1 Architects Act 1967 (Act 117) - 10th Amendment .- Ar. Ezumi Harzani Ismail 11 March 2017

2 1 00 ARCHITECTS ACT 1967 ABSTRACT Architects Act 1967 (Act 117) was first enacted in 1967 to provide for the registration of Architects and practices providing architectural consultancy services, building draughtsmen, and matters related to it. The ground for establishment of Architects Act is to safeguard the public safety, health and welfare in relation to the design provided by Architects. In corresponding, the Act was structured to control the registrations for architectural practice to uphold the advancement of professionalism in Architectural profession to ensure public are getting the services they ought to get from a professional Architect. The Act had since, been amended ten times, whereby the amendment in November 2014 has drawn many attentions and perceived as a ‘commercially driven amendment’, as the result of challenges that comes with the economic globalisation and services liberalisation. Besides, the amendment also redefine existing regulations and includes the registration for Inspector of Works and the Architectural Technologist.

3 1 01 INTRODUCTION LAWS OF MALAYSIA ACT 117 - ARCHITECTS ACT 1967An Act to provide for the registration of architects, architectural technologists, building draughtsmen, inspector of works, foreign architects, graduate architects, graduate interior designers, interior designers, sole proprietorships, partnerships and bodies corporate providing architectural consultancy services and interior design consultancy services building draughtsmen. Short title, commencement and application (1) This Act may be cited as the Architects Act 1967 (2) This Act shall come into force on such date as the Minister may by notification in the Gazette appoint. (3) The Minister may by notification in the Gazette suspend the operation of this Act in any part of Malaysia.

4 ARCHITECTS ACT 1967 (ACT 117) Series of Amendments02 ARCHITECTS ACT 1967 INTRODUCTION ARCHITECTS ACT 1967 (ACT 117) Series of Amendments Year of Amendment Remarks 1st 1972 2nd 1973 Strengthening the Act 3rd 1974 4th 1979 Modernisation, Act 133, 176 5th 1988 6th 1992 Practice adaptation, UBBL, SOMF 7th 1994 8th 2002 (MDP) 9th 2007 (CCC) 10th 2014 (ID, AT, IOW, Liberalisation & Globalisation)

5 1 03 ARCHITECTS ACT 1967 INTRODUCTION A ‘commercially driven’ amendment, services liberalisation, economic globalisation pressure?

6 1 04 ARCHITECTS ACT 1967 INTRODUCTION 22 Apr the Government liberalised 27 services subsectors, with no equity condition imposed.

7 1 05 ARCHITECTS ACT 1967 INTRODUCTION In 2011, the Government further liberalised 18 sub-sectors to allow up to 100% foreign equity participation in phases. Telecommunications Telecommunication services (network service providers and network facilities providers licences) Telecommunication Services (Application Service Providers licence) Healthcare Private hospital services Medical specialist services Dental specialist services Environmental Services Incineration services Professional Services Accounting and taxation Architectural services Engineering services Legal services Quantity surveying services Distributive Trade Services Departmental stores and specialty stores Education Services Private higher education with university status International schools Technical and vocational secondary education services Technical and vocational secondary education services for students with special needs Skills training centre Courier Services Complementing the growth and development in the manufacturing sector, the Government is intensifying its efforts to promote and develop the services sector. The Government will be progressively undertaking liberalisation of the other services sub-sector on an on-going basis.

8 Why? Why Architect? 1 06 INTRODUCTIONARCHITECTS ACT 1967 INTRODUCTION Why? To attract more foreign investments, To bring in more professionals and technology, To strengthen competitiveness of the sector. Why Architect? Because Architects are rich and lazy.. To make them work harder, Be competitive and more productive.

9 The Amendment

10 2 01 THE AMENDMENT OBJECTIVES:ARCHITECTS ACT 1967 THE AMENDMENT OBJECTIVES: To fulfill the national obligation to liberalisation; To ensure the service liberalisation sector is able to drive national economy; To protect public interest and safety; To ensure the architectural practice supports a fair and balanced development, benevolent as well as considerate of local culture well-being.

