KULAI, April 13 — The rising cost of construction materials and operational expenses, particularly diesel, is expected to cause further delays in road construction and maintenance projects across the country.
Deputy Works Minister Ahmad Maslan said the ministry (KKR) anticipates an increase in the number of delayed projects, driven largely by cost pressures linked to the West Asia conflict.
He noted that of the 855 ongoing projects under the Public Works Department (JKR) involving 28 ministries, one-third are ahead of schedule, one-third are on track, and one-third are behind schedule.
Road construction and maintenance projects, he explained, are among the hardest hit due to their heavy dependence on diesel-powered machinery such as lorries and road rollers.
“Virtually all vehicles used in road construction run on diesel, which is priced at market rates. This is a major concern for contractors,” he said.
Ahmad added that both road maintenance and new construction projects are directly affected, while building construction projects are somewhat cushioned by existing material stockpiles.
“However, given the current situation, we are concerned that the number of delayed projects will rise,” he said during a working visit to the Kulai JKR branch here today.
Despite these challenges, he said contractors are not allowed to stop work. While some have applied to scale down operations to control costs, such requests need KKR approval.
He said KKR is working to obtain official data from the Statistics Department (DOSM) to determine the extent of construction material price hikes.
While industry estimates suggest price hikes of between 30 and 40 per cent, Ahmad said the government is cautious about relying on preliminary figures without verified data.
“DOSM uses a scientific and systematic approach in its calculations across sectors, including construction materials, food and transport. We will rely on its data as the official benchmark,” he said.
Ahmad added that KKR has engaged with several contractor groups, including the Malaysian Bumiputera Contractors Association (PKBM), Malaysian Malay Contractors Association (PKMM), and Bumiputera Class F Contractors Association (PERKOBF), to gather industry feedback.
Among key requests raised by the groups are to activate the Variation of Price (VOP), Extension of Time (EOT), and price control measures on essential construction materials such as cement, sand, stone and steel.
