PUTRAJAYA: Rising costs, labour shortages and taxes are among the challenges facing the construction industry as players grapple with a difficult business environment, says Works Minister Datuk Seri Alexander Nanta Linggi (pic).
He said these concerns would be taken into consideration in preparing the ministry’s proposal for Budget 2027, which is expected to be tabled in October.
Nanta said his ministry would seek a higher allocation than the RM10.69bil it received under Budget 2026 to meet the country’s infrastructure needs.
“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,” he told a press conference after the Industry and Budget 2027 Dialogue Session with construction industry stakeholders at the Putrajaya International Convention Centre here yesterday.
Nanta said the annual dialogue is important to allow industry players to put forward their needs, raise their concerns and proposals directly to the ministry ahead of the budget.
“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.
He said apart from seeking a higher allocation, the ministry also looks forward to 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, adding that this included finding ways to make procurement and supplier selection more efficient.
Nanta said the ministry would also continue monitoring construction material prices instead of relying solely on claims made by industry players.
He said ministry officials, including its secretary-general, had engaged suppliers to obtain information on price movements.
The Construction Industry Development Board (CIDB) was also gathering relevant data, he added.
“The data we 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.
He said the ministry also has to consider the differing needs of each area or programme when deciding how the allocation should be distributed.
“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.
The dialogue brought together almost 150 representatives from industry associations, contractors, government agencies and others.
According to the ministry, the session generated 30 strategic proposals and 87 proposals concerning issues affecting the construction industry.
The proposals focused on six transformation agendas, including strengthening road networks and high-impact projects, sustainable development in line with the National Energy Transition Roadmap, and digitalisation and Industry 4.0.
The other areas are local capacity building, road safety through MYJalan, as well as regulatory improvements and human capital development.