11 2 02 THE AMENDMENT Highlight of the changes concerning Architects:ARCHITECTS ACT 1967 THE AMENDMENT Highlight of the changes concerning Architects: Section 3 : Composition of Board Members - increase from 17 to 21. (inclusion of 1 no. IOW, 1 no. AT and 2 Architects from private practice). Section 7A : Composition of Body Corporate – Opening for foreign equity. Section 10(3) : Deletion of the Malaysian Citizenship requirement. Section 15: - Investigation Officer - from 1 person to 1 or 3 persons - Disciplinary Committee - from 3 persons to 3 or 5 persons Section 15A : Increase in Penalties 25(2), and 27G

12 2 03 ARCHITECTS ACT 1967 THE AMENDMENT Section 3 : Establishment of Board of Architects Malaysia. (2) The Board shall consist of the following members appointed by the Minister: a President who shall be appointed from among Professional Architects; five Professional Architects who are in the public service of the Federation, States, local authority or statutory authority; (deleted) eight Professional ten Architects who have been in private practice for at least five years in Malaysia, three of whom shall be from the nomination list submitted by the Council of the Pertubuhan Akitek Malaysia, one member on the nomination of the Board of Engineers from among members of that Board established under the Registration of Engineers Act 1967; one member on the nomination of the Board of Quantity Surveyors from among members of that Board established under the Quantity Surveyors Act 1967; one member appointed from among Building Draughtsmen; and one member appointed from among Interior Designers who has been in private practice for at least five years in Malaysia; one member appointed from among Inspector of Works with at least five years of relevant working experience; and one member appointed from among Architectural Technologists with at least five years of relevant working experience.

13 2 04 THE AMENDMENT Section 7A & 7B No. Types Of PracticeARCHITECTS ACT 1967 THE AMENDMENT Section 7A & 7B No. Types Of Practice 1. Sole Proprietor Maintained 2. Partnership Maintained 3 Body Corporate Amended 4. Multidisciplinary Maintained Subsection 7A(3): (c) in the case of the body corporate— it has a board of directors as may be prescribed by the Board; it has shareholdings as may be prescribed by the Board; it has a minimum paid-up capital which shall be an amount as may be prescribed by the Board; and the day-to-day affairs of the body corporate shall be under the control and management of a person who— (a) is an Architect; and (b) is authorised under a resolution of the board of directors of the body corporate to make all final architectural decisions on behalf of the body corporate in respect of the requirements under this Act or any other law relating to the supply of architectural consultancy services by the body corporate”

14 Multi-Disciplinary PracticeArchitecture Consultancy Practice Section 7A Section 7B Sole Proprietor Multi-Disciplinary Practice Partnership Body Corporate 10% Architect of 70% Professional & 30% Others 70% Architect & 30% Others 2 of 3 Practices + 1 Practice

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16 TAKLIMAT PINDAAN AKTA-AKTA PROFESIONAL KEPADA BNBBC8 Oktober 2014 8.00 malam

17 PINDAAN KEPADA AKTA-AKTA PROFESIONAL (Pendaftaran Profesional)LJM, LAM & LJBM telah meminda seksyen-seksyen terlibat dalam akta untuk mendaftar sesiapa sahaja yang mempunyai kelulusan yang diiktiraf tanpa mengambilkira kewarganegaraan. LAM Arkitek Graduan Arkitek Perunding Arkitek LJM LJBM Juruukur Bahan Sementara Juruukur Bahan Profesional Perunding Ukur Bahan Peringkat Graduan Tidak mengambilkira Kewarganegaraan. (Tempatan atau asing) Jurutera Graduan Part 3 Professional Examination Peringkat Profesional Tidak mengambilkira kewarganegaraan. 1st. tier of registration (Local or foreign) Jurutera Profesional Peringkat Perunding Tidak mengambilkira Kewarganegaraan. (Local or foreign) Jurutera Profesional dengan Sijil Amalan

