BERA: The government will help the construction industry cope with the increase in the prices of building materials by including 11 additional building materials in the Variation of Prices (VOP) clause.
Prime Minister Datuk Seri Ismail Sabri Yaakob said there were now four building materials under VOP – bricks, glass, steel, and ceiling and roofing materials.
"The government is aware of the rise in construction materials. This is because of the uncertain global economy and the Russia-Ukraine conflict.
"I am made to understand that the prices of steel have increased by 180 per cent.
"This has led the government to introduce the VOP to help contractors complete projects within a given time.
"The government had announced the VOP for four materials, and today, I am including 15 to the list (11 newly added)."
He said this when opening the Pahang Malay Contractors Association annual general meeting at the Bera Rakan Muda complex here.
Meanwhile, he said the government had agreed to review the prices of Hardcore Poor Housing Programme (PPRT) homes under the Rural Development Ministry, which are sold for between RM60,000 and RM75,000 each.
"Some contractors told me that they were not earning any profit (due to the increase in the prices of building materials).
"So, I told the minister about it and the matter was discussed in cabinet. We have agreed to review the price of PPRT homes."
Ismail Sabri, who is Bera member of parliament, said the government was committed to boosting the economy, which had been hit hard, by carrying out development projects and providing microcredit financing in the construction sector.
"In the 2022 Budget, the government announced benefits for the construction industry, including the implementation of eight new blocks for special education and continuing the construction of the low-income housing project, which is worth RM1.5 billion.
"The government will continue to carry out national infrastructure development projects, which are worth RM3.5 billion, including the construction of the Pan-Borneo Highway and Central Spine Road, along with RM2.9 billion to continue with small- and medium-sized projects for contractors between Grades G1 and G4."