Discussing issues: Nanta (third from right) at the townhall session with G1- G3 contractors at Kompleks Kerja Raya in Kuala Lumpur. — Bernama
KUALA LUMPUR: Only 25 out of more than 800 projects, or a mere 3%, are categorised as “sick” under the Public Works Department in Peninsular Malaysia, says Works Minister Alexander Nanta Linggi.
He said those categorised as sick were mainly road and development projects.
“These projects are categorised as sick due to the increase in the cost of construction materials such as cement and steel, which has impacted the global market.
“Prices of items have gone up as a result of inflation, which has put pressure on their finances.
“The contractors are still looking at ways to overcome this issue because pumping in more money into a project is not a sound way,” he told the press after meeting G1, G2 and G3 contractors here yesterday.
Nanta said the local construction industry needs about 400,000 foreign workers, and currently there is a shortage of more than 120,000 foreign workers.
“However, the current changes to the recruitment of foreign workers by the government has helped the situation.
“Based on Construction Industry Development Board (CIDB) data, out of 124,273 registered contractors, 101,623 are G1 to G3 contractors, and of that number, 66,862 have government work certification.
“This clearly shows that contractors categorised under G1 to G3 are the main construction industry players in the national development agenda,” he said.
Some 400 contractors from Kuala Lumpur and Selangor attended a closed-door engagement with the ministry to have a more direct interaction in addressing issues and challenges in executing government and private projects.
“Through the engagement session, issues involving construction material costs, foreign workers, lack of contracts, and new industry regulations as well as other feedback were discussed.
“Financial issues and requests were also brought up, so CIDB will bring it forward to the Finance Ministry, and if there are any improvements needed, we will recommend,” he said.
Earlier, Nanta said a more holistic approach should be given priority to spur the industry as players should not rely solely on government contracts.
“It is hoped that G1-G3 contractors can build and improve the quality and capability of their services to be more competitive in line with the Fourth Industrial Revolution that is expected to change the landscape of the construction industry in Malaysia,” he said.
On the issue of renovation works being given to foreigners, he said CIDB is monitoring the situation, with action to be taken should these be discovered.
