State of Asset Management in Malaysia: An Expert's View

As the world continues to witness rapid advancements in technology and digitalization, organizations operating in Malaysia are beginning to recognize the need for new ways of starting and scaling asset management initiatives.

In my conversation with Zul Azhan Abu Bakar on our Forever Forward podcast episode, I gathered some important developments about the current state of asset management in Malaysia and how technology could benefit the sector.

Zul is a popular thought leader in the Malaysian facility management industry. He's the co-founder of Fox Facility Solutions and heads Infinity Wave, a consulting company that also helps organizations and government agencies in their digital transformation journey. He brings over 15 years of experience in automation, R&D, strategic planning, facility management, and even construction to the table.

Here's my laydown on all that's happening in Malaysia at the intersection of asset management, operations, maintenance, and digital transformation:

The Current State of Asset Management in Malaysia

Malaysia has achieved great development, particularly in the area of facility management, over the last two decades. The government's acknowledgment of facility management as an essential component of infrastructure development helped to facilitate this advancement. The privatization of hospital maintenance was one of the key drivers that spurred the growth of the industry in Malaysia.

According to Zul, organizations such as the Malaysian Association of Facility Management (MAFM), the Landscape and Nursery Association of Malaysia (LAFA), and the National Asset Management Agency (NAMA) have been actively working to improve asset operations.

Despite the progress, there are still some areas that need improvement. The maintenance and upkeep of buildings, for example, are neglected despite being crucial to the smooth operation of the sector. For organizations to remain competitive, Zul believes technology adoption is essential for optimizing asset operations and maintenance.

Technology Adoption in Malaysia

Malaysia is in the early majority of the four phases of technology adoption, with roughly 50-60% adoption. 

• There are numerous technologies that have been widely adopted, such as BIM. Many players have discovered that adopting particular technologies simply because they are popular is not always beneficial. They want to go back into the areas that actually make an impactful change for them. As a result, having a basic fundamental understanding of some areas of technology is required.
• Malaysia's FM industry is currently shifting its focus towards a better balance between investment and return. Stakeholders are seeking a more efficient way to evaluate the return on their investments, both financially and in terms of work-life balance and stress management. This shift towards a more balanced perspective is positive for the industry, as key decision-makers are now more interested in having difficult conversations and making positive changes.

Rise of Data-Driven Maintenance

Across the globe, data-driven maintenance is gaining traction, and Malaysia is no exception. FM companies and asset owners are having discussions on data gathering and management. It was uncommon for such conversations to take place five or ten years ago, but now they're everywhere. There is a rise in awareness of the benefits of data management for operational purposes, resulting in greater thoughtfulness and consideration about how and why data is collected.

Who is driving change in Malaysia's FM industry?

The drivers of change are the FM industry stakeholders, including private facility management players, asset owners, and the government. The sector has recently made a lot of noise and pushed for more innovation, which has led asset owners to understand that adopting technology in their contracts could be beneficial to them. With transparent conversations happening among key players, positive changes are happening in the industry.

On-ground challenges and implementation of CMMS

Many people believe that technology will solve all of their issues. However, in reality, technology is just one part of the solution. It can solve a lot of problems, but it cannot fix problems related to competency and leadership. As Malaysian organizations begin to implement new technologies such as CMMS and CAFM, they face the challenge of understanding how to use these tools to their benefit. This approach is time-consuming and requires a commitment to learn and adapt. As a result, approaching technology with awareness and an understanding of its real benefits is crucial. By doing so, businesses can successfully leverage technology to solve their most pressing issues.

A lot of startups are doing great work around CMMS globally, but CMMS operations in Malaysia are localized, making it challenging for foreign startups to compete. This, however, keeps the industry competitive and motivates companies to develop and offer solutions to help automate and streamline business operations.

A Call for Change

In Malaysia, the responsibility for change in the FM industry is shared by all parties, including private facility management players, asset owners, and the government. There is a growing consensus among players that pushing for change will benefit everyone, resulting in increased transparency and open conversations regarding innovations and technology adoption. 

Facility management teams play a critical role in ensuring that the workplace is efficient and functional. However, with ongoing changes in technology and work processes, it can be difficult to keep up.

Zul says it is critical to recognize that the workplace looks significantly different from the perspectives of white-collar and blue-collar workers. While software such as CMMS is useful for white-collar workers, blue-collar workers may lack the essential data skills to efficiently use such products.

As a result, companies must devise solutions that cater to both sorts of workers. This can include offering training to blue-collar workers or investing in user-friendly and accessible technologies.

Final Word

Despite the challenges, the facilities management industry has a lot to be optimistic about. Malaysia provides huge growth opportunities, which early movers can capitalize on. However, it is critical not to be bogged down by terminology or nomenclature. The focus should always be on making things better and finding solutions that cater to the needs of all workers.

In conclusion, I believe Malaysian companies must prioritize asset management in order to optimize their operations and sustain the business in the long run.

At Xempla - Decision Support System for Enterprise Asset Management, we're making asset management and maintenance cost-effective and sustainable for some of the world's best in the facility management business. Companies like Serco, Sodexo, Emcor UK, and Engie Solutions Middle East have already empowered their O&M teams and achieved incredible results with our Asset Performance Management software.

Ping me on LinkedIn to start the conversation (transformation)!😀

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