PUTRAJAYA: The construction sector is feeling the squeeze from rising material and operating costs, labour issues and taxes, with the Works Ministry seeking a bigger Budget 2027 allocation to address the sector's needs, said its minister Datuk Seri Alexander Nanta Linggi.
"The main issues were related to the rather challenging situation they are facing at the moment, including increases in construction material costs, other costs, labour and taxes," he told reporters after the Industry and Budget 2027 Dialogue Session with construction industry players at the Putrajaya International Convention Centre (PICC) here on Thursday (Aug 13).
Nanta said the concerns raised during the session would be taken into consideration when preparing the ministry's Budget 2027 proposals, which are expected to be tabled in October.
He said the ministry would seek more than the RM10.69bil it received under Budget 2026, although the ministry understood the government's fiscal constraints.
"We need to ask for more than what we received in 2026. It is not because we simply want more, but because there are needs.
"We also understand the economic situation. If the allocation needs to be reduced, we understand that because the decision is with the Finance Ministry," he said.
Nanta said the dialogue provided an important platform for industry players to put forward their needs, concerns and proposals directly to the ministry.
He said it would be unfair to the construction industry if players were not given an opportunity to voice their concerns.
Nanta said the ministry also wanted to act as a facilitator by identifying issues raised by industry players and bringing them to the relevant parties for resolution.
"We want to be a facilitator. Where there are issues, we want to identify them and bring them forward so that they can be resolved or improved," he said.
However, Nanta stressed that the ministry would not focus solely on securing a bigger allocation, but would also look at improving efficiency in project delivery.
"We are prepared not to depend on financial resources alone. More importantly, we need to ensure whatever we do produces the best results," he said.
He said this included improving processes and making procurement and supplier selection more efficient.
On construction material prices, Nanta said KKR was gathering information from suppliers and other sources rather than relying solely on concerns raised by industry players.
He said ministry officials, including its secretary-general and other officers, had engaged suppliers to obtain information on price movements, while the Construction Industry Development Board (CIDB) was also gathering relevant data.
"The data we have received shows that the increase is not significant. So far, it is stable," he said.
Nanta said accurate information from various sources was important to allow the ministry to properly assess the challenges faced by the industry and determine appropriate measures.
Nanta said the Budget 2027 allocation would not necessarily be distributed equally among programmes as the needs differed.
"We cannot divide it equally because the needs are not the same. We will allocate according to the needs. That is more important," he said.
