The Deck House The Deck House is a 2 ½ storey house located in the lush greenery of the Janda Baik forest, at the foothill of genting Highlands, Pahang. This house consists of three bedrooms, three bathrooms with approximately 4,000 sq. ft. of enclosed and outdoor area. The site terrain gently slopes down from the adjacent public road on higher ground. The brief from the client was to design a simple, unassuming and ‘modern’ looking house. The profile and section of this house hugs the terrain with minimum interference of the existing slope. Despite its steel and glass look, the house functions like a traditional tropical house with high ceilings, well lit interior spaces, and sufficient ventilation with windows on most walls and aluminium louvres at the highest part of building for the hot air to escape. Most of the building is designed with steel and glass to achieve a lightweight feeling. The foundation and the stumps of the building are made of conventional reinforced concrete. The extensive use of glass as the surrounding skin enables the occupants to enjoy the surrounding forest view. 49
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Living in Janda Baik with the relatively occupants of the house spend most of their time moderate climate allows the occupants to enjoy on this deck. As most trees adjacent to building outdoor activities and fresh air practically all day are maintained, one can almost touch the leaves long. Hence, extensive outdoor areas such as of the trees from this deck. deck to living/dining area and terrace to master Timber is used as the floor finishes for both bedroom form a critical part of the building design. the living and the deck areas, thus merging the To enter the house from car park/driveway, living/dining and the deck through the full height one has to cross the steel and timber bridge. Upon glass panels. This combination creates a single entering the house, there is a small entry hall with and large open plan ‘infinity’ platform with an a door to the master bedroom slightly on the right. undisturbed 360 view of the forest. Furthermore, 0 The master bedroom boasts 6.8metre wide (22 feet the extensive use of timber has created an wide) sliding glass doors which open to a generous extremely rich and warm feel for this space, terrace outside. From the main entry hall, one can complementing the forest nearby. walk down to the living/dining/kitchen located at Ultimately, this is a cosy and comfortable the lower ground floor via a steel/timber staircase. house to live in; providing extensive outdoor spaces This space is a majestic two-storey void enclosed for the occupants to enjoy the stunning green forest in glass with a full view of the surrounding forest. within the relatively cool climate of Janda Baik; as The master bedroom above can also view the living well as being designed and built with minimum area via this void. interference to the existing terrain. The living/dining/kitchen is designed as a single open plan space connected to the highlight of the house – a 10.5m (34.5 ft) long and a 6.8m (22 ft) wide timber deck supported by a steel structure underneath. The last 2.5m (8.2ft) of the deck is cantilevered out from its supporting beam to create the effect of an “infinity deck”. The 51
INGENIEUR THInKIng & BUILDIng “GREEN” PROJECT REPORT By Sam CS Tan, Group Managing Director, Ken Holdings Berhad The writer shares the energy-saving measures and environment-friendly principles behind KEN Bangsar, a residential development that has earned the highest green recognition in Malaysia. He affirms that reducing the energy footprint of a building requires mindset change towards green and sustainable living for its occupants. onventional thinking dictates that to save Cmoney, energy usage should be minimised and the use of air-conditioning or water be as little as possible. But, proper forward planning, together with the evolution of technology has come to a point where this statement is not necessarily the case. Here, KEn Bangsar is one of the best examples. When we started on KEn Bangsar, we did not build or construct with the aim of winning any award nor cater to the criteria of being a green Building. The project was developed and constructed based on what we felt were right principles. It has also always been our philosophy that we are not just building a structure or home per se, but that everything we do is to “Develop Your Future”, which is our tagline, and to create and aid in sustainable, green living. We always believe that homes which are passively- designed harness the use of natural energy and resources, which in the long run works to maximises the thermal comfort of a home. such designs will Figure 1: KEN BANGSAR – Malaysia’s 1st Multiple Award-Winning significantly improve the comfort High-Rise Residential Development 6 VOL 55 JUNE 2013 52 VOL 56 SEPTEMBER 2013
Figure 4: Laminated low-E glass is used throughout the building, allowing for abundant natural daylight into each unit. At the same time, the low-emissivity coating on the glass reduces heat and harmful solar UV radiation into the units, thus decreasing the dependence on excessive air conditioning to cool the interior. in a home and reduces the need for a cooling system. In KEn Bangsar, passive principles are utilised to achieve optimum energy savings by tempering interior temperatures and maximising the natural lighting advantages of the building. Homes that are passively designed harness the advantage of our natural climate to maintain maximum thermal comfort. In Malaysia’s tropical climate, building interiors are conventionally kept cool by air-conditioning units which Figure 5: Large balconies and ledges that extend up to 1.5 metres necessitate a high consumption around the façade of the building provide further shade against our of electricity. Modern air tropical sun. Sliding doors and windows can be easily opened to conditioners are now produced take advantage of the abundant breeze on the peak for ultimate, with inverter technology, which natural ventilation. uses a variable-frequency drive to control the speed of the motor air conditioners, which use only compared against Ms1525 and the compressor. This allows one compressor unit to power requirements, the estimated the aircond unit to continuously multiple indoor units. The result annual energy savings yielded regulate its thermal transfer is up to 60% in energy savings by these innovations are flow (and hence its energy compared to conventional 489,124kWh, leading to consumption) by altering the split-unit air conditioners. The further reduction in annual CO 2 speed of the compressor in penthouses are further fitted emissions by 293,474kg. response to cooling demand. with the latest energy efficient KEn Bangsar also boasts KEn Bangsar is fitted with inverter-driven Daikin VRV II air- of KEn’s proprietary, innovative with Daikin’s multi-split inverter conditioning systems. When cooling system, called ‘CHEEL’, 53
INGENIEUR GREEN AWARDS GALORE FOR KEN BANGSAR KEn BAngsAR is a 15-storey residential building located on the peak of Bukit Bandaraya – the highest point in Kuala Lumpur – in the affluent, progressive suburb of Bangsar, Kuala Lumpur. It is widely-recognised as the most environmentally-friendly residential project in the country due to the numerous green initiatives that had been incorporated into the design philosophy and subsequent construction of the building. KEn Bangsar was duly accorded several prestigious awards, including the green Mark goldPLUs Award from the Building and Construc- tion Authority (BCA) of sin- gapore, the first such award ever accorded to a Malaysian property. In 2010, KEn Bang- sar was also the winner of the Malaysian green Building Index (gBI) gold Award, and the recipient of The Edge’s Figure 2: Awards won by KEN Bangsar. PAM green Excellence Award 2010. In recognition of its status as the pioneering exponent in the green building movement, KEn was also awarded the Best green Developer 2010 title by new straits Times. In March 2011, KEn Bangsar was the recipient of the Citation award in the Residen- tial Architecture – Multiple Houses category in the FuturArc green Leadership Awards 2011. KEn Bangsar also won the most prestigious award, the FIABCI Malaysia Property Award 2011 under the sustainable development category. Figure 3: A lot of effort has been pursued to obtain approval to beautify the surrounding of the reservoir for the benefit of owners and the community of Jalan Kapas. Extensive greenery accompanied by recycled tiles wall feature screen off the area on the road leading into Ken Bangsar. 6 VOL 55 JUNE 2013 54 VOL 56 SEPTEMBER 2013
