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FEBRUARY

2015

GST IMPACT ON THE


ARCHITECTURAL
PROFESSION AND
CONSTRUCTION
INDUSTRY
On 1st April 2015, just two months away, the Government had already declared
that Goods and Service Tax, or GST in short, would be implemented. Many
architects along with the rest of the public are viewing the upcoming GST
implementation with some apprehension not because of the tax itself but the
considerable penalties for non-compliance. This being especially so when the GST
is still quite new and many of the rules are not clear. To educate architects about
the new GST law, PAM had already organised several CPD seminars, which had
been well attended by PAM members and their staff.
For architects, is it just a change over from the Service Tax to GST with the same
6% tax on all payments we receive? A more detailed look at the GST Act shows
that it is not the same Act with just a change of name. The major changes are :
1.
GST allows for claim back for GST paid by architect on all their expensed
items called the input tax.
2.
The 28 day rule requires that the architect issue an invoice to his client
within 28 days of completing his works. How this will impact architects is
still not clear.
3.
Service tax applies for all architects. GST however requires only architects
with an annual turnover of more than RM500,000.00 to register to collect
GST. Whether this will remain at the same level in the future is still uncertain.

DIARY
29 July 2015
The Wrong Approach
Venue Map@Publika, Solaris Dutamas, Kuala Lumpur
12 August 2015
PPF 2015
Venue Kuala Lumpur Convention Centre
13 August 2015
GBF 2015 & KLDF 2015
Venue Kuala Lumpur Convention Centre
14 & 15 August 2015
DATUM:KL
Venue Kuala Lumpur Convention Centre
14 August 2015
Building Industry Gala
Venue The Royal Chulan Hotel, Kuala Lumpur
29 August 2015
Rumah Asuh - Preserving Indonesian
Architecture Heritage by Yori Antar
10 September 2015
PAM Golf
29 September 2015
WCSC 2015
Venue The Royal Chulan Hotel, Kuala Lumpur
6-7 October 2015
International Symposium on Evolution of
Mosque Design in Southeast Asia
Venue Auditorium Mercu Alam Bina,
University of Malaya, Kuala Lumpur
5-31 October 2015
World Architecture Day
Venue One Utama & The Curve, Damansara

Another common question raised is do architects include GST into their certificate
of payment? The answer is a certainly no. Just as architects do not include the LAD
or income tax into the COP. The role of the architect in relation to the COP is only
to certify for the value of works completed by the contractor. The contractor will
then issue a tax invoice to the employer to include the GST which the contractor is
authorised to collect under the GST Act.
continued on Page 3 >

BA_FEBRUARY_2015_P01

< continued from Page 1

There is also widespread belief that GST will cause an overall increase in the cost of construction. This is a complex issue as
under the proposed GST Act, housing sales are not subject to GST but the inputs to housing are subject to GST. That means
housing developers will have to pay GST for Consultant fees and Contractors works where relevant but cannot claim back
the input tax as residential property sales are not subject to GST. Are residential renovations subject to GST?
Non-residential property sales are however subject to GST. This has resulted in considerable uncertainty, with many
contractors adding the effect of GST into their tenders with no clear understanding of the actual impact. Mixed developments
will be even more complex to account for when there is a mixture of housing and non-housing components. Overall, cost of
property is projected to increase. In other countries which had implemented GST before Malaysia it had taken between nine
months to a year for cost and prices to stabilise. The effect of the upcoming GST will only be fully understood by the beginning
of 2016.

GST Talk and GST Online Registration by Pn Maria Medal, Senior Assistant
Director of Custom II at PAM Centre, Wisma Bandar Kuala Lumpur.

GST Talk and GST Online Registration by Pn Maria Medal, Senior Assistant
Director of Custom II at PAM Centre, Wisma Bandar Kuala Lumpur.

GST Talk and GST Online Registration by Pn Maria Medal, Senior Assistant
Director of Custom II at PAM Centre, Wisma Bandar Kuala Lumpur.

GST Talk and GST Online Registration by Pn Maria Medal, Senior Assistant
Director of Custom II at PAM Centre, Wisma Bandar Kuala Lumpur.

GST Talk and GST Online Registration by Pn Maria Medal, Senior Assistant
Director of Custom II at PAM Centre, Wisma Bandar Kuala Lumpur.

GST Talk and GST Online Registration by Pn Maria Medal, Senior Assistant
Director of Custom II at PAM Centre, Wisma Bandar Kuala Lumpur.

