AMENDMENTS TO THE

REGISTRATION
OF ENGINEERS ACT 1967

BOARD OF ENGINEERS MALAYSIA (BEM)

2014 ROAD SHOW
 CONTENTS
PART 1 WHAT IS THE PURPOSED OF THE REGISTRATION OF
ENGINEERS ACT (REA)
What is the point. To protect

PART 2 THE REA HAVE PREVIOUSLY BEEN AMENDED SEVERAL TIMES

Primarily to plug the loopholes as the profession evolved

PART 3 THE AMENDMENTS TO THE REGISTRATION OF ENGINERS ACT

Primarily driven by the Governments commitments in
International Free Trade Agreements (FTA) ..

PART 4 FOR THE SERVICES SECTOR THESE HAVE BEEN IDENTIFIED BY

THE GOVERNMENT UNDER
IMP3 and NKEA (Strategic reform initiatives) ..

PART 5 FOR THE SERVICES SECTOR THESE HAVE BEEN IDENTIFIED BY

THE GOVERNMENT
Under the IMP3 & NKEA (Strategic Reform Initiatives) ..

PART 6 FOR THE PROFESSIONAL SERVICES THE GOVERNMENT HAS

UNDERTAKEN TWO RECENT STUDIES UNDER EPU &
PEMANDU(ETP) WHICH REACHED SIMILAR
CONCLUSIONS
Why liberalize and a case for change
 CONTENTS

PART 7 FOR AMENDMENTS TO THE ENGINEERS ACT THE MODE OF

ACCESS MUST BE CONSIDERED
Mode 1, Mode 2, Mode 3 and Mode 4

PART 8 WHAT NEEDS TO BE DONE FOR THE REGISTRATION OF

ENGINEERS ACT
Taking the next step ..

PART 9 AMENDMENTS TO SECTION 10 OF THE REA

Which will allow registration of natural persons..

PART 10 AMENDMENTS TO SECTION 7A & 7B of the REA

Which will allow commercial presence..

PART 11 EXCLUSIVE ENTITLEMENTS OF REGISTERED PERSONS

Amendments to Section 7 & 8..

PART 12 LIBERALIZATION DOES NOT MEAN DEREGULATION

That is why safeguard measures are ..

PART 13 EXISTING PROFESSIONAL ENGINEERS SHOULD TAKE NOTE

The requirements to obtain the Practising Certificate
What is the purpose of the Registration of
Engineers Act ...What is the point ?
To protect
 The Fundamental Issue for an Acts Existence

The registration of Engineers Act does not state the raison detre of its
existence. It was not written in any official documents of BEM.

Do the public require such an Act ?

Why do engineers need such an Act ?
Was the purpose to keep track the nos. of engineers as Malaysia develops ?
Is it to look after the profession of engineering ?
Was it to ensure that engineers are protected from unscrupulous Clients ?
Or is it to look after the welfare of engineers ?
Can it be the engineering must be done by registered Engineers & no one-else ?
.. etc. etc.
.. etc. etc.
Or a sense of idealism to safeguard & protect the public ?
.. etc. etc.
.. etc. etc.

The Act has not clearly explained this fundamental issue of its existence.

OrhavewelostsightwhyanActshouldbeenactedorexist
 What is in the Legislation of Other Countries
UnitedKingdom&
ThereisnoEngineersAct
Australia(exceptQsld)
Singapore The Professional Engineers Board too, does not state its purpose. However
it has issued a policy statement;

The mission of the Professional Engineers Board is to safeguard life,

property and welfare of the public by setting and maintaining high
standards for registering professional engineers and by regulating and
advancing the practice of professional engineering.
Queensland,Australia The Professional Engineers Act state the following objectives;

(a) to protect the public by ensuring professional engineering services are

provided by a registered professional engineer in a professional and
competent way and;
(b) to maintain public confidence in the standard of services provided by
registered professional engineers; and
(c) to uphold the standards of practice of registered professional engineers
Canada,Councilof In its Issues Policies it has stated;
ProfessionalEngineers
Level 1 Policy Statement: In Canada, the protection of the public requires
that the practice of engineering be regulated by the engineering profession.
The public shall not be confused or misled by the misuse of the words
engineer and engineering.
Regulation24(Responsibilitytoemployer,clientorprofession)oftheREAstatesthat
aRegisteredEngineersmusthavefullregardtopublicinterest
REVIEW OF THE REGISTRATION OF ENGINEERS ACT

On 15th. April 2006 the Board resolved to embark on a major effort

to critically and comprehensively review the current Act of 2007
and to make necessary changes. The reasons were;

* the text of the Act has become very untidy and complex after a number of
amendments

* the complex system of registering individual engineers and Engineering

Consultancy Practices has many weaknesses

* there is a loophole in the Act wherein the Board is not able to take
disciplinary action effectively

* there exist irrationality and inequity in terms of offences and penalties

* difficult for users of the Act to sort out the cross reference of various
sections

* to align the engineering services industry in Malaysia with the outside world
 The Purpose of the Engineers Act
BEMs Working Group that reviewed the Act in 2007
recommends that the purpose of the Act be;
To protect the public by legislative control so that the practice of
engineering, which has a bearing on public safety, health and
welfare, can only be carried out by licensed professional
engineers.
To create a regulatory body with mandate to carry out licensing
of professional engineers and regulation of the profession;
To set regulations pertaining to the practice of engineering;
qualifications for licensing; and code of professional
conduct for registered engineers;
To maintain public confidence in the standard of services
provided by licensed professional engineers
To designate the Board as the authority to represent Malaysia on
provision of Engineering services under GATs classification
The REA have previously been amended
several times since 1967
Primarily to plug the loopholes as the Profession evolved
 OVERVIEW OF PREVIOUS AMENDMENTS
REGISTRATIONOF
ENGINEERSACT1967 REMARKS
(ACT138)
1967* The draft bill passed by Parliament

