Construction Material Costs Still Under Control, Ongoing Projects Unaffected, Says Nanta
KUCHING: Rising construction material prices caused by the global energy crisis and disruptions to international supply chains remain manageable, allowing infrastructure and development projects across Malaysia to proceed without major setbacks.
Works Minister Alexander Nanta Linggi said contractors are still able to absorb the additional costs and continue with project implementation without requiring extra government allocations at this stage.
According to him, the government is closely monitoring developments but does not see an urgent need for additional funding as the current situation remains under control.
“For now, the situation is still within a manageable level and does not require additional allocations.
“However, we will continue to monitor developments closely and if there is a sudden spike in prices, we already have strategies in place to address it,” he told reporters after officiating the Malaysian Regional Geotechnical Engineering Conference here today.
Nanta said the Ministry of Works (KKR), together with the Construction Industry Development Board Malaysia (CIDB), had conducted a comprehensive study on the impact of global economic and supply chain disruptions on the local construction sector.
He said the findings have already been presented to the National Economic Action Council (MTEN) to facilitate the formulation of mitigation measures.
“The study covers both short-term and long-term strategies, including ways to manage supply chain challenges and rising construction material costs.
“Our objective is to ensure that the construction industry remains resilient despite global economic uncertainties,” he said.
Nanta stressed that the construction sector remains one of the country’s key economic drivers and any delay in project implementation could have broader implications for economic growth.
He explained that postponing development projects would not only affect contractors and industry players but could also slow down government spending and reduce employment opportunities.
“The construction industry is one of the engines of Malaysia’s economic growth.
“If projects are delayed, the impact will be felt throughout the economy because allocated funds will not flow into construction activities as planned,” he said.
For that reason, the government has decided to continue with existing projects as the increase in material prices remains within an acceptable and manageable range.
Nanta added that the government will continue working closely with CIDB and industry stakeholders to ensure any future market fluctuations can be addressed promptly and effectively.
He expressed confidence that with continuous monitoring and well-planned strategies, Malaysia’s construction sector will remain resilient despite ongoing global economic and geopolitical challenges.
