On 6 January 2026, ACEM performed a courtesy visit to the office of Yang Berhormat Minister of Works, YBhg. Dato Sri Alexander Nanta Linggi. The ACEM delegation was led by ACEM President Ir. Anuar b. Mohd Aris. Also present in the discussion was YBhg. Datuk Dr. Khairus Masnan bin Abdul Khalid, Deputy Chief Secretary for Policies and Development.
The visit aims to create a stronger bond between the Government agencies and ACEM, as the industry’s representative of Engineering Consultancy Practises (ECPs) in Malaysia. During the discussion with the Minister, ACEM highlighted some concerns and challenges faced by the ECPs in performing their tasks.
The discussion focused on the Scale of Fees (SOF) and the drawbacks of the Ministry of Finance’s Pekeliling 3.2 (MOF PK3.2). In a simplified term, MOF PK3.2 stated that the SOF shall be taken as a guide, and that ECPs are recommended , an indirectly encouraged, to submit a lower financial proposal.
The ACEM delegation has emphasized that the implementation of MOF PK3.2 had caused cascading negative impact on the Engineering Consultancy Practices in Malaysia. ECPs are lowering fees to secure projects, compromising quality and depreciating professional integrity. Also, the salary stagnation among engineers in Malaysia has led to brain drain as more local engineers are finding work overseas or leaves the industry entirely. On top of that, new tender requirements are imposing additional conditions and expectations onto the ECPs including BIM, ESG reporting, as well as the roles of CDM to name a few, all of which the ECPs are expected to be absorbed within the same fees.
With the government no longer promoting the SOF, private sectors are more aggressive in demanding lower fees, continuing the vicious race to the bottom.
ACEM stressed that the private sector engineers are crucial partners to deliver Malaysia’s ambition in becoming an advanced and high-income nation.
YB Minister informed the ACEM delegation that he had been notified of the impact of MOF PK3.2 in different discussions. YB Minister acknowledged the contradiction between MOF PK3.2 and the gazetted Scale of Fees Act.
YB Minister stated “We expect a lot from our engineers, so we must also provide fair fees.” YB Minister informed that the Ministry of Works, as the custodian of the Engineers Act as well as the SOF Act, will bring the issue up in the upcoming Ministerial and Cabinet meetings. YB Minister also welcomed suggestions from ACEM on measures that can be taken by the ministry to improve the engineering consultancy environment.
