ALOR STAR: The Malaysian Malay Contractors Association (PKMM) has welcomed the government's RM1.3 billion allocation to empower G1-G4 contractors, creating more opportunities for small and medium-sized projects.
Its vice-president, Mohamad Fauzee Mohamad, said the move gives a much-needed boost to contractors, particularly Bumiputera contractors, especially with no new mega projects on the horizon.
"This opens up more opportunities for G1-G4 contractors, with a focus on small and medium-sized projects. We hope the tender issuance process will be fair and transparent," he said when contacted.
Fauzee also called on the government to ensure that tender offers reflect current costs, especially given the new RM1,700 minimum wage.
"The government must ensure that tender offers and quotes given to contractors reflect current market demands and can accommodate the wage increase," he said.
He added that if adjustments cannot be made for ongoing projects, the RM1,500 minimum wage should be maintained until those contracts are completed.
"We are thankful to the prime minister for considering employers with fewer than five workers, allowing them more time before implementing the new minimum wage," he added.
On Monday, Prime Minister Datuk Seri Anwar Ibrahim announced the RM1.3 billion fund for G1-G4 contractors, along with an additional RM200 million under the Cakna 2 Scheme to support cash flow for small-scale projects valued at up to RM1.5 million.
He also announced a minimum wage increase, set to impact employers with five or more workers, effective Feb 1 next year.