PETALING JAYA: The cost of building materials has gone up by over 12% due to knock-on effects of rising fuel prices, says Akmal Nasrullah Mohd Nasir.
"The construction sector is also experiencing the effects of rising fuel and material costs. Since late March 2026, the industry has reported cost pressures due to increases in diesel, bitumen, premix, logistics and building materials," the Economy Minister said during his briefing on the energy crisis on Tuesday (April 28).
Citing data from Construction Industry Development Board (CIDB), Akmal said the average price for seven key materials including bitumen, concrete, sand, aggregates, steel and bricks, has increased by 12.59%,
"Building materials account for the largest share of construction costs at 64.2%, followed by labour at 32.8% and machinery at 3.0%," he said.
This means that any increase in material costs has a direct impact on project costs, contractors' cash flow and project implementation. The government is taking this seriously, as development projects are not merely budgetary figures but involve essential infrastructure such as roads, schools and clinics," he added.
He said mitigation measures such as getting banks to offer loan rescheduling and restructuring options under the Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) scheme to ease cash flow pressures, particularly for small contractors.
As for the labour market, he said it remains stable although delayed effects are expected.
"A total of 5,734 job losses were recorded in the first three weeks of April 2026, lower than in March and February. However, impacts are expected to become more pronounced in the second quarter of 2026, particularly due to the lagged effects of the global energy crisis," he said.
He said the government would continue to strengthen labour market resilience through social protection, skills training, job placement, support for gig workers and strengthening SMEs.
