PKMM HOPES ALL CONTRACTORS IN CATEGORIES G1 TO G7 WILL BENEFIT FROM VOP

KOTA BHARU, July 17 (Bernama) -- The Malaysian Malay Contractors Association (PKMM) hopes that the implementation of the Variation on Price (VOP) will benefit all categories of contractors, including those from G1 to G7.

PKMM president Datuk Mohd Rosdi Ab Aziz said this is because, previously, the VOP only involved contractors from categories G3 onwards, namely for projects valued at over RM500,000.

"PKMM thanks the government for its efforts to implement the new VOP policy. With the VOP in place, it will help reduce the burden of contractors grappling with the escalating construction material prices.

"Previously, the VOP only involved contractors in G3 and above while most contractors in the country are in categories G1 and G2. So, we propose that this group (G1 & G2) are protected and will not bear the burden of excessive construction price hikes,” he told reporters here today.

Yesterday, Deputy Works Minister Datuk Seri Ahmad Maslan said the implementation of the VOP, following the targeted diesel subsidy, is expected to be settled in a month.

He said his ministry had met with Finance Minister II Datuk Seri Amir Hamzah Azizan, the Treasury Secretary and the Director of the National Budget Office to discuss the implementation of the VOP.

On Saturday (July 13), the government agreed in principle to implement the VOP to help contractors faced with rising costs of construction materials due to the recent targeted diesel subsidy to ensure projects are completed on time. 

-- BERNAMA