to achieve professional status. Some of
GRADUATE the candidates who passed the Graduate
EXAMINATIONS Examinations have obtained Corporate
As early as in 1961, var- Membership of IEM and are quite active
ious discussions were in IEM activities.
held to use CEI UK
Examination papers 6.4 PROFESSIONAL INTERVIEW
for evaluating qualifi- EXAMINATIONS
cations not recognised The professional interview examina-
by the IEM. However, tions were instituted in 1970s to provide
IEM could not get the early opportunities for graduate mem-
agreement from the bers to seek Corporate Membership in
CEI. There were many accordance with the IEM Constitution
engineering qualifica- and Byelaws. The main objective of the
tions not recognised Professional Interview was to determine
by the IEM in Malaya whether a candidate has been practis-
(based upon CEI’s ing engineering for the past three years
evaluations), but IEM and whether he has used his engineering
had no facilities then knowledge to solve engineering prob-
to conduct Graduate lems. We do not want a candidate to say
Examinations to evalu- that ‘I did it this way because my boss
ate and upgrade such told me so!’
qualifications. IEM has a responsibility to society
In mid 1970s, I ap- and public safety to ensure that work
proached CEI again carried out by its members is in accor-
personally in the UK to dance with its Code of Ethics. The Pro-
error. The safest way out was for them to can recall, the contractor’s claims for the www.abadigroup.com.my
(To be continued on page 24)
contract were approximately RM10 mil- submissions by the parties are completed now has a total individual membership
lion, and I submitted my evaluation on and during the course of hearings, the of 621, representing 343 Engineering
the contractual claims which was around parties are quite clear on their positions Consultancy Practices (ECP). In the initial
RM1 million based on what I believed and, therefore, willing to go for a years, it was not able to afford an office of
to be the contractor’s entitlement, acting negotiated settlement. its own and was happy to squat at one of
more or less as a quasi arbitrator. Currently, I understand there is a case its member’s office.
The contractor was called in immedi- in which the written final submissions by In mid 1980, ACEM signed an
ately after our meeting and the Ad-hoc the parties are completed and, instead of agreement with the developer of Plaza
Tribunal made an offer to the contractor having the arbitrator’s award, the parties Damansara to purchase a four-storey
to settle the claims. The contractor accept- decided on a negotiated settlement. It office/shop lot in Plaza Damansara
ed the offer, therefore, there was no arbi- is to be noted that Arbitration is a very costing nearly RM1 million. But due to
tration for this contract. This saved the time consuming and costly process to financial constraints, ACEM was able
Government invaluable time and money both parties. Sometimes, the Arbitrator’s to negotiate with the developer to hand
for using the aforesaid modus operandi! award may not justify the time and effort back the four-storey office/shop lot and,
I understand that since late 1980s, this put in by the parties. It is, perhaps, only in return, purchased two adjacent floors
modus operandi has been abolished and to glorify the personal vanity of one of the office building in Plaza Damansara.
now all contractual claims are referred to party! In 1987, the purchase price for the two
arbitration as per contract without get- office floors was RM340,000.
ting the approval from the high powered 7.0 ASSOCIATION OF CONSULTING Even then, ACEM could not raise
Ad-hoc Arbitration Tribunal. ENGINEERS MALAYSIA (ACEM) sufficient funds/donation to make the
However, there were cases being The Association of Consulting Engineers purchase because of the recession. As
settled during the course of arbitration Malaysia (ACEM) was founded in 1963 Honorary Treasurer then, I proposed
when both parties found that the costs of with the major objective of promoting a scheme of purchase whereby ACEM
arbitration hearings were prohibitive in and advancing consultancy practices setup an ACEM Holdings Sdn Bhd to
some of the high profile cases. This has in Malaysia. The ACEM started with purchase the property and encourage
one advantage in the sense that when all a group of 16 founder members, and members to give a loan to ACEM without
21, 2nd Floor, Jalan 3/108C, Taman Sungai Besi, 57100 Kuala Lumpur.