Ar Chan Seong Aun


President
2014-2015
BA_FEBRUARY_2015_P03

TAN SRI Ar. HAJI ESA MOHAMED


- HATS OFF TO SUCCESS
On 4th February 2015, a celebration dinner was held to commemorate the success of a Malaysian Architect, Tan Sri Ar. Haji
Esa Mohamed, getting elected as the 26th President of International Union of Architects (UiA).
The historical event took place at the Union General Assembly in August 2014, Durban South Africa. Winning with the highest
votes, Tan Sri Ar. Haji Esa Mohamed was elected as President UiA for the triennial period of 2014 to 2017.
Tan Sri Ar. Haji Esa Mohamed who is an Architect and Town Planner, by practice and training hails from Semerah Johor and
was a former student of the Johor English College (Maktab Sultan Abu Bakar). An outstanding student and top of his class
yearly, he completed a Master Degree in Town and Country Planning from the University of Sydney in 1976. Prior to that, he
obtained a First Class Honours in Bachelor of Architecture from the University of Newcastle Australia and won the University
Gold Medal in 1973.
The celebration dinner was attended by 200 invited guests, made up of prominent industry players, prominent architects,
families and close acquaintances of Tan Sri Ar. Esa.
Yang Amat Berhormat Tan Sri Dato Hj Muhyiddin Hj Mohd Yassin, Deputy Prime Minister of Malaysia graced the event
accompanied by Yang Berhormat Dato Sri Hj Fadhillah Hj Yusuf, Minister of Work Malaysia and Yang Berbahagia Datuk Seri
Hj Ahmad Phesal Hj Taib the Mayor of Kuala Lumpur were the Guest-of-Honor for the memorable evening.
Celebrating the amazing journey of Tan Sri Ar. Haji Esa Mohamed, videos of congratulatory messages received from his
peers, business and work acquaintance and friends were played sharing their excitement and congratulating him on his
appointment.
In his thank you speech, Tan Sri Ar. Haji Esa Mohamed expressed his gratitude and conveyed his appreciation to his dedicated
campaign team led by Ar. Tan Pei Ing in ensuring the campaign programme ran smoothly. He commented that it was an
honour for him to be appointed as the new UiA President and will continue to work for the betterment of the organisation and
the industry.
The celebration dinner was organized by Pertubuhan Akitek Malaysia and sponsored exclusively by Roca Malaysia Sdn Bhd
and Sika Kimia Sdn Bhd.

Sharing the memorable night Puan Sri Datin Sri Seniya, Tan Sri Ar. Haji Esas
wife with their daughter and son

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Ar. Dr. Tan Loke Mun (in the middle) and Ar. Tan Pei Ing (first from right) with
invited guests from Board of Architects Malaysia

Reading the citation for Tan Sri Ar. Esa Mohamed by Ar. Dr. Tan Loke Mun

Tan Sri Ar. Esa Mohamed delivering his thank you speech

A group photo with the Guest-of-Honor, YAB Tan Sri Dato Seri Hj Muhyiddin Mohd Yassin, Deputy Prime Minister Malaysia, Tan Sri Ar. Esa Mohamed and PAM Council
Member 2014-2015

Tan Sri Ar Hj Esa Mohamed flanked by YAB Tan Sri Dato Seri Hj Muhyiddin Mohd Yassin, YBhg. Tan Sri Hj Ahmad Phesal Hj Talib, Mayor of Kuala Lumpur and
YB Dato Sri Hj Fadhillah Hj Yusuf, Minister of Works Malaysia with PAMs past presidents.

