Price of construction goods soars 30pc following diesel price hike, says contractors’ association

Malay Mail
Malay Mail

KUALA LUMPUR, June 14 — The price of goods in the construction sector has surged by nearly 30 per cent following the recent increase in diesel prices, said Datuk Azman Yusoff, president of the Bumiputera Contractors Association of Malaysia (PKBM).

Speaking to Sinar Harian, Azman described the price hike as the highest in the country’s history, with suppliers setting new rates for construction materials since Monday.

“The suppliers have also threatened to halt deliveries if the new price proposals are not adhered to,” he said.

“We appeal to the Malaysian Construction Industry Development Board (CIDB) and the Ministry of Domestic Trade and Cost of Living (KPDN) to immediately monitor suppliers exploiting the diesel price change.”

Azman added that G1 to G7 contractors were among those most affected by the price increases.

In Malaysia, contractors are classified into seven categories (G1 to G7) based on their financial capacity and ability to undertake projects of varying sizes and complexities. These categories are defined by the Construction Industry Development Board (CIDB) Malaysia.

He warned that construction costs will inevitably rise, potentially delaying project completions and causing substantial financial losses for contractors.

“In addition, there has been an increase in the rental costs of machinery, such as heavy machinery, excavators, and pavers for infrastructure projects.

“The price of raw materials, including ready-mixed concrete and other construction materials for building and road work, has also risen by 30%,” he added.

On Wednesday, Communications Minister Fahmi Fadzil cautioned businesses against raising prices just two days after the government floated retail diesel prices. He assured that authorities are closely monitoring the situation and promised swift action against companies attempting to profit from the subsidy rationalisation drive.

Fahmi also mentioned public complaints that firms in the construction sector were among those exploiting the diesel subsidy rollback to increase prices.

“After a check, we found that the construction sector never received any subsidies before, so there is no reason for them to hike up prices,” he stated.