in its reception lobby. The CHEEL Together with the wind inconvenience of renovating system recycles condensate tunnel that was deliberately their ceilings to accommodate water from the building’s air- designed into the lobby area additional lighting needs. All conditioning units (which would to exploit the clean, plentiful penthouses are fitted with have otherwise been discharged breezes at the apex of the hill lighting control systems, into drains) whilst an Aumada and to maximise air circulation, which automate energy usage Wizard heat pump harvests the CHEEL system produces an throughout the three-storey waste heat from the air- energy savings of approximately penthouses using timers and conditioning compressors. This 5,084kWh per annum. This dimmer switches to reduce enables hot water to be recycled innovative use has eliminated power consumption. and utilized for public areas of the need to install a 40HP not only taking into con- the buildings, for example the air-conditioning unit that sideration the end result, two toilets on the ground floor. At the would otherwise have cost an different zones — working and same time, cool air discharged estimated RM5,000 per month resting — were created with tim- from the heat pump is recovered to run. The CHEEL waterfall ers set in each of them during and piped to an aesthetically also has the added benefit of construction itself. Creating tim- pleasing, evaporative two- providing a pleasant sensory ers for the two zones effectively storey high indoor waterfall to experience for visitors. ensure that electricity consump- facilitate natural ventilation. Apart from that, KEn tion could be monitored and This in turn provides residents Bangsar was the first residential wastage eliminated accordingly. with improved indoor thermal building in the country to pre- Proper and thorough planning comfort by naturally lowering install energy efficient, 13-watt was also undertaken during the the temperature of the double compact fluorescent lights life cycle of the project, and only volume lounge and lift lobby for all units. As such, buyers areas that required lighting were where the waterfall is sited. were saved the expense and illuminated. Figure 6: KEN’s proprietary, innovative cooling system - ‘CHEEL’. 55
INGENIEUR Figure 7: KEN BANGSAR’s double volume lounge utilizes the CHEEL system, incorporated through decorative waterfall wall. collectively serve to reduce overall electricity consumption. Passive infra-red motion sensors installed in public areas act to Figure 8: Our definitive black and beige marble wall in the lobby activate lighting only when the was constructed by reusing cut marble. In keeping with our green presence of traffic is detected, principles and belief, instead of discarding the marble pieces, cut out of size and not reused in the building of the units, we have providing further energy savings recycled and reconstructed the odd-sized pieces to create an of 5,154kWh per annum. Energy aesthetically-pleasing wall. saving lifts are used in the building, ensuring that the lifts go to sleep when not in use. Energy efficient light On top of that, energy- With these efforts, the fixtures have also been installed savings measures such as monthly electricity bill for the in all common areas, including motion sensors in areas with common areas averages only the car park, staircases and other less traffic, the dearth of air- RM2,000 per month, compared external sections, yielding a total conditioning in the reception with other projects of a similar energy savings of up to 70.55%. lobby and lift lobbies at all scale, which average RM8,000 Energy-efficient LED lights in the levels, light management per month. building’s façade help save an via timers and the selection KEn Bangsar features an additional 7,300kWh each year. of such lighting as T5 bulbs energy-efficient central water 6 VOL 55 JUNE 2013 56 VOL 56 SEPTEMBER 2013
heating system which provides KEn incorporated a water ware manufactured by Toto, an uninterrupted supply of hot harvesting tank into its design Dornbracht, Villeroy & Boch, water to all units. The annual for the rooftop of KEn Bangsar. and Hoesch are being used and energy savings from utilising a surface water from the roof is these collectively reduce the central water heating system collected in the tank and a drip base annual water consumption instead of individual water irrigation system with sensor of the building by 50%. KEn heater units in each residence is controls that is linked to the tank Bangsar penthouses enjoy estimated at 131,765 kWh per releases rainwater to irrigate the luxury of the world’s most year, with annual C0 emission the landscape throughout the technologically advanced WC, 2 reductions of 56,000kg per year. grounds of KEn Bangsar, thereby the TOTO neorest, chalking up Water usage in the units reducing potable water usage yet another first in the country. is similarly minimised via a dual for landscape irrigation by 50% The use of low-VOC (volatile flushing system in the toilets. and saving approximately 4m of organic compound) paints in 3 In the common bathrooms, base potable water consumption KEn Bangsar ensures that the hot water is provided by a heat per day. In this manner, the usage indoor environmental quality is pump which harvests waste of potable water for landscape preserved and this forestalls heat from the air-conditioning irrigation is kept to an absolute the health and environmental compressors, converting it into minimum. hazards caused by conventional hot water for public area toilets. The installation of water petroleum-based paints. Malaysia enjoys an efficient fittings and sanitary In KEn Bangsar, the average annual rainfall of ware also helps the reduction swimming pools are filled with 2,500mm or 100 inches of rain of use of potable water in the saltwater which, through the per year. Taking advantage of the project. In KEn Bangsar, water- process of electrolysis by the abundant rainfall in the country, saving fittings and sanitary chlorinator, converts natural Figure 9: KEN BANGSAR’s salt chlorinator pool eliminates common problems for swimmers caused by chemical chlorination. 57
INGENIEUR Figure 10: KEN Bangsar is an exemplary project where we successful readapted the previous existing construction. Instead of discarding everything from the existing structure, we put aside and reuse materials that were still in good condition. The salvaged tiles were being reused to construct the feature wall at the penthouse swimming pool. salt into sodium hypochloride, with sK Kaken Cool Tight heat- need not be a tidal change. the sanitizing agent commonly insulating paint, thereby giving nor does it require technical, used in swimming pools. Apart the roof a u-value of 0.16W/ scientific intervention to from reducing the carbon m and minimising residents’ happen. Many of us have 2 footprint of the building (on-site dependence on air-conditioning already adopted the use of chlorine generation utilises far to cool down the interiors of energy saving bulbs, which less energy than commercial their residences. operate on the same principle: chlorine plants), saltwater In Malaysia, there is the higher upfront capital costs in chlorination eliminates the need sirim Ecolabel scheme, which is return for (significantly) lower for excessive use of chemicals the government’s way of commu- energy consumption. whilst yielding the additional nicating a product’s environmen- Ultimately, once one’s mind benefit of reduced maintenance tal benefits to consumers. Under is made up to keep to green, costs. The saltwater pool also this, products are independent- sustainable living, it is ultimately eliminates common problems for ly tested and verified against only a matter of selection. Pay swimmers caused by chemical preset criteria before they are a little more initially and watch chlorination such as stinging qualified. the payback in cost savings. This eyes, rashes and unpleasant singapore practises is all a symbiotic circle, though chemical odors. its green Labelling scheme, not one which many people have To alleviate the effects of which was launched in 1992 recognised just yet. Malaysia’s tropical heat, KEn and applies to most products, When making a decision, Bangsar was installed with a except food, drinks and we often always ask ourselves, metal roof above the penthouse pharmaceuticals. Post-testing, “What is in it for us?” units. This effectively creates the green Label are applied to This is the very mindset we a double roof with double products which meet the eco adopt when building our proper- insulation, affording the building standards specified by the ties. For every project we under- an extra layer of protection scheme and is recognised by the take, we ask ourselves, “What against the impact of intense international global Ecolabelling are we building for our buyers solar heat radiation on its roof. network. and what is in it for them?” The metal roof incorporates In essence, the more ticks As we continue to effect a layer of fibreglass wool and a product or property is awarded, change from top down, the another layer of high-density Dow the greener that product is. decision to consistently practice extruded polystyrene. The top In conclusion, the practice a green and sustainable lifestyle of the roof was further painted of reducing our energy footprint is much easier to make. 6 VOL 55 JUNE 2013 58 VOL 56 SEPTEMBER 2013
