Malaysia aims to be assets management hub

Malaysia has taken the first few steps in adopting global best practices in the Assets and Facilities Management (AFM) Industry to achieve maximum returns on investments.

It is also aimed at becoming the AFM hub for the ASEAN region.

A construction boom, following Malaysia's rapid development and implementation of the government’s privatisation policy, gave rise to a sudden increase in demand for engineering and non-technical services for the operation and maintenance of physical assets.

Today, AFM has evolved into an important industry, providing much needed support for the continued development of the construction sector.

Deputy President of the Malaysian Association of Facility Management, Prof Sr Dr Abdul Hakim Mohamed said, there are about 30 AFM contractors in Malaysia.Based on the inventory of commercial properties reviewed by the National Property Information Centre (NAPIC), there were more than 27 million square metres of shopping complex space and "purpose-build offices" in Malaysia in 2010.This shows there are tremendous opportunities for the AFM sector in the country.

"Many contractors are just cleaners.We need to train them to become AFM contractors," Abdul Hakim, who is also the Director of the Centre for Real Estate Studies, Universiti Teknologi Malaysia, told Bernama.

According to the Construction Industry Development Board (CIDB), asset management is defined as, strategic management towards preservation of any asset value throughout its life cycle.
Facility management, on the other hand, is defined as the management of multi-disciplinary activities to ensure continuous functionality of the build environment by linking and integrating people, places, processes and technology.

Abdul Hakim said for the public sector, contractors were quite ready, as they are guided by policy, a manual and standard operating system from the government.

"We are now waiting for the training modules and registration for the private sector. Once we make it compulsory (for them to register), then the industry would develop full-blown," he added.

Industry and property owners, he said, together with the CIDB, were preparing for a training module, which will be ready by year-end.

"There are 14 modules. The modules are for everybody, from consultants, contractors and to building owners. It provides basic knowledge on AFM.

"We had the final workshop last month, to touch up everything. It was represented by the industry, university, and various association committees," he said.

Abdul Hakim said one area that really deserves the attention of the AFM industry is the education sector. "AFM is for the life cycle of the building. You prevent bigger defects. You rectify. You save money. If we don’t manage our assets and facilities, it would become our liability instead," he added.

He said AFM is also essential for economic competitiveness.

Meanwhile, Ruslan Nordin, the managing director of Global Facilities Management Sdn Bhd, a local AFM company, said Malaysia would be the first country in Southeast Asia to produce and provide a AFM manual.

"The fact that we have something in writing to expand, advance and support the industry, is a huge step by the CIDB. This is where the country needs to go.

"We have a lot of contractors in the construction industry. What happens if the number of job slows to a trickle? What the government is trying to do, is to help the industry and raise the standard of services," he added.

Ruslan said the potential for the AFM industry is not limited to domestic demand alone. "When we go to the Middle East, for instance, to countries like Saudi Arabia, Qatar and the United Arab Emirates, we can offer value for money in terms of services.

"Compared to western companies, which charge premium rates, we provide the same standard and quality with better pricing. That’s our value proposition," he added.

Ruslan said this is why it is very crucial to have a manual and to register all interested AFM contractors.

"At the moment, any class F contractor can claim for the jobs, all 40,000 of them. But they can’t perform a one-man show in the international market. So, where is our value proposition?" he asked.

He said because the AFM is wide ranging, it can provide job opportunities for many people.

"AFM includes finance, engineering, and customer care. So, the person who wants to do AFM, must go through the body of knowledge. You need to know finance, a little bit of engineering, ethics and public relations," he added. -- Bernama