Malaysia (and construction) is out of the recession

Salam and dear all,

1. Recent media reports pointed out that Malaysia is out of the recession.
2. According to the government, Malaysia's GDP for the 4th quarter of 2009 grew 4.5% (the GDP suffered contractions during the first 3 quarters).
3. The GDP for 2010 is predicted to grow at 5%.
4. The positive outlook is due to a combination of local and external factors especially the government's effort in promoting efficiency via the GTP, NKRAs and KPIs initiatives; the 2 economic stimulus packages amounting to RM67b; the yet to be announced 10th Malaysia Plan and the New Economic Model (NEM). External factors include improved economic situations in Malaysia's key trading partners (US5.7%, Japan 4.6%, Vietnam 6.5%, Singapore 4.0%).
5. Leading the positive growth is the construction sector with 9.2% (Q3=7.9%) largely due to the government's RM67b stimulus packages.
6. Other sectors: agriculture 6% (Q3=-0.5%), manufacturing 5.3% (Q3=-8.6%), services 5.1% (Q3=3.4%), mining -2.8% (Q3=-3.5%).
7. Sources: online media reports, 25th and 26th February, including Bernama, The Star and My Sinchew.

Wassalam.

Seminar "Opportunities for Graduate Studies in QS and Procurement"

Salam and dear all,

1. The Procurement and Project Delivery System Research Unit, IIUM will host the above seminar on 11th March 2010, 1.45pm to 5pm, at KAED IIUM.
2. During the seminar Prof Sr Dr Khairuddin Abdul Rashid and Assoc Prof Dr CN Preece will discuss aspects related to graduate studies in quantity surveying and in construction procurement including benefits of graduate studies, areas of studies, approaches in supervision, etc.
3. In addition, officials from IIUM will explain the application procedures, fees and funding, etc.
4. The organizer has applied for 2 CPD points from the Board of Quantity Surveyors Malaysia.
5. This event is free.
6. For further information call Mr Mohd Amir Adli at 03-61965284.

Wassalam. Prof Sr Dr Khairuddin Abdul Rashid Head, Procurement and Project Delivery System Research Unit, IIUM

Public Private Partnership Unit or 3PU

Salam and dear all,

• There is further progress, in terms of organizational set-up, in the government's PPP initiative with the setting up of a dedicated unit within the Prime Minister's Department. The newly established unit is known as the Public Private Partnership Unit or 3PU (Unit Kerjasama Awam Swasta or UKAS).
• Prior to the setting up of 3PU, the history of Malaysia's PPP may be traced back to 1981 when the government introduced the Malaysian Incorporated Policy. The policy promotes greater collaborations between the public and private sectors.
• Subsequent to the Malaysian Incorporated Policy, the government introduced the Privatization Policy in 1983, followed by Guidelines on Privatization in 1985, and the Privatization Master Plan in 1991.
• Privatization initiatives then were administered by the Special Task for Privatization (Pasukan Petugas Khas Penswastaan) of the Economic Planning Unit of the Prime Minister's Department. This group of experts acted as secretariat to a committee known as the Privatization Committee; the later was responsible in making recommendations on privatization initiatives to the Cabinet.
• In 2006 and under the 9th Malaysia Plan, Malaysia's PPP moved a step further when the government introduced PFI as among the key approaches in government procurement for public infrastructures.
• The 3PU mentioned at the beginning of this posting was established on 22 April 2009. The Unit is headed by a Director General and two deputies, each for Privatization and PFI.
• Under the 10th Malaysia Plan and under the government's New Economic Model (NEM) it has been said that the government places higher emphasis on private sector involvement in the delivery of public infrastructures through the privatization and PFI approaches in procurement.

Wassalam. Sources: various media reports and http://www.3pu.gov.my

GTP, NKRAs, KPIs and the construction sector

Salam and dear all, In April 2009 the present Government introduced the Government Transformation Programme or GTP. The objectives of the GTP include to make the government's delivery system more accountable and effective in the provision of public services.

1. There are 6 National Key Result Areas (NKRAs) under the GTP i.e. reducing crime, fighting corruption, improving students outcomes, raising the living standards of low-income households, improving rural basic infrastructure and improving urban public transport.
2. The outcomes of the NKRAs are to be measured based on pre-determined Key Performance Indicators (KPIs).
3. In the context of the construction sector, the GTP and specifically the NKRAs, has potential positive implications such as:
4. Fighting corruption. The KPI for fighting corruption is that by 2010 Malaysia's Corruption Perception Index (CPI) score, as compiled by Transparency International (TI), should move from 4.5 to 4.9. In 2009 Malaysia's position on the TI CPI was 56; 1995 = 23. In the context of the construction industry measures put in place to fight corruption includes to reduce leakages in government procurement via disclosure of government tenders on the e-government portal.
5. Improving rural basic infrastructure. Several rural parts of Malaysia remained without modern basic infrastructures such as roads, electricity and treated water. The KPIs for rural infrastructure includes construction of some 7,000 km of new/upgraded roads by 2012, construction of 50,000 new/refurbished homes for the poor by 2012, access to treated water to some 360,000 households by 2012 and access to 24 hour electricity to some 140,000 households by 2012.
6. Under the GTP, using the two NKRAs mentioned above as example, it is expected that the construction sector would become more efficient and with accountability and transparency, and that the allocation targeted for basic infrastructures benefits the construction sector and the economy as Malaysia strives to move out of the current economic downturn.
7. For further details on the GTP Roadmap visit http://www.transformation.gov.my/
8. Malaysia's TI website http://www.transparency.org.my/

Source: various newspapers and the above websites. Wassalam.

PFI. Is Malaysia Ready?

Salam and dear all, Khairuddin (2009) in "Understanding PFI" (Scholar Mind Publishing, pp128-138) reported the outcome of a survey to identify key competencies and to ascertain whether key players of the Malaysian Construction Industry possess those competencies in the provision of PFI services. The outcome of the survey (N=36) include:

• Identified 31 key competencies required in the provision of pfi services. The competencies may be divided into 6 key categories namely: technical, financial, legal, hard and soft pfi skills, contractual and value for money;
• Most QSs, Architects, Financiers, Engineers and Contractors do possess general understanding of pfi; but
• Many "lack competencies" (identified above) to deliver pfi projects.

There is therefore an urgent need for capacity building... training for civil servants and other key players and participants of pfi projects. Wassalam.