Wednesday, March 07, 2007

A thought on PERMUDAH

The Malay word PERMUDAH means ‘to facilitate’, ‘to simplify’ or ‘to make things easy’. It now is an acronym for a high level task force formed to find ways to make Malaysian delivery system better; and better in Malaysian lingo means world class. But the way things are, the task of PERMUDAH is by no means simple or easy.

I write this article because I think the subject will emerge in the coming exam. It is after all an issue that will have a direct impact on us architects.

Architects through PAM had presented numerous proposals to ease the beaurocracy and improve the system. So when I saw that none of the PERMUDAH appointees were architects or professionals, (that I recognized, I mean) I was personally surprised. It must be higher wisdom, I reasoned. The composition of the panel by the look of it was meant more for facilitating the foreign investment. Architects will somehow find its role along the way, either way.

Delivery system for investments starts at the approval for investment up to licensing but not necessarily in that order. Approval for development, where architects need to be, will appear when buildings need to be built. Because building approval is now at Pihak Berkuasa Tempatan or PBTs, this third level government in reality holds a power greater than that of MITI or the State Governments. They can in fact derail a project previously approved by the superior authorities. PBTs are not alone, with them are the technical departments including the privatized entities like Telekom, TNB, IWK and in some states the privatized waterworks like SATU (in Terengganu) or PUAS (in Selangor).

A fast delivery system had been a dream for us architects for so long. A faster approval would mean earlier construction. It would benefit many down the line, manufacturers, suppliers, workers, contractors, owner and eventually the local government trough taxes. Why most authorities continue to take their sweet time in approving development and fail to see the benefit of faster approval bewildered many.

An anecdote of my experience handling a small part of one of the mega petro-chemical investment in Paka in the late 90’s would demonstrate how critical this could become.

When a giant US petro-chemical company started a billion USD project in Paka, most of the technical expertise for the initial works; construction and commissioning were handled by their own staff seconded from United States. In their two and a half year in Malaysia, many came with families and schooling children. Part of their agreement for temporary relocation was for their children to be schooled in US-education based schools. There were none in the east-coast. So a new school had to be built. I was called to be the architect for the school and to assist in getting the approval for the building as well as the school license from Ministry of Education. Time (as usual) was short. The only available building was a row of completed but un-occupied shop-house. Unoccupied because CF was not obtained. No CF because of all the thing a waste pumping station was not built. Getting the approval from Ministry of Education in Kuala Lumpur was quite a breeze but with conditions; actual license was to come from state Education Department in Kuala Terengganu and the building must have a CF. So within the short available time, everything was initiated and wherever possible fast-tracked; the building renovation approval, the construction, licence application etc. Then came the time for CF. Despite all the efforts, things came to a boil with one technical department who needed something like 9 to 11 sets of forms to be approved before CF can be recommended. It was the company handling sewerage. In one heated meeting, a visibly upset executive from the company said, ‘ Look, if we don’t have the school, our people won’t be coming here. If we don’t have the people we can’t start the plant. Don’t tell me our billion dollar investment is held back by shit!’

It was personally enlightening that I saw myself the long roads that one need to travel to get an approval in Malaysia, even if that was for a huge FDI that the country badly needed.

My short stint as an ‘ahli majlis’ – a council member in the local government had however made me see thing in a different perspective.

For PERMUDAH to be successful, some of the ailments in the local government culture need to be eradicated and some new values inculcated.

1. Trust
Trust I think is badly lacking in this important government machinery. For that, decisions need to be made not by an individual but by committee only to be vetted and approved by another higher committee and culminated by signing by a council secretary, often after a full council sitting. Coming from a private firm where decisions is made on the spot, I used to lament aloud on the high cost involved in giving an approval for an application in which the council earn peanuts. Approval process can be expedited if the officer is given the power to decide. I argued that it is downright un-economical to have a ten-person committee to vet the work of a professional officer. ‘What if the officer is corrupt?’ they asked. ‘The law’, I said is ‘enough to punish those who dare.’

Local government must learn to ‘empower’ their officer. Give them a set task and let them free. You would be surprised at what they can do.

2. Strength
Many local governments were badly equipped to handle approval process in term of manpower (number and qualification of officers) and machineries. The one I was with could not even afford laptops or digital cameras for their officers, let alone cars. Not that the council were poor but budgets were prioritized more to plantings, flags and colored lights at every junctions.

3. Politicking
Politicking both race-base (among ruling parties) and party based (blue vs green) is another major hurdle. Project approvals were known to be delayed on the basis of race and party support. Surprisingly too, there were the state vs federal government not to mention the government vs private interest mentality. They (the rogue officers) must be made to read and revisit the great concept of Malaysia Incorporated.

4. Freedom of Information
Many years ago, in the Emergency, topography plan were classified. It still is. So are the numerous government development proposals involving land acquisitions, zoning etc. I have personally came across a project approved by all the technical departments including planning only to be told in the council meeting by land office that the area was gazzetted for a still secret project. It was so confidential that even the government agencies were kept in the dark. The one who suffered would be the land owner or the investor.

In the age when the roof of your house is visible on Google Earth, it is high time that the government do away with all the confidentialities especially if it was technically important.

5. The changing landscape.
PERMUDAH came at the same time as the various laws pertaining to delivery system were being updated. It includes planning and building laws. That was in itself a gargantuan task. But with the Malaysian federal/state system currently in place, the exercise would be academic without the states quickly ratifying the laws at the state levels. What we would like to see is the adequate political strength of the federal government to force the states to toe the line.

Conclusion
PERMUDAH was not the first high level task force entrusted with the task of finding ways to improve the delivery system. They were many more before in various names. What we hope is for none to come after. Then it would have been truly successful.