KUCHING: The federal government is closely monitoring the impact of rising construction material costs stemming from geopolitical tensions in the Gulf region but will not increase project allocations for now as the situation remains manageable.
Works Minister, Datuk Seri Alexander Nanta Linggi, said the Works Ministry (KKR), through the Public Works Department (PWD) and the Construction Industry Development Board (CIDB), has developed immediate, medium-term and long-term strategies to address any potential economic fallout arising from disruptions to global supply chains.
“At the moment, we have not seen a situation where the increase is too significant.
“We can still absorb the increase in prices so far,” he said at a press conference after officiating at the inaugural Malaysian Regional Geotechnical Engineering Conference 2026 (MRGEC2026) at the Imperial Hotel here today.
Nanta said the ministry had presented its mitigation plans to the National Economic Action Council (MTEN) following concerns over the economic impact of the ongoing conflict in the Gulf.
He stressed that no development or construction projects under the federal government have been postponed due to the increase in material costs.
“We must understand that construction and development projects are among the engines of economic growth.
“If we postpone projects, the economy may contract because allocations that have been set aside for the construction industry would not be spent,” he said.
According to him, contractors should still be able to withstand the current cost increases, and there is no immediate need for the government to provide additional allocations.
However, he said the government remains prepared to activate further intervention measures should prices rise sharply, particularly if the conflict affects global fuel supplies.
“If the war continues and there are disruptions to fuel supplies, then the impact will become more apparent. That is when we will activate our strategies,” he added.
Earlier, Nanta officiated at MRGEC2026, the first edition of the conference which attracted nearly 600 participants comprising industry players, exhibitors, professionals and media representatives.
He described the overwhelming response as a reflection of the growing importance of geotechnical engineering within the construction industry.
“I was informed that the response from industry players far exceeded the organisers’ initial expectations.
“This shows how important the construction industry is, especially the geotechnical engineering aspect,” he said.
Nanta congratulated PWD Sarawak for hosting the conference, with support from PWD Sabah, PWD Malaysia and the Works Ministry.
He expressed hope that the conference would serve as a valuable platform for knowledge-sharing and collaboration over the next few days, while emphasising the importance of translating technical expertise into practical solutions that benefit the people through infrastructure development.
“We can share a lot of knowledge in this field, but more importantly, how we translate all this into projects that ultimately benefit the rakyat,” he said.
Present during the ceremony were PWD Sarawak’s Director, Datuk Dr Cassidy Morris, and other distinguished guests.