1972 The Act came into force

1973
Introduction of a body corporate to practise as
LIST OF 1974 consulting engineer with 100% shares & Board of
Directors are Professional Engineers
AMENDMENTS
Introduction of multi-disciplinary practice,
1987 Malaysian citizenship requirements & temporary
registration of foreign engineers

2002 Introduction of Accredited Checkers

2007 Introduction of Disciplinary Committee

TOTAL NO. OF
6
AMENDMENTS

Thecurrentamendmentsistoundotheamendmentsin1974&1987
 CABINET MEMORANDUM
Ministry of Industry & Trade obtained an approval from Cabinet in
October 2008 to liberalize the services industry. The cabinet
memorandum request all Government Agencies to;

(a) quicken the pace of liberalization of the service industry in

accordance to the scope and time committed by Malaysia

(b) All Ministries to prepare a road-map to implement liberalization

policies for which the are responsible for

(c) Study and review the laws and statues to allow foreign skill workers
and professionals to enter the country in accordance to Malaysias
commitment in international trade

(d) Set-up a fund of RM100 million under MIDA for the purpose of
capacity building for each sector of the service industry

(e) The purpose of this exercise is to address the shortfalls of the

service industry in the GDP contribution and arrest the weaknesses
of the economy.

ThedirectiverequiresaconcertedeffortbyBEMtostudy
 CABINET DIRECTIVE

Cabinet directive thorough the Ministry of Works letter dated 4th.

March 2010 to the Board of Architects, Board of Engineers and
Board of Quantity Surveyors

Seperti pihak Y.Bhg. Dato Sri/Dato sedia maklum bahawa

Kementerian Kerja Raya dengan persetujuan Lembaga
Professional telah pun membuat komitmen untuk liberalisi sektor
perkhidmatan Professional dengan membenarkan pegangan ekuiti
asing ke paras 70% bagi tahun 2010 dan 100% pada tahun 2012.
Selain daripada syarat ekuiti, Kementerian ini juga telah
mengenalpasti peruntukan-peruntukan lain yang terdapat dalam
akta yang sedia ada yang jadi penghalang kepada liberalisasi
sektor perkhidmatan professional.

AconcertedeffortbyBEMtoamendtheREAwasundertaken
The amendments to the Registration of
Engineer Act is
Primarily Driven by the Governments Commitments in
International Trade.
 MALAYSIAS CURRENT COMMITMENTS IN
INTERNATIONAL TRADE

RegionalFTAs*:
China,Australia,
RepublicofKorea,
ASEANmembers

BiLateralFTAs:
Chile,Pakistan

BothRegional&Bi
LateralFTAs:
Japan,NewZealand,
India

*UnderASEANmembership

Malaysiasliberalizationeffortsarepredominantlyfocused
withinAsiaPacificandnearbyregions
 MALAYSIASINTERNATIONALTRADEAGREEMENTS

MULTILATERAL REGIONAL BILATERAL

GlobalTrade Regional Free BilateralFreeTrade

Organizations Trade Agreements Agreements
ASEANChina(Jul2003)
World Trade Organization AFTA (Jan 1992) ASEAN Japan(Oct2003)
(1957) AFAS (Dec 1995) ASEANKorea(Dec2005)
TPP (Under negotiations) ASEANAustralia/NZ(Jan2010)
EU (Under negotiations) ASEAN India(Jan2010)
Etc.

Global Free Trade

Liberalization
Agreements Framework BilateralFreeTrade
Agreements
GeneralAgreementonTrade AFAS Progressive
inServices(Jan1995) liberalizationofselective MalaysiaJapan(Dec2005)
sectors(Dec1995) MalaysiaPakistan(Jan2008)
MalaysiaNewZealand(Oct2009)
Malaysia Chile(Nov2010)
Malaysia Aust(Undernegotiations)
MalaysiaUSA(Undernegotiations)
etc
For the Services sector these have been
identified by the Government under
IMP3 and NKEA (Strategic Reform Initiatives).
 MALAYSIASCOMMITMENTSINASEANFORSERVICES
(AseanFrameworkAgreementonServicesTimeline)

IMP3&NKEAPROMOTEDSERVICESSECTOR
PRIORITYSECTORS NONPRIORITYSECTORS

(1) Business & Professional Services,

(1) ICT, (2) Distributive Trade,
SERVICE SECTOR (2) Tourism, (1) Logistics (3) Construction,
(3) Healthcare (4) Education,
(5) Oil, Gas & Energy

END DATE FOR

2010 2013 2015
LIBERLISATION

- 30% by 2006
- 49% by 2006 - 49% by 2008 - 49% by 2008
FOREIGN EQUITY - 51% by 2010
- 51% by 2008 - 51% by 2010
PARTICIPATION - 70% by 2015
- 70% by 2010 - 70% by 2013
* Construction not less than 51% by 2006
 PROFESSIONAL SERVICES INDUSTRY STRUCTURE

PROFESSIONAL SERVICES
Central Product Classification (CPC)

