KUALA LUMPUR: The Master Builders Association Malaysia (MBAM) and Persatuan Kontraktor Bumiputera Malaysia (PKBM) have appealed the government to include vehicles transporting building materials into the list eligible for subsidised diesel under the fleet card programme, after costs of construction related building material increased.
Under the programme, transportation vehicles are eligible for diesel at a subsidised rate of RM2.15 a litre, but with a litre-limit.
The government is yet to announce the litre-limit for the fleet card programme.
In a statement today, the two associations said the diesel subsidy rationsalistion has increased the cost of construction related building material.
"With this removal of diesel subsidy, the cost of construction related building materials such as quarry products and ready mix concrete has increased," the two associations said in a joint statement today.
They said the development has indirectly affected the industry given that most of its construction contracts are a fixed price lump sum and there is a rising concern as to how contractors will weather such ripple effects.
MBAM and PKBM alongside MBAM's 40 affiliate members urge the government to also include the relevant types of vehicles transporting materials.
This includes quarry products and ready mix concrete as well as cranes in the fleet card system, it said, so that a balance can be struck between achieving the rationalisation objectives and managing future construction costs, particularly amongst small contractors.
"Against this backdrop, project owners should consider including the provision for Variation of Price (VOP) for materials in order to make the construction industry sustainable," it added.