By Karen Bong
KUCHING, April 8: The federal government has yet to decide on providing relief for contractors amid rising construction costs and material prices, as it carefully reviews sector proposals, noting that any financial measures are being scrutinised due to the current tightness of government finances.
Deputy Works Minister Datuk Seri Ahmad Maslanhighlighted that engagement with contractor associations has already been conducted to hear firsthand the challenges caused by surging material and fuel costs.
“While local supplies remain sufficient, the rise in transportation costs, especially due to increasing diesel prices, has added significant burdens to contractors,” he told a press conference during a visit to the Construction Industry Development Board (CIDB) Sarawak today.
He revealed that Sarawak has 10,824 registered contractors employing 111,826 construction personnel, with men numbering 84,697 and women 13,108.
Ahmad also shared the latest registered project statistics in Sarawak: 3,698 in 2024, 4,311 in 2025, and 944 in 2026 as of April.
He also highlighted that no decisions have been made to temporarily suspend projects, adding that discussions are ongoing regarding whether projects should continue or be postponed.
Last Friday, a closed-door meeting was held between CIDB, the Public Works Department (JKR), and four contractor associations, including the Malaysian Bumiputera Contractors Association (PKBM), the Malaysian Malay Contractors Association (PKMM), the G1 Bumiputera Contractors Association (PERKOP), and the Malaysian Mechanical Contractors Association, to discuss proposals in response to cost increases.
“Suggestions included extensions of project timelines (EOT), Variation of Price (VOP), price controls on construction materials, and special diesel subsidies for selected projects,” he noted.
Ahmad noted that different associations reported varying figures for price increases with one citing 30 per cent and another 40 per cent, but CIDB and the Public Works Department (JKR) will refer to Department of Statistics Malaysia (DOSM) data for a more accurate assessment.
“We believe DOSM data provides a reliable reflection rather than estimations, and these figures will be used to determine the actual percentage increase,” he said.
Ahmad emphasized that no decisions have been made so far, as financial-related proposals involve coordination with the Ministry of Finance and the Ministry of Economy.
“Policy decisions have not been made yet. We are studying the situation carefully, including monitoring global developments and price fluctuations, to ensure no hasty decisions are taken,” he said.
The Deputy Minister also stressed that while contractor support is important, the government’s primary concern is to safeguard construction workers from potential layoffs resulting from increased project costs.
“Meetings have been held with the Ministry of Economy. Any announcements will be made by them,” he added. — DayakDaily
