Project to establish European and A sian

Co-operations of small and medium sized Enterprises

Expertise Guide Asia

Doing Business
in Malaysia
(Focusing Construction)
Introduction
The Expertise Guide Asia for Malaysia and China
includes information for SMEs

The guide is an outcome of the ASIA Invest Project

PEACE in which companies from Spain, Hungary,
the Czech Republic, Germany, Malaysia and China
participated. Essential part of the project was the
two matchmaking events in Xian (China) at 15 June
2009 and Kuala Lumpur (Malaysia) at the 18 June
2009. Intensive preparation, individual advisory and
custom-fit supports were additional objects during
the project to facilitate the entry of small and me-
dium sized companies in foreign markets. Expertise
Guide Asia for Malaysia and China are one part of
the project support and it is available for all SMEs
interested in these markets.

Main sectors were energy efficient construction,

general building construction, environmental ener-
gies/renewable energies, installation (every kind of
installation), architecture, outdoor planning/land-
scape gardening, cleaning contractors, interior work
and design and builtin furniture/furniture. So the
two guides are focused on the construction area.

The project is funded by the European Union under

the Asia-Invest Programme. These Guides make no
claim to be complete. They serve as an orientation
guide for normal case. Liability regarding informa-
tion, accuracy and usefulness of these instructions
cannot be assumed.
 Contractor: Project Partners:
Handwerkskammer Dortmund Dortmund Chamber of Skilled Crafts and Trades
Reinoldistr. 79 Mnster Chamber of Skilled Crafts and Trades
44135 Dortmund Dortmund Chamber of Commerce
Mnster Chamber of Commerce
Author of the Expertise Guide Asia China: German Chinese Chamber of Commerce Shanghai
Delegation of German Heves Chamber of Commerce
Industry and Commerce Shanghai Zala Chamber of Commerce
29/F POS Plaza, 1600 Century Avenue Barcelona Chamber of Commerce;
Shanghai 200122, China Czech Chamber of Commerce

Author of the Expertise Guide Asia Malaysia: Layout

Malaysian German Chamber helex agentur & consult, Dortmund
of Industry and Commerce
Suite 47.01, Level 47,
Menara AmBank, No. 8, Jalan Yap
Kwan Seng, 50450 Kuala Lumpur, Malaysia

Copyright 2010 / 5/2010. All righths reserved.

3
 Table of Contents 1. Immigration and Employment
of Expatriate Personnel 6
1.1 Guidelines on employment
of expatriate personnel: 6
1.2 How to Apply for Expatriate Posts 6
1.3 Types of Visa 7
2. Legal Framework 8
2.1 Contract Law 8
2.2 Title Retention and other securities 8
2.2.1 Ordinary Retention of Title 9
2.2.2 Assignment of Claims 9
2.2.3 Service Failure and Warranty 9
2.3 Product Liability 10
2.3.1 Systems of Product Liability 10
2.3.2 Responsibility for the defect/fault 11
2.3.3 Causation (Burden of proving
fault/defect and damage) 11
2.4 Collective Agreements 12
3. Registration Requirements
and Procedures for Foreign
Applicants 12
3.1 Application Details 12
3.2 Processing Time 13
3.3 Certificates of Registration
Certificates issued by CIDB
are as follows: 13
3.4 Registration and Related Fees 13
3.5 Re-issuance of Certificates 13
3.6 Copies of Certificates 13
3.7 Cancellation or Suspension or
Revocation of Certificates of
Registration 13
3.8 Registration Procedures
for Foreign Companies 14

