Integrating Tangible And Intangible Factors in  Infrastructure Asset

 INTEGRATING TANGIBLE AND INTANGIBLE FACTORS IN  INFRASTRUCTURE ASSET VALUATION OF CUSTOM, IMMIGRATION AND QUARANTINE COMPLEX (CIQ COMPLEX), BANGUNAN SULTAN ISKANDAR (BSI), JOHOR BAHRU, JOHOR

 Project Team:

Dr. Ezdihar Binti Hamzah (Project Leader), Dr. Hariati Binti Abdullah Hashim, Sr. Dr. Azizah Binti Ismail, Sr. Dr. Mohd Nadzri Bin Jaafar,

Prof. Madya Dr. Mat Naim Bin Abdullah @ Mohd Asmoni,

Prof. Madya Dr. Ahmad Ariffian Bin Hj. Bujang, Mohd Ibni I’zzan Bin Adnan and

Nur Farah Hanna Binti Mohd Rohaizad (Research Assistant)

ABSTRACT

Infrastructure asset involves a huge capacity of building that the operations and functions linked to other infrastructures. The asset uniqueness in terms of design, operations, stakeholder interest and business growth does affect the overall value of the asset. Valuation is a critical component for infrastructure asset because there are specific components in incorporating the approaches for valuing assets. This research aims to highlight the current valuation practice for infrastructure asset valuation. It also aims to determine the tangible and intangible factors affecting the infrastructure asset valuation. The most important part is to develop valuation methodology that integrates tangible and intangible factors for CIQ Complex as the case study of infrastructure asset valuation. The importance of identifying the tangible and intangible components in an asset is very essential because it will affect the valuation methods that may be used to value the asset. The research objectives are achieved through critical review and qualitative approach, specifically from several in-depth interviews with the experts. Ten experts with various backgrounds, ranging from registered valuers, experts in cost and benefit analysis and officers in charge in the operations of CIQ Complex are involved in this research. The research findings manifested that the depreciated replacement cost method is the most preferred method for infrastructure asset valuation especially for the tangible assets. Also, the valuation methodology for intangible elements result in three options of methodology of either cost approach, market approach or income approach. The research findings also analysed the tangible and intangible factors that would influence the CIQ complex valuation. Through analysis stage, there are four final tangible elements encompassing land, buildings, plant and machinery and infrastructures. Meanwhile, the intangible elements result in four components which are safety, mobility, economic and social value and sustainability (environmental quality). The intangible elements monetisation is well-addressed at the end of the research. In general, this research work would benefit and add value to the body of knowledge whereby the practitioners can apply the output to the real practice.

Keywords: Tangible assets, intangible assets, infrastructure asset valuation, valuation methods, Malaysia.