REIT Management & Pivotal Role of the REIT Manager By Dato’ Jeffrey Ng Tiong Lip, CEO, Sunway REIT Management Sdn Bhd THE BASICS OF REIT Diagram 1: A generic REIT structure InVEsTMEnT Sponsor Real Estate Investment Trust (if applicable) Unit holders (REIT) operates under a highly Investment Distributions governed regime where interests in Units Acts on behalf of unitholders are the outmost Management of unit holders services priority. In Malaysia, the relevant REIT Manager REIT Trustee laws and guidelines governing Management Trustee Fees Fees are the securities Commission guidelines on Real Estate Investment Trusts, securities Commission Licensing Regulators Handbook, Capital Markets Indirect Agents services Act 2007, Bursa (MRMA, APREA) Malaysia Main Market Listing Diagram 1: A generic REIT structure Requirements. Source: Sunway REIT A generic REIT structure is illustrated in Diagram 1. The parties involved in REIT level to be injected into REIT. management track record and management are the REIT The indirect agents such as high level of integrity. manager whose role is to Malaysian REIT Managers The key differentiating manage and administer the Association (MRMA) and Asia factors that distinguish REIT REIT in accordance with the Pacific Real Estate Association managers are: objectives and investment policy (APREA), being the external 1. Clearly defined sustainable of the REIT and the REIT Trustee parties, act as promoters for growth plans who acts in the interest of the the Malaysian REITs (M-REITs) 2. strong corporate governance unitholders and has its role as a industry. 3. Transparency in disclosures. custodian for all the assets of the It is crucial for a REIT REIT. The REIT is constituted by KEY ATTRIBUTES OF A REIT manager to have clearly defined a deed made between the REIT MANAGER growth plans and strategies to Manager and the REIT Trustee. ensure sustainability in growth The relationships of both parties REIT management in essence of the REIT over the medium to are governed by this deed. is more complicated than most long term horizon. This increases Depending on the REIT people think. The fundamentals the growth visibility and better structure, a REIT may be backed of REIT management encompass appreciation of the business by a sponsor. A sponsor has a broad spectrum of areas as model by investors. two key roles to play; that is illustrated in Diagram 2. strong corporate to supply pipeline assets to The basic skills of a governance provides the the REIT for continuous growth strong REIT manager are framework for setting and and to incubate assets before measured by management pursuing objectives to reflect the the assets achieve the optimal strength, experience, expertise, context of the social, regulatory 59
INGENIEUR difference. The REIT Manager, Diagram 2: Key attributes of REIT Manager Diagram 2: Key attributes of REIT Manager being the landlord of the properties collects rental from Management Strength Integrity its tenants. The rental income (experience, skill set) after deducting all the operating expenses and expenses related to the funds is distributed Key attributes of REIT Transparency in to unitholders as income Growth Plan Manager Disclosures distribution, commonly known as distribution per unit (DPU). The skills set of REIT Manager is recognized based Engagement with Corporate Regulatory on his/her ability to enhance Governance value for existing assets under Source: Sunway REIT Bodies management and accompanying growth strategies to create value to unitholders in terms of DPU and market environment. facilitate institutional investors and total return. It involves the alignment of in making informed investment In general, REIT managers interests amongst stakeholders. decisions, providing access are broadly classified into three strong corporate governance to management is crucial categories, Passive Manager, enhances transparency, for investors to have better Conventional Manager and Value procedures and processes, understanding of management’s Added Manager (as per Diagram systems and controls as well as growth plan and strategies. 3). A Passive Manager acts as risk management. For instance, In addition, high levels of a rent collector and exercises enhancing board of directors’ transparency and timely prudent cost management. aggregate experience and dissemination of information The manager may occasionally skill set through professional across all communication undertake asset management background brings diversity to channels is essential for initiatives (AMI) such as rental the board in decision making. investors to be abreast of the reversion, optimization of Related party transaction latest developments of the tenancy mix and operational is an area of high scrutiny by REIT. It is essential to ensure efficiency enhancement. A investors. Corporate governance that minority interests are passive REIT Manager will in this area may be enhanced not neglected. These can be usually continue managing the by implementing clear policies achieved through a robust properties that were injected and procedures in respect of investor relations framework. into the portfolio since inception making full disclosures and Lastly, continuous and highly unlikely to undertake obtaining relevant approval engagement with regulators and further acquisition activities. where applicable. industry associations such as This management style provides strong corporate MRMA and APREA via dialogues high level of income certainty governance is not merely to is necessary to brainstorm ideas and predictability to investors, satisfy investors. It acts as a and issues pertaining to the however growth prospects may protection and enhancement industry for further improvement be minimal. Investors investing of investors’ value which and growth of the industry. in these REITs should expect essentially relates to gaining steady return from distribution trust from stakeholders. REIT MANAGER COULD MAKE with limited upside from capital Investors around the globe THE DIFFERENCE appreciation. expect seamless communication A Conventional Manager’s where information is transparent In REIT management, it is the role expands beyond the and readily available. In order to REIT Manager that makes the functions of the Passive Manager. 6 VOL 55 JUNE 2013 60 VOL 56 SEPTEMBER 2013
Diagram 3: The role and skills of REIT manager Diagram 3: Te role and skills of REIT Manager REIT Managers Passive Manager Conventional Manager Value Added Manager 1. Rent collector 1. Rent Collector 1. Rent Collector 2. Exercise cost management 2. Exercise cost management 2. Exercise cost management 3. Undertake asset 3. Undertake AMIs 3. Undertake active AMIs management initiatives (“AMI”) 4. Undertake asset enhancement 4. Undertake active AEIs initiatives (“AEI”) 4. No acquisition 5. Proactive capital management 5. Acquiring matured assets with steady income stream every 6. Active acquirer (including acquiring now and then non-performing assets) Minimal growth prospects, Moderate growth prospects, Strong growth prospects, enjoy growth steady DPU steady with some growth in DPU in DPU Source: Sunway REIT A Conventional Manager generally mature assets with a steady management programme undertakes more active roles in income stream from time to reduces refinancing risk the management of the REIT in time. A REIT operating under and may potentially lead to the pursuit of achieving organic such management style offers substantial savings in interest growth and inorganic growth. moderate growth prospect expense which will flow directly In addition to AMI activities, a where investors are likely to to the distributable income for Conventional Manager attempts enjoy steady income streams unitholders. to unearth the full potential of with some upside in capital A Value Added Manager the properties through asset appreciation. demonstrates his/her growth enhancement initiatives (AEIs). The third management strategy by embarking on active Examples of AEI activities style goes beyond conventional acquisitions. The acquisition encompass reconfiguring of retail REIT management functions. The trail expands beyond the space, increasing net lettable Value Added Manager adopts conventional strategy of area (nLA) by converting non- a holistic approach involving acquiring mature assets with income producing, low yielding extended roles of traditional a steady income stream. This rental areas and common areas property management. A Value category of REIT manager into lettable space as well as Added Manager undertakes acquires distressed assets embarking on refurbishment active AMIs and AEIs to maximize or non-performing assets at exercises. AEI activities will lead the full potential of the properties bargain prices and subsequently to additional rental space and and simultaneously embark on turns around these assets. The potentially higher rental rates, proactive capital management to value creation for a successful thus translating into organic achieve the optimal debt profile turnaround asset is tremendous growth of the REIT. A Conventional that matches its short to medium which leads to a quantum leap in Manager endeavours to achieve term financing requirements. income as well as appreciation inorganic growth by acquiring A well implemented capital in the capital value of the asset. 61