18 PINDAAN KEPADA AKTA-AKTA PROFESIONAL Pendaftaran SyarikatPenyedia Khidmat Perseorangan Dibenarkan oleh BEM dengan syarat Dibenarkan oleh LAM dengan pendaftaran praktis Arkitek perunding Tidak dibenarkan oleh BQSM tanpa pendaftaran sebagai QS Conslt. Practice Pendafaran dengan Lembaga sebagai Business Entity Syarikat Perundingan Kejuruteraan (Seksyen 7A) Syarikat Perundingan Arkitek (Seksyen 7A) Syarikat Perundingan Ukur Bahan (Seksyen 7A) Jurutera Profesional dengan Sijil Amalan (Professional Engineer with Practising Certificate) Seorang Arkitek Semestinya seorang Perunding Ukur Bahan Pemilikan Tunggal Perkongsian Rakan kongsi hendaklah terdiri daripada Jurutera dengan Sijil Amalan Semua rakan kongsi hendaklah Arkitek Rakan Kongsi hendaklah Juruukur Bahan Perunding Badan Korporat 70 % dimiliki oleh Jurutera Profesional dengan Sijil Amalan sementara 30 % lagi adalah terbuka kepada semua. 70 % dimiliki oleh Arkitek tempatan dan 30 % lagi adalah terbuka kpd Arkitek asing .70 % dimiliki oleh Perunding Ukur bahan sementara 30 % lagi adalah terbuka kepada semua Pengurusan Syarikat 2/3 Pengarah Lembaga hendaklah memiliki PE dan PCE. Baki 1/3 terbuka kepada semua. 2/3 Pengarah Lembaga adalah Arkitek tempatan. Baki 1/3 terbuka kepada Arkitek asing. 2/3 Pengarah hendaklah konsultan Juruukur Bahan. Baki 1/3 terbuka kepada sesiapa sahaja.

19 PINDAAN AKTA-AKTA PROFESIONALMANFAAT LIBERALISASI Melindungi dasar tempatan dan dasar luar negara. Menggalakkan pertumbuhan ekonomi negara. Membolehkan profesional tempatan bersaing dengan profesional luar negara. Memerlukan pembinaan kapasiti profesional tempatan secara berterusan. Menjaga kepentingan dan keselamatan awam. Secara Ringkas, Liberalisasi:- meningkatkan kualiti, integriti. menggalakkan inovasi dan kemampanan. meningkatkan kapasiti profesional supaya setanding dengan piawaian dunia.

20 KAWALAN PERUNDANGAN LJM, LAM & LJBMBAGI MEMASTIKAN KUANTITI PERKHIDMATAN DAN MELINDUNGI KEPENTINGAN AWAM LJM, LAM & LJBM KAWALAN PERTAMA Lembaga mendaftarkan graduan sekiranya kelulusan menepati standard yang ditetapkan Ijazah menepati syarat Lembaga. LAM mengadakan Peperiksaan :- - Bahagian I and II bagi graduan yang memiliki ijazah yang tidak diiktiraf. - Bahagian III Peperiksaan Profesional bagi semua Graduan Arkitek setelah mempunyai pengalaman praktikal 2 tahun untuk menduduki peperiksaan. KAWALAN KEDUA Lembaga mendaftar Profesional sekiranya mereka mempunyai kemampuan teknikal atau memperolehi kepakaran melalui program yang diakredit dari luar negara. Lulus peperiksaan Tahap 1. KAWALAN KETIGA Sebelum lesen dikeluarkan, profesional hendaklah memaparkan pemahaman terhadap perundangan tempatan, piawaian tempatan. Lulus peperiksaan Tahap 2 iaitu Competency Exams KAWALAN KEEMPAT Lesen diperbaharui setiap tahun dengan mengkuti program pembangunan berterusan yang diakredit oleh Lembaga. Lesen dikeluarkan dan diperbaharui setiap tahun.

21 2 05 THE AMENDMENT Multidisciplinary Practice: Section 7BARCHITECTS ACT 1967 THE AMENDMENT Multidisciplinary Practice: Section 7B (Present sections of the Act are maintained) Section 7(B) A body corporate providing architectural consultancy services, professional engineering services and/or quantity surveying services,: minimum combined shares of 70% to be held by architect, engineer and/or quantity surveyor, each architect, engineer and/ or quantity surveyor shall have a minimum share of 10%, the remaining shares can be held by any other persons to a maximum 30%. Note: This section is maintained to allow the professionals to provide a comprehensive services in construction industry and to allow others to participate as shareholders, building capacity of the firm targeting exporting of services.

22 2 06 THE AMENDMENT Omission of citizenship requirementARCHITECTS ACT 1967 THE AMENDMENT Omission of citizenship requirement Omission of Malaysian citizenship requirement for registration of Architect and Graduate Architect to fulfill liberalisation needs. Section 10(3) Subject to this Act, only a citizen or a permanent resident of Malaysia any person may qualify for registration as a registered Graduate Architect or Professional Architect and no person shall be entitled to be registered as a Professional Architect unless he is at the time of application for registration, and has been for a period of not less than six months prior to the date of application, residing in Malaysia.

