KUALA LUMPUR: Former Minister of International Trade and Industry Datuk Seri Mustapa Mohamed has urged the government to formulate a strategy to stabilise and strengthen the country’s construction sector.
This would ensure that small and medium enterprises could grow and contribute to the nation’s economic growth, the Jeli MP said in a statement here today.
Mustapa said the government should look seriously into allegations by the Malaysian Malay Contractors Association (PKMM) about contractors not being paid for completed projects.
“A delay in payments would definitely affect the cash flow of contractors who have incurred expenditure to complete their project, and they would probably have to get a bank loan which they will definitely have to repay,” he said.
He said if the allegations are true, the payments due to the contractors should be settled in two weeks.
The construction sector contributed 4.6 per cent to the gross domestic product last year.
“Although this figure is quite low compared to other sectors such as manufacturing and services, the sector’s contribution is substantial as over 100 industries are linked to it including non-construction industries,” he added.