INGENIEUR Diagram 4: Comparison of withholding tax regime between M-REITS and S-REITS Diagram 4: Comparison of withholding tax regime between M-REITs and S-REITs Type of Unitholders Malaysia Singapore Resident / non-resident individuals 10% NIL Resident companies No withholding tax – 17% income tax at 25% Non-resident companies 25% 10% Resident / non-resident institutional 10% 10% investors Source: Sunway REIT REITs managed by a Value played a pivotal role in supporting December 2016 however there Added Manager typically offer the growth of REIT industry in was no revision in the withholding higher growth prospects where enhancing the competitiveness tax rate. In comparison investors enjoy growth in DP of M-REITs vis-à-vis regional to singapore, Malaysia’s and potentially gains in capital players. Whilst some regulations withholding tax rate is still less appreciation. That said, the are at par with the regional REIT attractive for individual and non- flipside of this strategy is the markets, there is definitely room resident corporate. non-resident accompanied risk in acquiring for further improvement. companies investing in s-REITs distressed assets. are offered a concessionary It is crucial for investors 1. Withholding Tax – Room for tax of 10% until March 2015. to understand one’s investment relaxation The lowering of tax rate for this objective and select the REIT The most discussed topic category is aimed at attracting manager with the accompanying is definitely with regards to foreign investment into s-REITs. investment style that matches withholding tax. Diagram 4 In the context of Malaysia, non- their investment objectives. outlines the withholding tax resident companies are taxed structure for M-REITs and at 25% which makes it less REGULATION AND POLICIES singapore REITs (s-REITs). In compelling for foreign corporate the Budget 2012 announcement, to invest in M-REITs. since the inception of the first the withholding tax for Malaysia In singapore, retail inves- REIT in 2005, regulators have was extended for five years to tors enjoy tax exemption on with- Diagram 5: Comparison of gearing limits between M-REITs and S-REITs Diagram 5: Comparison of gearing limits between M-REITS and S-REITS Malaysia Singapore Total borrowings should not exceed 50% of Total borrowings should not exceed 35% of the the total asset value of the fund. total asset value of the fund. The gearing limit may increase to a maximum of 60% if a credit rating from Fitch Inc, Moody’s or Standard and Poor’s is obtained. Source: SC Guidelines for REITs and MAS Code on Collective Investment Schemes 6 VOL 55 JUNE 2013 62 VOL 56 SEPTEMBER 2013
holding tax. Meanwhile, retail Diagram 6: Comparison of issuance of new units (without a general mandate) investors investing in M-REITs Diagram 6: Comparison of issuance of new units (without a general mandate) are subject to a 10% withholding The typical timeline for issuance of new units (subject to change depending on circumstances) FOR ILLUSTRATION PURPOSE ONLY tax. Although retail participation Issuance of new units in Malaysia * in M-REITs is low at this stage, (Without general mandate from unitholders) relaxation of withholding tax in Submission to SC for Bursa’s approval of Notice period to Pricing, placement, approval for issuance of new unitholders’ circular & unitholders for EGM issuance and listing the individual category may also units & increase in fund size additional listing application issuance of circular of new units encourage more retail partici- 4 - 6 weeks 2 weeks 1 day 2 weeks pations in M-REITs. Essentially, Estimated Duration : 8 - 10 weeks (excluding preparatory time) REITs are a good investment for * If the exercise involves property acquisition, an additional 2 weeks is required for submission to SC for valuation purpose retail investors for the long term Issuance of new units in Singapore as it enjoys stable dividends in- (Without general mandate from unitholders) come with potential capital ap- Notice period to EGM Placement & Settlement & Pricing Listing unitholders for preciation. Issuance of circular 14 days 1 Day 1 week 3 Days 2. Gearing Limit - Provide for Estimated Duration: 4 weeks (excluding preparatory time) higher debt headroom Source: Sunway REIT Diagram 5 depicts the permissible gearing limits set by the respective jurisdictions Diagram 7: Comparison of issuance of new units (with a general for Malaysia and singapore. The Diagram 7: Comparison of issuance of new units (with a mandate) mandate) permissible gearing limits for The typical timeline for issuance of new units (subject to change depending on M-REITs are capped at 50% of circumstances) FOR ILLUSTRATION PURPOSE ONLY Issuance of new units in Malaysia (up to 20% approved fund size with mandate)* total assets value while s-REITs Stage 1 : Pre-Placement Bursa’s approval of may increase its gearing to a Submission to SC for unitholders’ circular & Stage 2: Execution of placement Pricing, placement, issuance and approval for issuance of additional listing maximum of 60% if a rating by new units & increase in application listing of new units fund size Fitch Inc., Moody’s or standard 4 - 6 weeks 2 weeks and Poor’s is obtained. Estimated Duration: 2 weeks for execution of placement (excluding preparatory time of 4 weeks) In our view, the government should consider relaxing the * Under updated REIT guidelines issued in Dec 2012, it is compulsory for REIT to hold AGM and REIT may obtain mandate at the AGM gearing limits to be at par with Issuance of new units in Singapore singapore. A move from 50% (Up to 20% approved fund size with general mandate) gearing limit to 60% provides Offering Circulars lodged Announce successful Approval in Settlement & bookbuilding & final with MAS, Bookbuilding principle for listing Listing of new flexibility for debt headroom and pricing price from SGX units to facilitate acquisitions via T T + 1 T + 6 Day T + 9 Day debt. Debt funding is typically Estimated Duration: Within 10 market days (excluding preparatory time) Source: Sunway REIT speedier and “cheaper” than equity financing. The additional 10% allowance will benefit In singapore, the process is compressed timeline provides M-REITs with sizeable asset half the time as compared to the REIT manager with more under management. Malaysia. The main difference is flexibility in timing to catch the time allocated for authority windows of opportunity in view 3. Private placement and approval and issuance and of the volatile equity markets. issuance of new units - Strive listing of new units. The timeline similarly, the timeline for speedier process is illustrated in Diagram 6. for the private placement and In Malaysia, the process for The move to shorten issuance of new units for private placement and issuance the timeline for the necessary REITs with existing mandate is of new units exercise without a approvals bodes well for speedier in singapore compared mandate in place typically takes REITs for speedier completion to Malaysia as illustrated in between eight and ten weeks. of the corporate exercise. A Diagram 7. Investors prefer 63
