Works minister says rising construction material costs still manageable, contractors able to absorb increases

KUCHING, June 17 — The increase in the cost of construction materials following the global energy crisis and disruptions to the world’s supply chain is still at a manageable level.

Works Minister Datuk Seri Alexander Nanta Linggi said that for now, contractors are still able to absorb the cost increase and continue with the project without any delays.

“For now, the situation is still within a manageable level and does not require additional allocations.

“However, we will continue to monitor the situation. If there is a sudden price increase, we have a strategy to deal with it,” he told reporters after the opening ceremony of the Malaysian Regional Geotechnical Engineering Conference here, today.

Nanta said the Ministry of Works (KKR) together with the Construction Industry Development Board (CIDB) had conducted a study on the impact of the crisis on the construction industry and presented the results of the study to the National Economic Action Council (MTEN).

He said the study included short-term and long-term strategies to deal with any economic impact, especially those involving the supply chain and the cost of construction materials.

“We need to understand that the construction sector is one of the engines of the country’s economic growth. If projects are postponed, the economy could be affected because the allocations provided are not spent in the construction sector.

“For this reason, the government has decided to continue with existing projects despite the price increase, because it is still at a manageable level. — Bernama