Project rollout too slow, say Malaysia builders

Btimes 26/8/2010


The government needs to step up implementation of the remaining stimulus package projects so that there will be more jobs in the market, says Master Builders Association of Malaysia.


The government has to roll out projects faster to achieve the targeted average growth rate of 5 per cent a year over the next five years, says Master Builders Association of Malaysia (MBAM).


"In the last four quarters, total value of new construction projects awarded has declined," newly-elected MBAM president Kwan Foh Kwai said.


Bank Negara Malaysia's statistics indicate that the construction sector registered 8.7 per cent growth in the first quarter of this year, but it slowed to 4.1 per cent in the second.


"If we're not vigilant, the construction sector's growth will continue to slow down, stagnate or, worse, shrink like in 2004, 2005 and 2006," he said.


"The government needs to step up implementation of the remaining stimulus package projects so that there will be more jobs in the market," Kwan told Business Times in an interview in Kuala Lumpur.


He cited as example the light rail transit (LRT) extension packages which were supposed to have been awarded a year ago. It was reported that Syarikat Prasarana Negara Bhd will give out the contracts only at the end of this year.


"The government must step up project rollouts because it will help transform the construction sector into a performance-based and productivity-driven one. We want sustainable growth for the construction industry."


Well-paced project implementation will help ensure sufficient industrial building components and skilled labour supply at any given time.


Kwan cautioned that if nothing was done to jump-start the current slowdown in job flows, many people would suffer. That is because the economic multiplier effects on the construction and housing industry support as many as 120 types of businesses, ranging from contractors, engineers and architects to building material suppliers.


Gloomy outlook for the industry aside, Kwan also lamented the shortage of skilled workers.


"We don't have enough experienced supervisors at the worksite," he said.


"For a start, we seek help from the government to train more foremen and supervisors."