Diagram 8: Comparison of development exposure between M-REITs and S-REITs Diagram 8: Comparison of development exposure between M-REITS and S-REITS Malaysia Singapore The exposure to real estate under The total contract value of property construction does not exceed 10% of total development activities undertaken should not asset value (after the acquisition) provided exceed 10% of total asset value. that: 1) No substantial dilution in EPU during construction period 2) Purchase agreement to take into consideration of construction risks 3) Favourable prospects upon completion Source: Sunway REIT from the day of placement In the consider allowing this as a speedier issuance of new units new provision in the securities in order for the investors to ‟ Commission guidelines on Real make the necessary decision foreseeable Estate Investment Trusts. in tandem with equity market condition. future, REIT CONCLUSION 4. Development Exposure – M-REITs have enjoyed exponen- Allows greater flexibility tial growth in recent years. Mar- In Malaysia, greenfield develop- management ket capitalizations of M-REITs ment is not allowed. However have leaped from RM356 million estate under construction with as a business in December 2005 to just below M-REITs may be involved in real RM35 billion in August 2013. an exposure of not exceeding The growth momentum 10% of total asset value provid- is expected to in M-REITs has placed M-REITs ed that: on the radar screen of foreign i. no substantial dilution in investors resulting in higher DPU during the construction flourish and foreign participation in M-REITs period which contributes positively to ii. Purchase agreements to the overall growth of the capital take into consideration of prosper. market in Malaysia. construction risks With the emergence of iii. Favourable prospects upon more players in the M-REITs completion space in the foreseeable In singapore, REITs are In matured REITs markets, future, REIT management as a permitted to take up to 10% of limited acquisition opportunities business is expected to flourish total asset value of development have led to REITs venturing into and prosper. This will lead to activities including greenfield development activities. As the higher level of professionalism, development. (refer to Diagram property market in Malaysia compliance and corporate 8) matures, authorities should governance. 64 VOL 56 SEPTEMBER 2013
DIsCIPLInARY HEARIng – CASE STUDY he Respondent was charged with their consultancy services and fees. EngInEERIng & LAW contravening Regulation 31 of the (iv) In March 2007, the Complainant found TRegistration of Engineers Regulations that secondDev had appointed another (RER) 1990 (Revised 2003). The charge consultant, the Respondent for the C&s focused on subsection (a) and (b) of Regulation works. The Respondent had commenced 31; viz. that the Respondent directly or works on the partially completed buildings indirectly (a) supplanted or attempted to at the site. supplant the Complainant, and/or (b) intervene (v) The Complainant had nOT given a Letter or attempted to intervene in or in connection of Release to the project as fees were with C&s engineering work of any kind which to outstanding. They had also given drawings the Respondent’s knowledge had already been to secondDev but secondDev had not entrusted to another Engineer. paid them for engineering input for the drawings. FACTS OF THE CASE (vi) The Complainant had explained and written to secondDev and the Respondent that The Board of Engineers Malaysia (BEM) they needed to be compensated in order received a complaint from an Engineer (the for the Letter of Release to be issued but Complainant) against another Engineer (the both secondDev and the Respondent had Respondent) regarding a Project “Cadangan not agreed and had not responded. Pembinaan Pembangunan Kedai, Pangsapuri (vii) On the other hand, the Respondent Kos sederhana dan Apartment Kos sederhana claimed to have been informed by their Rendah dan Bangunan Perniagaan”. The facts client secondDev that the Complainant’s of the case were as follows: appointment was by the previous (i) The project was a state government developer, FirstDev, and not by secondDev related project under the entity stategov or stategov. As such, the Respondent felt which had appointed a developer FirstDev that the Complainant was not contractually to design and build the project. connected to the project and that was the (ii) FirstDev had appointed the Complainant basis of the Respondent providing the as C&s and M&E Engineers for the project consultancy services to the project. in 1996. The Complainant had been Pursuant to the complaint the Board working for almost 10 years until FirstDev appointed an Investigating Committee (IC) to abandoned the project. At the time of carry out an investigation. The findings of the abandonment some building blocks were IC were as follows : completed while others were partially built. (i) The Respondent was aware and agreed (iii) In 2006 secondDev, a new developer that he took over a partially completed engaged by stategov requested the project. Complainant to provide C&s and M&E (ii) The Respondent was aware of the drawings for estimation and proposals Complainant’s earlier role as the Engineer to take over the project. After secondDev for the project. had successfully taken over the project, (iii) There was no letter of release from the the Complainant was requested to quote Complainant. 65
INGENIEUR (iv) The Respondent claimed that since (iii) The Respondent is aware of the BEM there was no agreement between the Circular no. 1/2006 on “guidelines second developer secondDev and the for an Engineer taking over the work of Complainant, the need of a Release Letter another”. However, he believed that if a did not arise. Local Authority allows the new Engineer to (v) As the Respondent had knowingly taken submit drawings, then it is OK. He stated over a project in which the engineering that the general practice in Malaysia on services had been rendered by a first the issue of whether one can submit or engineer whose services had not been not, is to refer to the Local Authority. The properly terminated, the IC was of the acceptance of submission by the Local view that there was a case for the Board Authority is an indication that all is well. to pursue. (iv) He reiterated that he had no intention to (vi) The IC recommended that the Board go against the guidelines in the Circular, conduct a hearing on the complaint as the but there were some provisions which Respondent had breached Regulation 31 were not clear, e.g. the words ‘engineering (a) and (b) for supplanting and intervening work’ in his opinion must mean that there thereby contravening section 15(1)(g) of is a contract or agreement between the the REA. client and the Engineer, i.e. the Engineer should have an agreement before he can RESPONDENT’S DEFENCE participate in any work. (v) notwithstanding that, the Respondent The Respondent stated in his defence as had asked secondDev to settle with follows: the Complainant, as in the context of (i) He had received some drawings from maintaining good relations, he wanted secondDev. Although the drawings carried a fellow consultant to feel comfortable. the Complainant’s markings, he did not The Complainant believed that he was know if secondDev had obtained the supplanting but he himself did not believe drawings from the owner stategov or from so. To him, he was not taking over from the Complainant, and thus it raised the the Complainant, rather he was doing an question of who owned the property rights uncompleted job. to the drawings. If the drawings were the property of stategov, then it would be DELIBERATION alright for the Respondent to use. (ii) The Respondent had no communication The Respondent was charged with with the Complainant except on one contravening Regulation 31 of the RER 1990 occasion when the Complainant called to (Revised 2003). The charge itself focused on say that the Respondent was supplanting. subsection (a) and (b) of Regulation 31; viz. On his part, he fully believed that the that the Respondent has directly or indirectly second developer secondDev had no (a) supplanted or attempted to supplant contract with the Complainant and hence the Complainant, and/or (b) intervene or any communication with the Complainant attempted to intervene in or in connection with should be through secondDev. He C&s engineering work of any kind which to the also stated that he has a letter from Respondent’s knowledge has already been secondDev confirming that there is no entrusted to another Engineer. agreement between secondDev and the The key element of Regulation 31(a) Complainant. notwithstanding that, he is that the Respondent had supplanted the had asked secondDev to settle with the Complainant i.e. taken the place of or replaced Complainant. the Complainant in the Project; while the 66 6 VOL 56 SEPTEMBER 2013 VOL 55 JUNE 2013
