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Malaysia Airports Becomes First GLC To Produce Value Management Manual; Another 5 Airports Receive Safety Management System Certifications

15 December 2010

Sepang, 15 December 2010 - Malaysia Airports launched its Value Management manual today, becoming the first Government Link Company (GLC) to produce documented guidelines towards optimising value for all its projects.

Value management is the application of established techniques to help define and refine business need, delivery strategy and the best value concept by setting customer objectives and values and determining success criteria for the project.

Malaysia Airports' value management manual outlines the value management methodology which will be a reference on its application in procurement, system and procedures for internal business processes according to Malaysia Airports'policies.

YB Tan Sri Dato' Nor Mohamed Yakcop, Minister at the Prime Ministers Department, lauded Malaysia Airports achievement: "Congratulations to Malaysia Airports for being the first Government agency in applying value management and having its own manual."

According to Tan Sri Dato Nor: "In Malaysia, value management is considered new compared to other countries such as United States, United Kingdom, Hong Kong, Australia, New Zealand and Middle East countries. However, the Government has taken a proactive measure in making value management a management tool in achieving value for money."

He added: "The Government is also preparing the National Manual in order for value management to be a standard application and become an important reference source for value management in Malaysia."

Y.Bhg. Tan Sri Datuk Dr. Aris Othman, Chairman of Malaysia Airports in his speech said: "Value management will ensure every ringgit that we are spending comes with optimised value and reduced wastage. Indirectly, it will impose cost control and saving without compromising the performance level of contractors."

"Value Management will also help us to review, improve and validate project requirements as well as prioritise them. It provides us an enhanced understanding and knowledge of the main project success factors", Tan Sri Aris added.

Tan Sri Aris elaborated; "Through value management approach, Malaysia Airports has managed to achieve savings of RM62 million or 28% from projects worth RM232 million in 2008, RM33 million or 10% from projects worth RM339 million in 2009, and RM51 million or 17% from projects worth RM303 million in 2010."

Malaysia Airports has also applied value management for the ongoing construction of KLIA2, where it has managed to reduce an estimated RM1.5 billion. The reduction is a testimony of the value management approach that is able to define and rationalise functions, needs and requirements for each project.

At the same event, five domestic airports received the Safety Management System certificates from the Department of Civil Aviation (DCA). The five domestic airports were Alor Setar, Bintulu, Sibu, Sandakan and Limbang.

Last year five of its international airports have received their certifications and Malaysia Airports is aiming for the remaining domestic airports under its management to obtain the Safety Management System (SMS) certifications by 2014.

Y.Bhg. Dato' Azharuddin Abdul Rahman, DCA Director General, who presented the certificates said: "With the certification, we can demonstrate to the world that our airports place importance to safety, and I hope the airports will continue to maintain the highest level of safety measures. These airports will continue to undergo Annual Scheduled Inspections to ensure that the requirements of the certification are continuously met."

Dato' Azharuddin also congratulated Malaysia Airports on the earlier successful SMS certification at five its international airports.

Tan Sri Aris said: "Malaysia Airports is very pleased to have yet another five airports to receive the SMS certification. The SMS certification is a testimony of our initiatives to ensure the highest level of safety at our airports and to fully comply with the International Civil Aviation Organisation (ICAO) Safety Management Program"

The certified airports had to undergo a stringent audit by the Department of Civil Aviation (DCA) to achieve this certification.

The SMS indicates conformance to all safety requirements and achieving continuous improvement in safety performance. These include the essential features of safety such as policy, strategy, planning and implementation as well as promotion, records, staff training and competency.

The certification confirms that the airports have successfully implemented the Hazard Identification, Risk Assessment and Risk Control (HIRARC), and have conformed to the requirements of the DCA for Acceptable Level of Safety (ALOS).

Malaysia Airports is always committed to ensure good safety management. This is shown through the establishment of a safety office, joint efforts with risk management and the business continuity programme, blending and complying with Occupational Health and Safety requirement.

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