4 Table of Contents
 4. Individual Action Plan (IAP)
for Malaysia construction and
related engineering services 15
4.1 Licensing and Registration
Requirements of Foreign
Contractors For tender participation: 15
4.2 Rules and Regulations
for Foreign Entry 15
4.3 Project Financing Requirements 16
4.4 Other Relevant Information 17
5. What is the Green Building Index? 18
5.1 Who can use the
Green Building Index? 18
6. Extracts from Guidelines for
Public Safety and Health at
Construction Sites 19
6.1 Safety and Health Organizations 20
6.1.1 Safety and Health Policy 20
6.1.2 Safety and Health Committee 20
6.1.3 Occupational Safety and
Health Management System 20
6.1.4 Safety and Health Officer 20
6.1.5 Site Safety Supervisor 20
6.1.6 Contractor Safety Supervisor 20
6.2 General Duties of Employers 20
6.3 General Duties of Architects,
Engineers and Designers 21
6.4 Emergency Response Plan 21
6.5 Hoarding 22
6.6 Movement of Vehicular Traffic 22
6.7 Disconnection of Utilities 23
6.8 Demolition 23
6.8.1 General 23
6.8.2 Preparatory Work 24
6.8.3 Catch Platforms for
Demolition Operations 24
6.8.4 During Demolition 24
6.9 Blasting and use of Explosive 24
6.10 Removal of Debris 25
6.11 Site Clearing 25
6.12 Excavation Work 26
6.13 Piling 27
6.14 Superstructure 27
6.14.1 Scaffolds 27
6.14.2 Safety Net and Peripheral Net 28
6.14.3 Catch Platform 29
6.14.4 Concrete Work 29
6.15 Finishing 29
6.16 Use of Hoisting Equipment 29
6.16.1 General 29
6.16.2 Erection 30
6.16.3 Jacking 31
6.16.4 Operation 31
6.16.5 Inspection and Testing 32
6.16.6 Maintenance and Repair 32
6.16.7 Dismantling 32
6.16.8 Crane Storage 32
Appendix I
List of Occupations Reserve for
Local Construction Workers 34
Appendix II
Listing of Imported Products and
Malaysian Standard (MS) 35
Appendix III
Construction Personnel
Registration Form 36
Appendix IV
Services of the Malaysian Chamber
of Commerce 41
Table of Contents 5
 1. Immigration and Employment of Expatriate Personnel
Where there is a shortage of trained Malaysians,
foreign companies are allowed to bring in expatri-
ate personnel. In addition to this, foreign companies
are also allowed key posts, that is, posts that are
permanently filled by foreigners.
1.1 Guidelines on employment
of expatriate personnel:
A company with foreign equity with paid-up capi-
tal of the Ringgit equivalence of USD 2 million
and above will be allowed five expatriate posts in-
cluding key posts. Additional expatriate posts will
be allowed upon request and when necessary.
For companies with foreign equity with paid-up
capital of less than the Ringgit equivalent of USD 2
million, the following applies:
Key posts can be considered where the foreign
paid-up capital is at least RM 500,000. This figure
is only a guideline and the number of key posts al-
lowed depends on the merits of each case.
For executive posts that require profession-
al qualifications and practical experience, expa-
triates may be employed up to a maximum of
10 years, on the condition that Malaysians are
trained to eventually take over the posts.
For non-executive posts that require technical
skills and experience, expatriates may be em-
ployed up to a maximum period of five years,
again on the condition that Malaysians are
trained to eventually take over the posts.
Expatriate personnel transferred from one post to
another within the same company will be required
to obtain a new employment pass. The expatriates
6 Immigration and Employment of Expatriate Personnel
original employment pass will be amended to re-
flect the change in post.
All employment passes are valid for the period ap-
proved for the post. However, for key post holders,
employment passes can be issued for up to 5 years
on a renewable basis except in circumstances where:
The validity of the expatriates passport is less
than 5 years;
The expatriates employment contract is less than
5 years; or
The employment requires the services of the ex-
patriate for less than 5 years.
Holders of employment visas will be issued with
multiple entry visas valid for the duration of the em-
ployment pass.
1.2 How to Apply
for Expatriate Posts
Before the expatriate applies for the Employment
Pass at the Immigration Department, companies
employing expatriates must firstly apply for and ob-
tain an approval for an expatriate post or position
from one of the following agencies:
Malaysian Industrial Development Authority (MIDA);
Ministry of Education;
Construction Industry and Development Board (CIDB);
Security Commission;
National Bank (Bank Negara);
Ministry of Domestic Trade and Consumer Affair;
Ministry of International Trade and Industry (MITI);
Ministry of Finance;
Multimedia Development Corporation Sdn Bhd
 (MDC);
Ministry of Health;
Public Service Department;
Expatriate Committee (JKPD);
Applications for expatriate posts for manufacturing
companies should be submitted to MIDA together with
the companys application for approval of its project.
1.3 Types of Visa
There are several types of passes issued by the Im-
migration Authorities:
1. Visit Pass (Temporary Employment)
This is issued to persons who enter the country to take
up temporary employment for less than 24 months or
earn a monthly income of less than RM 5,000.
2. Employment Pass
This is issued to foreigners who enter the country to
take up a contract of employment with a minimum
period of two years and earn a monthly income of
not less than RM 5,000. However the expatriate
need to be of a minimum age of 27 years; whereas
in Information Technology Sector an age require-
ment of 23 years and above applies.
3. Visit Pass (Professional)
This is issued to foreigners on short-term contract.
The validity of the pass varies but it does not exceed
12 months.
The categories of foreigners who are eligible are:
artistes
those entering for filming
researchers recognized by the Government of
Malaysia
members of an International Organisation
volunteers
invited lecturers/speakers
those entering for religious purposes
Experts in the installation or maintenance of ma-
chines/computers.
4. Dependents Pass
This is issued to wives and children of foreigners
who have been issued an employment pass. This
pass may be applied for together with the applica-
tion for an employment pass or after the employ-
ment pass is approved. Wives and children of for-
eigners who enter the country on a visit pass (tem-
porary employment or professional) will be issued a
visit pass (social).
5. Students Pass
This is issued to foreigners who enrol as students in
approved educational institutions.
6. Visit Pass (social and/or business)
Owners and company representatives entering
Malaysia to attend a company meeting or semi-
nar, inspect the companys accounts or to ensure
the smooth running of the company;
Investors or businessmen entering to explore
business opportunities and investment potential;
Foreign representatives of companies entering
to introduce goods for manufacture in Malaysia,
but not to engage in direct selling or distribution;
Property owners entering to negotiate, sell or
lease properties;
Foreign reporters from mass media agencies en-
tering to cover any event in Malaysia; and
Participants in sporting events.
These passes cannot be used for employment or
for supervising the installation of new machinery
or the construction of a factory.
Immigration and Employment of Expatriate Personnel 7
 2. Legal Framework
Preliminary remark: Malaysia has a written constitu-
tion, which represents the supreme law of the coun-
try, as well as the respective constitutions of the 13
federal states. Another legal source was acts. In case
questions of law are not regulated by acts, the Brit-
ish case law Common Law becomes active, which is
referring to the verdicts of the Supreme Court and to
the decisions of other Common Law countries such
as Australia, India, New Zealand and England. Sec-
ondly, the extension of the Common Law through
judicial interpretation takes place (Case Law).
The adoption and validity of the British legislation
is amongst others regulated in the Civil Law Act
1956, which stipulates the continued application of
the by then valid Common Law fundamentals and
the equity rules.
2.1 Contract Law
As far as contracts are concerned that would be clas-
sified as contracts for work labour under German
law, there are only a few specific statutory regula-
tions in Malaysia. One is the Consumer Protection
Act 1999 (CPA 1999), that defines the minimum re-
quirements on the contractors duties, with regard
to the quality of delivered goods and the standard
of rendered services, as well as questions on remu-
neration and conflict resolution. However, most of
the regulations still follow the Case Law. Contracts
under Malaysian law distinguish themselves, mainly
due to the missing reference provisions, through
their considerably more extensive technical regula-
tions compared to contracts under German law. The
parties try to comprise all aspects of the business
through the set of agreements.
8 Legal Framework
Contractual content: Precise description of the
mutual performance obligations
Warranty
Subsidiary obligations
Factory inspection
Utilisation and selection of subcontractors
Terms of termination
Choice of applicable law and place of jurisdiction.
Given the high importance of the contractual terms,
it is in any case recommended to seek qualified legal
advice before conclusion of a contract. All contrac-
tual modifications should be performed in written
form. A written confirmation of the counterpart
should be on hand as well, in order for the modifi-
cations to be legally valid.
2.2 Title Retention
and other securities
The legal institution of title retention is thoroughly
known in Malaysia. Provided that a sale under reten-
tion of title is considered by the supplier, he should
verify the buyers solvency in time, as well as provide a
preferably short term of payment and stop further de-
liveries immediately in the event of delayed payment.
According to the Malaysian purchasing law and pro-
vided that no other special agreements have been
made between parties, the ownership is in principle
already transferred to the purchaser simultaneously
to the conclusion of the purchase contract. There-
fore, the title retention must be agreed before or
latest with the purchase contract, at best in the con-
tract itself. Under no circumstances it is sufficient to
print the retention on the backside of the delivery
note such an agreement would be ineffective.
 The language is also a significant element: In the
event where the contract negotiations were held in
English and the written transcript is perhaps also in
English language, the opposition will often invoke
that a German retention of title has not been agreed
effectively, one wouldnt understand what is meant.
Thus, a German retention of title is only sufficient
if the contract negotiations were (verifiably) held in
German, since the argument of not understanding
is stripped from the opposition.
The following types of retentions of title are com-
mon in Malaysia:
2.2.1 Ordinary Retention of Title
An agreement, where the ownership of the goods
shall only be transferred to the buyer once full pay-
ment of the purchasing price is made, is valid un-
der Malaysian law and is also recognized by the
tribunals. Mandatory precondition is however, the
distinct agreement in the retention clause that the
supplier of the goods shall remain owner although
the buyer is already in possession of the goods.
However, the ordinary retention of title ensures the
supplier only as long as the goods are in original
condition and can be identified as such. If a proof
of origin of the seller is missing or a clear attribu-
tion due to other reasons is not possible anymore it
can lead to loss of the securing means. Therefore,
measures for clear identification of the goods, for
example a label or an agreement for separate stor-
ing at the buyers should be found.
The retention of title expires in any case, if:
the buyer associates or processes the delivered
product in such inseparable way, that the origi-
nal identity of the material cannot be established
anymore or
if the buyer resells the goods to a credulous third
party.
2.2.2 Assignment of Claims
It is possible that a seller intends to assign the claims
through resale, if the precondition for a statutory
assignment is met. Afterwards, a written declara-
tion of assignment by the assignor is necessary, as
well as an explicit written notice of assignment to-
wards the debtor. Furthermore, only an already ex-
isting claim can be transferred without restriction
and condition. Therefore, a future, not yet existent
claim cannot yet be assigned by the buyer upon
conclusion of the purchasing contract. He can only
engage to a later assignment of his future title. If
those statutory preconditions are not reunited, such
an assignment of claims can at best be validated as
an equitable assignment.
2.2.3 Service Failure and Warranty
Under the Malaysian contract law, warranty claims
as well as claims due to service failures depend again
first and foremost on the contractual agreement be-
