Ahmad Zahid Calls for Contractor Screening to Curb Cartels and Unhealthy Rivalry in Construction Industry

KUALA LUMPUR: Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi has called for the implementation of a comprehensive contractor screening system in Malaysia, aimed at ensuring that only genuinely active and capable contractors are recognized within the construction sector.

Speaking on Sunday, Ahmad Zahid, who also serves as Minister of Rural and Regional Development, said the proposed screening mechanism is necessary to prevent unhealthy competition that could undermine the long-term sustainability of legitimate industry players.

“This screening must be carried out. Otherwise, contractors will continue competing against each other in ways that are not always healthy. While some competition is beneficial, much of it is detrimental to the industry,” he said.

Also present at the event were Deputy Works Minister Datuk Seri Dr. Ahmad Maslan and Bumiputera Contractors Association of Malaysia (PKMM) president Datuk Mohd Rosdi Ab Aziz.

Ahmad Zahid stressed that trust in the ministry and confidence in the existing system are crucial to ensure the smooth execution of development projects. He also addressed the issue of project delays, cautioning against placing the blame solely on contractors.

According to him, contractor-related shortcomings account for only a small portion of project delays. “There may be around five to seven percent of errors on the part of contractors, but how can they continue work if the funds allocated to them are not disbursed on time?” he said.

Meanwhile, PKMM president Datuk Mohd Rosdi Ab Aziz said the introduction of the new screening system is expected to help identify those involved in cartel activities that have negatively impacted the construction industry. He expressed confidence that stricter oversight would strengthen industry integrity and create a fairer, more sustainable construction ecosystem.

The proposed measures are seen as part of broader efforts to reform Malaysia’s construction sector and ensure transparency, accountability, and healthy competition among contractors.