Architectural services can be categorized into the following exportable services:

Design
Project documentation
Project management and construction supervision.

In the past we have frowned upon clients who engaged foreign architects to do design for local projects and let the local architects to do the rest of the work including construction supervision. Local architects also have to carry the liability in connection to the project. The fact is that design is a saleable commodity. Designer products fetch higher value than normal utilitarian products. Commercial objectives determine the survival of our profession. Local clients import foreign goods and designs with the notion that they have better value and innovative. Overseas clients are the same. China and the Middle East have been importing designs from the west which gave American, British, Canadian and European architects a head start. Several have also established presence in these growing markets which make it difficult for us to penetrate. However the market is large enough to accommodate some of us who are willing to venture in these countries. Our members are capable and possess the right attributes to sell their designs.

Project documentation is another area where Malaysian architects can also excel in. Some architects have been exporting this service for a long time but have not been widespread. The practice has also been prevalent among Malaysian architects who have network in more cost effective countries like the Philippines, China and Thailand. The networks can be further exploited by Malaysian architects to export the drafting services to other countries.

Project management service is a popular service that is being sought after in emerging and developing economies. This model for project execution has been made popular by the American and European services exporters in the Middle East, Africa and China. The winning edge for these PMC’s is that they usually offer financial packages. The project managers have greater influence in the selection of consultants and invariably they would choose those whom they are familiar and have confidence in. If it is an American PMC, it can be concluded that an American architect would be engaged in the project. In the booming market in the Middle East the American PMCs are well established. Some American, British and Australian individuals are employed by developers to head management positions who would naturally inclined to favour their own nationals.

Project management is not a regulated profession in Malaysia and we do not have the track record of well established project management companies (PMCs). The poor performance by PMCs on several Government projects had also resulted in the Government to cease future projects being awarded to PMCs. It would be feasible for Malaysian architects to team up with a well established Malaysian PMCs or reputable foreign PMCs to bid or lobby for projects in the overseas. The MAEC can function as a repository of exporting architects which these PMCs or other Malaysian corporations that intend to venture into foreign markets can refer to.

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Current Exporters List & Developing Guidelines for Exporters

There are already a number of Malaysian architects undertaking projects overseas. PAM does not have the data on the exact number. In 1998 RAIA did a comprehensive survey, sponsored by the Commonwealth Department of Industry, Science and resources aimed at assisting architects to take advantage of emerging export opportunities. The data and analysis that resulted from the survey are vital tools for the Australian to strategise their foray into overseas market. About 23% of architects had made efforts to export their services; including 14% exported their services in financial year 97/98with a success rate of more than 50%.

There is an urgent need for us to undertake a similar survey and studies to develop our own strategies. The listing of exporting architects initially will help to spearhead the launching of the Export Club. It would initiate the dialog among members on the various aspects of doing work overseas. These shall include but not limited to the following;

Types of projects
Local laws, rules and regulations
Risks and potential liabilities
Profile of clients
Local barriers
Costs of living and office establishment
Profile and costs of local representatives/partners
Idiosyncrasies of local Government and authorities

A template from the Australian Trade Commission (AUSTRADE) can be a useful tool for us to emulate.

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Aspiring Exporters List

Generally a large majority of architects do not export or aspire to export. The principal reason for this is the lack of knowledge on foreign markets, higher risks and happy to remain at home. There is also a misperception that for one to venture abroad one has to large to compete. The study done by RAIA revealed that a typical exporting architect has 11 to 25 staff employed at their workplace and has been registered for 20 years. It shows that you do not have to be big in terms of firm size to export, but must have long years of experience. In Malaysia, less than 30% of members had more than 20 years experience. This can be overcome by networking. NAPSEC and PSDC have been tasked at the promotion of professional services export and facilitation of capacity building respectively to meet the export objectives. It would be helpful if the data on available specialist and export willing architects is at their disposal. Khazanah, TNB, Telekom and Petronas are large GLCs that are making forays overseas which local professionals can latch on.

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Networking of Exporters Including with Host Country Partners

Projects that are being tendered in emerging economies are relatively large that require comprehensive solutions covering technical, project management, construction and financing. Architects are generally not equipped to handle comprehensive solutions as described. They are, however, pivotal in developing concepts and designs of the projects which can form the basis for a comprehensive bid. The club can be a repository for those who can be consulted to participate should the opportunity arises. Similarly there may be occasions when foreign consultants and service providers would require the inputs of our architects as potential partners in their projects.