REGULATED SECTORS UNREGULATED SECTORS

(Governed by Acts of Parliament) (Not governed by any Acts of Parliament)

Legal (AG) CPC 86190

Accounting (MOF) CPC 862 Integrated Engineering (MOW) CPC 8673
Taxation (MOF) CPC 863 Landscape architecture (MOHLG) CPC 8674
Architectural (MOW) CPC 8671
Engineering (MOW) CPC 8672
Urban Planning (MOHLG) CPC 8674
Quantity Surveying (MOW) None yet

Theprofessionalservicessectorconsistsofvarioussubsegments
thatplayacrucialroleineconomicgrowth
 MALAYSIASCURRENTCOMMITMENTS

PROFESSIONAL SERVICES SECTOR

(Foreign Equity)

2008 : 49%
AFAS Threshold for Equity 2010 : 51%
(Asean Framework Agreement on Services)
2015 : 70%

Multi-disciplinary Practice : 30% open to anybody/persons

(Architectural, Engineering & Quantity Surveying)

Single-disciplinary Practice
AFAS 8th Package
Architectural (CPC 8671) : 0%
Engineering (CPC 8672) : 0%
Integrated Engr (CPC 8673) : Unregulated
Quantity Surveying(None yet) : 0%

Cabinet Decision 2012 : 100%

14 November 2008

Budget 2012 Announcement Architectural : 100% by 2012

by YAB Prime Minister Engineering : 100% by 2012
7 October 2011

TilltodatetheprofessionalactshavenotbeenamendedtoreflectMalaysias
commitments.
For the Professional Services the
Government has conducted two recent
studies by EPU and PEMANDU(ETP)
which reached similar conclusions
Why liberalize and a case for change
 PROFESSIONAL SERVICES GROWTH AREAS

HIGHIMPACT

Civil&Mech.Engr
Oil&GasEngr
EnvironmentalEngr
Architecture
InformationTech.
etc.

SourcedfromETPRoadmap&EPUstudyreachedsimilarconclusions

Oneofthehighgrowthsectorsisaccreditedprofessionalservices
sectorthatcompriseengineering,architecture,medical
 PROFESSIONAL SERVICES INDUSTRY IN A NUTSHELL

CURRENTSTATEOFTHEINDUSTRY

1 Sectorlacks 2 Restrictionson 3 Restrictionson

capacityto foreignprofessional foreign
competeona servicesfirms professionals
biggerscale Therearemany
Professional restrictionsagainst Foreign
servicessectorare foreignfirms professionalsare
predominantly practicingin restrictedto
madeupofsmall Malaysia practiceinmany
firms ways

AmendmentstotheProfessionalActsmustfocusonsafeguarding&
theprotectionofpublicsafety&interest
 THE BALANCING ACT

PROS
OpportunityforMalaysiatocompete
CONS internationally,contributingtoGDPgrowth
andgeneratingforeignexchange
Foreignproviderscrowdoutdomestic
Improvestheoverallbusiness
providers
environment
Potentialoutflowofmoneyfrom 1. Introductionofinternationalbestpractices,
Malaysia withforeignprovidersand betterskillsandtechnology
shareholdersrepatriatingprofits
2. Entryofforeignserviceproviderscanleadto
Increasedriskoffinancialinstability betterservicesfordomesticconsumers
duetoincreasedexposuretoglobal 3. Improvetheperformanceand
economicevents competitivenessofdomesticservice
Riskofbraindrain providers
4. Attractforeigndirectinvestmentintothe
Riskofenvironmentaldegradation
country

Findingthebalancebetweenliberalizationandprotectionism
 For Consulting Engineers the Market is
Worldwide
Global construction output in 2010 was about USD $6 trillion

Global GDP in 2008 was about USD $61 trillion and construction
output is 10% of the GDP which makes construction an important
industry.

The professional services demand is USD $270 billion in 2010 which is

mainly in the following areas;

Transport 54%
Industry & Commercial buildings & facilities 20%
Land development 14%
Drainage, water & waste 12%

The global market is all about Quality, Integrity,

Sustainability, Innovation and Capacity Building
Source: FIDIC Federation International of Consulting Engineers
For amendments to the Professional
Acts the following Modes of access to
be considered ..
Mode 1 Cross-border trade
Mode 2 Consumption abroad
Mode 3 Commercial presence
Mode 4 Movement of natural persons
 The Supply of Professional Services
Modes of Access
Mode 1 Cross Border Trade Mode 2 Consumption Abroad
Many design services/payment are electronically transmitted Many Clients already appoint foreign firms

Mode 4 Presence of Natural Person

Mode 3 - Commercial Presence Currently not possible under the Professional Acts
Currently not possible under the Professional Acts (Except thro temporary registration)
GENERAL REQUIREMENTS CONSIDERED IN AMENDING
THE PROFESSIONAL ACTS

GATS stipulates that measures relating to qualification

requirements and procedures, technical standards and
licensing requirements should not constitute unnecessary
barriers to trade in services.

Rules & procedures should be;

Based on objective & transparent criteria, such as competence
and the ability to supply the service.
Not more burdensome than necessary to ensure the quality of
service.
In the case of licensing procedure not in themselves a
restriction on the supply.

