- “The MRT project is currently already at an advanced stage and should be implemented soonest. Without key mega projects, the recovery of the construction industry will be delayed at the expense of the contractor’s survival.”
KUALA LUMPUR (Feb 24): The Master Builders Association Malaysia (MBAM) urged the government to implement the Mass Rapid Transit Circle Line (MRT3) project, which will allow the construction industry to benefit from the multiplier effect, following the government’s decision to review the project.
MBAM president Oliver HC Wee in a statement on Friday (Feb 24) said the project will eventually help the construction industry to recover, adding that the construction sub-sector is waiting to see business volume return to normal.
“The MRT project is currently already at an advanced stage and should be implemented soonest. Without key mega projects, the recovery of the construction industry will be delayed at the expense of the contractor’s survival,” said Wee, in response to the revised Budget 2023 tabled by Prime Minister Anwar Ibrahim on Friday.
Anwar said the government will review the MRT3 project details to achieve cost savings of at least below RM45 billion.
The initial cost of MRT3 was RM68 billion in 2018. It was then reduced to RM50 billion last year when the project’s procurement process started.
“This effort is in line with the government’s reform to reduce procurement costs in order to achieve savings that can be redistributed for the benefit of the people,” Anwar said.
Fairer contract terms required amid material prices fluctuation
Wee further said fairer contract terms are needed to protect contracting parties against the price fluctuation of building materials.
“We also appeal to the government to push public housing by giving the industrialised building system (IBS) a bigger boost. Incentives should also be provided to developers and contractors of projects that utilise IBS so that the adoption of IBS can be improved and take off better,” he added.
He further asked the government for stimulus packages for local and foreign investors to invest in new developments in the private sector.
“[As] the current market sentiment is that developers are not keen to launch new projects, [this] will impact the job opportunities for contractors and builders,” he said.