Government Studies Measures As Construction Costs Rise - Ahmad Maslan

KUCHING, April 8 (Bernama) -- The federal government is reviewing all proposals and recommendations to address rising construction material costs following tensions in West Asia, Deputy Works Minister Datuk Seri Dr Ahmad Maslan said.

In fact, he said the ministry had met with contractor associations last week to gather their feedback on current industry conditions, particularly the surge in material prices.

While supply remains sufficient, he noted that higher transportation costs have driven up prices.

“We have listened to all views and will closely study their recommendations and proposals. This issue also involves the Ministry of Finance and the Ministry of Economy,” he told reporters after visiting the Construction Industry Development Board (CIDB) Sarawak office today.

Among the recommendations put forward by contractors are extensions of time (EOT) for affected projects, price controls on building materials and targeted diesel subsidies for selected construction works.

Ahmad said estimates of price increases vary, with some associations reporting rises of 30 per cent and others up to 40 per cent.

“We will refer to official data from the Department of Statistics Malaysia (DOSM) to determine the actual extent of the increases,” he added.

-- BERNAMA