Tel +60 3 7987 6731 Fax +60 3 7987 6730
Website www.pcgsystem.com
interest by taking up shares of RM10,000 Surveyors Act 1967 (QSA); Act 138-Reg- sentiment expressed and did the research
each in ACEM Holdings Sdn Bhd. From istration of Engineers Act 1967 (REA). on the various engineering scale of fees
1991 onwards, ACEM gradually bought But the REA could not be implemented in the world. I found that in the US, they
back the shares taken by its members. until 1972 following a shortage of civil had three scales of fees depending on the
This buyback exercise was completed engineers in the Government service. complexity of the engineering works.
in 2002 and, today, ACEM Holdings The reason why the REA could not be A working paper on the three scales
Sdn Bhd is a fully owned subsidiary of implemented was because the Minister of of fees on engineering works was then
ACEM. Finance then, (the late Tun Tan Siew Sin), prepared and presented to the Board for
In order to bring awareness to was adamant that the scale of fees stated consideration. The Board accepted the
the contribution made by consulting in the REA should be the maximum and recommendation with minor amendments,
engineers in the development of the not the minimum. The Association of and submitted the proposed three scales
country, and promoting the advancement Consulting Engineers Malaysia (ACEM) of fees to the Government for approval.
of engineering consultancy practices, was against such proposed amendment, Hence, the Engineering Scale of Fees was
ACEM started organising the ACEM and there was an impasse for five years approved and used by the Government.
Engineering Award since 1989 (annually in the implementation of the REA be-
from 1989-1993 and bi-annually from cause of the scale of fees! 8.2 MEMBERSHIP WITH THE
1994-2008). The last Engineering Award There was also a shortage of civil BOARD OF ENGINEERS MALAYSIA
was held early last year. engineers in the Government service in The members of the Board of Engineers
In 2008, the ACEM introduced 1971/1972 and the Cabinet requested (BEM) consist of 16 official members;
the ACEM Gold Award. This is a that the Director General (DG) of JKR, seven members were nominated by IEM
special Award given in honour and the late Thean Lip Thong, to study the and seven from the public and private
recognition of members of ACEM who matter as the Cabinet was adverse to the sectors were appointed by the Minister.
have made significant contribution to proposal to draft another Act, similar One member each is nominated by the
the advancement and development of to the Act for the Medical Profession, BAM and BSM; and a Secretary and a
the engineering consultancy industry in making it compulsory for all doctors to Registrar is appointed by the Minister as
the country. ACEM has also organised serve in the Government service before ex-officio.
courses, conferences and seminars for its registration to practice on his own. When This was the composition of BEM
members and the engineering fraternity I was consulted in 1972, I suggested when it was setup in 1973. However, in
on a regular basis to assist its members immediately to the DG to implement the course of time, IEM’s nomination was
to accumulate CPD points as part of the REA and to provide compulsory reduced from seven to five; yet there was
the requirements for the renewal of the registration for all engineers working in no protest from the IEM Council because
annual registration with BEM. the country. they were not aware of such a proposed
Hence, the Government agreed change of composition. IEM nominated
8.0 THE REGISTRATION OF to implement the REA, without the members in the BEM were told that
ENGINEERS ACT VIS-À-VIS THE implementation of the scale of fees! To whatever was discussed within the
BOARD OF ENGINEERS, MALAYSIA be registered as a graduate engineer, one Board was confidential and they should
(BEM) must be in the Government service or has not convey it to the IEM Council!
Following the establishment of IEM, been exempted from the service. Except At the beginning of the formation
which is a professional body, the for civil engineers, all other engineers of the Board, there was strong rapport
Council of IEM felt that a statutory were exempted from service with the between the BEM and the IEM Council
authority should be established to Government for registration under REA. because the first BEM President (the late
regulate professional practices more Engr. Thean Lip Thong) and the second
effectively. In early 1960, in line with 8.1 THE ENGINEERING SCALE OF President (the late Tan Sri Datuk Engr.
the objective of IEM, a Committee was FEES Mahfoz bin Khalid) were members of the
set up to draft the Engineers Bill. The The President (the late Tan Sri Datuk IEM Council as well; and they were able
basic aim was for the registration of Engr. Mahfoz bin Khalid) of the BEM, to clarify many of the queries raised by
engineers for the submission of plans to discussed the implementation of the the IEM Council. Hence, the IEM Council
local authorities. scale of fees at the Board meeting on was then fully aware of the happenings
When the preliminary draft Engi- the scale of fees implementation. He within BEM, which was, after all, a brain
neers Bill was presented to the Works felt that he could not conscientiously child of IEM.
