KUCHING: The Ministry of Works (KKR) will continue its engagement with the Construction Industry Development Board (CIDB) to ensure that no construction workers are laid off due to rising costs faced by contractors.
Deputy Works Minister, Datuk Seri Ahmad Maslan, said the ministry’s priority is to protect workers in the industry, even as contractors grapple with increasing expenses.
“Our engagement is not only to support contractors, but more importantly to safeguard workers so that there will be no layoffs among construction personnel due to rising costs,” he told a press conference during his official working visit to the CIDB office here today (April 8).
Ahmad said that Sarawak currently has 10,824 registered contractors, comprising 5,498 in Grade G1, 1,656 (G2), 1,507 (G3), 312 (G4), 509 (G5), 167 (G6) and 1,045 (G7).
He added that the state has a total of 111,826 construction personnel, including 84,697 men and 13,108 women.
On project statistics, he said 3,698 projects were registered in 2024, increasing to 4,311 in 2025, while 944 projects have been recorded so far this year as of April.
Ahmad said a post-Cabinet meeting chaired by Works Minister, Datuk Seri Alexander Nanta Linggi, had tasked him to engage with CIDB, the Public Works Department (JKR) and contractor associations.
Following that, a meeting was held involving CIDB, JKR leadership and four contractor associations – Persatuan Kontraktor Bumiputera Malaysia (PKBM), Persatuan Kontraktor Melayu Malaysia (PKMM), Persatuan Kontraktor Bumiputera Kelas F (PERKOBF), and the Mechanical Contractors Association to gather feedback on rising construction material costs.
“We have obtained their views and they have also issued several media statements outlining their proposals. We are currently refining these suggestions, but no decisions have been made as they involve the Ministry of Finance and the Ministry of Economy,” he said.
On the supply of building materials, Ahmad said it remains sufficient, but rising transportation costs, driven largely by higher diesel prices, have led to increased overall costs.
“Heavy machinery used in construction, such as for road works, depends on diesel. When diesel prices increase, costs for contractors also rise,” he explained.
Among the proposals put forward by contractors are the implementation of the Variation of Price (VOP), the Extension of Time (EOT), price controls on construction materials, and targeted diesel subsidies for construction projects.
“At this stage, no decisions have been made. Measures such as EOT, which do not involve financial implications, can be considered, although we prefer projects to be completed ahead of time rather than extended,” he said.
Ahmad noted that any measures involving financial commitments would require approval from the Ministry of Finance, as the government’s fiscal position remains tight.
He added that the government is also monitoring global developments, including geopolitical tensions and their potential impact on oil prices and supply chains, before making any major policy decisions.
“We are studying the situation carefully, including developments affecting global oil routes. We do not want to make hasty policy decisions,” he said.
On the possibility of reviewing non-priority government projects, Ahmad said discussions have been held with the Ministry of Economy, but any announcements would be made by the ministry itself.
He also acknowledged varying claims by contractor associations that construction material costs have increased between 30 and 40 per cent, adding that official figures from the Department of Statistics Malaysia (DOSM) would be used for accurate assessment.
“We will rely on DOSM data for precise figures rather than estimates. At the moment, there are no official statistics yet,” he said.
