Wednesday, 18 March 2026

Grade 1 (G1) permits: Priority for skilled contractors

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Ahmad Maslan (standing 3rd from left) in a friendly chat with staff of agencies under the Works Ministry.

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KUCHING: Priority will be given to skilled individuals, particularly those with construction training, in the issuance of Grade 1 (G1) contractor licences, said Deputy Works Minister Datuk Seri Dr Ahmad Maslan.

He said the G1 license — previously known as Class F — remains open for application, but preference will be given to those equipped with recognised construction skills, including graduates from Akademi Binaan Malaysia (ABM).

“We want to prioritise those with construction skills to obtain the G1 contractor licence.

“If they already have the skills, they should be given that advantage,” he said during an iftar session with agencies under the Ministry of Works and Sarawak media here on Tuesday.

Ahmad stressed that strengthening skills alone is not enough, as there is also a need to equip trainees with project and financial management capabilities, particularly for those who intend to become contractors.

“Such added competencies are crucial in addressing issues related to project delivery and contractor performance,” he added.

On the broader industry outlook, he said efforts are also being intensified to reduce reliance on foreign labour in the construction sector, which is often associated with 3D jobs — dirty, dangerous and difficult.

“Our goal is for more locals to take up these roles, but they must be skilled and be offered competitive wages.

“Otherwise, it will not be attractive,” he said, adding that upskilling local workers is key to gradually replacing foreign labour.

Touching on project performance nationwide, Ahmad revealed that only a small percentage of government projects are currently classified as “sick”.

Out of 855 projects nationwide, 35 projects — or 4.1 per cent — fall under the category.

However, he pointed out that the majority of these problematic projects stem from contractor-related issues.

“About 75 per cent of the problems are due to contractors, particularly in terms of financial management and project management, including manpower, materials and scheduling,” he said.

He reiterated the importance of producing not just skilled workers, but also competent and well-managed contractors, to ensure smoother project implementation and reduce delays in the future.

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