key element of Regulation 31(b) is that the Further, secondDev had given the Respondent Respondent had knowledge that the work he some drawings prepared by the Complainant. was intervening in, had already been entrusted Based on the evidence, the DC concluded that to the Complainant. the Complainant was the first Engineer for the The evidence showed that the Respondent project and they had not been discharged or was aware of a prior submitting engineer when terminated from the job. The Complainant had he testified that he had received drawings also not issued any Letter of Release to any with the name of the Complainant as the C&s other Engineer to take over the job. Consultant. This evidence is important as it The DC then looked at the issue raised showed that the Respondent had the knowledge by the Respondent that he was doing an and knew the identity of the prior submitting uncompleted job for a different client. The engineer, and such knowledge was important to Board’s Circular no 1/2006 - “guidelines for prove subsection (b). an Engineer taking over the work of Another” With regards to subsection (a), all the defines ‘client’ under section 2.4 as “the Client parties involved acknowledged that the Project shall include the ‘registered proprietor’ …… for which the Respondent became involved in the development of the land and/or buildings. was essentially the same Project that the ‘Registered proprietor’ can be …….. or any Complainant was the Consultant some ten other legal entities whose names and/or legal years earlier. The project owner was the same, identities are endorsed on the title of the land but the developer appointed by the owner was …. and/or buildings.” Based on this definition, different. In his defence, the Respondent had as the land owner secondDev is the same, the argued that his client secondDev (the 2nd DC concluded that the client for the job is the developer) was different from the Complainant’s same. client FirstDev (the 1st developer), and there Hence the Respondent in taking over was no work contract or agreement between the same job for the same client without a secondDev and the Complainant. Hence he Letter of Release from the first Engineer had was not taking over from the Complainant, but thus supplanted or replaced the Complainant; rather he was doing an uncompleted job for a satisfying the key element of Regulation 31(a). different client. As the issue of client had been examined The Discipline Committee (DC) deliberated earlier, the DC concluded that the key element on this issue and noted that the work involved of Regulation 31(b) has been satisfied. and the project owner were the same. In addition, Thus, the DC concluded that the key all the parties involved had acknowledged that elements of the Charge have been fulfilled/ some work was already done before the 1st satisfied and found the Respondent gUILTY as ‟ developer FirstDev abandoned the project. charged. The Discipline Committee (DC) deliberated on this issue and noted that the work involved and the project owner were the same. In addition, all the parties involved have acknowledged that some work was already done before the 1st developer FirstDev abandoned the project. 67
INGENIEUR newly Emerging Methods EngInEERIng & LAW Of Contract Procurement In Malaysia: An Overview 1 By Ir. Harbans Singh K.S. he government has recently put into motion its Economic Transformation agency of government) which has received an TProgramme (ETP) which has a number which requires a public authority (usually an unsolicited bid for a public project (such as a of ‘entry point projects’ (EPPs) that are meant port, road or railway) or services to be provided to act as a driver of economic growth in the to Government, to publish the bid and invite third country. Whilst most of these projects will be parties to match or exceed it.” undertaken through the traditional procurement It goes on to define a ‘swiss Challenge routes such as turnkey, design and build, etc. system’ as: or the Public Private Partnership (PPP) models, “…. a new bidding process to help private some of the larger ones will adopt new models. sector initiatives in core sector projects. It’s an Of these new models, the two prominent ones offer made by the original proponent to the that are dealt with in brief here below are those Government ensuring his process to be best (in involving the ‘swiss Challenge system’ and the terms of effectiveness including both the factors, ‘Project Delivery Partner’ (PDP). cost and time) by his initiative as a result of his Very little is known in the public domain own innovative approach or on the demand of about both these models although projects the government to perform certain task. The involving billions of Ringgit are being undertaken Swiss Challenge System, like the Bonus System, along these routes; the Klang Valley Mass further allows third parties to make better offers Rapid Transit (KVMRT) project being the (challenges) for a project during a designated most well known illustration. Except for an period with simple objective to discourage occasional press statement or announcements frivolous project, or to avoid exaggerated project by listed companies undertaking the same, development costs. Then accordingly, the original very little information is made available to the proponent gets the right to counter-match any public notwithstanding the immense size and superior offers given by the third-party.” consequential impact these will have on the The following salient points should be public for generations to come. taken note of in regard to this system : 3 • It can be initiated either in answer to a Swiss Challenge System request from the owner to perform certain 4 Wikipedia defines a ‘swiss Challenge’ as : tasks or by the proponent on its own volition 2 “… a form of public procurement in making an offer to the owner as a result of some (usually lesser developed) jurisdictions its own innovative approach; 1 B.E. (Mech) S’pore, LLB (Hons) London, CLP, DipICArb, P.E., C. Eng., Advocate and Solicitor Malaya (Non-Practising). 2 See http://en.wikipedia.org/wiki/swiss_challenge 3 See http://en.wikipedia.org/wiki/swiss_challenge 4 i.e. the Government or Government agency or Government Linked Company (GLC). 6 VOL 55 JUNE 2013 68 VOL 56 SEPTEMBER 2013
• The owner then selects the particular Valley Mass Rapid Transit (KVMRT) Project and method to be employed in implementing the the ‘River of Life’ Project. Both projects are part swiss Challenge system; of the government’s Economic Transformation • The first option involves the owner offering Programme (ETP) meant to create the greater the original proponent an advantage in Kuala Lumpur/Klang Valley zone that will a competitive bidding process due to its purportedly act as a driver of economic growth. initiative and work done pursuant to the It is stated that the PDP method was motivated said initiative; by its alleged success in projects overseas; the • The second option permits the owner to UK Cross Rail and London Olympic Park projects purchase from the original proponent the being cited as two notable examples. However, as intellectual property rights for the project stated before, despite its immense importance, concept and then use a competitive bidding not much is known in the public domain as to process in which no bidder has a predefined the specific ambit and workings of the PDP advantage to award the project; and model as used locally. Recourse thus had to be • Where the owner has difficulty in finding the made to information made available in the public right balance, it is not uncommon to adopt domain through press articles, announcements a hybrid system combining elements of the made by the companies involved and particular swiss Challenge system and the Bonus web sites. system. A starting point is the following excerpt The system has had mixed results in from one of the PDP’s website : 6 different jurisdictions in view of its limitations, “…. As PDP our primary function is to implementation and problems with legal validity. ensure the successful completion of the MRT Hence, it cannot be said with certainty that within the pre-determined target cost and date. it can achieve the many attributes that have With PDP, the Government is ensured of a been touted by its promoters. In the Malaysian smooth implementation of the massive project.” context, it has been made known by the PDP The following summarises the PDP’s role of the KVMRT project that the owner of the within the massive MRT project: KVMRT has ‘agreed to grant the PDP. (through 1. Oversee the overall performance of the its nominated company which shall have the Design Consultants and Work Package same shareholding as the PDP) a right of Swiss Contractors Challenge to match the best evaluated tender 2. Manage the procurement process for all bid in respect of the underground work packages construction work packages jointly with the ... . Whether the swiss Challenge system is government of Malaysia 5 being, or will be adopted for other government 3. In the event a contractor or sub-contractor projects; be these at the Federal or state level does not meet pre-determined work package is relatively unknown at the moment. But with requirements, the PDP will step in at no risk the push for PPPs in the ETP of the government, to project delivery cost and time; and it is undeniable that the practitioner in the 4. To undertake all preparation, submissions engineering/construction industry is likely to and obtaining all approvals for the execution encounter more projects involving this form of of the project. public procurement. Further elucidation can be garnered from the following December 18, 2011 media Project Delivery Partner (PDP) release : 7 The PDP method is being used currently in at “….. the PDP plays the role of a project least two Entry Point Projects (EPPs) i.e. the Klang manager but with the added responsibility of 5 See http://www.com.my/content 6 See http://www.mmc.gamuda.com.my/project-delivery.html 7 by the Land Public Transport Commission in Star Newspaper of 19th December 2011. 69
