By DayakDaily Team
KUCHING, July 4: Federal Minister of Works Dato Sri Alexander Nanta Linggi stated today that it is too early to project the rise in construction costs after the removal of diesel subsidies on June 10.
Nanta emphasised that the government is thoroughly examining the issue before introducing any new policies.
“The government is currently studying this issue, and before contemplating or introducing any new policies, careful consideration needs to be taken based on various aspects.
“One aspect includes the building materials cost index released by the statistics department, which tracks fluctuations in construction material costs nationwide,” he said during the Dewan Rakyat sitting today, according to a Free Malaysia Today (FMT) report.
The minister also mentioned that discussions with relevant agencies are ongoing to assess and address potential impacts on the construction industry.
His remarks came in response to a supplementary question from Roslan Hashim (PN-Kulim-Bandar Baharu), who inquired about government initiatives to assist contractors facing higher machinery and material costs.
Roslan asserted that contractors who secured projects before the diesel price increase of approximately 55 per cent are now experiencing construction cost hikes ranging from 15 per cent to 35 per cent.
Furthermore, Nanta reiterated that the subsidised diesel scheme, introduced on Oct 19, 2021, was never extended to the construction industry.
“The purchase of diesel for construction purposes has traditionally been through commercial channels rather than the retail purchases eligible for subsidies before this diesel price adjustment.
“Existing contracts have factored in diesel prices, so there is a possibility that the construction industry will be affected by the adjustment,” he said. — DayakDaily