Note: Certification, licensing etc. of service suppliers may be

based on MRA or may be accorded autonomously.
What needs to be done for the
Registration of Engineers Act
Taking the next step
 CURRENT SECTIONS IN THE PROFESSIONAL ACTS
TO BE AMENDED IN VIEW OF LIBERALIZATION

Professional services involved movement of natural

persons and commercial presence will require the Acts
to be amended namely in two areas;

Registration of Professional Engineers

Sections of the ACT to be amended to automatically recognize the qualifications,
experience and registration of a professional irrespective of citizenship status.

Section 7 Restrictions on unregistered persons etc.

Section 8 Only Professionals may submit plans, drawings etc.
Section 10 Qualifications for registration
Section 10A Registration of Temporary Professionals

Registration of Firms/Companies
Sections of the ACT to be amended in the registration of Companies to be less restrictive
especially with regards to shareholdings and ownership.

Section 7A Single Disciplinary Practice (SDP)

Section 7B Multi-disciplinary Practice (MDP)
 Contents of the
CONTENTS Act REA
OF THE

The Act (Revised 2007) comprises :

z Preamble
z Part I - Preliminary
z Part II - Board of Engineers
z Part III - Registration of Engineers
z Part IIIA - Disciplinary Committee
z Part IV - Cancellation, Removal, Reinstatement, etc
z Part V - General
 PART I - PRELIMINARY

Section 2. Interpretation (New definitions)

Professional Engineer with a Practising Certificate

means a person registered under section 10D;

Engineering Technologist means a person registered

under section 10C;

Inspector of Works means a person registered under

section 10E;

registered Person means a registered Engineer,

Engineering Technologist or Inspector of Works;
 PART I - PRELIMINARY

Section 2. Interpretation (Definition deleted)

CONCEPT
Concept ofOF TWO-TIER
2-Tier REGISTRATION
Registration

BOARD OF ENGINEERS

Graduate Engineering
Engineer Technologist

Professional
1st tier of registration Engineer

Professional
2nd tier of registration Engineer with Licence Practicing Cert
Practicing Mandatory Professional
Certificate Competency Examinations
 CONCEPT OF TWO-TIER REGISTRATION

Reason for 2-Tier registration :

Approx. 85% of all Professional Engineers (P.Eng.)

are registered under Civil, Mechanical & Electrical.
Only a small fraction of this 85% (or approx. 2,000 to
3,000) are practising or wish to be the Submitting
Person.
Rest are employed in Contracting, Maintenance,
Employees of Consultants, Government, Academia,
Sales, etc.
BEM issue license to P.Eng. Submitting
Person under the Building Laws
 CONCEPT OF TWO-TIER REGISTRATION

Street, Drainage and Building Act 1974 (Act 133)

Part I, 3. Interpretation
"principal submitting person means a qualified
person who submits building plans to local authority
for approval in accordance with this Act or any by-
laws made thereunder and includes any other
qualified person who takes over the duties and
responsibilities of or acts for the first mentioned
qualified person;
"qualified person means a Professional Architect,
Professional Engineer or building draughtsman
registered under any written law relating to the
registration thereof;
 CONCEPT OF TWO-TIER REGISTRATION

Street, Drainage and Building Act 1974 (Act 133)

Part I, 3. Interpretation
"submitting person" means a qualified person who
submits plans other than building plans to the local
authority or relevant statutory authority in
accordance with this Act or any by-laws made
thereunder and includes any other qualified person
who takes over the duties and responsibilities of or
acts for the first mentioned qualified person;
With the amendments the principal submitting person,
qualified person or submitting person shall only mean
professional engineers with a practising certificate in force
which have the entitlement as stated in the Engineers Act.
Submitting Persons should take note.
 CONCEPT OF TWO-TIER REGISTRATION

Reason for 2-Tier registration :

The activities of P.Eng. acting as Submitting
Person has a direct and critical impact on
public safety and interest.
They would need to be examined on their
competency to be a Submitting Person.
Those not involved as Submitting Person need
not sit for this exam (Professional Competency
Exam) but can still retain their professional
status and the title of Ir. through a two-tier
registration system.
 PART I - PRELIMINARY

Section 2. Interpretation (New definitions)

Engineering works means any public or

privately owned public utilities, buildings,
machines, equipment, processes, works or
projects that requires the application of
engineering principles and data;
 PART II BOARD OF ENGINEERS

Section 3(2). Establishment of Board of

Engineers (New re-definition)
The Board shall consist of the following members who shall be
Malaysian citizens and who are appointed by the Minister;

(a) A President who shall be a Professional Engineer or a

Professional Engineer with Practising Certificate
(b) Not more than fourteen members who shall be Professional
Engineers and Professional Engineers with Practising
Certificate ..

At least 50% or 8 members of the Board shall be Professional

Engineers with a Practising Certificate in force.
 PART II FUNCTIONS OF THE BOARD

Section 4.(1)(ed)(i) Re-definition

 Part II
PART II FUNCTIONS OF THE BOARD

Section 4.(1)(ed)(ii) New sub-section

 THE PROFESSIONAL COMPETENCY
EXAMINATION
The Professional Competency Examination
(PCE) that is being developed Construction/
Building Industry
The PCE for Professional Engineers (P.Eng.)
in engineering disciplines of Civil, Mechanical
and Electrical Submitting Person under the
Building Laws BEM issue license.
BEM will be developing PCE for other
engineering disciplines eg. Chemical, Oil & Gas,
Environmental, Aeronautical, Marine, etc in the
future.
 AMENDMENTS TO THE REA
Competency Examination
EXISTING 1st TIER OF EXAMINATION RETAINED. 6 Months
Residency

REGISTRATION WITH
Degree/ Qualification THE BOARDS AS A
Accreditation by the 4 YEARS PROFESSIONAL
Apply to register WORKING
Boards to register as 1st. Tier of Examination
a Graduate EXPERIENCE

2 YEARS
Notes:
Registration with the BEM as Graduate Engineer or Engineering Technologist is
straight-forward provided that conditions such as the basic qualifications are
met (eg. Engineering degrees recognised under the Washington Accord or the
Sydney Accord).
Professional
Registration as a Professional with BEM after passing the 1st.
tier examination. Competency
However if foreign professionals can demonstrate the same applies to their Examinations
home countries the Boards may consider them to be registered.

