Plant, Machinery & Equipment
1) What is plant, machinery and equipment (PME)?
The acceptable definitions of PME shall be in accordance with the Manual of Valuation Standards issued by the Board of Valuers, Appraisers and Estate Agents, Malaysia and the International Valuation Standards issued by the International Valuation Standard Committee which include tangible assets other than realty intended to generate income for their owner.The International Valuation Standards prescribed the following definitions:

The assemblage of assets that may include specialized non-permanent buildings, machinery and equipment. (e.g. Power Plant, Water Treatment Plant, Clean-in-Place Plant etc)

Individual machine or collections of machines using or applying mechanical power, having several parts each with a definite function and together performing certain kind of works. (Creasing machine, knitting machine, moulding machine etc).

Ancillary assets that are used to assist the function of the enterprise (e.g. computers, photocopiers, compressors, welders, electronic scale etc)

2) When can the revaluation/valuation of plant, machinery and equipment be used in a corporate proposal?
Plant, machinery and equipment can be valued for the purpose of determining the sale/purchase consideration of the assets/companies which hold/own such assets. However, no revaluation of plant, machinery and equipment is allowed for the purpose of capitalization for bonus issues.
3) In the case of very specialized plant, machinery and equipment where local expertise may not be available, can the SC accept valuation prepared by foreign experts?
Where expertise is not available locally, a waiver may be sought.