IIUM and 3PU of the PM's Department to host a Seminar on 'Malaysia's PPP'

Salam and dear all, The International Islamic University Malaysia, in collaboration with the PPP Unit (3PU) of the Prime Minister's Department, will be hosting a one-day seminar on 'Malaysia's PPP' on 5th August 2010, at a hotel in Petaling Jaya, Selangor. Key aspects to be addressed at the seminar include:

1. PPP within the context of the procurement paradigm
2. An Overview of PPP and the Malaysian Experience
3. PPP Guidelines
4. Risk Allocation and Management
5. Value for Money and the PSC, and
6. Are the Key Players of the Malaysian Construction Industry Ready?

The seminar will be facilitated by experts from IIUM and the 3PU of the PM's Department. Registration: RM485 (students: RM200). Closing date for registration: 2nd August 2010. For details contact: 03-61965271 (Aiza/Hasnita) or email: hnaiza@iium.edu.my, hasnita@iium.edu.my and pfippp2010@yahoo.com View the brochure here and the seminar's blogspot here. Wassalam.

The Prime Minister’s speech on the 10th Plan relating to PPP

The Prime Minister's speech on the 10^th Malaysia Plan, in Parliament, 10^th June 2010, relating to PPP

Public-Private Partnership

Smart and effective partnerships between the public and private sectors will be established to drive the economic transformation agenda. This new wave of public-private partnership (PPP) will ensure equitable sharing of risks and returns.

To date, 52 high-impact projects worth 63 billion ringgit have been identified for implementation. These include:

Seven highway projects at an estimated cost of 19 billion ringgit. Among the projects are the West Coast Expressway, Guthrie-Damansara Expressway, Sungai Juru Expressway and Paroi-Senawang-KLIA Expressway;

Two coal electricity generation plants at an estimated cost of 7 billion ringgit; and

Development of the Malaysian Rubber Board‟s land in Sungai Buloh, Selangor covering an area of 3,300 acres at an estimated cost of 10 billion ringgit.

The private sector will also have the opportunity to participate in the development of several projects led by government-linked companies (GLCs). These include projects such as the Kuala Lumpur Strategic Development by 1Malaysia Development Berhad (1MDB) covering the Sungai Besi Airport area, the KL International Financial District in Kuala Lumpur, construction of the liquefied natural gas regasification plant by PETRONAS in Melaka at an estimated cost of 3 billion ringgit as well as two aluminium smelters in SCORE Sarawak with an estimated cost of 18 billion ringgit.

To help the private sector finance these projects, a Facilitation Fund of 20 billion ringgit will be provided under the 10MP. This fund aims to help bridge the private sector viability gap with respect to projects that have a strategic impact and those with huge economic spill over. The fund is expected to attract private sector investments worth at least 200 billion ringgit during the Plan period. Projects that are being considered for financing under this fund include Land Reclamation in Westport in Port Klang, Malaysia Truly Asia Centre in Kuala Lumpur and Senai High Technology Park in Iskandar Malaysia, Johor.

Wassalam

Estimating for construction works: Roti canai, just 20 sen?

Salam and dear all,

1. Roti canai, nasi lemak, teh tarik, etc are famous in Malaysia.
2. So I hope this article Roti canai, just 20 sen? (NST, 13th June 2010), provides good reading on how to understand the principle of estimating for construction works.
3. Quantity surveying students learning courses such as estimating, analysis of prices, tendering, etc take note that prices of construction works include costs of materials, plant and equipment, labour, wastage, overhead, profit and other strategic issues and these aspects on cost (not the amount) are more or less the same as those in the food and catering industry.
4. Many thanks to NST, the authors of the article and others for having a facility to share the article.

Wassalam.

Construction sector under the Tenth Malaysia Plan (2011-2015)

Salam and dear all,

1. The statistics, under the 10^th Plan, relevant to construction include:
   1. GDP in 2015 is expected to be RM 740,250 million (2009 = RM 521,095 million).
   2. Construction GDP in 2015 is expected to be RM 21,818 million (2009 = RM 17,321 million).
   3. GDP is expected to grow at 6.0% per annum and construction GDP at 3.7% per annum. Construction's share to GDP is at 2.9%.
   4. Malaysia's population is estimated to grow at 1.1% (2011 - 2015) reaching to 29.8 million persons in 2015 (2010 = 28.3 million persons).
   5. In terms of employment, construction in 2015 is expected to employ 776.5 thousand persons or 5.9% of total employment (2009 = 762.4 or 6.6%).
2. In addition to the RM 230 billion allocated for development that would either directly or indirectly benefit the construction sector, the 10^th Plan also include a host of initiatives and incentives that are expected to generate more robust activities in the construction sector. These include economic reforms in terms of private sector led economy, innovation led growth, rationalization of the government's role in business by increasing privatization and PPP, and developing the SMEs.
3. In relation to privatization and PPP, Malaysia has, since 1983, been very active. Since 1983, 510 projects related to transportation, roads, communications, health, and energy sectors have been privatized or procured via the PPP approach.
4. Under the 9^th Plan 22 projects worth RM12 billion were privatized / procured via the PPP approach.
5. Under the 10^th Plan 52 projects worth RM62.7 billion are to be privatized / procured via the PPP approach. The projects include toll highways, universities, Penang Port and the Angkasapuri as Media City.
6. To assist the private sector in meeting the initial costs / investment in privatized / PPP projects a sum of RM 20 billion has been allocated under a scheme known as Facilitation Fund. Projects with minimum cost of RM 100 million are eligible for assistance.
7. Further assistance to the construction industry include government support for firms to export professional services overseas especially within ASEAN, India, China and the OIC countries, establishing a consolidated presence and brand of Malaysian construction professional services overseas via the CIDB and PSDC, creating and promoting demand in green technology, etc.
8. Some of the more prominent infrastructural facilities earmarked for development under the 10^th Plan are;
   1. RM 2.7 billion for roads and rail networks leading to key ports and airports.
   2. Completion of the double-track rail project between Johor Bharu and Padang Besar (RM 16.5 billion).
   3. MRT to cover a 20km radius from the Kuala Lumpur city centre that is expected to carry 2 million passenger-trips per day when completed.
   4. RM 1 billion for capital dredging of port channels to cater for bigger vessels for Westport Port Klang and PTP Johor, and RM 6 billion upgrading works to these ports and Penang Port.
   5. Expansion of airport capacity at a cost of RM 3.3 billion (to cater for 62 million passengers in 2015: 47 million in 2008), a new low cost carrier terminal at KLIA and upgrading of the Penang International Airport.

Wassalam.

Reference: 10^th Malaysia Plan 2011-2015.

Latest statistics on QS in Malaysia

Salam and dear all, The latest statistics on QS in Malaysia;

• Registered QS - 878
• Graduate QS - 977
• QS Practice - 311

Wassalam. Source: BQSM 12th June 2010.