KUALA LUMPUR, July 4 — The Works Ministry is closely monitoring developments in the construction industry, particularly the rising prices of construction and raw materials, following the removal of the diesel subsidy.
Works Minister Datuk Seri Alexander Nanta Linggi said while there could be an impact on the industry, it is too early to estimate the extent of cost hikes.
“The government is studying this issue. Before considering or implementing any policies, comprehensive research is necessary, including analysing the material cost index provided by the Statistics Department, which tracks fluctuations in construction costs,” he said during Ministers’ Question Time in the Dewan Rakyat today.
He said this in response to a supplementary question from Roslan Hashim (PN-Kulim Bandar Baharu) about government initiatives to assist contractors affected by rising machinery and material costs, particularly those who were offered jobs before the removal of diesel subsidy.
Addressing Roslan’s original question about plans to raise G1 contractors’ work value limit from RM200,000 to RM250,000 or RM300,000, given the escalating cost of goods, Nanta said any adjustment to the work value limit falls under the Finance Ministry’s jurisdiction.
— Bernama