To practise and supply professional engineering services BEM will issue

licenses upon passing the Professional Competency Exams i.e. the 2nd. tier of LICENSED TO SUBMIT
registration. This is compulsory for all professional engineers wishing to supply PLANS UNDER S.D.B.
professional engineering services. Such competency examinations are common
in developed countries. ACT
 .. AND FOR ENGINEERS
there are other Competency Examinations

GAS SUPPLY ACT, SURUHAN

TENAGA
EXISTING P.I. RETAINED (REG. OF ENG. ACT)

JURUTERA
REGISTER GAS
C.E.for Professional
WITH BEM AS Jurutera
Professional Interview
P.ENG Gas
Assessment
Examination
ELECTRICITY SUPPLY ACT, SURUHAN TENEAGA

COMPETENT
ELECTRICAL
C.E.for Comp. Professional ENGINEER
Elec. Eng Interview

NOTE THAT THE

SPAN ACT NOW
REQUIRES THE
PRACTICING PRACTICING CERTIFICATES ENGINEER OR
CERTIFICATE FOR FOR OTHER ENGINEERING ARCHITECT TO BE
Professional SUBMITTING PERSON DISCIPLINES REGISTERED WITH
Competency UNDER S.D.B. ACT
THEM.
Examination (Building Industry)
 Register
PART III REGISTRATION OF ENGINEERS

EXISTING ACT Section 5(1) AMENDED ACT Section 5(1)

5(1) The Register shall be in five Parts, that 5(1) The Register shall be in seven Parts,
is to say that is to say

Part A - which shall contain the names, Part C deleted and added
addresses and other particulars of
Professional Engineers;
Part B - which shall contain the names, Part F which shall contain the names,
addresses and other particulars of addresses and other particulars of
Graduate Engineers; Professional Engineers with a
Part C - which shall contain the names, Practising Certificate in force;
addresses and other particulars of
Temporary Engineers; Part G which shall contain the names,
Part D which shall contain the names, addresses and other particulars of
addresses and other particulars of Engineering Technologist;
Engineering consultancy practices;
and Part H which shall contain the names,
Part E - which shall contain the names, addresses and other particulars of
addresses and other particulars of Inspector of Works.
Accredited Checkers.
Amendments to Section 10 of the REA
Which will allow registration of natural persons..
PART III REGISTRATION OF ENGINEERS

Section 10.(4) Re-definition

PART III REGISTRATION OF ENGINEERS
Engineering Technologist

Section 10C. New sub-section

10C(1) A person who holds any qualifications
which is recognized by the Board shall be
entitled on application to be registered as an
Engineering Technologist

10C(2) A person who is registered as an

Engineering Technologist under subsection
(1) shall be entitled upon fulfilling the
requirement as a Graduate Engineer under
subsection 10(1) on application to be
registered as a Graduate Engineer
PART III REGISTRATION OF ENGINEERS
Graduate Engineers

Section 10.(1)(a) - Retained

Subject to this Act, a person who holds

(a) the qualifications required for Graduate

Membership of the Institution of Engineers
(Malaysia) and which are recognised by the Board;
or

(b) any qualification in engineering which is

recognised by the Board,

shall be entitled on application to be registered as a

Graduate Engineer.
 PART III REGISTRATION OF ENGINEERS
Professional Engineers

Section 10.(2)(a)(ii) - New sub-section

(a) any person

(i) who is registered as Graduate Engineer and has obtained the

practical experience under paragraph (1)(b)

(ii) who
(A) has passed a professional assessment conducted by the Board;
(B) holds a professional qualification which the Board considers to
be equivalent to the professional assessment examination
conducted by the Board; or
(C) is a corporate member of the Institution of Engineers (Malaysia);
and

(iii) who has complied with all the requirements of the Board;
PART III REGISTRATION OF ENGINEERS
Prof. Engineers with Pract. Certificate

Section 10D. - New Section

A person shall be entitled on application to be
registered as a Professional Engineer with Practising
Certificate if

(a) the person is a registered Professional

Engineer;
(b) the person has passed a Professional
Competency Examination conducted by the
Board; and
(c) the person has complied with all the
requirements of the Board;
PART III REGISTRATION OF ENGINEERS
Inspector of Works

Section 10E. - New Section

A person who holds any qualification which is
recognized by the Board shall be entitled on
application to be registered as an Inspector of Works.
 SUMMARY OF THE AMENDMENTS TO THE REA
Registration of Natural Persons (Mode 4)

Section 10(4) of the Act amended for registration with the Board one
need not be a Malaysian citizen or a Permanent Residence

BEM

New amendments Qualification meets the

Graduate Engineering Washington (Engr.) or
No citizenship requirements Sydney (Eng. Tech)
Engineer Technologist
(Local or foreign) Accords requirements