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PAM-DBKL ARCHITECTURAL
IDEAS COMPETITION 2014
TEMPORARY SHELTERS FOR THE KL HOMELESS
Architectural Open Ideas Competition, titled PAM-DBKL Architectural Ideas Competition 2014 in designing temporary
shelters for the KL Homeless, was initiated by Pertubuhan Akitek Malaysia (PAM) under the Urban Wellbeing Housing and
Government Liaison Committee and Dewan Bandaraya Kuala Lumpur (DBKL). This is an Open Ideas Competition to all PAM
members and other relevant professions as well as the public. The competition received more than 100 entries from various
categories.
The objective of the competition is not about creating permanent homes for the less fortunate, but it is more of creating a
conducive transient shelter that could provide the much needed communal temporary relief for the homeless. The design of
these temporary shelters should not compromise on the quality of the product or construction techniques. Instead, it should
provide good creature comfort, low construction work force requirement to construct, easy and low maintenance and good
usage of sustainable building material, environmentally friendly and low energy, durable and capable of lasting. Besides that,
the other objective is to promote the Malaysia architect fraternity ability in designing for social needs and dispel the general
public notion that architects only serve the elites.
There are six members of Jury for this competition. They are Puan Norzaini binti Nordin (Deputy Director, Jabatan
Perancangan Fizikal DBKL), Y.A.D. Dato Setia Diraja Dato Abdul Ghani bin Haji Pateh Akhir (City Advisory Borad Member of
DBKL), Ar. Chan Seong Aun (PAM President), Ar. Dr. Lim Teng Ngiom (PAM Awards Winner), Puan Hajah Munirah Abdul Hamid
(Vice President PERTIWI, PERTIWI Soup Kitchen) and Dato Ruby Khong (President Kechara Soup Kitchen).
The competition has three categories. Category 1 is for PAM Corporate Member. The winner for this category is Ar. Assoc.
Prof. Mustapha bin Mohamed Salleh who brings the concept of KL STEP INN - Temporary Lodging for the Urban Homeless.
Category 2 is for non-PAM corporate members, LAM members, MIP members and DBKL officers and for this category, the
winning scheme was by Chua Yheu-Shen. In his design, he highlighted that communal living is the main approach for the
design. His entry is titled Camp KL. The final category, Category 3, is for PAM student members. This category was won by
Michelle Chin Shi Jeat using the concept of temporary shelters for homeless, titled The Epiphyte. The design intends to
create opportunities for meaningful partial self-sustainable activities for the homeless community through architecture.
Temporary Shelters for the KL Homeless Ideas Competition show some refreshing and inspiring ideas. It also gives an avenue
and platform for Malaysian architects to seek new ideas.
Ar Sarizal Yusman Yusoff
Chairman
Urban Wellbeing Housing and Government Liaison Committee
2014-2015

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Presentation Certificate of Appreciation to one of the Panel Jury, Dato Ruby


Khong President Kechara Soup Kitchen

Winners of the PAM Student Members category with the Mayor of Kuala
Lumpur and VVIP of the Awards Ceremony

Winners of Non-PAM Corporate Members, DBKL, LAM and MIP Members


category

Winners of PAM Corporate Members category

1st Prize PAM Corporate Members category KL STEP INN - Temporary Lodging
for the Urban Homeless by Ar. Assoc. Prof. Mustapha bin Mohamed Salleh

1st Prize of Non-PAM Corporate Members, DBKL, LAM and MIP Members
category Camp KL by Chua Yheu-Shen

1st Prize of PAM Student Members category The Epiphyte by Michelle


Chin Shi Jeat

Press Conference of the Competition after the Awards Ceremony


From left: Ar. Sarizal Yusman Yusoff, YBhg. Datuk Seri Hj. Ahmad Phesal Hj. Talib
and Y.A.D. Dato Setia Diraja Dato Abdul Ghani Haji Pateh Akhir

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PAM PROFESSIONAL PRACTICE FORUM 6.0


