Malaysian market offers potential for PPM services

Attitudes to building maintenance among clients and their property advisers vary widely from country to country. Many complex factors influence such attitudes, including finance, the economy, culture, asset class, market characteristics and approaches to health and safety, as well as awareness by property professionals and the public.

In Malaysia, as with many Asia–Pacific countries, the approach to building maintenance is generally reactive rather than planned. This means there is considerable opportunity for planned preventative maintenance (PPM) to benefit owners and occupiers, as discussed in my recent article.

For instance, the Petronas Towers in the country's capital Kuala Lumpur were once the world's tallest buildings, but are now eclipsed by the impressive Merdeka 118 – itself second only to the UAE's Burj Khalifa in height.

Merdeka 118 recently received Leadership in Energy and Environmental Design (LEED) Platinum certification in the LEED v2009 Core & Shell rating system, making it the first megatall building in Malaysia to receive such certification.

However, market research highlights that a considerable number of existing offices will need substantial upgrades to meet increasing occupier demand for green-certified property. Properly considered building maintenance strategies, informed by PPM reports, can help buildings obtain – and retain – such green certification.

Malaysia is also emerging as a front-runner among South-East Asian countries to be the next data centre hub. Increased demand for such facilities is supporting the industrial and logistics markets, promoted by various government initiatives to encourage digital transformation and attract investment into this sector.

These highly specified buildings will require proactive maintenance to ensure seamless operation.

A significant number of private, multi-occupancy residential properties in Malaysia have shared or common facilities, which similarly require effective maintenance and budgeting. Associated property management responsibilities such as maintenance, repair, budgeting and adherence to statutes are clearly set out in Malaysian law, such as the Strata Management Act 2013.

Under Malaysian law, property managers and building professionals also have a duty of care to prevent death or injury resulting from maintenance failures, and PPM reports help discharge this duty by ensuring buildings are proactively maintained.

A recent study by the respected Khazana Research Institute, entitled Decent shelter for the urban poor, made specific policy recommendations on planned maintenance of state-owned housing facilities. Such policies would also apply to other public buildings such as schools, hospitals, police stations, defence facilities, utilities, government offices and public infrastructure.

Across the various asset classes, there is a growing requirement for proactive maintenance of new and existing properties, which will increase demand for PPM reports.

Such demand will also be driven by the requirements of foreign investors and occupiers, by environmental, social and governance (ESG) and sustainability standards, professional and public liability, and heightened awareness by government, property professionals and the public.

To ensure the efficient operation, sustainability, value and longevity of both new and existing real estate and infrastructure in Malaysia, a coordinated approach to planned maintenance is imperative. PPM reports are likewise instrumental in this process.

Although such reports are frequently confused with building condition surveys, the latter typically only assess condition as at day one. The former by contrast describe not only the current condition but also anticipated maintenance works and estimated associated costs. This is critical to the ongoing and future maintenance management strategy.

Section 5.2.2 of the Malaysian Property management standards, second edition, provides clear guidance for preparing, monitoring, supervising and implementing planned maintenance works, including energy-saving measures.

The standards are largely in line with others published internationally, although they are tailored to the local property market and regulations.

A professional building surveyor in Malaysia is defined as a person who is qualified by assessment and practice and also a member of the Royal Institution of Surveyors Malaysia (RISM). Surveyors in Malaysia generally work to RISM standards, although they refer to those produced by RICS as well to ensure they meet global benchmarks.

RISM and RICS recognise one another's qualifications and professional standards. Chartered building surveyors can apply for membership of the RISM subject to meeting relevant criteria, including having 12 or more years' relevant experience and an RISM-recognised qualification.

However, unlike fellow professionals in Malaysia such as quantity surveyors, architects and engineers – who are governed by specific legislation defining what services they are permitted to provide – building surveyors are yet to be covered by their own dedicated legislation.

Nonetheless, the introduction of particular legal requirements for the profession moved closer recently at the International Congress of Surveyors in Kuala Lumpur, where the minister for natural resources and environmental sustainability acknowledged that such legislation is needed.

This will involve understanding new building materials, meeting sustainability requirements and harnessing relevant technologies, such as artificial intelligence, drones and the internet of things, while also being aware of their advantages, disadvantages and limitations.

Other challenges include: promoting recognition of the building surveying profession in Malaysia to the public and other property professionals, increasing the number of building surveying graduates applying for professional registration with RISM and RICS, and retaining a sufficient number of skilled practitioners to deal with future demand after the anticipated legislation is passed.

Nonetheless, progress in overcoming these challenges continues to be made. As such, there are opportunities for building surveyors in Malaysia to ensure PPM is regarded as essential throughout the whole life cycle of a real-estate asset.