New amendments Sit and pass the

Professional Professional Prof. Engr who do not wish to have
No citizenship requirements
Engineer Assessment a Practicing Certificate
1st. tier of registration Examinations
(Local or foreign) (PAE)

New amendments Sit and pass the

Prof. Engr. with a Practicing
No citizenship requirements Professional Engineer Professional
Certificate or those who wish to
with Competency
2nd. Tier of registration Examinations.
practise & supply professional
(Local or foreign) Practicing Certificate engineering services
(PCEl)

ThisamendmentundotheamendmenttotheActin1987.
Amendments to Section 7A & 7B of the
REA
Which will allow commercial presence..
PART III REGISTRATION OF ENGINEERS
Engineering Consultancy Practice

Section 7A.(3)(a) Revised

The Board shall register .. as Engineering Consultancy
practice if

(a) in the case of the sole proprietorship, the sole

proprietor is a with a Professional Engineer with a
Practising Certificate;

(b) in the case of the partnership, all the partners are

Professional Engineers each with a Practising
Certificate; or
 PART III REGISTRATION OF ENGINEERS
Engineering Consultancy Practice

Section 7A.(3)(c) - Revised

EXISTING ACT Section 7A(3)(c) AMENDED ACT Section 7A(3)(c)
The Board shall register .. as an The Board shall register .. as an
Engineering Consultancy practice if Engineering Consultancy practice if

(i) it has a board of directors who are (i) it has a board of directors who shall be
professional engineers; subject to such conditions and
qualifications as may be prescribed by
the Board;

(ii) has shares held by members of the (ii) its shareholdings shall be as prescribed
board of directors mentioned in by the Board; and
paragraph (i) solely or with any other
persons who are Professional
Engineers; and

(iii) has a minimum paid-up capital (iii) has a minimum paid-up capital which
which shall be of an amount to shall be of an amount to be prescribed
prescribed by the Board
 PART III REGISTRATION OF ENGINEERS
Engineering Consultancy Practice

Section 7A.(3)(c)(iv) - New sub-section

(iv) the day to day affairs of the body corporate shall be
under the control and management of a person who -

(A) is a Professional Engineer with a Practising

Certificate;

(B) is authorized under a resolution of the board of

directors of the body corporate to make all final
engineering decisions on behalf of the body
corporate in respect of the requirements under this
Act or any other law relating to the supply of
professional engineering services by the body
corporate
PART III REGISTRATION OF ENGINEERS
Multi-disciplinary Practice

Section 7B(1) - Amended section

Where a body corporate carries on a practice of a

combination of services; providing professional
engineering services, architectural consultancy
services or quantity surveying services, the Board
may, subject to such conditions or restrictions as it
may deem fit to impose, register that part of the
practice providing professional engineering
services.
PART III REGISTRATION OF ENGINEERS
Multi-disciplinary Practice
Section 7B.(2) - Revised
EXISTING ACT Section 7B(2) AMENDED ACT Section 7B(2)
The body corporate that applies for The body corporate that applies for
registration under subsection (1) must registration under subsection (1) must
be incorporated under the Companies be incorporated under the Companies
Act 1965 and Act 1965 and

(a) has a board of directors comprising (a) it has a board of directors who
Professional Engineers, Professional shall be subject to such
Architects and/or registered Quantity conditions and qualifications as
Surveyors; may be prescribed by the Board;

(b) has shares held by the persons (b) its shareholdings shall be as
mentioned in paragraph (a) and any prescribe by the Board; and
of the following persons and/or
bodies corporate where etc. etc.

(c) has a minimum paid-up capital (c) It has a minimum paid-up capital
which shall be of an amount as which shall be of an amount to be
prescribed prescribed by the Board
 PART III REGISTRATION OF ENGINEERS
Multi-disciplinary Practice

Section 7B.(2)(d) - New sub-section

(iv) the day to day affairs of the body corporate shall be
under the control and management of a person who -

(A) is a Professional Engineer with a Practising

Certificate;

(B) is authorized under a resolution of the board of

directors of the body corporate to make all final
engineering decisions on behalf of the body
corporate in respect of the requirements under this
Act or any other law relating to the supply of
professional engineering services by the body
corporate
 AMENDMENTS TO THE ACT IN SUMMARY
Commercial Presence (Mode 3)
As the BEM can register professional engineers of any
nationality, the firms under which they provide the services may
have 100% foreign equity

HOWPROFESSIONAL REGISTRATIONWITHTHEBOARDOF
SERVICEISPROVIDED ENGINEERSMALAYSIA
Engineers of any nationality can be
INDIVIDUAL ENGINEERS
registered with the Board.
SINGLE DISCIPLINARY
PRACTICE 100% foreign equity allowed with 30 % equity
Sole Proprietorship open to all and 70% for Professional
Partnership Engineers with Practicing Certificate for
Body Corporate body corporate (Prescribed in Regulations)
MULTI-DISCIPLINARY 100% foreign equity allowed with 30% equity
PRACTICE open to all and 70% equity for Prof.
Body Corporate Eng/Arch/QS (Existing Act already allow)
At least 2/3s of the Directors in the Board of
MANAGEMENT OF THE FIRM Directors must be Professional Engineers
OF A BODY CORPORATE with Practicing Certificates (Prescribed in
Regulations)
 AMENDMENTS TO THE ACT IN SUMMARY
Commercial Presence (Mode 3)
Local or foreign engineers can register with
BEM under Section 10 & hence can set-up a
business entity registered with BEM.

