MBAM: RM81b Budget 2026 allocation signals infrastructure push

• “MBAM commends the government’s proactive measures in Budget 2026, which prioritises key infrastructure projects and underscores the critical role of the construction sector in driving Malaysia’s socio-economic development, particularly in transportation and housing.”

KUALA LUMPUR (Oct 10): The Master Builders Association Malaysia (MBAM) has welcomed the RM81 billion development expenditure allocated under Budget 2026, describing it as a critical boost for infrastructure and construction activity nationwide.

“MBAM commends the government’s proactive measures in Budget 2026, which prioritises key infrastructure projects and underscores the critical role of the construction sector in driving Malaysia’s socio-economic development, particularly in transportation and housing. However, we hope there will be more projects allocated for Peninsular Malaysia moving forward,” said MBAM president Oliver HC Wee. (pictured)

MBAM said the funds, which support the nation’s entry into the 13th Malaysia Plan, are essential for sustaining infrastructure growth while laying the foundation for long-term socio-economic development.

The association also highlighted mounting industry challenges such as volatile building material prices and increased operating costs.

It raised concern over the new sales and service tax (SST) on construction services and urged the government to apply the tax only to contracts signed after Jan 1, 2026, to protect contractors bound by fixed-price agreements.

MBAM further called for targeted incentives to support the adoption of modern technologies such as the Industrialised Building System (IBS) and Building Information Modelling (BIM), as well as the use of green building materials.

“A predictable project flow allows industry players to invest in capacity and skills with confidence,” Wee said, adding that government-backed incentives will support a more resilient and technologically advanced sector.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.