KUALA LUMPUR: The Master Builders Association Malaysia (MBAM) congratulated the government by balancing between maintaining fiscal prudence, managing growth as well as the people’s well-being.
A total of RM280.25 billion has been allocated for Budget 2018, an increase of RM19.45 billion or 7.45 per cent increase compared to the 2017 budget allocation of RM260.8 billion.
According to the 2017/2018 Economic Report, the construction industry is forecast to grow at 7.5 per cent (2017: 7.6 per cent), supported by on-going infrastructure projects.
“The Association welcomes the priority afforded to people-centric projects such as affordable housing, rural housing, hospitals, roads and infrastructure upgrades such as airports for the rakyat. MBAM also wishes to express our appreciation to the government for maintaining the GST rate at 6 per cent,” said MBAM president Foo Chek Lee.
Among announced infrastructure and allocation of spending which will benefit the construction industry in 2018 include:
- 240,600 units of Government housing under various public housing plans;
- 10,000 units of Public Housing for Police staff;
- Pan Borneo Highway (RM2 Billion);
- ECRL Project connecting port Klang to Pengkalan Kubur;
- MRT2 Project Sungai Buloh Klang and Putrajaya;
- Central Spine Road Project (RM230 million);
- Upgrade of Penang, Langkawi International Airport’s and upgrade of Sultan Ismail Petra, Mukah and Sandakan airports
- Construction of roads in rural areas (RM934 million)
- Women and Children Hospital in Putrajaya (RM1 billion)
Foo also noted the government’s emphasis on sustainable development.
This includes an allocation of a Green Technology Financing Scheme of RM5 billion and non-revenue water programme to reduce water loss at RM1.4 billion.
It also includes the construction Off-River Storage as alternative water storage with allocation of RM1.3 billion and Flood Mitigation programme with an allocation of RM 517 million.
Foo said all the announced infrastructure spending will mean that the construction industry will require enough manpower to complete it on time and on budget.
He adds that there should be a realistic understanding that construction industry needs workers to fill in the demand-supply gap for manpower in the construction industry.
“As such, MBAM hopes that the policy with regards to the employment of workers can be looked at in a holistic manner so that the aspiration of both the public and the private sector can be satisfied.
“However, MBAM appreciate the increase of budget on the Technical and Vocational Education and Training of RM4.9billion which will increase the number of local skilled workers, productivity and reduce the dependency on the foreign workers,” Foo said.