Kuala lumpur: The Malay Contractors Association of Malaysia (PKMM) has urged the government to expedite the implementation of construction projects planned for 2026 to ensure the continued operation of local contractors and revitalise the country's construction sector.
According to BERNAMA News Agency, President Datuk Mohd Rosdi Ab Aziz highlighted the current uncertainty in the construction sector, as many contractors are left waiting due to the lack of new projects. He emphasized the importance of the government leveraging the second half of 2026 to fast-track the announced projects, aiming to rejuvenate the construction industry and generate economic benefits for industry players.
Mohd Rosdi expressed hope that the government would enhance the construction sector's activities by implementing the planned projects promptly in the latter half of 2026. He noted that many contractors are experiencing a 'long vacation' due to the project scarcity, potentially impacting their business operations.
The situation is particularly challenging for contractors in higher grades, such as G6 and G7, who must continue to bear fixed operating costs, maintain skilled labor, and meet licensing requirements despite the lack of projects. Mohd Rosdi warned that failing to sustain project momentum could strain contractors' cash flow and hinder the construction industry's ability to contribute to the nation's economic growth.
With approximately 138,000 registered contractors nationwide, around 70,000 are bumiputera contractors. Mohd Rosdi reported that nearly 60,000 bumiputera contractors were once PKMM members, but only a few remain active due to tough market conditions.
Furthermore, Mohd Rosdi urged the government to reinstate the variation of price (VOP) mechanism for construction materials to assist contractors grappling with rising costs stemming from the global energy crisis. The association has submitted proposals to the Ministry of Public Works and the Malaysian Construction Industry Development Board (CIDB) for review.
He explained that the VOP benefits both the government and contractors, as it allows for price adjustments based on fluctuations in construction material costs, ensuring fairness when prices either rise or fall.