PM: It’s for the people, not tycoons

KUALA LUMPUR: The RM95bil development expenditure under Budget 2023 is to benefit the people, not tycoons or large conglomerates, says Datuk Seri Ismail Sabri Yaakob.

The caretaker Prime Minister said major development projects such as the Pan Borneo highway and the East Coast Rail Link would create job opportunities for locals and would benefit the country.

“The government I lead prioritises infrastructure development that will benefit the entire country and the people,” he said in his opening speech at the Malay Contractors Convention 3.0 and the 43rd annual meeting of the Malay Contractors Association Malaysia (PKMM) here yesterday.

On Oct 7, the government tabled the RM272.3bil Budget 2023, the largest in the country’s history, that focuses on the well-being of the people, business continuity, economic prosperity, and the efficiency of government services.

Budget 2023 also allocated RM95bil for development expenditure – the highest in the country’s history – to undertake some 7,615 development projects.

Ismail Sabri said Budget 2023 also provides various initiatives to contractors, including an allocation of RM500mil for G1 to G4 class contractors to undertake maintenance works for federal roads, small bridges, houses of worship and infrastructure damaged by floods.

He added that the government is also providing short-term financing to bumiputra contractors in fields such as electrical and construction through the Express Contract Financing Scheme with funds amounting to RM20mil.

He also said some RM50mil worth of small projects would be allocated to G1 to G4 class women contractors through the “kontraktornita” initiative to support the participation of more bumiputra female contractors in government procurement.

“However, all of this will only be enjoyed if Budget 2023 is re-tabled and approved after the General Election. If I am given the opportunity to form a government after this (the general election), this Budget will be re-tabled and approved,” he said.

Ismail Sabri said the government realised that in a challenging economic environment, not many contractors were willing to be involved in low-cost housing projects with low-profit margins, especially with the uncertain price of building materials.

“Many returned the projects as they could not do it at that price. They could not make much profit,” he added.

He said the Cabinet had approved an additional allocation to increase the price of construction of the Hardcore Poor Housing Project and People’s Housing Programme from RM55,000 per unit to RM68,000.

“This is to ensure there is some profit margin for contractors who build affordable homes,” he said.

Ismail Sabri thanked bumiputra contractors who completed the affordable government housing projects even with such small profit margins.

Earlier, PKMM president Datuk Mohamed Fadzill Hassan asked Ismail Sabri whether contractors who had completed their affordable housing projects could be paid using the new price.

He also called on all contractors involved in government projects to give their best in terms of quality, productivity and professionalism as well as to complete projects on time.

On foreign workers, Ismail Sabri said the recruitment process was still ongoing but the government would still give priority to local workers.

At the moment, there are 1.6 million foreign workers in the country, but the Prime Minister gave the assurance that the number would not exceed two million.