tween the parties. This principle is broken, once the
area of applicability of the Consumer Protection Act
1999 (CPA 1999) is engaged, in case of a product
being delivered to a consumer. Consumer in this
sense is a person, which purchases the goods or
service for personal, not commercial use and who is
considered to be the end consumer.
Besides the CPA 1999, the Sales of Goods Act 1957
exists, whose application applies equally to distribu-
tors and end consumers. The principle, whereupon
special legal regulations displace general legislation
is therefore not valid.
Legal Framework 9
 The Common Law distinguishes in principle be-
tween violations of general or specific contractual
terms and from non-contractual agreements or
representations. Depending on the situation of the
case, rescission, reduction of the purchasing price
and a claim for damage can be justified in warranty
violations. In the event where contractual consents
are not performed, it is differentiated whether con-
tractual warranty or a substantial contractual provi-
sion, therefore a major condition is involved. In case
of violation of contractual warranty, the aggrieved
party can only assert claims of compensation from
the liable party. The violation of a contractual con-
dition is considered, under British Law, a breach of
contract. A breach of contract also applies in case
of non-fulfillment or defective service, as well as fi-
nal repudiation and can entitle the aggrieved party
to cancellation of contract in addition to claims of
compensations. To commit a breach of contract
leads on a regular basis to the aggrieved party be-
ing exempted from its duties and potentially to the
right to reclaim an already performed return service.
2.3 Product Liability
A significant development in the regard of protection
of consumer rights in Malaysia was the enactment of
the Consumer Protection Act 1999 (CPA 1999), which
provides greater rights and remedies for the benefit
of consumers affected by defective products than
those traditionally available at common law. Present
day product liability falls under three distinct heads,
namely the CPA 1999, tort and contract.
2.3.1 Systems of Product Liability
CPA 1999
The CPA 1999 is designed to protect consumers,
10 Legal Framework
namely persons who acquire or use goods of a kind
ordinarily acquired for personal, domestic or house-
hold purposes, use or consumption, and who do not
acquire or use the goods primarily for purposes of
trade. The consumers have to prove that the prod-
uct was in fact defective and that the defect caused
him injury or loss. In practical terms, it is the manu-
facturer and supplier of a defective product who face
increased potential liability under the CPA 1999.
A consumer can elect to bring his claim before ei-
ther the civil courts or the Tribunal for Consumer
Claims. Most claims of significance will be brought
in the civil courts, given that the Tribunals jurisdic-
tion to award compensation is presently limited to
RM 25,000 unless the parties agree otherwise.
Tort
Although the CPA 1999 has been in force for more
than 10 years, its provisions are seldom relied upon
by consumers, who instead tend to bring product
liability claims solely based on the common law tort
of negligence. This fact is likely to change as con-
sumers and their lawyers become increasingly famil-
iar with the provisions and scope of the CPA 1999.
With regard to negligence, the plaintiff will normally
sue the manufacturer and/or supplier of the defec-
tive product, and will have to establish fault on the
part of the defendant. The plaintiff can establish li-
ability on the part of the defendant if he can prove
that the defendant owed him a duty to take rea-
sonable care in all the circumstances of the case,
that the defendant breached that duty, and that the
damage or injury suffered by the plaintiff was rea-
sonably foreseeable.
 Contract
The purchaser of a defective product can sue the
party from whom he purchased the product for
breach of contract, and recover any loss or dam-
age suffered, upon establishing that the party con-
cerned has breached the contract of sale. Given that
the doctrine of privity of contract dictates that the
suit can only be brought against the actual party
to the contract, manufactures are seldom sued, as
there is usually no contractual relationship between
the manufacturer and the purchaser. However, the
manufacturer may on occasion independently un-
dertake liability to the purchaser, e.g. through a
warranty, in which case he may be liable.
2.3.2 Responsibility for the defect/fault
CPA 1999
The CPA 1999 (Part III) provides that the supplier
shall adopt and observe a reasonable standard of
safety to be expected by a reasonable consumer,
due regard being had to the nature of the product,
and that no person shall import, supply, or offer to
or advertise for supply, goods which do not meet
such a standard of safety. In addition, no person
shall supply, or offer to or advertise for supply, a
product which is not reasonably safe having regard
to all the circumstances, including:
the manner in which, and the purposes for
which, the product is being or will be marketed;
the get-up of the product;
the use of any mark in relation to the product
and
instructions or warnings in respect of the keep-
ing, use or consumption of the product
Tort
There is in principle no restriction on the parties in
the chain of distribution that can be held liable in the
tort of negligence. However, in practice it is often
the manufacturer who is found to be at fault, be-
ing the creator of the defect, and the other parties
in the chain of distribution may not necessarily have
the means or responsibility of discovering the defect.
Contract
Liability is governed by the terms of the contract,
and the doctrine of privity will apply. As such, in
most cases the supplier of the product bears liability.
2.3.3 Causation (Burden of proving
fault/defect and damage)
CPA 1999
The consumer bears the burden of proving that the
product is defective and that he has suffered injury,
loss or damage in consequence of the defect. Once
this burden is discharged, the defendant will be liable
unless he can establish any of the statutory defenses.
Tort
The onus is on the plaintiff to prove the defect,
fault and damage. The plaintiff may in exceptional
circumstances rely on the doctrine of res ipsa lo-
quitur (the thing speaks for itself), in which event
the onus of disproving negligence will fall on the
defendant. However, this doctrine can only be relied
upon where an event which, in the ordinary course
of things, was more likely than not to have been
caused by negligence, and depends on the absence
of explanation for the event.
Legal Framework 11
 Contract
The onus is on the plaintiff to prove the breach of
the contract and the damage suffered.
2.4 Collective Agreements
Collective agreements, agreements in writing con-
cluded between an employer or a trade union of
employers on the one hand and a trade union of
workmen or employees on the other, are relating
to terms and conditions between the two such par-
ties. Unless approved by the Ministry of Human
Resources, collective agreements cannot contain
better terms of employment then those stipulated
under the Employment Act 1955. The relations be-
tween employers and workmen or employees and
their trade union are regulated under the Industrial
Relations Act 1967 (IRA).
3. Registration Requirements and Procedures
for Foreign Applicants
3.1 Application Details
Provisional Registration
Foreign companies who wish to participate in ten-
ders for construction works in Malaysia, whether on
invitation by the prospective clients or through adver-
tisement shall apply for provisional registration using
Form CIDB R2/95. Foreign companies issued provi-
sional registration shall participate only in the tenders
for which provisional registration was granted.
12 Registration Requirements and Procedures for Foreign Applicants
This Act emphasizes on direct negotiation between
employers and workmen or employees and their
trade unions to settle their differences, to regulate
their collective relationship and to settle any dispute
arising there from through their own effort and
through mutually agreed procedures with minimal
government intervention. Where direct negotiation
between employers, workmen or employees and
their trade unions fails, the IRA provides speedy and
just settlement of trade disputes by conciliation or
arbitration. Therefore, the Act gives the power to
the Ministry of Human Resources to intervene and
to refer to the Industrial Court for arbitration.
In general, peaceful and orderly picketing in furtherance
of a trade dispute is permitted under the IRA. However,
after a trade dispute has been referred to the Industrial
Court and on any matter covered by a collective agree-
ment or by an award of the Industrial Court, employees
or workmen are not allowed to declare strike or lockout.
Registration
Foreign companies who are awarded construction
projects in Malaysia shall be registered with the
Registrar of Companies before they apply for reg-
istration using Form CIDB R3/95. Companies who
are awarded construction projects as a joint venture
or consortium should apply to be registered as a
joint-venture or consortium. They shall be allowed
to construct and complete only the specific project
they are registered for. Application shall be made for
each construction project awarded.
 Processing Fee
All applications for provisional registration shall be
accompanied by payment of RM50.00 processing
fees. All applications for registration shall be accom-
panied by RM50.00 processing fees as well as the
appropriate registration fees.
3.2 Processing Time
If the submissions are complete and in order, appli-
cants will be informed of the outcome within one (1)
week from the date of submission of applications.
3.3 Certificates of Registration
Certificates issued by CIDB
are as follows:
Certificate of Provisional Registration
Certificate issued to foreign contractors before they
tender for specific projects.
Certificates of Registration
Certificates issued to foreign contractors which au-
thorize the certificate holders to execute and com-
plete construction works for specific projects.
Validity of Registration
Provisional Registration is valid until the closing date
or extended closing date of the specific tender.
Certificate of Registration is valid for the period of
construction for the specific construction project.
If for any reasons the date of completion of the
project is extended, the Contractor shall apply to
the Lembaga within 14 days before the expiry of the
validity of the Certificate of Registration to extend
the validity of the Certificate. The application shall
be substantiated with documentary evidence.
Registration Requirements and Procedures for Foreign Applicants 13
3.4 Registration and Related Fees
Registration Fees
Upon approval and notification by CIDB, the quali-
fied applicant shall pay RM500.00 fee before issu-
ance of a certificate of provisional registration.
An applicant applying for registration shall submit
the registration fee together with the processing
fee. The fee payable is RM5,000.00. If RM500.00
has been paid for a certificate of provisional regis-
tration the fee payable is RM4,500.00.
3.5 Re-issuance of Certificates
A copy of the statutory declaration declaring loss/dam-
age of the original certificate and payment of RM100.00
shall be made before re-issuance of new certificates as
replacements for lost/damaged certificate.
3.6 Copies of Certificates
Contractors who require copies of the registration
certificates for purpose of displaying at their places
of business may apply to CIDB for copies at the cost
of RM20.00 per copy.
3.7 Cancellation or Suspension or
Revocation of Certificates of
Registration
CIDB may upon its own motion or upon verify com-
plaint of any person, cancel or suspend or revoke
the registration of any contractor who commit any
of the acts listed in (b).
Any of the following shall be sufficient cause for
cancelling or suspending or revoking a contractors
 registration: 3.8 Registration Procedures for
The holder of the Certificate has been adjudicat- Foreign Companies
ed a bankrupt; orA winding-up petition in rela-
tion to the holder is presented; or
The holder of the Certificate contravenes or fails
to comply with any provisions of the Act or these
regulations: or
The holder of the Certificate has obtained the
Certificate by making or causing to be made any
false or fraudulent declaration, certification or
representation either in writing or otherwise; or
The holder of the Certificate has abandoned any
construction works undertaken; or
The holder of the Certificate is found guilty by
the Court to be negligent in connection with any
construction works undertaken; or
The holder of the Certificate contravenes, or fails
to perform, or assists in the contravention of any
terms, conditions or restrictions imposed by the
Lembaga.
Before CIDB cancels or suspends or revokes the reg-
istration of any contractor, CIDB shall:

