Kuala lumpur: Engineering consultancy fees in Malaysia have seen minimal increases since 1983, despite a notable rise in project complexity and workload, as highlighted by The Institution of Engineers Malaysia (IEM).

According to BERNAMA News Agency, a survey titled 'Engineering Impact Survey - Scale of Fees for Engineering Consultancy Firms' was conducted from May 15-24, 2026, gathering insights from 598 professionals. IEM emphasized the need to raise consultancy fees by 40 to 50 per cent to accommodate current compliance requirements, operational costs, and professional liabilities. Additionally, the institution advocates for restructuring payment milestones to ensure 80 per cent of consultancy fees are paid by the tender stage and suggests reducing retention sums during the construction phase to 15 per cent to enhance cash flow.

IEM further supports adopting quality-based selection procurement methods that prioritize professional expertise, technical capability, and public safety considerations over the lowest-price criteria. This approach aims to secure better project outcomes and foster long-term value creation. The survey results are seen as a constructive prompt for dialogue among industry stakeholders, policymakers, regulators, and professional bodies.

The survey findings revealed that the scale of fees (SOF) for engineering consultancy services has not been comprehensively revised since 1998, rendering it outdated by 30 years. Respondents noted that the workload required to meet modern client demands has increased approximately tenfold over the last 24 years.

According to IEM, cost considerations often dominate consultant selection, with 88.97 per cent of industry professionals indicating that consultants are "always" or "very often" chosen based on the lowest fee. Furthermore, 51.84 per cent of respondents expressed concerns about current procurement practices, noting that traditional tendering processes frequently favor the lowest bidder, which may not adequately reflect the complexity of technical requirements and associated risks.

The survey also highlighted growing concerns over service quality, with 65.35 per cent of respondents fearing that current fee levels could eventually undermine service delivery. IEM pointed out that the entry-level engineer salary structure has remained largely unchanged for nearly 20 years, making it challenging to keep pace with the rising cost of living, with a starting salary of less than RM3,000 per month being the norm.

The survey found that 81.30 per cent of companies reported salary adjustments as the first area impacted by low fees, and 52.5 per cent had to reduce investment in upskilling. IEM concluded that 96.71 per cent of respondents agreed on the necessity of constructive changes for the sector's long-term viability.