23 2 07 ARCHITECTS ACT 1967 THE AMENDMENT Section 15A, 25(2) and 27G : Increase of fines and penalties: Penalty and fines are increased to enhance accountability and responsibility of all registered members toward the public, and to prevent misconduct. Section 15A(2) (2) The Disciplinary Committee may order the issuance of a written reprimand to, the imposition of a fine not exceeding fifty one hundred thousand ringgit on, the suspension for a period not exceeding two three years of, the cancellation of the registration of, any Professional Architect, or registered Graduate Architect or foreign architect, or any combination of two or more of the aforesaid, under any of the following circumstances: Section 25(2) (b) the imposition of a fine not exeeding twenty-five one hundred thousand ringgit on; (c) The suspension for a period not exeeding two three years on; or

24 Section 15A(2), Increase of fines and penalties:illicit commission; fail to disclose financial interest in business he deals on behalf of his client; registration under this Act obtained by fraud or misrepresentation; if he is found guilty of any act or conduct which is infamous or disgraceful; contravened or failed to comply with any provisions of this Act; fails to observe any conditions or restrictions which he is registered; if he procures his architectural consultancy practice by fraud; if he conceals fact which, if known, would entitle the Disciplinary Committee to cancel the registration; if he contravenes any term, condition or restriction imposed by the Board when registering an architectural practice under section 7 B or 7A(3); started practice in an architectural firm prior to approval of registration; continue to practice after firm has been suspended or cancelled; convicted of any offence, including false or negligent certification; qualification under section 10 has been withdrawn or cancelled; if he is found to be of unsound mind; if he becomes a bankrupt; incapable or no longer able to perform his professional duties effectively.

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27 Other amendments

28 3 01 ARCHITECTS ACT 1967 OTHER AMENDMENTS Section 2 and Section 22 : Registered Building Draughtmen. New registration of Registered Building Draughtman is discontinued to allow higher competency of Submitting Person, in line with the growth of complexity in construction technology and the needs construction industry. Section 27D (3) : Registration of Graduate Interior Designers: To ensure Interior Designers obtain sufficient practical experience before qualified to establish practice. Section 27D (4) : Qualifiying Examination for Interior Designer: To ensure the competency fulfills legal requirement especially in local laws related to interior design

29 3 02 OTHER AMENDMENTS Part VB, section 27K - 27T : Inspector of Works:ARCHITECTS ACT 1967 OTHER AMENDMENTS Part VB, section 27K - 27T : Inspector of Works: Upgrading of the title Clerk of Works in the present construction industry to Inspector of Works. The aim is train and regulate their practice. To allow only qualified Inspector of Works to supervise construction works. Part VC, section 27U - 27ZC : Architectural Technologist : To ensure graduates in new fields related to architecture can be systematically trained and regulated. To open opportunity for them to upgrade their qualifications in architecture practice.

30 3 03 OTHER AMENDMENTS Proposed rules:ARCHITECTS ACT 1967 OTHER AMENDMENTS Proposed rules: Criteria for Architectural Technologist registration:- a) Graduated from a recognised Bachelor of Science (Architecture) or any other program recognised by the as Board equivalent to LAM Part 1; or b) Graduate from any Bachelor of Architectural Technology or Bachelor of Science (Architecture), or any other programme recognised by the Board; And the candidate complies with the following requirement:- c) Has obtained a minimum of two (2) years practical experience as prescribed by the Board; and d) Has passed the examinations as may be determined by the Board.

31 3 04 OTHER AMENDMENTS Proposed rules:ARCHITECTS ACT 1967 OTHER AMENDMENTS Proposed rules: Criteria for Architectural Technologist with specialisation registration:- a) Registered as Architectural Technologist for minimum period of two (2) years; and comply with either (b) or (c) below:- b) Has obtained a minimum of two (2) years relevant works experience as Architectural Technologist in the area of specialisation as prescribed by the Board; or c) Has obtained a minimum of two (2) years works experience as Architectural Technologist and undergo accepted top-up / specialisation courses in the area of specialisation.