Sent to such contractor by post registered let-

ter a notice in writing of the complaint against
him; and
Afford such contractor an opportunity of giving
an explanation in writing.

14 Registration Requirements and Procedures for Foreign Applicants

 4. Individual Action Plan (IAP) for Malaysia
construction and related engineering services
4.1 Licensing and Registration
Requirements of Foreign
Contractors For tender
participation:
Procure application from CIDB R2/95 with payment
of RM5.00 at CIDB counter at the head office.
Duly complete form to be submitted with:
Letter of invitation to bid
Certificate of registration (form 9/83 of Compa-
nies Act 1965) (if any)
Company profile including financial capacity and
technical personnel
RM50.00 processing fee
RM500.00 registration fee
For executing works:
Procure application form CIDB R3/95 with payment
of RM5.00 at CIDB counter at the head office
Duly complete form to be submitted with:
Letter of awards or acceptance
Certificate of registration (form 9/83 of Compa-
nies Act 1965)
RM50.00 processing fee
RM4,500.00 registration fee (if prior payment
of RM500.00 was made for provisional registra-
tion); or RM5,000.00 registration fee (if no prior
payment was made for provisional registration)
and particulars on financial capacity and techni-
cal personnel.
Individual Action Plan (IAP) for Malaysia construction and related engineering services 15
4.2 Rules and Regulations
for Foreign Entry
Contractors
P.U. (A) 317 of Act 520 Akta Lembaga Pembangu-
nan Industri Pembinaan Malaysia:
For tender participation: (Does not include negoti-
ated tender or prequalification exercise)
No foreign contractor shall participate in a tender
for any construction works unless he holds a valid
Certificate of Provisional Registration as a registered
contractor under these regulations.
Upon application by the foreign contractor and
before the CIDB issues the Cerificate of Provisional
Registration, the CIDB must be satisfied that
The foreign contractor possesses the experience
to execute the construction works;
The foreign contractor possesses sufficient finan-
cial resources to carry out any business as a con-
tractor;
The foreign contractor employs an adequate
number of employees possessing the required
experience or qualification as determined by the
CIDB.
For executing works:
No foreign contractors shall carry out and complete
any construction works unless he holds a valid Cer-
tificate of Registration as a registered foreign con-
tractor issued under these regulations.
 Upon application by the foreign contractor and be-
fore the CIDB issues the Certificate of Provisional
Registration, the CIDB must be satisfied that
The foreign contractor has been issued a letter
of award or letter of acceptance in relation to a
construction contract in respect of the construc-
tion works;
The foreign contractor has registered his busi-
ness with the relevant authorities under any writ-
ten law;
The foreign contractor possesses the experience
to execute the construction works;
The foreign contractor possesses sufficient financial
resources to carry out any business as a contractor;
The foreign contractor employs an adequate
number of employees possessing the required ex-
perience or qualification as determined by the CIDB.
Workers
The current provision under the Immigration Act
1959/63, Regulations & Orders and Passport Act
1966 is still applied.
Foreign construction workers are allowed to work
except in trades as listed in Appendix I. The foreign
workers are required to undergo an accreditation
process by CIDB at the end of 5 years.
4.3 Project Financing Require-
ments
Foreign Direct Investment (FDI)
On April 22, 2009 the Government had further lib-
eralised the services sector to attract more foreign
investments and bring more professionals and tech-
nology as well as strengthen competitiveness of the
sector. Recognising the growth potential in the serv-
16 Individual Action Plan (IAP) for Malaysia construction and related engineering services
ices sector, the Government has decided to imme-
diately liberalise 27 services subsectors, with no eq-
uity condition imposed. These sub-sectors are in the
areas of health and social services, tourism services,
transport services, business services and computer
and related services.
Repatriation of Profits
A non-resident is free to repatriate any amount of
own funds in Malaysia any time, including profits.
For further information, please refer to the website
of Bank Negara Malaysia (Central Bank of Malaysia)
(www.bnm.gov.my/references/foreign_exchange_
administration_rules_in_Malaysia/non-residents)
Tax Structure
Taxable income of firms in Malaysia is subject to cor-
porate tax at the rate of 25%. Small and medium
sized enterprises (SMEs) that qualify for the condi-
tions are subject to tax at 20% for the first Ringgit
Malaysia (RM) 500,000 taxable income. It is 25% of
the taxable income thereafter.
If a project in connection with a building site or con-
struction or installation project lasts for more than a
certain duration (this period varies with the Agree-
ment between Malaysia and the ASEAN country), it
will constitute a permanent establishment (PE).
Employees, of companies, who stay more than 182
days in Malaysia will be considered resident in Ma-
laysia and will be taxed at scale rate.
Bank/Financial Institution Requirement
Non-residents may obtain financing from licensed
banks in Malaysia as follows:
 Foreign currency financing up to any amount
Ringgit financing up to MYR10 million
Detailed information on the foreign exchange ad-
ministration policy can be obtained at
http://www.bnm.gov.my/fxadmin
4.4 Other Relevant Information
Plant and Equipments
For constructional plants, equipments, vehicles and
machineries (not for incorporation in the works)
which are to be used solely for the works, customs
import duties is exempted as provided under Sec-
tion 97 of the Customs Act 1967 while sales tax is
exempted as provided under item 29 of the Sales
Tax (Exemption) Order 1988 provided the contrac-
tor enters into a bond/bankers guarantee accept-
able to the Customs Department for such construc-
tional plants, equipments, vehicles and machineries
which on or before completion of the maintenance
of works shall be re-exported from Malaysia within
three months of the date of importation or within
such further period as the Director General of Cus-
toms may allow.
Material
Charges on Importation
All goods (material) for incorporation in the works
or for use directly in connection with the construc-
tion and completion and maintenance thereof will
be subjected to customs import duties and sales tax.
Sales tax for building materials is generally at 5%
to 10%. Customs import duties imposed on most
goods from ASEAN countries with a minimum 40%
ASEAN contant is between 0% and 5% as commit-
ted under the ASEAN Common Effective Preferen-
tial Tariffs (CEPT) Scheme.
Individual Action Plan (IAP) for Malaysia construction and related engineering services 17
Prohibition of Import
The Customs (Prohibition of Imports) Order 1998
describes the goods and the manner of import that
importers need to comply to enable the importation
of certain products into the country.
The Customs (Prohibition of Imports) Order 1998
prescribes that for some products an approval or
permit must first be obtained from the relevant gov-
ernment authorities prior to the importation of the
products. CIDB Malaysia was named as the author-
ity to issue the Certificate of Approval for the impor-
tation of construction materials.
This Certificate of Approval is to certify that the
product, which is imported, has conformed to the
relevant Malaysian Standards prescribed in Part III,
Fourth Schedule of the Customs (Prohibition of Im-
ports) Order 1988. List of the products as referred
in Appendix II.
In order to obtain the Certificate of Approval from
CIDB, the importers must comply with ALL the fol-
lowing requirements:
Product Certificate (Factory Overseas)
Consignment Sampling and Testing (Point of en-
try country)
Consignment Verification (Factory Overseas & Point
of entry country)
Applications will be submitted using the original
CIDB Form Q1, which is available free-of-charge at
all CIDB offices throughout the country.
 5. What is the Green Building Index?
(http://www.greenbuildingindex.org/)
The Green Building Index (GBI) is Malaysias industry
recognized green rating tool for buildings to pro-
mote sustainability in the built environment and
raise awareness among Developers, Architects, En-
gineers, Planners, Designers, Contractors and the
Public about environmental issues and our responsi-
bility to the future generations. The GBI rating tool
provides an opportunity for developers and building
owners to design and construct green, sustainable
buildings that can provide energy savings, water
savings, a healthier indoor environment, better con-
nectivity to public transport and the adoption of re-
cycling and greenery for their projects and reduce
our impact on the environment.
The Green Building Index is developed by PAM (Per-
tubuhan Arkitek Malaysia / Malaysian Institute of Ar-
chitects) and ACEM (the Association of Consulting
Engineers Malaysia). The Green Building Index is Ma-
laysias first comprehensive rating system for evalu-
ating the environmental design and performance of
Malaysian buildings based on the six (6) main criteri-
as of Energy Efficiency, Indoor Environment Quality,
Sustainable Site Planning & Management, Materials
& Resources, Water Efficiency, and Innovation. GBI
is developed specifically for the Malaysian-tropical
climate, environmental and developmental context,
cultural and social needs and is created to:
18 What is the Green Building Index?
Define green buildings by establishing a com-
mon language and standard of measurement;
Promote integrated, whole-building designs that
provides a better environment for all;
Recognise and reward environmental leadership;
Transform the built environment to reduce its
negative environmental impact; and
Ensure new buildings remain relevant in the fu-
ture and existing buildings are refurbished and
upgraded to improve the overall quality of our
building stock.
5.1 Who can use the
Green Building Index?
GSB encourages all members of Project Teams,
Building owners, Developers and other interested
parties (including Contractors, Government and De-
sign & Build Contractors) to use the Green Build-
ing Index to validate environmental initiatives at the
design phase of new construction or base building
refurbishment; or construction and procurement
phase of buildings. Use of the Green Building In-
dex is encouraged on all such projects to assess and
improve their environmental attributes. Use of the
Green Building Index tool without formal certifica-
tion by an independent accredited GBI Certifier does
not entitle the user or any other party to promote
the Green Building Index rating achieved. No fee is
payable to GSB for such use, however formal recog-
nition of the Green Building Index rating - and the
right to promote same - requires undertaking the
formal certification process offered by Green Build-
ing Index Sdn. Bhd.
 GBI Assessment Criteria for Non-Residential
New Construction (NRNC)
http://www.greenbuildingindex.org/Resources/
GBI%20Tools/GBI%20NRNC%20Non-Residen-
tial%20Tool%20V1.0.pdf
GBI Assessment Criteria for Residential New
Construction (RNC)
http://www.greenbuildingindex.org/Resources/
GBI%20Tools/GBI%20RNC%20Residential%20
Tool%20V1.0%20Final.pdf
6. Extracts from Guidelines for Public Safety and Health
at Construction Sites
(By the Department of Occupational Safety and
Health (DOSH) Ministry of Human Resources Malay-
sia 2007)
http://dosh.mohr.gov.my/
Introduction
Construction sites create a risk not only for the con-
struction worker, but also for the public who move
around the site or who may live adjoins them. Exam-
ples of the hazards created are:
Changes to the surface level;
Excavations, holes and trenches;
Falling material and debris;
Plant and equipment;
Dust, vapours or other hazardous substances;
Noise;
Vibration;
Movement of vehicular traffic
Extracts from Guidelines for Public Safety and Health at Construction Sites 19
Design Reference Guide for Non-Residential
New Construction (NRNC)
http://www.greenbuildingindex.org/Resources/
GBI%20Tools/GBI%20Design%20Reference%20
Guide%20-%20Non-Residential%20(NRNC)%20
V1.0.pdf
The Department of Occupational Safety and Health
(DOSH) and other government agencies have regu-
lations that lay down the legal requirements to en-
sure the safety and health of not only the workers
at the place of work but also the public as well. This
guideline applies to all place of work in building op-
eration and work of engineering construction activ-
ity in Malaysia covered by the Occupational Safety
And Health Act 1994 (Act 514), the Factories And
Machinery Act 1967 (Act 139), and all the regula-
tions made there under.
Notification and Reporting of an Accident and
Dangerous Occurrence
Section 32 under Occupational Safety and Health
Act 1994, an employer shall notify the nearest De-
partment of Occupational Safety and Health office
of any accident, dangerous occurrence, occupation-
al poisoning or occupational disease which has oc-
curred or is likely to occur at the place of work.
 Method of notification and reporting an accident
shall comply with Occupational Safety and Health
(Notification of Accident, Dangerous Occurrence,
Occupational Poisoning and Occupational Disease)
Regulation 2004.
6.1 Safety and Health
Organizations
6.1.1 Safety and Health Policy
Every employer shall prepare and as often as may be
appropriate revise a written statement of his general
policy with respect to the safety and health at work
of his employees and the organization and arrange-
ments for carrying out that policy, and to bring the
