KUALA LUMPUR: The Master Builders Association Malaysia (MBAM) lauded the focus on essential infrastructure but lamented moves that would increase costs for contractors, under the 2025 Budget.
MBAM president Oliver HC Wee said the budget placed much-needed emphasis on advancing essential infrastructure which will create opportunities for contractors.
These include 17 packages under the Pan Borneo Sabah Phase IB with a value of RM 9.7 billion; and Sabah and Sarawak Link road worth RM7.4 billion; Sarawak Cancer Centre with allocation RM1 billion and the RM2.6 billion allocated to maintain federal roads.
In addition, there is also provision of RM6.4 billion funding by Bank Pembangunan Malaysia Bhd to support the infrastructure development sector and digitalisation which will also benefit the construction industry.
MBAM commends the government's proactive measures in Budget 2025, which prioritises key infrastructure projects and underscores the critical role of the construction sector in driving Malaysia's socio-economic development particularly in transportation and housing.
"However, MBAM is particularly concerned on how to improve supply chains and ensuring the availability of key construction materials in 2025. This is expected to help stabilise costs and enhance project viability across the board," it said.
MBAM pointed out that the implementation of the Multi-Tier Levy Mechanism, the increase of minimum wages from RM1, 500 to RM1, 700 and the revision of RON95 subsidy in mid- 2025 will have an impact on the construction industry moving forward.
"MBAM urges the government not to concentrate on the carbon tax now but instead should grant more incentives for such utilisation in order to encourage the industry to commit and move forward towards the direction," it said.
"Construction contract is a fixed price contract. Any removal of subsidies or changes in policy will impact contractors. We expect contractor to be more cautious as cost will be increasing," MBAM said.