Infiltrómetro de doble anillo

Yes No

Source: Author (2012)

4.3.1.13 Forms of information to educate Malaysian valuers regarding plant and machinery valuation methodology

The response for this question was significantly important to indicate the level of sources for plant and machinery knowledge needed by the valuation community in Malaysia as shown in Table 4.4. The four (4) top place ranks were the most chosen by the respondents because it was the solutions for the problems addressed in point 4.3.1.11 (Factors limiting plant and machinery valuation in Malaysia). 154 respondents have agreed to the introduction of practical or guidance notes of plant and machinery valuation methodology by the BOVAEA.

Another choice by respondents was the introduction of plant and machinery valuation standards. However, the researcher believed that the practical or guidance notes were sufficient in providing the valuers in Malaysia with information of plant and machinery valuation methodology. Standards would put definite governance to the valuers‟ profession conducting plant and machinery valuation whilst the practical notes would guide them through the plant and machinery valuation understanding and process, with room for improvement and changes in the future.

Another information source for plant and machinery valuation was the introduction of plant and machinery transaction and information database (132 responds). The Valuation and Property Services Department (JPPH), with their National Property Information Centre (NAPIC) have the capability and experience in dealing with management of sales transaction data in Malaysia even though currently it was only on the real property (land and building). Plant and machinery valuation transaction should

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be made public and the data should be managed by the government agencies. This would benefit the valuation community in particular and financial market as a whole. The introduction of transaction data of plant and machinery would provide data access to the valuers for their valuation usage. It would also increase valuation accuracy and made the plant and machinery valuation more transparent in the financial market.

Inclusion of plant and machinery valuation syllabus in higher education learning/universities in Malaysia was another highly rated survey response (120 responses). Currently, there are universities in Malaysia implementing plant and machinery valuation as elective subjects such as Universiti Teknologi Malaysia (UTM) and Universiti Teknologi Mara (UiTM). Both universities cover the basic fundamental of plant and machinery valuation subject area such as valuation methodology, data collection and valuation processes but lack in areas of explanation of premise of value and synchronisation between plant and machinery valuation premise of value and the valuation methodologies. However, with the demands for valuers to be equipped with plant and machinery valuation knowledge, the best solution is to provide the undergraduates with basic knowledge of plant and machinery valuation conduct. The knowledge and skills will develop through experience, and the universities should play their roles in supporting the industry needs.

National Institute of Valuation (INSPEN), training and research arms of the Valuation and Property Services Department, Ministry of Finance, Malaysia is in the process of launching a plant and machinery valuation professional diploma. This initiative is significant since the target group is the experienced valuers with at least a degree in property studies. This move is another approach to educate valuers in the industry on the plant and machinery valuation.

Another solution to increase information on the plant and machinery valuation methodology is by enforcing the declaration of plant and machinery transaction by the relevant government agencies. At current, the sales transactions that need to be declared are on the property (land and building) sales. Therefore, by enforcing the declaration of sales price of plant and machinery to agency such as National Property Information Centre, the government can capture the sales data and used it to generate income by selling the transaction data to the valuation firms. This will create a transparent market for plant and machinery transaction, as well as providing the valuers with the latest and reliable plant and machinery sales data.

Other steps that can be made to increase the level of plant and machinery information is by sending valuers or valuation officers for attachment in foreign countries that have numerous cases of plant and machinery valuation. Countries like United Kingdom, Australia and New Zealand have an active market for plant machinery valuation. The government agencies and private valuation firms can

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provide training for Malaysian valuers to educate them with the practices of plant and machinery valuation. For example, since 1996 the Valuation and Property Services Department, Ministry of Finance Malaysia have send officers each year to do the on-the-job training with different plant and machinery valuation companies in New Zealand such as Rolle Pte Limited, DTZ and Jones Lang Lasalle. This move has increased the knowledge of the participants and when they conducted the plant and machinery valuation in Malaysia, the knowledge gained spread to other officers and staffs. However, the only drawback is the cost that will be incurred if the steps are to be applied.

Lastly, the respondents also agreed that the information of plant and machinery valuation methodology can be increased among Malaysian valuers through seminars, forums or Continuous Professional Developments (CPD) programs. Institutions such as the Institute of Surveyors, Malaysia or National Institute of Valuation (INSPEN) can provide courses or CPD programs to the practitioners in the market in regards to the current plant and machinery valuation methodology. The valuers should take the opportunity to gain as much information as possible since the knowledge is important for the plant and machinery valuation exercise.

Table 4.4: Forms of information to educate Malaysian valuers regarding P&M valuation methodology.

Form Ranking Response

(Respondents can choose more than 1 option) Practical or guidance notes by The Board of

Valuers, Appraisers and Estate Agents Malaysia (BOVAEA)

1 154

Manual of plant and machinery valuation by itself. 2 141

Introducing plant and machinery transaction and information database.

3 132

Inclusion of plant and machinery valuation syllabus in higher education learning/ universities in Malaysia.

4 120

Relevant government department to introduce compulsory plant and machinery transactions declaration.

5 15

Attachment of valuers to some firms that specialised in valuing plant and machinery valuation worldwide.

6 6

Seminar, forums, Continuous Professional Developments (CPD)

7 5

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4.3.2 Part B: Plant and Machinery Valuation Understanding and Awareness

4.3.2.1 Market value is equivalent to fair value in plant and machinery valuation

Based on 92 respondents, most of them either agreed (44 per cent) or strongly agreed (44 per cent) that market value should be defined similar to fair value in plant and machinery valuation. However, in reality and application of accounting, fair value can be different from market value if the net book value method is adopted by the accountant for financial reporting. This method uses original acquisition price followed by some deduction of depreciation of an asset. However, since 2007, International Accounting Standards Board (IASB) and International Valuation Standards Committee have agreed that both terms have similar meaning and both professions must state clearly the type of approach being employed as discussed in Chapter 2. From the Chart 4.11, it is also shown that 8 per cent of respondents were against the idea of similar interpretation of both terms and 5 per cent of respondents (5 peoples) did not know if market value was equivalent to fair value in plant and machinery valuation.

7, 8%

40, 44% 40, 43%

5, 5%

Chart 4.11: Should market value equivalent to fair

value in P&M valuation?

Disagree Agree Strongly agree Do not know

Source: Author (2012)

4.3.2.2 Knowledge on the extension of market value in plant and machinery valuation

Compared to the land and building valuation, plant and machinery valuation is unique in such a way that it may use different types of market value extension depending on the purpose of valuation and type of plant and machinery such as market value in-situ, market value ex-situ and market value for removal. Different types of market value extension or premise of value may require a different type of valuation methodology. These extensions of market value have been discussed in detailed in Chapter 2 of this research. The response to respondents‟ knowledge of market value extension is shown in Chart 4.12. Most of the respondents (56.5 per cent) did not know or were unclear on the extension of

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market value in plant and machinery valuation. There are only 40 respondents (43.5 per cent) who either agreed or strongly agreed that they have the knowledge. From this response it can be concluded that there is room for improvements for plant and machinery knowledge in Malaysia. Higher numbers of respondents who did not know or were unsure on the knowledge reflect the low understanding and application of plant and machinery extension of market value among the respondents.

22 18 52 0 10 20 30 40 50 60

Agree Strongly agree Do not know

Nu m b er s o f resp o n se Response

Chart 4.12: Knowledge on the extension of market value

in P&M valuation