statement and any revision of it to the notice of all
of his employees. (Section 16, Occupational Safety
and Health Act 1994)
6.1.2 Safety and Health Committee
The main contractor of a worksite in which forty
or more persons are for the time being employed
(whether by him or by other contractors employed
by him or the client) shall establish a safety and
health committee (on which both employees and
management are represented) for the purpose of
keeping under review conditions in the worksite
which may affect the safety and health of the per-
sons employed therein or the public. (Section 30,
Occupational Safety and Health Act 1994, Occupa-
tional Safety and Health (Safety And Health Com-
mittee) Regulations 1997)
6.1.3 Occupational Safety and Health
Management System
Every employer should establish, implement and
maintain an occupational safety and health man-
agement system and shall be in accordance with the
20 Extracts from Guidelines for Public Safety and Health at Construction Sites
requirement of the relevant Malaysian Standard or
with any other equivalent Occupational Safety and
Health Management System approved by Director
General.
6.1.4 Safety and Health Officer
Every contractor of any building operation and
works of engineering construction when the total
contract price of the project exceeds twenty mil-
lion ringgit Malaysia, they shall employ a safety and
health officer. (Section 29, Occupational Safety and
Health Act 1994, Occupational Safety and Health
(Safety And Health Officer) Order 1997)
6.1.5 Site Safety Supervisor
The main contractor of a worksite shall appoint a
part time site safety supervisor who should spend
at least fifteen hours per week exclusively on safety
supervision and on promoting the safe conduct of
work generally within the site. (Reg. 25, Building
Operations And Works Of Engineering Construction
(Safety) Regulations, 1986)
6.1.6 Contractor Safety Supervisor
Every contractor other than the main contractor in
charge of worksite who employs more than twenty
persons to carry out work on a worksite shall ap-
point a part time contractors safety supervisor, who
should spend at least five hours per week exclusively
on safety supervision and on promoting the safe
conduct of work generally by his employees. (Reg.
26, Building Operations And Works Of Engineering
Construction (Safety) Regulations, 1986)
6.2 General Duties of Employers
Every developer, main contractor, contractor and
sub-contractor shall have a written statement of
 his general policy with respect to the safety and
health at work of his employees and other per-
sons who are not his employees, who may be ex-
posed to risks to their safety and health. (Section
16, Occupational Safety and Health Act 1994)
Every main contractor, contractor and sub-con-
tractor shall develop a safety and health manual
that has provision for safe guarding the safety and
health of the public and his employees. (Section
15(2)(a), Occupational Safety and Health Act 1994)
Every main contractor, contractor, and sub-con-
tractor shall make an arrangement during oper-
ation, handling, transport, storage of plant and
substance, to ensure the safety and health to the
employees and public. (Section 15(2)(b), Occupa-
tional Safety and Health Act 1994)
Every developer, main contractor, contractor and
sub-contractor shall ensure that all workers are
properly informed of the hazards of their respec-
tive occupations and the precautions necessary
and adequately supervise to avoid accidents, in-
juries and risk to health, and in particular that
young workers, newly engaged workers, illiterate
and foreign workers. (Section 15(2)(c), Occupa-
tional Safety and Health Act 1994)
Every developer, main contractor, contractor and
sub-contractor shall provide sufficient allocation
for ensuring that provisions to ensure the public
and his employees safety and health are imple-
mented and maintained.
Every owner, developer, main contractor, con-
tractor and, sub-contractor shall take adequate
steps to develop and promote safety and health
programs to ensure not only the safety and health
of his employees but also members of the public.
Extracts from Guidelines for Public Safety and Health at Construction Sites 21
6.3 General Duties of Architects,
Engineers and Designers
At the planning stage of any proposed building
or civil engineering works, specific consideration
should be given, by those responsible for the de-
sign and the construction, to the safety of the
workers and the public who will subsequently be
affected by the plant associated with the process
of the erection of such structures.
Architects, engineers and other professional per-
sons, not to include anything in the design that
would necessitate the use of unwarrantably dan-
gerous structural procedures and undue hazards,
which could be avoided by design modifications,
should exercise care.
Architects, engineers and other professional per-
sons should exercise with care not to include an-
ything in the design that would necessitate the
use of unsafe construction procedures and cre-
ate undue hazards. These should be avoided by
means of design modifications where necessary.
It is also of the greatest importance that engi-
neers should take into account the safety prob-
lems associated with the subsequent mainte-
nance of plant where this would involve hazards.
Safety and health facilities should be included in
the design for such work to be performed with
the minimum of risk.
Measures should be taken to ensure that all the
necessary safety and health program are effi-
ciently implemented and properly maintained.
6.4 Emergency Response Plan
Emergency response plan should be established
and maintained. This plan should identify the po-
tential for accidents and emergency situations,
 and address the prevention of occupational safe-
ty and health risk associated with them. The plan
should be made according to the size and nature
of activity based on relevant international stand-
ard. It should:
ensure that the necessary information, internal
communication and coordination are provided
to protect all people in the event of an emergen-
cy at the worksite;
provide information and communication with
the relevant authorities and the neighborhood
and the emergency response services;
address first aid, fire fighting and evacuation at
construction sites; and
provide relevant information and training to all
members of the organization, at all levels, includ-
ing regular exercise in emergency response.
6.5 Hoarding
The worksite should be fully barricaded by pro-
tective hoarding so that the general public would
be protected from work in progress. The hoard-
ing should be able to protect not only public
from dangers within the site but also act as bar-
rier or security to prevent persons from trespass-
ing into the site.
The hoarding should not be less than 1800mm
in height and continuous down to the ground. It
should be properly designed and constructed in ac-
cordance to the specification of the local authority
and should be maintained in good condition.
There should be an adequate safety distance be-
tween the worksite and the hoarding.
Where the distance from a public place to the
building being constructed is such that there is the
likelihood of falling materials striking pedestrian or
vehicular traffic, a gantry should be required.
22 Extracts from Guidelines for Public Safety and Health at Construction Sites
During the erection of the hoarding, safe work
procedures should be followed to ensure safety
of the public.
The entrance to and exit from the worksite should
be located in such a manner as to prevent danger
and inconveniences to the public. Proper security
should be maintained so as to prevent entry of un-
authorized persons and public into the worksite.
Suitable warning signs should be posted at con-
spicuous positions.
No bills except warning signs should be allowed
to be posted to the hoarding.
Arrangement should be made not to allow any
parking or hawking activities at the surrounding
perimeter of the hoarding when there is a high
risk activity or operation being carried out that
may cause a hazard to the surrounding.
All building materials should be stored and han-
dled within the hoarded area.
Structures of construction machinery should be
so located within the hoarded area that if the
structures were to collapse, the safety of the
public is not affected.
Gates should be of suitable design and adequate
strength.
6.6 Movement of Vehicular Traffic
All vehicles used at worksites shall be roadworthy
and comply with the requirements of the Road
Transport Department of Malaysia.
No person shall drive a vehicle of any class or de-
scription in a construction worksite unless he is
the holder of a driving license authorizing him to
drive a vehicle of that class or description. (Reg.
18(2)(b), Building Operations And Works Of Engi-
neering Construction (Safety) Regulations, 1986)
The design of the traffic control shall comply
 with the standard set and controlled by the rele-
vant authorities.
Whenever any work is being performed over, or
in close proximity to a highway or any other place
where movement of vehicular traffic into and out
of the work site may cause danger to the public,
the working area shall be barricaded. Suitable and
sufficient warning signs and warning lights shall
be set up to direct traffic to slow down or away
from it, and when necessary, the traffic shall be
specially controlled by designated person. (Reg.
18(1), Building Operations And Works Of Engi-
neering Construction (Safety) Regulations, 1986)
Vehicles arriving at site and leaving site should
be suitably scheduled to minimize congestion oc-
curring on public road leading to the worksite.
Vehicles should be parked in designated areas with-
in the hoarded area while being loaded or unloaded.
Where it is authorized by the local authority for
vehicles ferrying materials to the worksite to be
parked outside the hoarded area, suitable safe-
ty measures should be taken. Such measures
should include cordoning off such parking areas
and suitable warning signs, lights and flagman
should be provided.
Where it is absolutely necessary for construc-
tion machinery to carry out work from outside
the hoarded area, the operating area of the ma-
chine outside the hoarded area should be cor-
doned off. Suitable warning signs and lights and
flagman should be provided.
Vehicles for carrying building materials, debris
and excavated materials should be clean, well
maintained and in good running condition. If
they carry loose materials, they should be cov-
ered and properly sealed to ensure that there will
be no spillage of materials onto the public road.
Hazardous material should be rendered harm-
Extracts from Guidelines for Public Safety and Health at Construction Sites 23
less and safe to be handled while transported on
public roads.
In residential areas, heavy vehicles engines should
not be left idling unnecessarily so as to prevent a
nuisance to the public at night and during public
holidays.
Vehicles should not be driven at speed exceeding
the authorized speed limits.
Vehicles should not be loaded beyond author-
ized load limits and all loose materials should be
securely tied down before being transported.
The main gate shall be attended by a flagman if it
is located next to the main road to avoid accident.
6.7 Disconnection of Utilities
Approval from relevant authorities shall be ob-
tained before any work to disconnect utilities for
example electric cable or pipeline is carried out.
Disconnection of utilities should be carried out
by competent person.
6.8 Demolition
6.8.1 General
The selection of demolition method should take
into consideration the size, strength and loca-
tion of the structure to safeguard the safety and
health of the employees and public.
The risk assessment study should be done to deter-
mine possible causes for structural instability and
provide the action plan to ensure safety and health.
Demolition work should be carried out in such a
way so as not to affect the stability of the struc-
ture or adjacent structure, which may cause the
structure to collapse unplanned.
In demolition of structures that are in close prox-
imity to public area, demolition work should be
 carried out during non-peak hours.
All demolition work should be done by trained
personnel under the supervision of a designat-
ed person.
Demolition activities should not be continued
under adverse weather conditions, such as high
winds, storm, which could cause collapse of al-
ready weakened structures.
6.8.2 Preparatory Work
Before demolition operations begin:
Adequate inspection should be made by desig-
nated person;
If necessary to prevent danger, unstable parts of
the structure should be made secure; and
All utilities should be effectively disconnected or
shut off at or outside the property line.
The danger zone around the structure should be
adequately fenced off or warning sign posted.
Before the commencement of demolition work,
the structure should be free from any toxic or
hazardous substances (e.g asbestos materials).
Where applicable metal scaffold enclosed with
peripheral nettings should be erected around the
building or structure to be demolished.
Before demolition work is carried out, ensure
that these materials are removed:
Glass in doors, windows, etc;
Loose objects;
Projecting parts and
Explosive, inflammable, toxic and harmful sub-
stances
6.8.3 Catch Platforms for Demolition
Operations
During the demolition of the exterior walls of a
structure originally more than 12.2 meters high,
catch platforms shall be provided along the exte-
24 Extracts from Guidelines for Public Safety and Health at Construction Sites
rior, faces of such wall, where necessary, to pre-
vent injury to the public. (Reg. 43(1), Building Op-
erations And Works Of Engineering Construction
(Safety) Regulations, 1986)
