CIDB engages contractors to protect workers amid rising construction costs, says deputy minister

KUCHING (April 8): The Construction Industry Development Board (CIDB) is continuing its engagement with contractors, with a focus not only on sustaining businesses but also on protecting construction workers from the impact of rising costs due to Middle East conflict.

Deputy Works Minister Datuk Seri Ahmad Maslan said the ongoing engagement aims to address challenges faced by contractors due to increases in construction material prices and fuel costs.

“We are boosting engagement with contractors, not just to save the contractors, but what we want to protect are the workers.

“In Sarawak alone, there are 10,824 contractors and 111,826 construction personnel. What we want to protect is the workers, to ensure there are no layoffs due to rising costs,” he told a press conference in conjunction with a working visit to Akademi Binaan Malaysia (ABM) Sarawak branch at CIDB here.

He said rising diesel prices had led to higher transportation costs, which in turn increased overall construction expenses, particularly for projects requiring heavy machinery such as roadworks.

While acknowledging the cost pressures, Ahmad said the supply of construction materials remained sufficient.

“There is sufficient supply of construction materials, but costs have increased mainly due to transportation, especially diesel,” he said.

Ahmad noted that contractor associations had estimated cost increases of between 30 and 40 per cent, although the government would rely on official data from the Department of Statistics Malaysia (DOSM) for confirmation.

Among proposals put forward by contractors were variation of price (VOP), extension of time (EOT), special diesel subsidies for selected projects, and price control measures.

However, Ahmad said no decision had been made on these proposals as they involved the Ministry of Finance and the Ministry of Economy.

“So far, no decision has been made as it involves financial implications and requires consideration at a higher level,” he said.

He added that the government was monitoring global developments, including oil price fluctuations and geopolitical tensions, before making any policy decisions.

“No policy decision has been made yet. We are observing the situation before taking any further action,” he said.

Ahmad stressed that continued partnership with contractors is vital to ensure the sustainability of the industry while preventing job losses.

Earlier, Ahmad conducted a working visit to the ABM Sarawak branch as part of the government’s ongoing efforts to strengthen the development of the construction industry, particularly in Sarawak, in line with the agenda of building a more competitive, technology-driven and high-integrity sector.

The visit reflects the Works Ministry’s continued commitment to supporting initiatives aimed at empowering the construction industry towards greater sustainability, efficiency and competitiveness.