Kwan said this in response to Bank Negara Malaysia’s 2nd Quarter Report 2010, which stated that the construction sector grew by only 4.5% in the second quarter of 2010, compared with 8.5% in the preceding quarter.
MBAM repeated its call for the government to intervene by quickly distributing the remaining stimulus package to ensure the continuous and sustainable growth of the construction industry.
Kwan added that the transition between 9th Malaysia Plan to 10th Malaysia Plan would result in the new projects contributing to the economy a year later, as it will only be launched in October.
“This, added to the slow implementation of the Public Private Partnership (PPP) projects may result in a further reduction in construction GDP next year. This is a concern that the government’s target of average 5% to 6% growth in National GDP for the next five years might not be achievable,” he said.
He added that with lower number of projects for contractors, competition would be greater and this will add more pressure to small contractors to sustain their businesses.
Kwan hoped that the government will review and scrutinise future policies and procedures so that it will help promote doing business, especially as the private sector is expected to be the key drivers of growth.
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