Such platform shall be designed by a Professional
Engineer and certified for safety prior to erection
and use. (Reg. 43(2), Building Operations And
Works Of Engineering Construction (Safety) Reg-
ulations, 1986)
Such catch platform shall be maintained not
more than 6 metres below from which the exte-
rior walls are being removed. (Reg. 43(3), Build-
ing Operations And Works Of Engineering Con-
struction (Safety) Regulations, 1986)
Catch platform shall not be used for storage of
materials or be used as working platforms or
walkways. (Reg. 43(4), Building Operations And
Works Of Engineering Construction (Safety) Reg-
ulations, 1986)
6.8.4 During Demolition
During demolition work, the contractors should:
Provide workers and public the appropriate infor-
mation related to safety and health hazards dur-
ing demolition works;
Follow demolition sequence and method as pro-
vided by demolition/structural engineer;
Ensure the site in a safe condition and in compli-
ance with safety and health plan requirements;
Provide workers with all the appropriate personal
protective equipment (PPE) related to safety and
health risks they are exposed to; and
Take adequate steps to keep the debris or area be-
ing worked on sufficiently moist to lay the dust.
6.9 Blasting and use of Explosive
Approval from relevant authorities shall be ob-
 tained before blasting activity is carrying out.
Explosives shall not be handled or used except in
accordance with the manufacturers instructions.
(Reg. 135, Building Operations And Works Of En-
gineering Construction (Safety), Regulations, 1986)
All blasting work shall be done by trained per-
sonnel under the immediate control of a desig-
nated person who has a training, knowledge or
experience in the field of transporting, storing,
handling and use of explosives. (Reg. 135, Build-
ing Operations And Works Of Engineering Con-
struction (Safety) Regulations, 1986)
Before blasting, the owner should take every pre-
caution for the protection of life and property
such as fly rock, dust and vibration. Warning no-
tices shall be given to all residence and others in
the immediate vicinity of the blasting operation.
(Reg. 145, Building Operations And Works Of En-
gineering Construction (Safety) Regulations, 1986)
All use of explosives and any handling of explosive
shall be stopped immediately upon the approach
of a thunderstorm. All personnel in the area shall
immediately seek a safe place for shelter as direct-
ed by the person-in-charge of the blasting. (Reg.
146, Building Operations And Works Of Engineer-
ing Construction (Safety) Regulations, 1986)
The structures earmarked for demolition using
explosive should be cordoned off with hoarding
and adequate danger signs displayed.
Before firing, the blaster shall sound a warning
distinctly audible to all persons within the dan-
ger zone and all such persons shall retreat to a
safe distance or to a safe shelter. No blast shall
be fired while any person is in the danger zone
as determined by the blaster. (Reg. 142, Building
Operations And Works Of Engineering Construc-
tion (Safety) Regulations, 1986)
Round-the-clock security, signboards and red
Extracts from Guidelines for Public Safety and Health at Construction Sites 25
flags should be used to keep out unauthorized
people from the area.
Residents from the adjacent buildings should be
given circulars to inform them of the explosion
and explain the safety measures adopted. The
public also should be informed by the media of
the closure of nearby public roads.
After demolition by explosive method, areas and
building within the immediate vicinity should be
certified safe by competent person.
6.10 Removal of Debris
Debris shall be handled and disposed of by a
method, which will not endanger workers and
public safety and health. (Reg. 22(1), Building
Operations And Works Of Engineering Construc-
tion (Safety) Regulations, 1986)
Debris shall not be allowed to accumulate so as
to constitute a hazard. (Reg. 22(2), Building Op-
erations And Works Of Engineering Construction
(Safety) Regulations, 1986)
Debris shall be kept sufficiently moist to lay the
dust. (Reg. 22(3), Building Operation And Works
Of Engineering Construction (Safety) Regula-
tions, 1986)
Wherever materials are dropped more than 6
meters to any point lying outside the exterior
walls of the building, an enclosed chute of wood,
or materials of equivalent strength shall be used.
(Reg. 123, Building Operations And Works Of
Engineering Construction (Safety) Regulations,
1986)
6.11 Site Clearing
Felling of trees should be done by trained per-
sonnel to safeguard public safety and to prevent
 damage to public property.
Where the site is located in the immediate vicini-
ty of a build-up area, hoarding should be erected
with proper and adequate signs to prevent unau-
thorized entry.
Arrangement should be made to prevent land-
slides, sinkhole and flooding or other unstable
ground condition. This arrangement should con-
form to the requirements of relevant authorities.
All access and egress roads at the site should be
maintained in safe condition.
Every measure should be taken to suppress any
dust generated by the vehicles.
Care should be taken to protect existing under-
ground and overhead utilities (if any) especially
electric cables to avoid any undue accident dur-
ing site clearing work if relocation of such servic-
es are not possible.
6.12 Excavation Work
All public walkways, sidewalks and the thor-
oughfares bordering on or running through any
excavation site shall be provided with substantial
guard-rails or board fences. In addition, tempo-
rary footwalks beyond the kerb shall be substan-
tially constructed and provided with protection
on both sides. (Reg. 111(1) Building Operations
And Works Of Engineering Construction (Safety)
Regulations, 1986)
During darkness, all public sidewalks shall be ad-
equately illuminated and warning lights or flares
shall be placed about the property to ensure
safety for pedestrian and vehicular traffic. (Reg.
111(3), Building Operations And Works Of Engi-
neering Construction (Safety) Regulations, 1986)
Where construction vehicles or plant use public
thoroughfares, notices or warning sign should be
26 Extracts from Guidelines for Public Safety and Health at Construction Sites
placed at all exist and entrance to the work area
to warn all person in the vicinity.
All work carried out on a road or highways shall
have an approval of the road controlling author-
ity before any work starts. Temporary warning
sign shall be erected and traffic control exercised
in accordance with the requirements from other
relevant authorities.
Where there is any question of stability of struc-
tures adjoining or over areas to be excavated,
such structures shall be supported where neces-
sary by underpinning, sheet piling, shoring, brac-
ing or other means made or erected according
to the design of a Professional Engineer to pre-
vent injury to any person. (Reg. 112, Building Op-
erations And Works Of Engineering Construction
(Safety) Regulations, 1986)
The excavation site and its vicinity shall be checked
by a designated person after every rainstorm or
other hazard-increasing occurrence and the pro-
tection against landslides and cave-ins shall be
increased, if necessary. (Reg. 113(2), Building Op-
erations And Works Of Engineering Construction
(Safety) Regulations, 1986)
Temporary sheet piling installed to permit the
construction of a retaining wall shall not be re-
moved until the wall has developed its full
strength. (Reg. 113(3), Building Operations And
Works Of Engineering Construction (Safety) Reg-
ulations, 1986)
Where banks are undercut, adequate shoring
shall be provided to support the overhanging
materials. (Reg. 113(4), Building Operations And
Works Of Engineering Construction (Safety) Reg-
ulations, 1986)
Excavated materials and other superimposed
loads shall be placed at a safe distance from the
edge of open excavation and trenches, and shall
 be so piled or retained that no part thereof can
fall into the excavation, or cause the banks to
slip or cause the upheaval of the excavation bed.
When determining the safe distance, considera-
tion shall be given on the depth and slope of ex-
cavation, nature of soil material and the weight
of the superimposed load.
Banks shall be stripped of loose rocks or other
materials which may slide, roll or fall upon per-
sons below. (Reg.113(6), Building Operations And
Works Of Engineering Construction (Safety) Reg-
ulations, 1986)
Open sides of excavations where a person may
fall more than 3 meters shall be guarded by ade-
quate barricades and suitable warning signs shall
be put up at conspicuous positions. (Reg. 113(7),
Building Operations And Works Of Engineering
Construction (Safety) Regulations, 1986)
De-watering and de-silting facilities should be
provided to prevent floods and pollution of the
drainage system and surrounding areas.
6.13 Piling
Pilings should be handled by trained personnel.
In view of the prevailing need to conserve the
environment and protection of public health, pil-
ing machinery that generate excessive vibration,
noise, smoke or other pollutants should not be
used in build-up areas.
Where there is any question of stability of struc-
tures adjoining areas to be piled, such structures
shall be supported where necessary by underpin-
ning, sheet piling, shoring, bracing or other means
in accordance with the design of a Professional
Engineer to prevent injury to any person. (Reg.
124, Building Operations And Works Of Engineer-
ing Construction (Safety)Regulations, 1986)
Extracts from Guidelines for Public Safety and Health at Construction Sites 27
All pile-driving equipment shall be inspected dai-
ly by a designated person before the start of work
and every defect shall be immediately corrected
before pile-driving commences. (Reg. 125, Build-
ing Operations And Works Of Engineering Con-
struction (Safety) Regulations, 1986)
Reasonably practicable measures shall be taken
to warn persons not to approach within 50 me-
tres of a pile under test. (Reg. 133(2), Building
Operations And Works Of Engineering Construc-
tion (Safety) Regulations, 1986)
Before placing or advancing a pile driver, the
ground shall be inspected by a designated per-
son and, where necessary for firm and level foot-
ing, timber shall be placed. After placing or ad-
vancing a pile driver, inspection and correction
of the footing shall be made, when necessary, to
maintain stability. (Reg. 134, Building Operations
And Works Of EngineeringConstruction (Safety)
Regulations, 1986)
Noise impact can be reduced at the source e.g.
by introducing nonmetallic dolly between the
hammer and the driving helmet and installing
acoustic enclosure which encloses the hammer
and the complete length of the pile being driven.
For continuous noise such as from diesel engine,
the noise can be reduced by introducing a more
effective exhaust silencer or designing an acous-
tic canopy to replace engine cover.
All mechanical equipment and plant should be
well maintained throughout the piling work.
6.14 Superstructure
6.14.1 Scaffolds
Every scaffold and every part thereof shall be of
good construction, of suitable and sound mate-
rial and of adequate strength for the purpose for
 which it is used. (Reg. 72(1), Building Operations
And Works Of Engineering Construction (Safety)
Regulations, 1986)
Every scaffold and every part thereof shall com-
ply with the Malaysian Standard or any other rel-
evant international standard.
No scaffold shall be erected or be substantially
altered or be dismantled except under the direct
supervision of a designated person. (Reg. 74(1),
Building Operations And Works Of Engineering
Construction (Safety) Regulations, 1986)
All materials to be used for the construction of
scaffolds shall be inspected by a designated per-
son on each occasion before being used. (Reg.
74(2), Building Operations And Works Of Engi-
neering Construction (Safety) Regulations, 1986)
Every scaffold erector shall be registered with
Department of Occupational Safety and Health.
Scaffold erector should always adopt a safe sys-
tem of work during the erection, altering and
dismantling of scaffolds. This will usually include
the use of fall arrest equipment.
All scaffolds require bracing to help prevent
them from collapsing. All scaffolds, including
independent scaffolds, should be secured tied,
or otherwise supported. More ties will be re-
quired if:
- The scaffold is sheeted or netted due to the in-
creased wind loading;
- It is used as a loading platform for materials or
equipment; or
- Hoists, lifting appliances or rubbish chutes are
attached to it.
The erection of scaffold and peripheral net-
ting should be one floor higher than the struc-
tural floor under construction to ensure there is
no chance of objects falling off the perimeter of
building.
28 Extracts from Guidelines for Public Safety and Health at Construction Sites
Every scaffold shall be properly maintained and
every part thereof shall be kept so fixed secured
or placed in position as to prevent, as far as prac-
ticable, accidental displacement. (Reg. 73(1),
Building Operations And Works Of Engineering
Construction (Safety) Regulations, 1986)
Every metal tube scaffold exceeding 40 metres
in height and every other scaffold exceeding 15
metres in height shall be constructed in accord-
ance with the design and drawings of a Profes-
sional Engineer. (Reg. 75(1), Building Operations
And Works Of Engineering Construction (Safety)
Regulations, 1986)
Scaffolds shall be inspected by a designated
person:
- Before first use;
- After substantial alteration and after any event
likely to have affected their stability, for example
after heavy rain or following strong winds; and
- At regular intervals not exceeding seven days.
6.14.2 Safety Net and Peripheral Net
Ever y safety net shall be attached to sufficient
