MAT EC Web of Conferences 15, 01016 (2014)

DOI: 10.1051/matecconf/ 201 4 15 0101 6


C Owned by the authors, published by EDP Sciences, 2014

The Core Services of the Facilities Management Based

Company in Malaysia
Zuraihana Ahmad Zawawi 1, Faridah Ismail 2, Nadia Kamaruddin 3 , Mohd Khairi Kurdi 4
1, 3, 4
Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA Perak, Malaysia
2
Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Shah Alam, Malaysia

Abstract. Many questions rose on defining the implementation of Facilities Management

(FM) in Malaysia. To date, the FM player only provided services sufficiently without the
desires to enhance their services by taking into account the standard of practice which
should form the basis. The extent of the services in Facilities Management based
companies in Malaysia is not known and this paper aimed to identify within the context.
The scope of study is limited to respondents in Klang Valley area. Literature review is
used as a basis and questionnaires survey distributed to 20 companies, representing 56%
of the total FM companies in Klang Valley are used to capture the data. The senior
management level is assessed to represent. The results revealed that the implementation of
facilities management services is limited, but still evolving. The majority of the FM based
companies provides facilities services under the category of building operation and
maintenance as their core business and procured them by in-house. The core services
comprise of Electrical System, Cleaning, mechanical, HVAC system, plumbing &
Sewerage , Fire Protection, Landscape, Lifts and Escalator, Security & Safety, Parking
Management, Consultancy & Advisory Services, Waste Management, ICT System, Pest
Control, Energy Management & Conservation, Building Audit Services, Customer Care
Management, Transition Management, Catering &Vending Services. Based on what FM
can offer, there is the necessity to reinforce the awareness to ensure continuously improve
the management of national assets and facilities.

1 Introduction
The facilities management is a fairly new profession in the private sector. It has emerged to
become the fastest growing profession in the real estate and construction sector. In practice, facilities
management can cover a wide range of services including real estate management, financial
management, change management, human resources management, health and safety and contract
management, in addition to building maintenance, domestic services (such as cleaning and security)
and utilities supplies, as discussed by [1].
The definition and scope of FM remains a contentious issue and the definition depend on the local
culture, organizations interests and people’s personal interests. Thus, Facilities Management is of
interest to Malaysia in its quest to achieve its vision of 2020. Hamilton [2] has conclude that what
appears to be inhibiting development is a lack of understanding of the role of FM and some conflict
between professions disciplines as to which one should be recognized as licensed proprietor.

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 MATEC Web of Conferences

The awareness on the importance of FM is often not being discussed, whether in the public sector
or private sectors. Noor and Pitt [3] therefore stated that in Malaysia, R&D in issues regarding
development of FM is inadequate and limited, thus suggested further research undertaken.
Preliminary desk-study shows evidence that FM services contract awarded by the government to
the locals. However, the extent of the services in Facilities Management based companies in Malaysia
is not known and this paper aimed to identify within the context.

2 The Review on Facilities Management

Over few years, facilities management has grown as a business discipline and also as a scientific
discipline, slowly finding and anchoring its position among the organizations’ business processes [4].
Globally, Facilities Management is in many respects still a relatively developing business which
started to develop as a cohesive concept as early as the 1980s [5].
Like other countries in South East Asia, Malaysia shares a similar approach to FM. However,
there is limited understanding and practice of FM benchmarking in the South East Asia region.
Nonetheless, Hamilton [2] had a notion that adoption of the Western methods for application cannot
be simply done in Asia without careful assessment of the Asian context, particularly for developing
countries.
An organization core and non-core facilities are identified based on its nature of business, goals
and objectives, and users’ requirements. Procurement of quality facilities usually transpires at
strategic, tactical and operational level in order to achieving quality facilities towards achievable
vision, mission and objectives. Since FM within organization covers a wide range of activities,
therefore several of the facilities which are non-core, usually outsourced or contracted-out by the
organization. Also, it can be procured in-house or by combination of in-house and out-source.

2.1 The Facilities Management Service Provisions

In defining facilities management it is useful to identify those activities which can be

considered under the banner of ‘facilities management services’. The Centre for Facilities
Management (CFM) identifies six categories of services, namely; Building Operation and
Maintenance, Information Technology and Telecommunication, Support Services, Transport and
Transition, Infrastructure Management and Environmental Management.
Building Operation and Maintenance is the second largest contracted out area and has the largest
proportion of contracted out activity in comparison to in-house activity. This reflects the large number
of suppliers in the industry. [7] explained that the operation and maintenance (O&M) includes all
aspects of running a building over the course of its useful life. One goal of effective O&M is to
achieve the intent of the original building design team, so that building systems deliver services to
building occupants. O&M is also the discipline through which long-term goals of economy, energy
efficiency, resource conservation, and pollution prevention can be achieved, while meeting the
comfort, health and safety requirements of the tenants.

