Ahmad Maslan says government finalising Engineers Scale of Fees review to set fairer pay benchmark

KUALA LUMPUR, June 29 — The government is finalising a review of the Engineers Scale of Fees, which was gazetted in 1998, to ensure that professional engineering service fees are more in line with current economic realities and the operating costs of engineering consultancy firms.

Deputy Works Minister Datuk Seri Ahmad Maslan said the final draft of the amendments to the regulations governing the fee scale has been submitted to the Attorney General’s Chambers (AGC) for legal scrutiny before it can be gazetted under the Registration of Engineers Act 1967.

He said the amendments would replace the existing maximum fee structure with a new minimum fee benchmark to ensure that engineers receive professional remuneration comparable to that of other professionals in the construction industry.

“Based on technical simulations, the changes are estimated to result in an adjustment of consultancy fees of about 9.23 per cent for a physical development project with an estimated construction cost of RM200 million,” he said during the question-and-answer session in the Dewan Rakyat today.

He said this in his reply to an oral question from Datuk Yusuf Abd Wahab (GPS-Tanjong Manis) on the status of the review of consultancy fees for engineers under the Engineers Scale of Fees, including whether the revised fee rates would be mandatory for all implementing agencies undertaking government projects.

Ahmad said that once gazetted, the revised fee scale will be mandatory for all professional engineers and engineering consultancy practices (ECPs) operating in both the public and private sectors.

He said the move is crucial to safeguarding the integrity of the engineering profession, curbing unhealthy price competition, and ensuring that the quality of engineering design and infrastructure safety are not compromised.

Responding to a supplementary question from Yusuf on whether Malaysia has sufficient engineering professionals to support projects under the 13th Malaysia Plan (13MP), Ahmad said the government believes the current workforce is adequate.

He said there are currently 230,040 graduate engineers, 19,750 engineering technologists, 8,484 inspectors of works, 9,857 professional engineers, 8,649 professional engineers with practising certificates, and 29 accredited checkers, bringing the total number of registered professionals in the field to 276,809.

“However, if fee rates do not keep pace with current conditions, we are concerned that it could affect the long-term sustainability of the engineering consultancy industry and lead to a loss of expertise,” he said.

Ahmad added that the fee review also takes into account the increasing responsibilities borne by consultancy firms, including the adoption of Building Information Modelling (BIM) and compliance with environmental, social and governance (ESG) requirements. — Bernama