anchorages or supports outside and beyond the
area of possible fall and supported at a height
sufficient to prevent dropping to any surface
or object. (Reg. 55(3), Building Operations And
Works Of Engineering Construction (Safety) Reg-
ulations, 1986)
Every safety net shall comply with any relevant
international standard.
Where a scaffold is erected in an area where the
construction activities may pose hazards to pe-
destrian or vehicular traffic in the form of falling
objects, peripheral nets should be used to enve-
lope the scaffold.
Every safety net or combination of safety nets
shall be of sufficient size, strength and must be
 provided to the area of possible fall. (Reg. 55(2),
Building Operations And Works Of Engineering
Construction (Safety) Regulations, 1986)
No safety net and peripheral net that is broken
should be installed. 20.2.6 Safety net and pe-
ripheral net shall be inspected by a designated
person before each installation.
Safety net, peripheral net and their supports shall
be inspected daily after each installation.
6.14.3 Catch Platform
Catch platforms should be erected along the ex-
terior faces of the exterior walls to prevent injury
to the public below.
Catch platforms may be constructed of mate-
rial other than wood provided such material is
of equal strength and does not otherwise lessen
the security against falling material. (Reg. 44(2),
Building Operations And Works Of Engineering
Construction (Safety) Regulations, 1986)
All loose materials at elevated areas should be se-
cured so as to prevent them from being blown
off the structure by strong gusts of wind.
6.14.4 Concrete Work
Formwork and reshores shall be certified struc-
turally safe by a Professional Engineer and shall
be properly braced or tied together so as to
maintain position and shape. (Reg. 28(1), Build-
ing Operations And Works Of Engineering Con-
struction (Safety) Regulations, 1986)
The formwork including the shores, braces and
other supports shall be inspected by the desig-
nated person:
- During erection;
- During and after concreting; and
- After any event likely to have affected their
stability, for example after heavy rain or follow-
Extracts from Guidelines for Public Safety and Health at Construction Sites 29
ing strong wind.
All concreting equipment and mould shall be kept
safe and stored in an area away from building edge.
Storage area should be cordoned off.
6.15 Finishing
Installation of exterior glass panels or other cladding
materials should be carried out by trained person-
nel. Installation work should stop when weather
conditions could make it unsafe for such work to be
carried out.
Painting operations should be carried out in a man-
ner that will minimize dispersal of paint mist and
solvent vapors in public areas.
6.16 Use of Hoisting Equipment
6.16.1 General
All hoisting machinery such as tower crane, mo-
bile crane, derrick crane, goods hoist, passen-
ger hoist, and gondola and access platform to
be used shall possess a valid certificate of fitness
from the Department of Occupational Safety and
Health.
The tower crane, mobile crane and derrick crane
operator shall be registered with the Department
of Occupational Safety and Health.
The contractor for erecting, dismantling, and
maintaining of tower crane, gondola, material
hoist, passenger hoist, access platform shall be
registered with the Department of Occupation-
al Safety and Health. Every process of erection,
dismantling, and maintain shall be carried out
strictly by responsible person and in accordance
with the manufacturers instructions. The manu-
facturer should provide all specification for erec-
 tion, dismantling, and maintain.
Every overhead structure, crane, hook, block,
spreader, strongback, sling and other appliance
for lifting a load should be of sound construction
and in every way suitable for the purpose.
Selection of cranes should be suitable for the in-
tended use. These should also take into consid-
eration the nature of the worksite or the position
in which the crane is to be set up.
Attention should be given to the slewing radius
of the crane at the maximum luff of the jib to en-
sure that there are no obstacles to the slewing
such as overhead power line, nearby structures
or other cranes and proximity hazards to public
access areas.
No part of the crane should extend beyond the
hoarded or fenced up area of the worksite.
The worksite should be fully enclosed by means
of hoarding or fencing or cordoning before erec-
tion of tower crane can be carried out. This is to
protect the general public from any hazards dur-
ing the work in progress.
Lifting operation using cranes should comply
with the following:
maintained in a safe working condition;
Operator, slinger and rigger should have ade-
quate ability, knowledge, or authority;
No lifting of load should be carried out outside
the hoarded or fenced up area of the worksite.
If lifting operation were to be carried out out-
side the hoarded or fenced up area of the work-
site, written approval from the local authorities
shall be obtained. Working area should be cor-
doned off and means for public control such as
setting up of warning signs, warning lights to di-
rect public or traffic away from it and controlled
by a designated person shall be provided.
Danger zone should be established before any
30 Extracts from Guidelines for Public Safety and Health at Construction Sites
lifting operation, erection, jacking or climbing
and dismantling of crane is carried out. The pe-
rimeter of the danger zone must be cordoned
off. If danger zone extend beyond the work-
site hoarding or fenced up area, means for pub-
lic control such as setting up of warning signs,
warning lights to direct public or traffic away
from it and controlled by a designated person
shall be provided.
For mobile cranes, the following steps should
be followed to ensure the stability of the mobile
cranes during the operation:
All outriggers should be fully extended;
All jacks should be placed upon adequate foot-
ings and packing. Care should be taken to en-
sure that there is adequate bearing surface un-
der the packing, especially where the ground is
soft or backfilled;
The crane should be leveled and all outriggers
beam packed in case of rebound, close to the
ends of the outrigger beams. Anchor pins should
be inserted where provided in chassis and out-
riggers;
The base timbers of any packing, i.e. those tim-
bers resting on the ground, should be closely
packed, and should cover as large area as neces-
sary to safely transmit their load to the ground;
All timber packing should be sound, free from
defects, of ample and adequate strength;
The base layer packing should be of sufficient
length, width and thickness to cover the area re-
quired. These should be closely laid over a leveled
and consolidated area; and
Packing should not be removed until all opera-
tions are completed.
6.16.2 Erection
Erection of tower crane shall be carried during
 favorable weather only.
The sequence of erection should be done in ac-
cordance with manufacturers instructions.
The contractor should ensure that the foundation
have been certified by a Professional Engineer and
ensure that concrete is cured accordingly.
A checklist which includes the manufacturers
specifications, recommendations and instruc-
tions for safe erection of the crane should be ad-
hered to in every detail. The check list should be
checked and filled up by the responsible person.
6.16.3 Jacking
Jacking should be done only in accordance with the
manufacturers recommendations, and only com-
petent persons should be assigned to this task.
Jacking shall be done during favorable weather
only.
All jacking safety device, working ropes and jack-
ing system should be checked by a competent
person prior to jacking.
Following each jacking, all fastenings should be
checked.
6.16.4 Operation
Only registered crane operator shall be allowed
to operate the crane.
All safety devices shall be checked and tested
and be in good working condition prior to oper-
ating the crane.
Crane operator shall have full visibility and assist-
ed by trained signalman during the operation of
the crane or movement of a load.
Where a crane is not controlled from the ground,
but from an elevated cab, hand signaling or voice
communications should be established between
the operator and a trained signalman on the
ground.
Extracts from Guidelines for Public Safety and Health at Construction Sites 31
The weights of materials to be lifted should be
specified, and responsibility assigned for check-
ing loads. Overloading shall not be allowed.
Materials should be suitably packed before deliv-
ery to the worksite to ensure safe lifting by the
crane. Special precautionary measures should be
established and practiced for exceptional lifting
operations, such as lifting large panels, which
may be blown about by wind, or tandem lifting
by two or more cranes.
Free-fall lowering of loads should be prohibited.
No loads shall be carried over personnel, pub-
lic thoroughfare, roads, neighboring building or
cast in an attempt to get them down at a point
which is beyond the cranes normal reach.
Standards and codes relating to proximity of
power-lines should be adhered to.
Slewing of the crane should be limited to a few
rounds unless slip-ring or similar devices is pro-
vided to convey electric current from a stationary
part to a moving part of the machine.
Operating zone of two or more cranes should
not overlap, unless vertically offset to avoid colli-
sion. Priority of operation should be established.
Tampering with any limit switch should be pro-
hibited.
Loads should never be left suspended without
control.
Provide means for securing the crane (jacks, rail
clamps, choke, bracing, guys, etc.). When apply-
ing brakes to permit immobilization when the
crane is unattended, the load block should be
parked near to its top position, and, where nec-
essary, the jib should be allowed to slew freely in
the wind. The manufacturer should supply detail
instructions.
The power supply should be cut off and locked
out by the operator when he leaves the cab.
 Lifting operation should be ceased during ad-
verse weather conditions.
Flood lights installed at elevated crane structures
should not pose a nuisance to the public.
6.16.5 Inspection and Testing
Inspection and testing should be done only by
responsible person.
The crane should be completely inspected and
tested before they are being put into operation.
Cranes and their accessories should be inspect-
ed and tested each time they are put into service
or after remaining idle for an extended period.
A full test of all functions should be made after
erection or jacking, and before the crane is ap-
proved by DOSH for operation.
A daily and weekly check list should be estab-
lished for inspection by the crane operator.
Daily inspection should be made on condition of
brakes under no load conditions, adjustment, and
functioning of various safety devices and limiting
devices fitted to the hoisting apparatus, the elec-
tric power installation and overload controls.
Weekly inspection should be made on wire rope
on hoist and trolley, guys, electric power cable,
jib and counter weight jib guy lines, hoist rope
anchorage on winding drum, foundation, bolts
and pins.
Similar safeguards should be checked regularly
for grounding devices, guards, junction box cov-
er to make sure they are in place and properly
function.
All structural parts should be inspected by a re-
sponsible person for any weld defect, bending
etc. in accordance with manufacturer recom-
mendations.
32 Extracts from Guidelines for Public Safety and Health at Construction Sites
6.16.6 Maintenance and Repair
Maintenance and repair should be done by
trained personnel and in compliance with manu-
facturers recommendations.
Catwalks, railings, or similar means of access
must be properly secured to the crane structure.
If necessary to set the crane in motion when per-
forming certain maintenance, it should only be
done under the supervision of the responsible per-
son, and under normal operation of the crane.
All welding repair on crane parts shall comply
with manufacturers recommendations, and be
done only by certified welders.
6.16.7 Dismantling
A check should be made on all jacking devices
prior to dismantling operations. Only responsible
person should be allowed to perform the job.
Safe dismantling procedures should be estab-
lished. These procedure should include the man-
ufacturer specifications and recommendations.
Dismantling shall not be carried out unless writ-
ten approval from DOSH is obtained.
6.16.8 Crane Storage
Only areas approved by relevant government
agencies should be used as storage area.
Area where crane or crane parts are to be stored
should be securely fenced and provided with
safe access into the area. This is to prevent any
unauthorized personnel or public from trespass-
ing into the area and exposing themselves to any
danger therein.
The gate should be locked and the key should be
kept by authorized personnel.
 Fence or guard should be soundly designed and
constructed to resist the collapsing of nearby
stack of crane structures.
Crane structures should be placed on firm foun-
dation, not liable to settle, and should not be sub-
jected to a weight so as to overload the ground.
No parts of the crane should be stacked:
Against the fence or guard unless it is known
that the fence or guard is of sufficient strength
to withstand the pressure; and
To a height which would render the stack unstable.
Substantial warning signs prohibiting unauthor-
ized personnel from entering the storage area
should be posted at conspicuous positions such
as at the gateways.
Measures should be taken to prevent the breed-
ing of mosquitoes, houseflies, rats and other
harmful animals and insects.
Appendix 33
 Appendix I List of Occupations Reserved
for Local Construction Workers