2.2 The Development of Facilities Management in Malaysia

Although FM is prominent in Western Europe, US and Japan, it is still relatively new concept in
Malaysia [8]. Malaysia has successful examples of the development of FM, where there would appear
to remain a general lack of understanding, and consequently progress, of the key drivers which
continues to hamper the successful development of FM [6]. Noor and Pitt [9] declared that the earliest
privatization of FM service contracts were implemented in the public health services by the Ministry
of Health and followed by the Federal Government Buildings located at all states in the country.
Whereas in the private sector, Telekom Malaysia was leading Government Link Company (GLC) to
outsource the FM services for all non-telecommunication facilities in the Peninsular Malaysia.

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In the year 2002, the International Islamic University of Malaysia (UIA) implemented a
comprehensive facility management outsourcing service contract for the Gombak Campus and later
migrated to the Kuantan Campus. The Northen University of Malaysia (UUM) however chose to
implement a co-sourcing approach in delivering a comprehensive FM program in managing the main
campus in Sintok, Kedah. During the same period, the Public Works Department had also
implemented Comprehensive Facility Management Service contracts in managing Putrajaya Federal
Government Buildings. These were some of the prominent government-owned facilities which were
operated and maintained by FM service providers in the form of outsourcing service contract. [9] have
also discussed the FM service provider is a one-stop centre for the asset owner to get all support
services with a well defined agreed service levels and customer’s expectation requirements.
In 2007, the First National Asset and Facility Management Convention (NAFAM) were held in
August to address the current issues and future challenges in managing national assets and facilities.
This convention showed that the FM profession has evolved and adapted to meet the demands of a
fast growing built and human environment industry. Agreeing to an annual NAFAM, the Prime
Minister (former) has urged both the public sector and private sector to come up with a more effective
and efficient procedural framework in order to continuously improve the management of national
assets and facilities. This convention was a major revolution to the future changes with regards to the
perception of FM professions and practices in Malaysia. NAFAM has organized to address the issues
raised and set to meet the following objectives:
x To create awareness on current issues and challenges in managing government assets
x To assess the strength and weaknesses of current system, its effectiveness and efficiency
x To explore ways to minimize and improve the quality of government assets
x To formulate a blueprint or master plan for centralized national asset and facilities
management
Acknowledgement to these efforts, the Facilities Management industry in Malaysia currently has
developed to a stage where the aspiration and expectation of the industry has grown in tandem with
the higher demands and needs of facility stakeholders. At present, there are two established
associations known as Malaysia Association of Facility Managers (MAFM) and Malaysian Asset and
Project Management Association (MAPMA) formed by interest group representing FM stakeholders
in undertaking the promotion and development of Asset and Facility Management initiatives [3].

3 Results and Discussion

The analysis of the questionnaires has generated fundamental outcomes on the core services
offered by the FM based companies in Malaysia.
The demographic of the respondents revealed that, despite the six designations offered in the
questions, there is other background identified. Thus, shows the range of different disciplines involved
within this area service business. This is so portrayed in the concept that facilities management
propagated by Sapri and Pitt [4] as the actions (process) by which organizations deliver and sustain
quality services in built environments (space) to meet strategic needs of stakeholders (people), it
ensures buildings, system supports and core operations contribute to business achievements despite
changing conditions.
The designation of the respondents is majority (20%) Facilities Engineer (Mechanical), followed
by Facilities Manager and Assistant Facilities Manager (15%) respectively. The Maintenance
Manager, Facilities Engineer (Civil), Facilities Engineer (Electrical) and Technician represent 10%
and the remaining 10% of the respondents are represented by Project Executive and General Manager.
Thus, the choice of the senior management level as the targeted respondents is justified.
In terms of the background education, is represented by 15% each from Building Surveying,
Construction Project Management, and Mechanical and Electrical Engineering fields. In addition,
30% are from Real Estate Management. The remaining 10% of the respondents comprise of Facilities
Management and Building Services Management background.

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The majority (40%) of the respondents has between three to five years’ working experience in
this field, followed by 25% who have between six to ten years’ working experience. In addition, the
respondents who have between one to two years working experience and more than ten years working
experience is represented by 15% of the respondents respectively. The remaining 5% of the
respondents have working experience between six months to a year. Thus, shows the availability of
the business establishment in the country.
The nature of the facilities management services offered and the procurement method differ from
one to another. Table 1 shows the ranking of the services provider as core and non-core business
within their organizations.