32 3 05 OTHER AMENDMENTS ARCHITECTS ACT 1967 Acoustic design;Registration and Practice Architectural technologists may work independently or provide technical assistance in the following field: Schedule 1 a. Work independently b. Provide technical assistance Acoustic design; Accessibility science; Architectural Façade technology; Architecture lighting technology; Building information modelling; Building material and component design; Conservation technology; Construction technology; Dilapidation survey; Environmental technology; Fire safety science; Industrialised Building System; and Measured drawing. Architecture drafting; Building design; and All in column (a);

33 3 05 OTHER AMENDMENTS ARCHITECTS ACT 1967 4. Functions of the Board4. (1) The functions of the Board shall be – to keep and maintain a Register of Professional Architects, Architectural Technologist, Building Draughtsmen, Inspector of Works, foreign architects, Graduate Architects, Interior Designer and Interior Designer; (aa) to keep and maintain a Register of architecture consultancy practice and interior design consultancy practice; (b) to approve or reject applications for registration under this Act or to approve any such application subject to such conditions or restrictions as it may deem fit to impose; (ba) to authorise a committee appointed by the Board to approve or reject applications for registration under this Act; (c) to order the issuance of written reprimand, the imposition of a fine, suspension or cancellation of registration, removal from or reinstatement into the Registers in accordance with this Act; (d) to fix from time to time with the approval of the Minister the scale of fees to be charged by Professional Architects, architectural consultancy practices, Building Draughtsmen and interior design consultancy practices for architectural consultancy services and interior design consultancy services rendered respectively; (dd) to fix from time to time with the approval of the Minister the scale of fees to be charged by Interior Designers for interior design consultancy services rendered; (e) to hear and determine disputes relating to professional conduct or ethics of Professional Architects, Graduate Architects, Interior Designers and Building Draughtsmen and to appoint a committee, arbitrator or arbitrators to hear and determine such disputes;

34 3 06 OTHER AMENDMENTS ARCHITECTS ACT 1967 4. Functions of the Board4. (1) The functions of the Board shall be – (ea) to act as a stakeholder in a contract for architectural and interior design consultancy services, when requested including professional fee, fee in dispute and fees in relation to dispute resolution where appropriate; (eb) to authorize any person to investigate the commission of any offence under this Act or any rules made under this Act; (ec) to employ any person, as it deems necessary, to assist the Board in carrying out its functions, powers and duties subject to such terms and conditions as it may determine; (f) to determine and regulate the conduct and ethics of Professional Architects, Architectural Technologists, Building Draughtsmen, Inspector of Works, foreign architects, Graduate Architects, Graduate Interior Designers, Interior Designers, architecture consultancy practice and interior design consultancy practice; (g) to represent the profession in any matter in which it may be necessary or expedient and to examine and if thought fit to report upon current legislation and any other local matters submitted to it or to make recommendations to Government or any Public or Building Authority or any institute, body or society for the time being representing the profession; (ga)to appoint a council, consisting of such members of the Board, Professional Architects and other persons as may be determined by the Board, to conduct examinations for admission to the profession and other examinations as deemed necessary by the Board;

35 Related Issues

36 4 01 ARCHITECTS ACT 1967 ISSUES Liberalisation of Professional Service commitment by Malaysian Government Amendment to the Architects Act allows the provision of foreign equity in body corporate Architect’s Firm. Maximum percentage of foreign equity is 30%. Foreign architects can be shareholders in body corporate Architect’s Firm. Plan submission to local government can be submitted by Professional Architects registered with the Board of Architects Malaysia who resides in Malaysia for not less than one hundred and eighty days in any one calendar year. Issues: Non architect and non-professional directorship provision.

37 4 02 ISSUES Liberalisation of Professional ServiceARCHITECTS ACT 1967 ISSUES Liberalisation of Professional Service Liberalisation of Services Identified by the Government under the IMP3 and NKEA (Strategic Reform Initiatives) Overview: Malaysia needs to liberalise the services sector which has been identified as a key engine growth. Contribution of services to Malaysia’s GDP is low compared to developed countries and steps need to be taken to tap potential of the services sector. Issue: Professional services is traded like commodities?

38 4 03 ARCHITECTS ACT 1967 ISSUES Liberalisation of Professional Service

39 4 04 ISSUES OBJECTION BY KPKTARCHITECTS ACT 1967 ISSUES OBJECTION BY KPKT Town planners has to compete with international architects for planning permission application. Board of Town Planners and MIP need to observe it further. Ministry of works and LAM explain that the bills are in line with government’s intention to liberalise the services to allow 100% foreign equity in future. If the new government instruction requires so, LAM are ready to implement it and architecture profession are ready to take liberalisation challenges. But the town planners are not ready to compete internationally or locally with foreign consultants.

40 Thank you… Ar. Ezumi Harzani Ismail