Construction firms to be affected by rising costs

According to the International Trade and Industry Ministry, steel bar prices rose 11% to RM3,450 per tonne in May 2022 from RM3,100 per tonne in May 2021.

KUALA LUMPUR: Rising building material costs are expected to eat into the margins of construction companies’ earnings going forward.

Although contractors will be able to incorporate the rising cost for new projects in the form of increased contract values, AmInvestment Bank said the higher cost would still lead to higher working capital requirements.