INGENIEUR having to deliver the project within the agreed possibly, access) to the site, making the time and cost. Any cost overrun and project necessary payments, etc. Much depends on completion which are basic common risks in the particular PDP agreement involved; projects will be borne by the PDP. The PDP is • The Owner does neither give site possession not a turnkey contractor and the project will nor makes payments direct to the work be divided into work packages which will be packages contractors but only to the PDP awarded individually through open tender. The who in turn transmits these onwards to the Government will make the final decision on latter. so in this sense there is no privity of the awarding of contracts. The PDP will not be contract between the Project Owner and the allowed to tender for any of the work packages work packages contractors; except for the tunneling works. The Government • The PDP’s principal responsibility is the felt that an exception should be made as the delivery to the owner of the fully completed PDP is the only local construction company that and functional project within the agreed has experience in major tunneling works …… target cost and completion date. Nevertheless, the PDP will still have to compete • The PDP is responsible for the design of for the work package with other companies and the Project in accordance with the owner’s the award will be given on the basis of merit.” requirements. The works are divided into From the above-mentioned excerpts, packages and awarded to work packages press announcements by the relevant PDPs contractors through competitive bidding 8 and other information available in the public exercises administered by the Owner. domain, the following essential features of the • The work packages contracts are awarded by PDP model, as developed for the stated local the Owner but the PDP is liable for the due EPPs can be crystallized: performance of these contractors. In this • It is not a method of project procurement respect, the PDP is responsible for managing, but merely a method of “managing” the dealing with, coordinating, supervising and same; interfacing all the contractors. • The PDP is one of the parties in the project • since the PDP is responsible as the system set-up; the others being the principally owner, integrator of the entire Project, it has to step the consultants and the work packages in and deliver the works should any of the 9 contractors; work packages contractors default or fail to • The Owner is the government or a wholly perform. owned government linked company (gLC) • In this respect, the PDP generally carries e.g. the Mass Rapid Transit Corporation sdn “single point responsibility” for the Bhd; performance of all the works but also • The PDP is either a single or a jointly accountability for all aspects of the project controlled entity of construction companies; as set out in the PDP agreement. • The Owner’s scope of responsibility • The “single point responsibility” extends is generally confined to obtaining the even to the issues of claims and disputes 10 necessary approvals for the Project e.g. EIA whereby the work packages contractors are approval, etc. providing possession (and not permitted to proceed directly against 8 See also MMC’s Stock Exchange Announcement (10/2/2012) http://www.mmc.com.my/content.asp, Article ‘Are PDPs in too sweet a spot?’ by Risen Jayaseelan, Starbiz Tuesday 8 March 2011 and Article ‘A little education please: What does the project delivery partner of a multi-billion ringgit project do?’ by Errol Oh, Star 21 December 2011. 9 including the Independent Checking Engineers (ICE), Value Management Consultants (VMC), etc. 10 Including those involving for payments for work done. This becomes especially important in the light of the Construction Industry Payment and Adjudication Act 2012 (Act 746) provisions. 6 VOL 55 JUNE 2013 70 VOL 56 SEPTEMBER 2013
the Owner but only against the PDP. In the awarded the work package contract, the PDP event that they do proceed directly, the PDP is not permitted to manage and supervise the is required to indemnify the Owner against contract concerned; this being undertaken such claims and proceedings. usually directly by the Owner. But the PDP • The consideration paid to the PDB under the still remains responsible for the overall PDP agreement is a fee which is usually a delivery of the project. percentage of the agreed target cost of 11 the project. The latter generally comprises Conclusion the aggregate sum of all the awarded work In a similar vein to the “swiss Challenge packages, the amount of contingency system”, the PDP system is novel and relatively 12 allowed and the amount of reimbursibles untested on the local scene, its touted plus 13 incurred by the PDP in performing its points and advantages are rather speculative services. and subject to much conjecture . Whilst 18 • should the final project cost exceeds the admitting, it might have produced positive agreed target cost the PDP is generally results in other jurisdictions e.g. the Cross Rail liable for the cost overrun. The latter is and London Olympic Park projects in the UK, it recovered by the reduction of the fee based is uncertain whether the same model is being on an agreed formula stipulated in the PDP used in Malaysia. Even if the same model is agreement. being employed, it is also not known if suitable • If on the other hand, the PDP fails to complete amendments have been made to customize it the project by the agreed completion date, for the local conditions. For practitioners, the it is liable to pay the owner Liquidated and failure to engage the major industry players Ascertained damages at the rate stated in in terms of input or consultation before the PDP Agreement. implementing the PDP model for such important • Further liabilities of the PDP include those and money-wise major projects speaks little arising from claims brought by or disputes of the government’s oft repeated “mantra” of with the work packages contractors after transparency and accountability. Be that as the contingency has been exceeded and the it may, the die is cast and for better and for PDP has no recourse to the owner in respect worse, industry practitioners and the public of such excess. in particular will have to wait and accept the • The PDP is generally prohibited from end results; be these positive or burdensome. tendering for any of the work packages What is however clear is that together with the unless as expressly allowed for in the PDP “swiss Challenge system”, the PDP method agreement. In certain PDP Agreements, will feature prominently in the government’s 14 the PDP may be given a right using the ‘mega’ projects in future as these seem to be 15 “swiss Challenge system” to make bids the vogue not only with the politicians but also 16 for certain work packages; and the ‘heavyweights’ of the local construction • In the said situation, should the PDP be industry. 17 11 Which can vary from 5 - 10% although in certain cases it is around 6%. 12 Both the Owner and the PDP are allowed to use the contingency. 13 This can be a firm figure and include the PDP’s Overheads, fees for engineering consultancy, site investigation, topographical surveys, etc. 14 For example, the KVMRT PDP Agreement. 15 or through its nominated company in which it has substantial shareholding. 16 as previously discussed. 17 or its nominated company. 18 See article by Risen Jayaseelan, ‘Are PDPs in too sweet a spot?’, Starbiz Tuesday 8 March 2011. 71
