KUCHING: The rising cost of construction materials due to global repercussions from the Middle East conflict is still under control and can be absorbed by the Works Ministry.
Its minister Datuk Seri Alexander Nanta Linggi said strategies were in place, but there was no pressing need to increase its allocation for projects.
“At present, we have not felt any serious impact,” he told reporters after opening the Malaysian regional geotechnical engineering conference here yesterday.
Nanta 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 will 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.”
Nanta added that 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.”
Separately, Nanta said concession companies will be appointed to carry out maintenance works on 136km of “redline” stretches of the Pan Borneo Highway in Sarawak.
Redline refers to existing routes built prior to the highway which need to be upgraded to the same standard.
“We need to secure funding for maintenance, which is estimated to cost RM900mil in total.
“We will make a decision on this soon and appoint the companies,” he said.
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.”