Mechanical & Electrical Works Penetrant Testing Techinician

Magnetic Particle Testing Techinician
Electrical Chargeman
Electrical Wireman Scaffolding
Telephone & Telegraph Installer
Air-conditioning System Installer inclusive of Scaffolder Inspector
Ducting Works Frame & Modular Scaffolder
Tube & Coupler Scaffolder
Earth Moving Plant Operation Assistant Scaffolder

Excavator Operator Building & Civil Works

Shovel Operator
Dozer Operator Plumber
Grader Operator Assistant Plumber
Scrapper Operator General Welders & Flame Cutter
Roller/Compactor Operator Welding Inspector
Backhoe Loader Operator
Construction Sector Lorry Driver (Highway) Construction Site Supervision

Crane Operation Architectural Works Site Supervision

Maintenance Works Site Supervision
Crawler Crane Operator Civil Works Site Supervision
Mobile Crane Operator Electrical Works Site Supervision
Crane Operator Structural Works Site Supervision
Non-Destructive Testing
Radiography Testing Techincian
Ultrasonic Testing Technician

34 Appendix
 Appendix II Listing of Imported Products
and Malaysian Standard (MS)

1. Iron And Steel Product 3. Ceramic Product

a) Cold Reduced Mild Steel Wire a) Ceramic Pipes, Conduits, Guttering

for the Reinforcement of Concrete and Pipe Fittings
- (not plated or coated, whether er not polished) MS 1061: PART 1: 1999
MS 144: 2001 b) Unglazed and Glazed Ceramic Tiles
b) Steel Welded Fabric (netting) Manufactured MS ISO 13006: 2003
from Cold Reduced Mild Steel Wires for Rein-
forcement of Concrete 4. Sanitary Fittings Products
MS 145: 2001
c) Steel Frame Scaffoldings a) Ceramic Wash Basins
MS 1462: 1999 MS 147: 2001
d) Steel Wire Ropes and Cables Manufactured b) Ceramic Water Closet Pans
from Stranded Wires for Electric Lifts without Flushing Cisterns
MS 55217.19: 1978 MS 147: 2001 and MS 1522: 2001
c) Ceramic Water Closet Pans with
2. Cement Product Flushing Cisterns
MS 147: 2001, MS 1522: 2001
a) Portland Cement (ordinary and rapid hardening) and MS 795: 2002
MS 522: PART 1: 2003 d) Ceramic Bidets and Urinals
b) White Portland Cement (floor or wall mounted)
MS 888: 1991 MS 147: 2001
c) Sulphate-Resisting Portland Cement e) Ceramic Flushing Cisterns (close couple,
MS 1037: 1986 medium level, high level orconcealed)
d) Pcrtland Pulverized Fuel Ash Cement equipped with mechanism.
MS 1227: 2003 MS 147: 2001 and MS 795: 2002
e) Portland Blastfurnace Cement f) Ceramic Flushing Cisterns (close couple,
MS 1389: 1995 medium level, high level or concealed) not
f) Pozzolanic Pulverised- Fuel Ash Cement equipped with mechanism
MS 1520: 2001 MS 147: 2001
g) High 81ag Blastfurnace Cement g) Plastic Flushing Cisterns (close couple, medium
MS 1388: 1995 level, high level or concealed) equipped with
h) Masonary Cement mechanism
MS 794: 1982 MS 795: 2002

Appendix 35
 Appendix III
Construction Personnel Registration Form

36 Appendix
 Appendix IV Services of the Malaysian Chamber
of Commerce
Services we offer:
Marketing Consultancy
Office-in-Office concept
Selection and matching of business partners
Research, compilation and evaluation of market
information
Assistance in contacting customers through ad-
dress listings and mailing services
Editorial and advertising service in the chamber
magazine
Trade fair services
Human Resource Research & Recruitment
Services
Law and Taxation
Negotiation in legal disputes
Provision of legal information material
Referrals to lawyers, tax advisers, auditors etc.
Publications and information events on legal de-
velopments
Membership Services
Access to the membership network
Events calendar, Invitations to Seminars
Chamber working committees
Editorial and advertising service for the chamber
magazine
Economic information
Personal service through the chamber
Trade Fairs
Official representation of the trade fairs in Berlin
and Munich
Information service on all other German trade
fairs
Management of official trade fair participation in
Malaysia
Appendix 41
 Search of Distributor
Billing in man-days (MD) a 700 Euro

A. Preparations
Sending of your English-language product descriptions Please send us more informative literature (25
to 30 sentences).

B. Definition of target sector; so that possible local partners can be identified

Definition of the relevant industrial sectors for use of products in Malaysia.

C. Creation of database comprising possible partners

After identification of target sectors (see B) a database containing details of possible partners is created.
For this:
Investigation/Visit of relevant Industry Associations and other suitable disseminators/information multi-
pliers.
Analysis of the internal MGCC-database as well as of secondary sources (press archives, market studies).

D. Contacting companies in Malaysia

In step D specific companies are contacted directly.
Mailing of the English language description/information brochure of the product and services to the tar-
get group. To this end we kindly ask for a sufficient number of brochures to be sent to us.
This is followed up by telephone inquiries, direct contact of potential partners in Malaysia.
Registration of expressions of interest.
Checking/Assessing of potential partners, where appropriate visit and presentation of your products and
company.
Compiling and sending of company profile of the interested possible partner(s).

E. Travelling to Malaysia
Visiting the identified potential partners will take place following step D where appropriate and after
consultation.
If desired we book hotel rooms and meet incoming company representatives at the airport and organ-
ise the transfer (free of charge).
General introduction to the business and legal environment in Malaysia.
This will be conducted on the MGCC premises.

42 Appendix
 F. Organisation of dates of visit and escort to the Malaysian companies
During the time of visit an experienced MGCC employee will accompany your company representative in
Malaysia to the talks and negotiations.
If required we will conduct translations and interpretations.

G. Obtaining more detailed information about the partner company

This will only be done if a specific partner has been identified and agreements or contract negotiations
are planned or being held. A fee will be charged separately.

Total blanket costs: 6 MD 4.200 Euro

Payment arrangements:
The amount charged is to be transferred completely into MGCCs bank account. After a copy showing the
completed transfer has been obtained by MGCC (via fax: +60-3-2072 1198) the work will commence.

The ordering customer (signature on the right hand side) will cover all costs incurred by trav-
elling to and from the contacts visited and possible overnight stays (Hotel) as well as after
consultation possible hotel costs of the MGCC representative.

Kuala Lumpur, Location,

Date . ..

................ ..................................................

Malaysian-German Chamber of Signature of ordering customer

Commerce and Industry ( MGCC)
Kuala Lumpur, Malaysia

Furthermore we would like to inform you that the search for business partners and also the
market entrance itself are usually subsidized (up to 50%) by our colleagues in Germany. There-
fore please tell us of which IHK (Chamber of Commerce and Industry) in Germany you are a
member. We would then ask our colleagues what subsidization could be arranged for you.

Appendix 43
 ASIA-INVEST PROGRAMME
The Asia-Invest Programme was launched in 1997
as an initiative of the European Union to promote
and support business co-operation between the EU
Member States and Asia. The Programme provides
assistance to intermediary organisations to facilitate
mutually beneficial partnerships between EU and
Asian companies, in particular small and medium-
sized enterprises (SMEs), as well as to strengthen
the framework conditions to increase trade and
investment flows between the two regions. The
Programme will continue for another 5-year period
from 2003-2007, with a budget for project funding
of 35 million, in which three main areas of activ-
ity will be pursued: (i) Business to business match-
making and partnership building; (ii) Asian private
sector development, and (iii) Institutional capacity
building, networking and dialogue.

44 Appendix