KUCHING: The increase in the cost of construction materials due to ongoing conflicts around the world is still under control and can be absorbed, says Works Minister Datuk Seri Alexander Nanta Linggi.
As such, he said there was currently no need for the ministry to increase its allocation for projects.
"At present, we have not felt any serious impact. We can absorb the price increase so far," he told reporters after opening the Malaysian regional geotechnical engineering conference here on Wednesday (June 17).
Nanta said the ministry's projects were proceeding as planned, with none put on hold, as they were a key engine of growth.
"If we postpone any projects, the economy may shrink because we are not spending the allocations for the construction industry.
"This is why the government has decided that although there is a price increase, it is still at a manageable level," he said.
Nanta also said the ministry had presented its immediate, medium- and long-term strategies for handling the cost increase to the National Economic Action Council.
He said the ministry would continue to monitor the situation, particularly the impact of geopolitical tensions on fuel prices.
"If there is a drastic price increase, we have a strategy to manage it. But at the present level, contractors can still go on," he added.
On the conference, Nanta said it was the first to be organised by the ministry and Public Works Department, reflecting a collective commitment to elevate the standards of geotechnical engineering in Malaysia.
"What is important is to translate the expertise shared at the conference into action on the ground when we implement projects for the benefit of the rakyat," he said.
