Setting Up of Engineering and Energy Consultancy Services Company
Updated: Nov 4, 2020
Engineering & Energy Consultancy Services
Engineering services cover all engineering activities except integrated engineering services, namely:
(i) advisory and consultative engineering services
(ii) engineering design services for the construction of foundations and building structures
(iii) engineering design services for mechanical and electrical installations for buildings
(iv) engineering design services for the construction of civil engineering works
(v) engineering design services for industrial processes and production
(vi) engineering design services N.E.C. (acoustical and vibration engineering designs)
(vii) other engineering services during the construction and installation phase, and
(viii) other engineering services.
Advisory and consultative engineering services in the energy sector include the provision of assistance, advisory and recommendation services concerning engineering matters. Included are the undertakings of preparatory technical feasibility studies and project impact studies in the energy sector.
Oil, gas, coal, electricity (hydroelectricity and thermal), renewable energy (biomass, solar, biogas, municipal wastes, mini-hydro, wind etc.) make up the energy sector.
Engineering consultants who specialise in the energy-related activities are able to provide consultancy services in power generation, transmission and distribution, oil/gas/coal-fired plants and hydro schemes, rural and urban electrification schemes, electrical sub-stations, utility services and production facilities for oil/gas and petrochemical industry, energy audit, study, training, application, management and conservation, project management, power quality management, turnkey services and any other activities related to energy.
Registration as an Engineering Consultancy Practice with the Board of Engineers Malaysia
The Board of Engineers Malaysia (BEM) is the body that regulates the practice of engineering.
Only Professional Engineer with Practicing Certificate are allowed to practice, carry on business, take up employment which requires him to carry out or perform professional engineering consultancy services. Any candidate who applies for registration as a Professional Engineer with Practicing Certificate must fulfil the following criteria:
(i) Has registered as a Graduate Engineer with BEM
(ii) Has satisfied the training requirements of BEM
(iii) Has passed the Professional Assessment Examination (PAE) of BEM or be elected as a Corporate Member of the Institution of Engineers Malaysia (IEM)
(iv) Has been residing in Malaysia for a period of not less than six (6) months immediately prior to the date of application as Professional Engineer, and
(v) After registration as Professional Engineer with BEM and passed a professional competency examination conducted by the Board.
The requirements for setting up an Engineering Consultancy Practice in Malaysia are as follows:
• Has a Board of Directors where at least two third (2/3) of its members comprising persons who are Professional Engineers with Practicing Certificate
• At least seventy percent (70%) of its share equity held by Professional Engineer with Practicing Certificate
• The minimum paid-up capital shall be RM50,000.
Employment of Foreign Engineering Professional
Any foreigner who is not a permanent resident of Malaysia who wishes to be employed as an engineer in Malaysia, shall obtain temporary registration from BEM as provided under Section 10A of the Registration of Engineers Act, 1967.
A temporarily registered Professional Engineer can only submit plans and drawings for the project he is assigned to. He or she is not permitted to be a director or shareholder of a local company/firm practising as consulting engineers in Malaysia and is not allowed to set up his or her own consultancy practice in Malaysia.
The temporary registration will lapse upon the completion of the project to which the foreign engineer to a new project, is assigned. If the sponsor desires to reassign the foreign engineer, the sponsor must seek prior approval from BEM. In the case where upon the completion of a project, a new sponsor desires to employ the foreign engineer for another project, the new sponsor must submit a fresh application to the Board in the usual manner.
The requirements for obtaining temporary registration are as follows:
(i) Holds the necessary qualifications which are recognised for practice as a Professional Engineer in the country where he normally practises
(ii) Has the necessary expertise and has a minimum of ten (10) years’ experience in the field he intends to practise
(iii) Physical presence is required in Malaysia for not less than 180 days in one calendar year.
(iv) Is employed as an engineer and has been assigned to a specific project by a particular company
(v) Is sponsored by a local Professional Engineer in the company which offers him the assignment
(vi) The sponsor has to confirm that no local expertise is available and must attach local engineers to be trained by the Temporary Professional Engineer.
The company or organisation must apply for approval to employ expatriates from the Expatriate Committee of the Immigration Department.
Upon approval of the expatriate post, the company should forward its application for Employment Pass to the Immigration Department for endorsement. The spouse and children of the expatriate can apply for Dependent Passes.
If you have any enquiries or need clarification, please contact Bestar.