Multi disciplinary practice

Registration with Boards EngineeringConsultancy registered under Section 7B
as a Business Entity Practice(Section7A) to follow the same format for
equity and Board of Directors
under Section 7A.
Must be Professional Engineer (local or
Sole Proprietorship
foreign) with Practising Certificate (P.C.)

Partnership Partners must be Prof. Engineer (local or

foreign) with Practising Certificate (P.C.)

70% equity for local or foreign P.E. with P.C.

Body Corporate Equity prescribed in
Regulations
30% equity by any person/bodies

At least 2/3s of Directors must be P.E. with

Composition of Board of
Management of the Firm Practising Certificate (local or foreign)
Directors prescribed in
Board of Directors Remaining 1/3 can be anybody/person
and must named a P.E. with P.C. in charge Regulations
Exclusive entitlements of Registered
Persons
Amendments to Section 7 & 8..
PART III REGISTRATION OF ENGINEERS
Inspector of Works, Engineering
Technologist & Graduate Engineers
Section 7(2). - New Section
Not withstanding subsections (1) and (1A)

(a) a Graduate Engineer may, subject to section 8, take-up

employment which requires him to perform professional
engineering services;
(aa) an Engineering Technologist may, subject to section 8,
take-up employment which requires him to perform
professional engineering services;
(ab) an Inspector of Works may, subject to section 8,
shall register with the Board to take-up
employment which requires him to assist the
Professional Engineer in the supervision of
engineering works;
PART III REGISTRATION OF ENGINEERS
Professional Engineer &
Professional Engineer with Pract. Cert.

Section 7.(1)(a) - amended section

PART III REGISTRATION OF ENGINEERS
Professional Engineer &
Professional Engineer with Pract. Cert.

Section 7.(1A)(a) - new section

A person shall not, unless he is a Professional

Engineer with a Practising Certificate -

(a) practise, carry on business or take up

employment which requires him to carry
out or perform professional engineering
services for designated engineering works
subject to the provisions in Section 8;
PART III REGISTRATION OF ENGINEERS
Engineering Technologist & Graduate
Engineers

Section 7(1B). - New Section

A person shall not, unless he is a Graduate

Engineer or Engineering Technologist be
entitled to describe himself or hold himself out
under any name, style or title using the
abbreviation Grad. Eng. or Eng. Tech. after
his name or in any way in association with his
name.
PART III REGISTRATION OF ENGINEERS
Professional Engineer &
Professional Engineer with Pract. Cert.

Section 7.(1)(aa) Section retained

No person shall, unless he is a Professional Engineer -

(a) be entitled to describe himself or hold

himself out under any name, style or title

(i) bearing the words Professional Engineer

(ii) bearing any other word whatsoever in any
language which may be reasonably
construed to imply he is a Professional
Engineer; or
(iii) using the abbreviation Ir. before his name
or the abbreviation P.Eng. after his name
PART III REGISTRATION OF ENGINEERS
Professional Engineer with Pract. Cert.

Section 8.(1) Amended section

Except as otherwise provided under any other
written law, no person or body, other than a
Professional Engineer with a Practising
Certificate who is residing and practising in
Malaysia or an ECP providing professional
engineering services in Malaysia shall be
entitled to submit plans, engineering surveys,
drawings, schemes, proposals, reports, designs
or studies to any person or authority in
Malaysia.
PART III REGISTRATION OF ENGINEERS
Professional Engineer

Section 8A. - New section

Subject to this Act, any person who is a

Professional Engineer shall be entitled to
submit plans or drawings where such plans or
drawings are in connection with equipment,
plant or specialised product invented or sold by
him or his employer. For the purpose of this
section the expression employer shall not
include a client.
 THE AMENDED ENGINEERS ACT - SUMMARY

BOARDOFENGINEERS
TEMPORARY REGISTRATION OF FOREIGN
Section 10A deleted
PROFESSIONALS
QUALIFIED PERSON UNDER THE STREET Local or foreign Professional Engineers with
DRAINAGE & BUILDING ACT Practicing Certificate
Takes 3-4 years to be registered as a
Professional Engineer after passing
Professional Assessment Examination.

Additional 1-2 years to obtain a Practicing

TIME REQUIRED FOR REGISTRATION Certificate on passing the Professional
Competency Examination.

Six(6) months residency before registration as

a Professional Engineer with a Practicing
Certificate
Minimum 50% must be P.E. with Practicing
COMPOSITION OF THE BOARD
Certificate

To include registration of Engineering

REGISTRATION OF SUB-PROFESSIONALS
Technologist and Inspector of Works
 ENTITLEMENTS OF REGISTERED PERSONS UNDER THE
ENGINEERS ACT
PROF.ENGR.
ENGINEERING GRADUATE PROF.
ENTITLEMENTS SECTION (withPractice
TECHNOLOGIST ENGINEER ENGR.
Cert.)
(a) Practise or carry on business which
requires him to carry out or perform
Sect. 7(1)(a)
professional engineering services NO NO NO YES

(b) Take up employment which

requires him to carry out or perform
professional engineering services Sect. 7(1)(a) YES YES YES YES

(c) Use title Professional Engineer or

the equivalent thereto in any other NO but NO but
language Sect. 7(1)(aa) YES YES
use Eng. Tech. use Grad. Eng.

