Vol 4, Issue 1

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Editorial and Table of Content


Assessing Malaysian Quantity Surveyors’ Competence towards the Provision of PFI Services

Samer Shahedza Khairuddin

Abstract

Malaysia began adopting the Public Private Partnership (PPP) approach, as a compliment to the conventional procurement approach, in the provision of public infrastructure and services initially in 1983 via Privatization, and subsequently in 2006 via the Private Finance Initiative or PFI. Among the key reasons why the government adopted the PPP approach include constraints in the public purse and to meet the demand for higher level quality in public infrastructure and services. Typically, Quantity Surveyors are engaged to provide key professional services including procurement, costing and contractual advisory services. With the introduction of PFI, Quantity Surveyors are expected to provide similar professional services and beyond, given that services under PFI are not similar to conventional procurement. However, past studies suggested that key Malaysian professionals including Quantity Surveyors do not possess the appropriate knowledge, skills and expertise to provide PFI procurement services. In effort to understand better the type of competencies required in the provision of PFI services and to ascertain whether Malaysian Quantity Surveyors do possess the required competencies, a study to be reported herein, was carried out. The study involves a combination of comprehensive review of literature focusing on PFI and the professional services of Quantity Surveyors and a semi-structured questionnaire survey targeting Malaysian Quantity Surveyors as the respondents. A total of 658 questionnaires were issued in early February 2012 via emails and by hand, thirty one responses were received (response rate of 4.71 %). From the result of the survey the types of competencies required to provide PFI services have been identified, and the result has also provided an indication on the level of competencies that Malaysian Quantity Surveyors possess in relation to the provision of PFI services.

 

Development Of Islamic Financing And Its Impact On PPP Investment

Masamitsu Onishi, Kiyoshi Kobayashi, Hidetoshi Nakano

Abstract

Application of PPP (Public Private Partnership) to infrastructure developments is a common phenomenon around the world.  Nowadays, it has been developed and spread out as a scheme to utilize private finance and to achieve further efficiency. This movement of adopting PPP allows the financial source of infrastructure development procurement to be diversified. There are many Islamic countries among those countries with rapid economic growth, so called emerging countries, such as Malaysia, or the Gulf countries. Recent development of Islamic finance made itself remarkable as one of the alternatives for financial procurement in PPP projects. This paper proposes a formal model to analyse a mechanism of determining the rate of return(RoR), or the interest in the conventional finance, in order to derive an implication of the recent development of Islamic finance to the procurement cost of project financing projectsfor infrastructure. The analytical result of our paper shows that Islamic bank's RoR are lower in both of the deposit market and the lending market compared to conventional banks. Furthermore, the more religiously conscious those Muslim depositors are, the higher the RoR of Islamic finance becomes, and also the less the transaction costs are,the higher the RoR of Islamic finance becomes.

Key Experience Indicators (KEIs) For Quantity Surveyors (QSs) In The Nigerian Construction Industry

Esther, A. I., Olaniyi, A. I., Olubunmi, O. A. and Oluwadara, F.I.

Abstract

In the Nigerian Construction Industry, experience indicators are measurable evidences necessary to prove experience at some degree of precision at both the corporate and project levels. Presently, the Nigerian Quantity Surveyors (QSs) cannot be appraised on the basis of any experience variable due to lack of structured and acceptable indicators. Thus this paper aims to elicit a set of experience indicators required of QSs, which will be useful in benchmarking their experience requirements in the Nigerian construction industry. The paper starts with literature review of what could be perceived as experience indicators, a review which was supplicated with the industry exposure of two of the authors. One of these authors (2nd) has been practicing as QS in the Nigerian construction industry for the past twenty years, while the other has over ten years (1st). The identified experience indicators were operationalised and presented using a well-structured questionnaire for assessment among 100 QSs that are experienced and registered with the Nigerian Institute of Quantity Surveyors (NIQS), Federal Capital Territory, Abuja Chapter. 63 questionnaires were retrieved and analysed. The findings indicate that the ten identified variables from the literatures are key experience indicators (KEIs) for QSs, all with mean scores ≥2.50 threshold. The paper progressed by evaluating the importance and significance of the QSs KEIs to construction project performance. The Relative Importance Index (RII) and the Chi-square analysis results reveal that all the KEIs are important and significant to construction project performance. The findings inform the conclusion, where the similarities in ranking of respondents on both the first and second part of the paper was observed. Having validated the KEIs in relation to construction project performance, this paper recommends their application in engaging QSs’ services in the construction industry.
 


Development Of A New Theory For Shari'ah Compliant Construction Marketing

Khairuddin Abdul Rashid, Preece, C.N. and Sharina Farihah Hasan

Abstract

This paper attempts to propose a new Shari’ah compliant theory of construction marketing. It looks at conventional marketing theory elements i.e. decisions concerning product, price, promotion, place and people (the 5 p’s), and compare and contrast with the evidence found in the al-Qur’an and as-Sunnah. Islam says that a business practice is considered allowable or Shari’ah complaint unless there is a nas (clearly stated in the al-Quran, as-Sunnah, al-ijtihad, al-ijma,) that prohibits it. By applying Shari’ah principles in marketing, firms and the Industry in general could improve their practices and reputation.

 

A Review Of Commodity Murabahah Transaction Offered By Bursa Malaysia As An Alternative Shahriah Compliant Financing Mechanism

Assoc. Prof. Dr.Azman Mohd Noor and Nur Farhah Mahdi

Abstract

Commodity Murabahah is an example of product innovation in Islamic banking and finance, which is based on murabahah sales of commodities. It is has been extensively practiced by Islamic banks to make profit from financing as an alternative to interest bearing loans offered by conventional banks. Among the typical Islamic banking products using commodity murabahah is personal financing, home financing, interbank placements, sukuk, structured products and corporate financing which includes working capital, project financing, construction financing, trade financing etc. This product, which contains tawarruq, has been introduced to replace controversial bay‘ al-‘inah. Despite the fact that both traditional and the contemporary Muslim jurists hold different opinions on its legality from Islamic jurisprudence perspective, it has been globally accepted and practiced by leading Islamic banks all over the world. This study aims at describing the tructure and operation of Commodity Murabahah trading as offered by Bursa Malaysia and related Shari‛ah issues.

 

Notes for Contributors