KUALA LUMPUR: The Works Ministry is studying the impact of the rationalisation of diesel subsidy on construction industry costs.
Datuk Seri Alexander Nanta Linggi said this would include looking at the Building Material Cost Index issued by the Department of Statistics, which records price movements.
"It is too early to estimate the cost increase in the construction industry," the minister told the Dewan Rakyat today.
"We are studying this issue. Before introducing any new policy, we need to take into account various things," he added.
He was responding to a supplementary question from Roslan Hashim (Perikatan Nasional-Kulim Bandar Baru), who asked how the government was helping contractors cope with the increase in diesel prices.
Roslan claimed that the construction industry experienced cost increases of 15 to 35 per cent since the targeted diesel subsidy programme began on June 10.
Nanta gave an assurance his ministry would study the matter comprehensively.
"We are aware of the problems... we are holding discussions with the relevant ministries, especially the Finance Ministry," he said.