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KUALA LUMPUR (March 26): Master Builders Association Malaysia (MBAM) urges the government and private sector to take immediate action as escalating building material, energy and logistics costs squeeze development contractors and threaten project delivery.
In a statement on Thursday, MBAM said the ongoing geopolitical tensions in the Middle East have disrupted global supply chains, driving up input costs and creating uncertainty over delivery timelines, while further straining Malaysian contractors’ cash flow across large, medium and small firms.
Among the support measures sought from the government are temporary tax relief for construction-related services, targeted diesel subsidies, soft loans and financial guarantee schemes. The industry is also calling for mandatory variation of price mechanisms for key materials such as steel, cement and fuel, as well as assurances that new fiscal policies or taxes will not be applied retrospectively to existing contracts.
“We are not seeking protection, but partnership — to ensure that projects continue, businesses sustain, and the nation progresses,” said MBAM president Oliver Wee (pictured) in the statement.
The association also wants measures to stabilise supply chains and maintain project continuity, including easier alternative sourcing through relaxed import requirements and faster approvals, recognition of extension of time entitlements arising from supply disruptions, temporary relief on liquidated ascertained damages for affected projects, and a review of ongoing government project contracts where necessary.
At the same time, MBAM is urging private sector clients and developers to adopt a more collaborative approach by revisiting contract terms where needed, sharing risks more fairly, supporting timely payments and prioritising dialogue to preserve project viability amid current market conditions.
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