KUCHING: The government has issued a stern reminder to suppliers to reduce prices of construction materials once costs decline, particularly following any drop in fuel prices.
Deputy Works Minister, Datuk Seri Dr Ahmad Maslan, said that suppliers must not take advantage of the situation by maintaining high prices when underlying costs have already decreased.
“We want to emphasise that when fuel prices go down, the prices of construction materials must also come down.
“There should be no profiteering,” he said during a press conference after his working visit to the ‘Pasukan Projek Khas 2 (PPK-2) Sarawak’ office here today.
Ahmad said the reminder comes amid concerns raised by industry players, who noted that while prices tend to rise quickly when fuel costs increase, they do not always fall accordingly when fuel prices drop.
On external factors, he said rising construction costs are partly driven by global conflicts, which have contributed to higher fuel prices and, in turn, increased operational costs for the industry.
“We are hopeful that the ceasefire that were achieved (US-Israel war on Iran) could help stabilise and reduce global oil prices, which would then ease cost pressures in the construction sector,” he added.
Touching on project costs, Ahmad noted that Sarawak records higher overall project values compared to Sabah despite having fewer projects.
He said this is due in part to the implementation of more high-value health projects in the state, with five such projects in Sarawak valued at RM736 million, compared to only one in Sabah worth RM85 million.
In addition, he said higher logistics and transportation costs in Sarawak also contribute to the increased overall project expenditure.
