There is a strong link between construction-related professional services and the wider construction industry, with professional services-related fees for building projects accounting for approximately 13 to 15 percent of project value. The Malaysian construction sector is still over-reliant on Government demand with 40 to 60 percent of revenues coming from Government contracts.
Multi-disciplinary practice (MDP) construction frms provide an end-to-end solution in a turnkey manner, including architectural and engineering services, construction services and potentially even the real estate management under a single contract. Globally, multi-disciplinary contracts are gaining prominence as clients look for centralised accountability rather than having to manage a number of separate contracts.
Since Government contracts represent the bulk of the market, Government procurement processes have the potential to positively infuence the skills and capabilities demanded of the industry.
We will recognise and award projects to MDP frms for Government procurement contracts. MDP frms will be recognised and allowed to bid for professional construction services tenders by mid-2011. The Ministry of Finance will enable registration as an MDP frm and award three pilot projects to MDP frms by the end of 2011. Going forward the Ministry of Finance will award larger contracts to MDP frms following a set timeline to bring the industry in line with international best practices.
The growth of the accounting sector has traditionally been linked to the size of the overall economy. Demand is primarily driven by domestic reporting requirements as well as domestic tax regulations. Furthermore, the level of competition within the sector is relatively low. Client contracts are relatively stable over time, as switching auditors sends unfavourable signals to fnancial markets.
However, as markets deregulate and global reporting standards converge, opportunities exist to export accountancy services in the future. To be able to capitalise on those opportunities, Malaysia must increase the quality of its accountants and develop specialised skill sets in areas such as international taxation, forensic accounting and carbon accounting, in line with future growth areas.
We will strengthen the quality of Malaysia's chartered accountants by introducing a requirement to hold a recognised professional qualifcation (e.g. ACCA, CPA, ICCA) before being admitted as a chartered accountant in Malaysia. The chartered accountant qualifcation is currently awarded automatically to Malaysian graduates after three years of experience within the industry. The Malaysian Institute of Accountants will introduce the additional requirement to hold a professional qualifcation to qualify as a chartered accountant by mid-2012.
Through education and adjustments to policies on granting visas, Malaysia can develop expertise in indirect taxation, international taxation, transfer pricing, forensic accounting and carbon accounting to increase export opportunities. The Ministry of Higher Education will improve domestic capabilities by launching new Masters programmes at local universities in these areas by 2012, and the Ministry of Home Affairs will facilitate knowledge transfer by easing restrictions on the entry of foreigners with specialised skills by mid- 2011.
The subscription revenue reported by Global Insight for the online gaming market in Asia Pacifc stood at RM9.0 billion in 2007, with a CAGR of 14.8 percent expected until 2012, mainly led by China and Korea. In Malaysia, our creative multimedia industry's revenue of RM9.4 billion in 2008 contributed to 1.27 percent of GDP. This is projected to grow by a CAGR of 11.4 percent to achieve RM20 billion in 2013. As the creative multimedia industry is still young in the Asia Pacifc region, it is imperative for Malaysia to lay the foundations to capture market share. The key challenges include:
Low level of industry exposure, profle and reputation: This results in companies having limited access to funding and investment for production, marketing and expansion;
Lack of awareness and enforcement of policies and regulations: There is currently a lack of awareness and understanding of intellectual property rights for creative industries as well as methodologies to evaluate and protect intellectual property;
Lack of access to global market: Malaysian content creators currently generate most of their revenues from the domestic market. To ensure sustainable growth there is a need for the local content creation companies to reach out to the global market; and
Lack of competency and capacity: Malaysian content creators are unable to effectively secure international deals due to internal structural issues such as the lack of high quality talent on the pre- production side (writers and storyboard artists) and production managers. We will need to enhance the quality and competency of our human capital as we step up to service the needs of the global market.
The Malaysia Creative Multimedia Content Initiative (MCMCI) is the strategic framework applied by MDeC to grow the creative multimedia industry. Opportunities have been identifed in two key areas within the creative multimedia industry: the development of ASEAN themed online games and the development of animation for the entertainment industry (i.e. flm, television), which can be achieved by increasing marketing, increasing private investment and building a cluster of human capital with the right skills for the sector.
Malaysia will set up physical trade representative offces in the United States, United Kingdom, Japan, China and the Middle East to directly tap the needs of those markets. Trade offces coupled with strong alliances with foreign media distributors and broadcasters will enable Malaysian content companies to access markets such as MIPCOM and MIPTV.
We will target a ratio of private to public investment to 80:20 by collaborating with large regional venture capitalist frms, like Singapore-based Asia Media & Technology Capital Management Private Limited and Creative Ventures Group, to attract investors for local productions. At the same time, we will consider larger fscal incentives – potentially including tax breaks and grants – to drive investment from our domestic private sector.
To incubate the growth of local companies in Malaysia, MDeC will focus on increasing high-valued skills (i.e. scriptwriters and storyboarders) in the next 10 years by launching a dedicated creative education syllabus. It will also extend MDeC's Digital Media Zone so that it can accelerate growth in economic corridors with an ecosystem of creative industry companies and infrastructure.