Ministry, the Minister felt that separate recommend to the Government on the Subsequently, when new Board
bills for the Architects (AA) (to replace implementation of one scale of fees as members were appointed, the Board felt
the old Architects Ordinance) and a new given by ACEM. This was because he that they did not want to depend on IEM
Quantity Surveyors bill (QSA) should could not see the logic to pay the same for various activities, particularly for the
also be drafted. scale of fees for simple mass earthworks assessment of engineering qualifications
All three bills were drafted by a Joint against complicated engineering etc. Consequently, the BEM setup its own
Committee and the Acts were passed by structures, such as bridges and high rise assessment qualifications for registration
Parliament in 1967; namely, Act 117-Ar- buildings. with the Board, using basically the same
chitects Act 1967 (AA); Act 487-Quantity I was in full agreement with the rules setup by the IEM.
(To be continued on page 28)
As of June 2008, the number of engineers classify engineering consulting firms it in the self interest of a few powerful
registered with the BEM is as follows: in accordance to their size of practice; members of the engineering profession?
(a) Professional Engineers: 13,042 similar to that of the registration of
(b) Graduate Engineers: 44,356 contractors for Government projects. 8.4 BEM TO SETUP A LEGAL
Total: 57,398 The registration of contractors is SECTION
basically based on the firms’ financial One of the main functions of the BEM is
BEM registration has five main disci- capacity and their experience. However, to monitor professional practices in the
plines in engineering, namely, Civil, professional practitioners offer their country and to take legal action against
Mechanical, Electrical and Electronics, services using their brains, thus the size unregistered ‘engineers’ who fraud the
Chemical and Mining. It also has 45 sub- of their practice should not be a measure professional practice. But this should
sidiary disciplines, possibly to cater for of their capacity and capability to carry not be the main objective of the Board;
the specialised branches of engineering out their practice. Financial capacity to prosecute fraudulent registered and
being offered by the universities! or the number of engineers employed unregistered persons!
by the firm should not be used as an The BEM should be proactive,
8.3 REGISTRATION OF additional measure for classification of providing guidance in its Bulletin on
ENGINEERING CONSULTING their practice. The consulting practi ce has professional practices and setting up a
PRACTICES already been classified in accordance to legal section within the BEM to study
The REA has recently been amended their area of disciplines! No other country the various provisions within REA, and
to provide additional registration of in the world has such classifications of advising its registered members and
all individual professional engineers consulting engineering practices! even the public of the services provided
working as consulting engineers in Although Malaysia is unique, being by the BEM.
private practice besides being registered the first country in the world to setup It is a shame to hear that the BEM
as professional engineers in general. the REA nearly half a century ago (and has lost several cases for want of proper
The REA also provided the registration which was followed suit by Singapore, proceedings. BEM, being a statutory
of all engineering consulting firms as a South Africa, etc); there is absolutely no authority, should not depend on the
corporate body. I also understand that, reason why we should be so unique as to services of the legal department within
recently, there is a move by the BEM to classify consultancy practices similar to the Ministry of Works. It should have its
that of the contractors’ own legal section to undertake studies
classification. on fraudulent cases by registered and
Nowhere in the unregistered persons.
world do we have Although there is a provision within
such classification of REA to prosecute members of the public
consulting practices for the fraudulent use of the name of
as proposed by the registered engineer and for setting up a
BEM at the request of practice, the provision in REA is not at
the Government, as I all effective due to the lack of machinery
understand. Looking within the Government’s legal service to
around at other profes- prosecute such fraudulent cases.
sional practices in this BEM should set up its own legal
country, such as archi- section to conduct a proper study of
tectural and quantity fraudulent cases before proceeding to
surveying, they do not prosecute. BEM has lost several cases
have such classifica- against registered engineers as well
tions. Other profes- due to errors or improper procedures in
sional bodies in this conducting the hearing of the cases. In
country, such as the one instance, the Court had awarded a
legal, medical and den- very large compensation to a registered
tal professions, do not engineer who appealed against the
have such provision to penalty imposed by the BEM.
classify their practices. However, it is most heartening
I am indeed very to read of the recent Federal Court’s
sorry to observe that decision (August 2008) to uphold
the move by the BEM the appeal of the BEM to strike off a
seems to advance the registered engineer for the breach of
self interest of large professional conduct, thereby, reversing
professional practices the High Court’s decision to reinstate
in this country at the the registered engineer on procedural
expense of smaller ground. This is, indeed, a landmark case
practices. Are we doing for all professional bodies to note. n