(d) Use Ir. & P. Eng before or after Sect. 7(1)(aa)

the name NO NO YES YES
(ii)
(e) Display sign, card or other device
implying he is a Professional Engineer Sect. 7(1)(b) NO NO YES YES

(f) Entitled to recover in any court any

fee, charge, remuneration or other
form of consideration for any Sect. 7(1)(c) NO NO NO YES
professional engineering services
rendered
 ENTITLEMENTS OF REGISTERED PERSONS UNDER THE
ENGINEERS ACT (Cont d)

PROF.ENGR.
ENGINEERING GRADUATE PROF.
ENTITLEMENTS SECTION (withPractice
TECHNOLOGIST ENGINEER ENGR.
Cert.)
(g) Entitle to use prescribed P.E. Sect. 7(1)(c)
stamp NO NO YES YES

(h) Entitled to use prescribed Practice

Certificate Sect. 7(1)(A)(i) NO NO NO YES

(i) Entitled to submit plans,

engineering surveys, drawings,
schemes, proposal, reports, designs Sect. 8(1) NO NO NO YES
or studies (only if he is residing in
Malaysia)
(j) Entitled to (i) only in relation to the
branch of engineering he is registered Sect. 8(2) NO NO NO YES
in
(k) Not prohibited to make valuations
of any structure, plant, machinery &
Not
equipment, and making valuations for Sect. 8(3) Prohibited Prohibited Prohibited
prohibited
mining purposes, in connection with
his professional practice
(l) The right to be heard before the
Board makes order of punishment
under Section 15(1A) Sect. 15(2) YES YES YES YES
Liberalization does not mean
deregulation
That is why safeguard measures are
 SAFEGUARD MEASURES ARE NECESSARY

THE RISKS OF LIBERLISATION

To safeguard local and national policies

so that are not negatively affected

To protect the public against hazards of

sub-standard services by foreign
imports

To ensure that liberalisation promotes

Safeguardmeasuresindeveloped
economic growth as originally intended countriesareevenmore
comprehensivewhencompared
To ensure that local professionals can
withstand any destabilizing and
todevelopingcountries
debilitating effects from the entry of
foreign professionals.

To prepare capacity building

programmes for local professionals
Developed Countries Introduce Competency Examinations
When they Liberalize as a Safeguard Measure

Paper from Engineers Australia to Department of Foreign Affairs & Trade on the Australia Malaysia Free Trade
Agreement October 2004
There is no specific nationality, citizenship or residency requirements for registration by the
National Engineering Registration Board or membership of Engineers Australia to practice
as a professional engineer in Australia. However applicants must demonstrate
awareness of national and local standards, rules and practices; and be assessed as
meeting the National Competency Standards for Professional Engineers.

Victoria Building Act 1993 Requires building practitioners to be registered with the
Building Practitioners Board which uses the test for competency.

Foreign Engineers to be Permitted to Practice in Taiwan, Jan. 14 2009

The Public Construction Commission in line with Taiwans membership of the WTO and the
APEC Engineer agreement scheme . foreign
engineers with which Taiwan has concluded an MRA will be permitted to participate in
Taiwans engineering examinations .. and on passing will be issued accredited
engineer certification and may apply for a license to practice engineering in Taiwan.

A foreign engineer who has been licensed to practice in Taiwan will be able to conduct
professional engineering work and signing of engineering documents jointly with local
engineers or independently and undertake other professional activities . and all
documents and drawings related to work undertaken in Taiwan must use Chinese as
the primary language.
 SAFEGUARD MEASURES IN SUMMARY
TO ENSURE THE QUALITY OF THE SERVICE &
PROTECT PUBLIC INTEREST BOARDOFENGINEERS

1st. Safeguard Measure Basic undergraduate

Board register Graduates provided that their under degree meets Boards
graduate degree meets the standards set requirements

2nd. Safeguard Measure

Board registers Professionals provided they have Pass the 1st. tier of
obtained the required technical competence or obtained examination
it through an accredited programme overseas

3rd. Safeguard Measure Pass the 2nd. tier of

Before the issue of a license the Professional must examination i.e. the
demonstrate competence in understanding the national & Competency Exams
local standards, rules, regulations & laws

4th. Safeguard Measure Issued a license to

The license is renewable every year subject to the supply services which
Professional have undergone Continuous Professional is renewable every
Development programmes accredited by the Board year. The license is
not perpetual

Note: CPD also applies at the 1st. tier of registration

Existing Professional Engineers should
take note
The requirements to obtain the Practising Certificate
 EXISTING PROFESSIONAL ENGINEERS

Section 10D.(2) - New section

(1) Subject to the provisions of this Act, any
person who, on the date this Act comes
into operation, is registered as a
Professional Engineer with the Board shall
be entitled on application with the
prescribed fee and within 12 months of
this date to be registered as a
Professional Engineer with a Practising
Certificate in force.
 Conclusion
THE PROPOSED AMENDMENTS TO THE
PROFESSIONAL ACTS
* Will meet the time line of the AFAS threshold for foreign equity of 70%
by 2015.

Will meet the Cabinet directive to fully liberalize the professional service
sector industry with foreign equity of 100% by 2012.

Will meet the Governments international commitments with regard to

the Free Trade Agreements signed.

The competency assessment and examination proposed by the Boards

are already in-place as a safeguard measure to protect public safety
and interest upon full liberalization of the professional service.

The amendments of the Registration of Engineers Act have been

completed with the agreement of the Minister of Works, Attorney
General Chambers and Cabinet.