KUALA LUMPUR: Lower taxes and duties on construction machinery, along with improved access to financing and reasonable interest rates for industry players and builders, were among the proposals put forward by the Master Builders Association Malaysia (MBAM) for Budget 2025.
The association stated that these measures were critical to assist construction firms and builders in improving productivity and ensuring projects are completed on time.
Also, on MBAM's wishlist were calls for the government to address the high costs of adopting technology and increase access to digitalisation.
Notably, the construction industry has urged the government to allocate more funds for infrastructure projects such as public transportation, roads, water and digital technology, crucial for maintaining the sector's momentum.
MBAM president Oliver HC Wee said the government needs to increase spending on public infrastructure, as these projects have historically accounted for generating 30 to 40 per cent of jobs in the industry.
"As the real estate market recovers, especially in the residential sector, more infrastructure projects are essential to support job availability," he told Bernama.
Wee said the value of infrastructure projects awarded as of August 2024 stood at RM127.36 billion, with the private sector given RM93.8 billion and the public sector taking RM33.5 billion.
However, he said the government must secure sufficient funding for essential infrastructure development, as it can source funds more cheaply than individuals, thereby easing the nation's burden.
The association also urged the government to foster more public-private partnerships (PPP) to accelerate the delivery of key infrastructure projects.
This, Wee said, would lessen the dependence on public funds while boosting job opportunities and economic activity.
"Encouraging PPP models will help fast-track infrastructure projects, generating employment and promoting growth in the industry and its related sectors," he said.
Highlighting the importance of utilities such as hydropower plants and water treatment facilities, Wee urged the government to prioritise these in Budget 2025, particularly for underserved suburban and rural areas.
"Clean water access remains a major concern, especially outside urban centres. The government must ensure that all communities, regardless of location, have access to clean water," he said.
MBAM also called for improved access to financing for industry players, with reasonable interest rates from financial institutions, as well as reduced taxes and duties on construction machinery to help boost productivity.
"Lower taxes and duties on machinery will help industry players improve productivity and ensure timely delivery of projects," Wee added.
Wee noted that the adoption of technology in the construction sector has been slow due to high costs and urged the government to introduce measures to make digital transformation more accessible.
"Technology adoption is crucial to reducing reliance on manual labour, improving project quality, and enhancing overall efficiency. The government must step in to make this transformation affordable for all industry players," he said.
He added that increased use of technology would also reduce the industry's dependence on foreign labour and cut down on the amount of foreign exchange leaving the country.
– BERNAMA
TAG: Budget 2025 Wishlist, infrastructure, construction, Oliver HC Wee, MBAM, technology