The Professional Practice Forum was convened upon the endorsement of PAM Council at its meeting on 9 January 2015.
The objective was to address the issues of liberalisation arising out of the Amendments to the Architects Act 1967. The task
of organising the Forum was given to the Liberalisation and Professional Development Committee under Immediate Past
President Ar. Saifuddin Ahmad Chairman and Council Member Ar. Lillian Tay Co-Chairman. Past President Ar. David Teh was
appointed the Convenor.
The Forum attracted a total registration of 195 which together with 30 speakers, moderators, panellists and committee
members made a total of 225 participants. There was active participation and energetic discussion at the Forum.
A key result of the Forum was the passing of Resolutions. At a joint meeting of the Liberalisation and Professional
Development Committee and the Forum Committee on Resolutions on 10 February 2015, it was decided that the Committee
presents this 2 Resolutions for Councils consideration.
Resolution No 1
That PAM holds a Referendum to submit an appeal to the Malaysian Government to defer the implementation of the
Amendments to the Architects Act 1967 until PAM has carried out thorough studies of the likely impact of the Amendments
to the nation, the economy, the building industry and the architectural profession; and until the Rules for the implementation
of the Amendments have been properly worked out and accepted with regard to:
Section 7A Composition of Body Corporate
Section 10(3) Qualifications for registration
deleting the text only a citizen or a permanent resident of Malaysia
Note: The reason for the above is that it is contended that there may be potentially adverse implications should the
Amendments to the Architects Act 1967 be implemented hastily, particularly with regard to the impacts it will have on the
national economy, on the health and safety of the Malaysian people, on the building industry and on PAM Members both
professionally and emotionally.
Resolution No 2
That PAM collaborates in tandem with Lembaga Arkitek Malaysia (LAM) to prepare the Prescribed Rules under the
Amendments to the Architects Act 1967 that will safeguard the interests of the Malaysian public and all stakeholders
including the architectural profession.
Note : It is suggested that a Joint LAM-PAM Committee be established to draft the Prescribed Rules.
According to the above, PAM Members had voted on their agreement or objection to the proposed Referendum Resolution
No 1. The voting paper has been circulated to PAM Members on 27 February 2015 and Members have submitted their votes
to PAM according to its deadline of 21 March 2015.
The Forum also discussed many issues confronting the architectural profession today and the following concerns were noted:
a. Collaboration
Where a client intends to appoint a foreign architect who is not registered with LAM, it should first appoint a LAM
Registered Architect as the Lead Architect. The collaboration between the LAM Registered Architect and the foreign
architect should be registered with LAM. The scope of works, fee structure and liabilities should be shared on a mutually
beneficial and equitable basis for both parties.
b. Architectural Competitions
All Architectural Competitions organised by Government, GLCs and Private Sector should be open to all LAM Registered
Architects and where appropriate, suitably qualified foreign architects. Competitions that are open to only foreign
architects should not be allowed.
c. Procurement of Architectural Services by Government and GLCs
Preference should be given by Government and GLCs to LAM Registered Architects over foreign architects.
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d. Engagement of Architects by Malaysian Corporations Undertaking Development Outside Malaysia


Malaysian corporations undertaking development projects outside Malaysia should employ LAM Registered Architects to
undertake the work required. Government should give tax incentives to those who do so.
e. Limitation of Professional Liability of Architects
PAM is to seek a fixed time period of a reasonable number of years for the professional liability of LAM Registered
Architects
f.

Enforcement
PAM calls upon LAM to actively enforce the Architects Act and Rules, in coordination with the appropriate government
agencies specifically SSM/ROC, to restrict the use of the word Architect, Architecture and Architectural Services by
individuals, partnerships and registered companies that are not LAM Registered Architects.

g. LAM Board Members


PAM calls upon the Government to have a number of Board Members directly elected by all LAM Registered Architects.
h. Professional Examinations
PAM calls upon LAM to address the low passing rate of candidates for Part III Professional Examinations and the
qualifications for entry into the architectural profession.

Welcome Remarks and Introduction by the Convenor, PAM Past President


Ar. David Teh

Participants of the Forum listening to the paper presentation by the Speaker

Ar. Shahriman Abdullah expressing his views during one of the Panel Discussion
Is the Profession Ready for Liberalisation?

Ar. Lukman Mahmood giving his opinion at the Forum

Participants vote to the proposed Resolutions

Presentation of Resolutions by Chairman of Committee on Resolutions,


PAM Immediate Past President Ar. Hj. Saifuddin Ahmad

BA_FEBRUARY_2015_P13

MEMBERS FEEDBACK SURVEY

PAM CONDUCTED A SURVEY SENT TO MEMBERS IN JANUARY 2015 TO GET


FEEDBACK ON PAMS SERVICES. THE FEEDBACK RECEIVED WOULD HELP PAM
TO SERVE MEMBERS BETTER.
Poor

Average

1. Berita Akitek

Good

Excellent

2. Architecture Malaysia

13.07% 2.29% 9.15%

12.23%

3. Architecture Asia
14.06%

17.23%

26.20%
61.57%

68.71%

75.49%
1

4. CPD Seminars & Lectures


19.27%

65.37%

4.38%

11.91% 1.24%

10. General
8.48% 1.21%

1.97%

33.71%

11. Exported Architectural/Design


Services Abroad ? Yes/No
17.58%

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12. Which form of communication


