Kota Kinabalu: The construction industry urged the government to act swiftly to ease mounting pressure from rising costs and supply chain disruptions linked to tensions in the Middle East.
Master Builders Association Malaysia (MBAM) said contractors are facing higher prices for materials and energy, delays in delivery and tightening cash flow.
Its President, Oliver Wee, said the situation, if left unchecked, could affect project delivery and the wider economy, where construction remains a key driver.
MBAM called for immediate financial relief, including temporary tax reductions, targeted diesel subsidies and access to soft loans to help contractors manage costs.
They urged the Government to introduce price fluctuation mechanisms for key materials such as steel, cement and fuel and to ensure new fiscal measures are not applied retrospectively to existing contracts.
MBAM said payment processes should be strengthened to ensure timely certification and disbursement.
To stabilise supply chains, MBAM proposed easing import requirements and expediting approvals for alternative sources, as well as considering strategic reserves for critical materials.
Wee also called for measures to ensure project continuity, including recognising extensions of time due to supply disruptions and moderating liquidated damages for affected projects.
At the same time, he urged private sector stakeholders to adopt a more flexible and collaborative approach, including revisiting contract terms, sharing risks fairly and ensuring prompt payments.
“The success of any project depends on the sustainability of all stakeholders,” it said.
MBAM said the challenges facing the sector are a shared national concern requiring coordinated action from the government, industry players and the private sector.
“We are not seeking protection, but partnership to ensure that projects continue, businesses sustain, and the nation progresses,” Wee said.
