PKBM Appreciates PM’s Concern, Proposes Five Measures to Strengthen Construction Industry

KUALA LUMPUR: A proposal to expand the scope of the Variation of Price (VOP) mechanism to address rising construction material, fuel and energy costs is among the measures put forward by the Malaysian Bumiputera Contractors Association (PKBM) to strengthen the construction industry.

PKBM said the proposals also included ensuring that the RM7 billion allocation for projects involving Grade G1 to G4 contractors is distributed transparently through balloting or quotation processes, as well as seeking clarification on the takeover of the management of the Construction Skills Competency Certificate (SKKP) from the Construction Industry Development Board Malaysia (CIDB).

According to PKBM, the association also proposed a one-year postponement of the implementation of the Anti-Bribery Management System (ABMS) certification requirement, which is scheduled to take effect on January 1, 2027, due to estimated compliance costs ranging from RM20,000 to RM30,000.

“The association also urges that progress payments for government projects be made according to contractual schedules, while ensuring that work distribution by concession holders to Grade G1 to G4 contractors is carried out fairly, transparently and based on eligibility through balloting or quotation processes, without being concentrated among certain groups.

“These measures are important to ensure the continuity of contractors’ operations, particularly small and medium-sized Bumiputera contractors who are increasingly affected by rising costs and challenges in securing continuous work opportunities,” it said in a statement on Friday.

Meanwhile, PKBM expressed its gratitude to Prime Minister Datuk Seri Anwar Ibrahim for his concern over the issues and challenges faced by those involved in the country’s construction industry.

The association said it greatly appreciated the Prime Minister’s willingness to hold an engagement session with construction industry representatives before Budget 2027, as well as a follow-up meeting after the budget presentation to review the outcomes of the discussions and measures for improvement.

“This approach provides an opportunity for industry players to express their views directly to the government, particularly on rising operating costs, cash flow pressures and opportunities for Bumiputera contractors to participate in the implementation of national development projects.

“PKBM hopes that the outcomes of the engagement sessions with the Prime Minister and the Ministry of Finance (MoF) can be translated into more comprehensive and effective actions to strengthen the competitiveness and sustainability of the country’s construction industry,” it said.

Sinar Harian