do you prefer?
22.82%
POSTAL

72.73%
80.27%
NO

59.83%

19.7%
YES

19.42%

9. Green Building Index Sdn Bhd

30.68%

6. PAM Directory

4.49%

63.29%

64.02%

1.64%

22.83%

63.35%

8. Architect Centre Sdn Bhd

7. PAM Secretariat

20.56%

49.07%

15.53% 1.70%

0.47%

29.91%

5. PAM Convention

0.23% 15.14%

77.18%
EMAIL

EXECUTIVE SUMMARY OF THE MINUTES OF NINTH MEETING OF


PAM COUNCIL 2014-2015 HELD ON 13 FEBRUARY 2015
Council approved new membership applications of 15 Corporate Members, 4 Ordinary
Members above 65 years old, 23 Graduate Members, 1 Associate Graduate Member, 12
Student Members, 1 Reinstatement of Corporate Member and 1 Resignation.
Membership, Youth and Constitution Committee presented the Electronic Voting System
(E-Voting) to Council and answered queries from Council Members. Council unanimously
agreed to proceed with Electronic Voting for PAM Election 2015.
PAM Northern Chapter was given a seat for a PAM representative to sit on the Technical
Review Panel 2015 of the Majlis Perbandaran Pulau Pinang (MPPP). Ar Lee Kok Hua has
been nominated to represent PAM Northern Chapter.
Awards, Competitions and Events Committee reported that at the Close of Nominations,
PAM received 91 nominations for PAM Awards 2015. One nomination for Category
Overseas did not comply with the Rules and Regulations; as such, the project will not be
called for submission. For Category Collaboration, 5 projects were nominated and all
complied with the Rules and Regulations. If there is any collaboration project submitted, it
will automatically be placed in this category. PAM only recognises foreign architects who
are registered with its home countrys registration board. For local, both collaborators must
be registered with LAM.
Building Information Modelling Committee reported the PAM BIM Committee and CIDB
had a good meeting on 29 January 2015. CIDB proposed to sign an MOU with PAM. CIDB
already has developed a BIM library and is willing to share and develop further the BIM
library with PAM. The details are yet to be worked out.
The International Affairs Committee is promoting export services to Cambodia, Myanmar
and Indonesia. The Committee had opened registration to those who are interested to
participate and a few members have registered. The same list has also been given to
MATRADE for the services sector. If any member is interested and still has not registered,
the list is still open for registration.
MATRADE has launched 5 programmes on export of services and PAM will be participating
in a few of the programmes. The Committee is circulating the programmes to get members
who are interested to export services to join the Specialised Marketing Mission (SMM)
or Malaysia Services Exhibition (MSE).
Urban Wellbeing, Housing and Government Liaison Committee reported that the
PAM-DBKL Architectural Ideas Competition 2014 in Designing Temporary Shelters for the
KL Homeless Winners Announcement and Awards Ceremony was held on 12 February
2015 at the Kuala Lumpur Library. For record, there were 141 registrations with 97
submissions received on the closing date of submission. The judging was held on 28
January 2015. Datuk Bandar of Kuala Lumpur was pleased with the booklet published for
the competition and expressed looking forward to more collaboration with PAM in the
future.
The hand-over Flood Relief Fund ceremony of the fund collected for the PAM-MIID-MIP
Flood Relief Campaign is planned to be held on the first week of March 2015. The amount
collected by PAM from members alone was close to RM50,000.

PAM Council 2014-2015


president
Ar Chan Seong Aun
deputy president
Ar Mohd Zulhemlee An
vice president
Ar Sarizal Yusman Yusoff
honorary secretary
Ar Haji Abdul Halim Suhor
honorary treasurer
Ar Amzar bin Ahmad
immediate past president
Ar Saifuddin Ahmad
past presidents on council
Tan Sri Ar Haji Esa Mohamed
Ar Haji Hussein bin Hamzah
Ar Lee Chor Wah
Ar Tan Pei Ing
council members
Ar Alice Leong Pek Lian
Ar Ang Chee Cheong
Ar Erdayu Oshara Omar
Ar Ezumi Harzani Ismail
Ar Lilian Tay Wai Fun
Ar Lim Hai Seah, Alvin
Dato Ar Maurice Wee Beng Teck
Ar Michael Ching Chee Hoong
Ar Mustapha Kamal Zulkarnain
Ar Sarly Adre bin Sarkum
Ar Thang Boon Ann, Steven
Ar Thirilogachandran a/l Shanmugasundaram
Ar Zamri Ismail
chairman northern chapter
Ar Loh Chiak Eong
chairman southern chapter
Ar Haji Muhamad Zawawi Zainuddin
chairman sabah chapter
Ar Victor Wong Kon Yu
chairman sarawak chapter
Ar Stephen Liew Ngian Chin
BERITA AKITEK EDITORIAL
Ar Chan Seong Aun
Ar Mohd Zulhemlee An
Ar Sarizal Yusman Yusoff
Ar Abdul Halim Suhor
Ar Amzar Ahmad
Zarina Ibrahim
Nur Ekzan Mohd Ekbal
published by
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