KUCHING: The Ministry of Works will submit proposals to the Finance Ministry to address challenges faced by the construction industry in Sabah and Sarawak,
Deputy Works Minister Datuk Seri Ahmad Maslan said no decision has been made thus far on any form of financial assistance, but the ministry is actively engaging with industry stakeholders, including contractors’ associations and the Construction Industry Development Board (CIDB), to gather feedback and formulate appropriate measures.
“The purpose of these engagements is to understand the issues on the ground so that we can propose suitable solutions, particularly in helping the construction industry manage current cost pressures,” he said during a press conference following his working visit to the Pasukan Projek Khas 2 (PPK-2) Sarawak office here today.
On labour, Ahmad said there have been no major layoffs reported within the sector despite ongoing economic pressures.
“We do not want any retrenchment involving local workers. That is something we hope to avoid even as the industry faces rising costs,” he stressed.
He acknowledged, however, a shortage of skilled workers, particularly in the implementation of hospital projects.
“To address this, CIDB has been intensifying training programmes and expanding skills development initiatives, including hands-on training such as crane operations to produce more competent local workers,” he said.
On project delivery, Ahmad noted that 21 projects worth RM466 million were completed in 2025.
“For 2026, we expect around 30 projects to be completed in Sabah and Sarawak, with an estimated equal distribution between the two states,” he said.
He also clarified that contractors are not permitted to issue stop-work orders, as doing so would violate contractual obligations.
“While stop-work is not allowed, contractors may adjust operations, such as reducing the number of machinery in use, which could result in a slower pace of work. This is not considered a breach, but rather a necessary adjustment to manage costs,” he said.
He added that if current challenges persist, particularly those linked to external factors, there may be considerations for Extension of Time (EOT) on project completion, although no decision has been made at this stage.
