KUCHING: The Ministry of Works (KKR) is conducting a comprehensive assessment to address rising construction costs following the Middle East conflict.
Works Minister Datuk Seri Alexander Nanta Linggi said the government is taking seriously the impact of geopolitical developments in the Middle East, including the closure of the Strait of Hormuz, which has affected the stability of global energy supply chains and contributed to rising building material prices.
He explained that the increase in costs must be addressed holistically, as the construction sector is highly dependent on fuel prices such as petrol and diesel, as well as logistics and building material costs that are closely linked to international markets.
“As the main cause stems from global geopolitical factors beyond domestic control, the cost pressures are also being experienced by many countries. Therefore, the approach taken must be strategic, targeted and data-driven,” he said in a statement posted on his Facebook.
Nanta added that KKR is currently carrying out a thorough assessment in collaboration with relevant agencies and industry players to identify appropriate mitigation mechanisms, including aspects of project implementation, cost structures and the resilience of the construction sector’s supply chain.
At the same time, the Construction Industry Development Board (CIDB) Malaysia will strengthen its role as an industry coordinator by mobilising strategic cooperation with related agencies and industry players to formulate policy recommendations as well as pragmatic and high-impact intervention measures.
He stressed that the government remains committed to ensuring the continuity of national development projects while maintaining stability in the construction sector through policies that are responsive, adaptive and oriented towards long-term sustainability.