INGENIEUR ADVERTISEMENT BOOKING FORM & RATE CARD ADVERTISEMENT RATES Position Per Insertion Position Per Insertion Back cover Where Engineers Excel Inside Front Cover RM7,000 Double Page Spread RM5,000 Inside Back Cover RM5,600 RM6,600 Facing Inside Front (Page 1) RM5,400 Facing Foreword/Message RM5,000 The Board of Engineers Malaysia (BEM), Gatefold (Ad on Left/Right) RM7,000 Facing Contents Page RM5,000 formed in 1972, is a statutory body Gatefold (Spread size) RM11,000 ROP Full Page RM4,000 constituted under the Registration of ROP Half Page RM2,200 Engineers Act 1967. BEM falls within the ADVERTISEMENT BOOKING FORM (Tick the appropriate boxes) ambit of responsibility of the Minister of Works. Its primary role is to facilitate the Issue registration of engineers and regulate the March 2014 professional conduct and practice of March 2013 June 2014 March 2015 registered engineers in order to June 2013 September 2014 June 2015 safeguard the safety and interest of the September 2013 September 2015 public. December 2013 December 2014 December 2015 The content in this magazine, written mainly Position Under BEM’s registration record are by the engineering community and Back cover Inside Back Cover 15,000 Professional Engineers and technical professionals, provides first-hand Inside Front Cover Double Page Spread 71,000 Graduate Engineers in various and valuable knowledge. There is a wealth Facing Inside Front (Page 1) Facing Foreword/Message disciplines and industries throughout of information on: Malaysia. Infrastructure design and Gatefold (Ad on Left/Right) Facing Contents Page development Gatefold (Spread size) ROP Full Page Published quarterly by BEM, The Ingenieur, Professional practice ROP Half Page reaches out to the engineering community Government policies and guidelines PAYMENT via a 13,500 print version as well as to Legal issues * Enclosed herewith our cheque no: __________ for RM ________ made payable to other readers via an e-format. Engineering personalities Lembaga Jurutera Malaysia Management ** To invoice us. Payment will be made within 1 month from the date of invoice Readership is estimated at 50,000. Continuous development of engineers. Name of Organisation : Contact Person : For advertising and subscription inquiries, please contact Designation : For advertising and subscription inquiries, please contact Board of Engineers Malaysia Address : Board of Engineers Malaysia Tingkat 17 Ibu Pejabat JKR, Tel / HP No. : Fax No : Tingkat 17 Ibu Pejabat JKR, Jalan Sultan Salahuddin, 50580 Kuala Lumpur Jalan Sultan Salahuddin, Email : Email : [email protected] 50580 Kuala Lumpur Tel : +603-2610 7095/96/97/98 Tel Email : [email protected] Signature : : +603-2691 2090 Fax : +603-2692 5017 Tel : +603-2698 0590 / 603-2610 2090 Send / Mail / Fax this form to: Communication & IT Department, Board of Engineers, Malaysia Fax : +603-2692 5017 Tingkat 17 Blok F, Ibu Pejabat JKR, Jalan Sultan Salahuddin, 50580 Kuala Lumpur. Tel: 03-26980590 Fax: 03-26925017 Email: [email protected] 6 40 VOL 4 MAR–MAY 2013 VOL 55 JUNE 2013 72 VOL 56 SEPTEMBER 2013 41
ADVERTISEMENT BOOKING FORM & RATE CARD ADVERTISEMENT RATES Position Per Insertion Position Per Insertion Back cover RM7,000 Inside Back Cover RM5,000 Inside Front Cover RM5,600 Double Page Spread RM6,600 Facing Inside Front (Page 1) RM5,400 Facing Foreword/Message RM5,000 Gatefold (Ad on Left/Right) RM7,000 Facing Contents Page RM5,000 Gatefold (Spread size) RM11,000 ROP Full Page RM4,000 ROP Half Page RM2,200 ADVERTISEMENT BOOKING FORM (Tick the appropriate boxes) Issue March 2013 March 2014 March 2015 June 2013 June 2014 June 2015 September 2013 September 2014 September 2015 December 2013 December 2014 December 2015 Position Back cover Inside Back Cover Inside Front Cover Double Page Spread Facing Inside Front (Page 1) Facing Foreword/Message Gatefold (Ad on Left/Right) Facing Contents Page Gatefold (Spread size) ROP Full Page ROP Half Page PAYMENT * Enclosed herewith our cheque no: __________ for RM ________ made payable to Lembaga Jurutera Malaysia ** To invoice us. Payment will be made within 1 month from the date of invoice Name of Organisation : Contact Person : Designation : Address : Tel / HP No. : Fax No : Email : Signature : Send / Mail / Fax this form to: Communication & IT Department, Board of Engineers, Malaysia Tingkat 17 Blok F, Ibu Pejabat JKR, Jalan Sultan Salahuddin, 50580 Kuala Lumpur. Tel: 03-26980590 Fax: 03-26925017 Email: [email protected] 41 73
INGENIEUR Dala Bamboo Village, Myanmar - Temporary PHOTO FEATURE Homes After Cyclone By Fong Chew Sing, ATAM, AAT(ASEAN) Dala Town in Myanmar was badly affected by Cyclone Nargis in 2008. In this area, a village has been rebuilt using mainly bamboo. The Bamboo Village is now equipped with shops, temple, common well and playground but relatively poor infrastructure and shabby houses. houses, common-user well with hand pump, playground, UnICEF /AMI office, etc. At the time of visit in June 2013, almost all houses were built with bamboo except the temple as well as a handful of houses which had been converted to timber houses. The Myanmar Irrawaddy delta Roads were basically earth region took a hard hit when tracks with sand bags laid for Cyclone nargis swept through the convenience of pedestrians the area causing loss of human during the monsoon season. life and damage to houses. Only the main access roads were Emergency rescue and temporary paved with gravel and some with habitat works were initiated to concrete. resettle surviving victims. The writer visited one affected area called Dala Town which is situated just across the Rangoon River from Yangon city. The resettled village is called Bamboo Village by locals as the houses were built with bamboo which is available locally and easy to construct. UnICEF was the main driving force among organisations that assisted and provided bamboo for surviving victims to construct their temporary shelters. The Bamboo Scenes of a ferry that serves as market place where local produce village is complete with shops, and vegetables are traded. Locals pay 50 kyats (RM0.15) but stores selling bamboo for those foreigner pay USD 2 for one way trip from Yangon Pansodan jetty who wish to repair or extend their opposite the Strand Hotel to Dala jetty. 6 VOL 55 JUNE 2013 74 VOL 56 SEPTEMBER 2013
Bamboo Village, Dala Entrance to Bamboo Village A better paved road in the village One of the few bamboo stores in the village selling A house under renovation. Attap leaves are bamboo pieces for house repair or extension commonly used as wall panel. Upgraded house using bamboo panels instead of National League for Democracy Party office (Aun attap leaves that are more commonly used. San Suu Kyi) at the centre of village 75
INGENIEUR Simple food stall Secondary road Simple house but well ventilated Some houses facing better paved road Road side drinks stall Another typical bamboo house 6 VOL 55 JUNE 2013 76 VOL 56 SEPTEMBER 2013
Leisure Lifestyle Generally poor but happy community. Author was greeted with smiles and curious looks from the children and elderly enjoying their leisure time. 77
INGENIEUR Water Supply & Other Services Community well that is hardly used – villagers Mobile water conveying tank prefer rain water harvesting source except during dry spell Rain harvesting system still the preferred choice UNICEF office at center of village Hope for Change It’s been five years since Cyclone nargis’ wreckage in 2008 but the Bamboo village has hardly changed since the resettlement. The Dala town is still relatively rural with poor infrastructure and utilities. However, there was news that a bridge may be constructed across the Rangoon River from Rangoon city itself. This may spur economic growth in the region giving another route to the Irrawaddy Delta. Bamboo Village, Dala may then benefit from the spillover of economic activities given its close proximity to the city proper. Contrasting Rangoon landscape on opposite side of Rangoon River 6 VOL 55 JUNE 2013 78 VOL 56 SEPTEMBER 2013
THE CAUsEWAY Source: “The Causeway”, jointly published by National Archives of Malaysia and National Archives of Singapore EngInEERIng nOsTALgIA View of the Causeway taken from the operating cabin showing a passenger train from Singapore on the temporary railway track, December 1923. Work in progress to reclaim and widen the Causeway at the Johore end, February 1989. 79
INGENIEUR Construction of cofferdam at the east end of the lock and concreting of apron in progress, June 1921. Both locals and Europeans worked together to complete the Causeway. The Causeway, June 1924. This image was taken from Woodlands, Singapore. A derrick crane installing culverts at the Johore end of the Causeway. Progress work at south (Woodlands) end of the Causeway in June 1921. Magnificient view of the Johore Straits and the Causeway at dawn. “The Causeway” can be purchased from the national Archives of Malaysia at RM120.00 per copy. VOL 56 SEPTEMBER 2013 6 VOL 55 JUNE 2013 80
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INGENIEUR VOL 56 SEPTEMBER 2013 6 VOL 55 JUNE 2013 82
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