KUALA LUMPUR (May 1) — Dexter Koh Yew Peng has been elected as the new president of Pertubuhan Akitek Malaysia (PAM) for the 2026/2027 term, signalling a leadership shift focused on addressing mounting cost pressures and structural challenges within Malaysia’s construction sector.
Koh will lead the newly formed council alongside deputy president Norzaini Mufti, vice president Zulkhairi Md Zain, honorary secretary David Teoh Wui Leng, and honorary treasurer Ellina Suhaida Abdul Rahman.
As his first official move, Koh introduced a Practice Note aimed at guiding industry players through ongoing global supply chain disruptions and persistent material cost increases. He emphasised that rising construction costs are not temporary, but rather a structural shift the industry must adapt to.
According to Koh, recent global data indicates that material prices are unlikely to revert to pre-pandemic levels. This new cost baseline is expected to have lasting implications across the entire built environment sector—from project feasibility and tender pricing to delivery timelines and profit margins.
The Practice Note is designed to support architects administering PAM standard contracts by encouraging collaborative dispute resolution between stakeholders. This approach aims to minimise project delays and reduce the risk of stalled or abandoned developments, a concern that has grown amid cost volatility.
Beyond contractual guidance, Koh also called on authorities to accelerate planning and building approvals. Faster approvals, he argued, would help developers better manage holding costs and respond more effectively to market conditions—an issue particularly relevant in high-activity regions like Kuala Lumpur and Selangor, where timing directly impacts project viability.
PAM also expressed its willingness to work with Ministry of Local Government Development Malaysia to streamline approval processes. Among the proposals discussed were targeted reductions in submission fees to incentivise project launches during softer economic conditions.
In addition, Koh highlighted the importance of maintaining professional fee structures in accordance with statutory requirements. He urged clients—including government agencies and government-linked companies—to adhere to fair payment schedules and prescribed fee guidelines, stressing that adequate compensation is essential for architects to effectively manage projects and uphold quality standards.
What I Learned
This development underscores a major shift in the construction and property industry: rising costs are no longer a short-term disruption but a new normal. For developers and investors, especially in active markets like Kuala Lumpur and Selangor, this means project planning, pricing strategies, and risk management must be recalibrated to reflect permanently higher construction costs.
Another key takeaway is the importance of collaboration across the project value chain. Disputes over cost increases can delay or even derail developments, so frameworks like PAM’s Practice Note play a critical role in keeping projects moving and protecting investments.
The issue of approval timelines also stands out. Faster planning approvals can significantly improve cash flow and reduce holding risks for developers—something particularly crucial in large-scale residential, commercial, and industrial property developments.
Finally, the emphasis on professional fees highlights a less obvious but critical factor: underpaying consultants can weaken project execution. Ensuring architects and consultants are properly resourced ultimately leads to better project outcomes, fewer disputes, and stronger long-term value creation in the property sector.
Malaysia