Despite the trade liberalisation regime that is currently being negotiated among countries either on a multi-lateral or bilateral basis, the domestic regulations in most cases require registration of practitioners. It is therefore expedient that we get local registered architects to be our partners for the project. This approach is also encouraged by the UIA Professional Practice Commission which has been adopted in the UIA Accord. The local partner who is more familiar with the local business conditions and regulations can be an asset to our venture in the host country.

On 19th September 2005 the APEC Architect Register was officially launched. It provides a framework toward the mobility of architects in participating economies. The economies who are participating in the framework are:

Australia
Canada
People's Republic of China
Hong Kong China
Japan
Republic of Korea
Malaysia
Mexico
New Zealand
Republic of the Philippines
Singapore
Chinese Taipei
Thailand
United States of America

A Central Council which meets at least once annually has been established by the participating economies. Each participating economy has also established a Monitoring Committee to take responsibility for administration of the APEC Architect register in that economy. In our case, the Monitoring Committee is a sub committee under LAM, which is also the International Affairs Committee. Although registration or licensing to practice is not automatic, the qualification of the APEC Architect is duly recognized by the participating economies. This will facilitate eventual independent practice. With the register it is also conceivable that networking of registered architects for collaboration in participating economies can be expedited.

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Identifying Target Markets

Identifying new markets is not an easy task especially for one who has never venture or travel overseas. Therefore it is advisable that one participates in trade missions organized by Government agencies such as MITI, MATRADE and sometimes by private corporations. The following points can be the beginning of your exercise;

Publish your company profile/CV/brochure/name cards
Website
Track record of works
Specialisation and Branding
Participating in trade promotions and exhibitions
Publications of papers, journals, books, etc.
Participation in international seminars & conferences
Participation in international competitions
Participating & interacting exporting bodies, e.g. MAEC, PSDC, NAPSEC, MATRADE
Registration with APEC Architect register, ADB, IDB, World Bank, etc.

The current new markets are China, India, UAE which have been the target of most exporters from the developed countries. There is a general opinion that these markets are getting more mature and sophisticated with tough conditions attached apart from being highly competitive. MATRADE as well as CIDB are always on the lookout for other potential markets. Some of them are; Bangladesh, Africa, Saudi Arabia, Algeria, Libya, Syria, Sudan, Pakistan, Vietnam and other Gulf states besides Dubai. Malaysian Corporations have also ventured into unlikely markets such as Uzbekistan and Khazakstan.

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Listing of Specialization

In developing your company profile which is going to be submitted to the MAEC, it would also be expedient if you van record the area of specialization. This can be a useful reference should opportunities in your respective specialized field arise. A comprehensive list can be developed and circulated to Government agencies, GLCs and Corporations for reference.

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Governmental, Technical and Financial Support

With the establishment of MAEC we can compile feedbacks from members of their needs for support. These feedbacks can be used as inputs for agencies such as PSDC and NAPSEC to convey to the Government for appropriate actions. Trade facilitations, road shows, seminars and exhibitions can be more effective with such supports. Although AUSTRADE have been instrumental in promoting Australian business overseas, more than 50% of exporting Australian architects did not seek their assistance. It really depended on the individual endeavours to make it overseas.

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Travel Log

Architects who sometimes have the opportunity to travel overseas can contribute by logging their experiences in their travel. The MAEC can publish these travel logs for the benefit of members to know the conditions of the countries traveled. Discussions among members on the various aspects of the practice in these countries can be compiled and over time would be a useful reference document for Architect exporters.

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Members of the MAEC will receive a Toolkit which includes information on the following:

Sample International Technical Services Agreement (ITSA) template
Frequently Asked Questions on pitfalls of exporting services, common misconceptions about exporting services, results of surveys, and architects' advisories on specific countries.
Virtual presence - Information on TELCO and Office presence, SERVCORP Virtual Offices and Phone Answering Services, Skype Virtual TELCO, MATRADE Office facilities overseas, and affiliations with overseas companies.
Promotional Activities - Expositions and conferences to attend, fees and costs of conducting exhibitions.

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MAEC members will also have access to case studies on the exporting of architectural services.

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