THE value of construction works by the private and public sectors in Penang was RM4.8bil last year, according to Construction Industry Development Board (CIDB) figures.
Penang Master Builders and Building Material Dealers Association president Datuk Lim Kai Seng said works were expected to be worth about RM6bil for this year.
“The 2014 figure showed a significant drop compared to RM9.8bil in 2013.
“A probable cause is that developers had focused on building affordable homes rather than luxurious condos in 2014,” he said.
On GST, he said prices of building materials were expected to increase by 3% to 4% from next month.
Speaking at the association’s dinner at Flamingo Hotel on Wednesday, he urged members to be aware of GST implications on project cash flow.
“Contractors will have to pay the GST in advance, which could be a huge sum depending on the costs of a project.
“Developers might not be able to pay the contractors in time for the GST and this might be difficult.”