Table 1: Organization’s core and non-core business in ascending priority

Ranking Core Non-Core
1 Electrical System Waste Management
2 Cleaning Services Parking Management
3 Mechanical System Catering & Vending Services
4 HVAC System Security & Safety
5 Plumbing & Sewerage Transition Management
6 Fire Protection Services Landscape Services
7 Landscape Service Mechanical System
8 Lifts & Escalator Plumbing & Sewerage
9 Security & Safety ICT System
10 Parking Management Lifts & Escalator
11 Consultancy & Advisory Services Cleaning Services
12 Waste Management Building Audit Services
13 ICT System Consultancy & Advisory Services
14 Pest Control Electrical System
15 Energy Management & Conservation HVAC System
16 Building Audit Services Pest Control
17 Customer Care Management Energy Management & Conservation
18 Transition Management Customer Care Management
19 Catering &Vending Services Fire Protection System

Table 1 shows that while operating as Electrical, Cleaning Services and Mechanical system as
their core facilities, Waste Management, Parking and Catering & Vending Services is also in
operation respectively as the non-core facility. An organization core and non-core facilities are
identified based on its nature of business, goals and objectives, and users’ requirements. Core facilities
are facilities which directly support the business whilst non-core facilities are the facilities that
indirectly support the business. Hence, any activities which do not contribute to the income of the
organization should be considered non-core; does not lie at the heart of the raison of the organization.
The essence of FM is to focus on its core business or activities which form as essential part of the end-
product, by out-sourcing its non-core activities in order to promote the achievement of an organization
goals and objectives.
Facilities management within organization covers a wide range of activities, therefore several of
the facilities which are non-core, usually outsourced or contracted-out by the organization. Hence,
Table 2 shows the ranking of services in practice chosen to b e procured either in-house or
outsource.

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Table 2: Procurement method uses in ascending priority

Ranking In-House Outsource
1 Electrical System Waste Management
2 Mechanical System Security & Safety
3 Cleaning Services Landscape Services
4 Plumbing & Sewerage Parking Management
5 HVAC System Fire Protection System
6 Landscape Services Lifts & Escalator
7 ICT System Catering & Vending Services
8 Lifts & Escalator Electrical System
9 Consultancy & Advisory Services Mechanical System
10 Waste Management Plumbing & Sewerage
11 Security & Safety HVAC System
12 Parking Management Cleaning Services
13 Transition Management Pest Control
14 Energy Management & Conservation Building Audit Services
15 Customer Care Management Transition Management
16 Fire Protection System ICT System
17 Pest Control Energy Management & Conservation
18 Building Audit Services Consultancy & Advisory Services
19 Catering & Vending Services Customer Care Management

In addition, it also revealed that most of the respondents are the FM companies which offered
multi services covering wide range of activities for any development facility. This is supported by the
fact that the majority (65%) had obtained government contract for facilities management. On the
other hand, the remaining of 35% from the respondents had never procured the government contract
for facilities management. The respondents unanimously (100%) agreed that Building Operation and
Maintenance is the vital expertise in FM services currently. This is represented by 55% strongly
agree and the remaining 45% of the respondents agree with the statement. This current phenomena of
the FM companies practices show that the FM profession has evolved and adapted to meet the
demands of a fast growing built and human environment industry.

4 Conclusion
Facilities management in Malaysia has started as early as 1990s in which during this period, an
integrated property management and maintenance services were commonly known to be as facilities
management. In addition, FM in Malaysia is growing under the shadow of property management and
often interpreted as maintenance management. Nevertheless, it is justified that the Building Operation
and Maintenance category is the primary areas of facilities management in practice.
The core services covers wide range of facility comprising of ; Electrical System, Cleaning,
mechanical, HVAC system, plumbing & Sewerage , Fire Protection, Landscape, Lifts and Escalator,
Security & Safety, Parking Management, Consultancy & Advisory Services, Waste Management,
ICT System, Pest Control, Energy Management & Conservation, Building Audit Services, Customer
Care Management, Transition Management, Catering &Vending Services.
Even though the survey revealed that FM in Malaysia is developing more on theoretical rather
than practical, but the engagement of the majority on government contract shows positive
development on areas of facilities management. The government requires them to provide the
expertise in more than one service with the minimum three to five years experience in their
respective fields. To carry out the government contract, the contractor should aware that they are
bound to perform the services according to the provision of the said contract and complied with
the standard specified in the Key Performance Indicator (KPI) provided.
Judging on the concept that FM can offer based on the literature worldwide, there is the necessity
to reinforce the awareness to ensure significant contributions both the public and private sector to

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come up with a more effective and efficient procedural framework in order to continuously improve
the management of national assets and facilities.

References
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Publishing Ltd.
2. Hamilton, B. (2006). Overview and Trends in Facility Management, University Technology
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3. Noor, M. and Pitt, M. (2008). Defining Facilities Management (FM) in the Malaysian
Perspective.
4. Sapri, M. and Pitt, M. (2000). Performance Mesurement in Facilities Management; State of
Knowledge. Heriot-Watt University, Edinburgh, UK.
5. Moore, M. and Finch, E. (2004). Facilities Management in South East Asia. Facilities, 22, 259.
6. Hamilton, B. (2006). The Significance of Facilities Management, University Technology MARA.
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Management. Construction Research Institute of Malaysia (CREAM), CIDB Malaysia.
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Delivery. Facilities, 27, 211-228.

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