SEPTEMBER/OCTOBER 2021 PRESIDENT WEBSITE MESSAGE
As we step into the last quarter of year 2021, I am glad that the construction industry has been back on track but I would like to remind industry players to continue adhering to all the standard operating procedures (SOPs) as we strive to move into the endemic.
Twelfth Malaysia Plan 2021-2025 (RMK12)
With the theme “A prosperous, inclusive, sustainable Malaysia”, MBAM is appreciative of the overall plan that has been planned out for the construction industry, which includes some of the following infrastructure projects that are worthy to highlight:
- Building of 500,000 affordable housing;
- Construction and upgrading of healthcare and school facilities;
- Construction, management and maintenance of public sports facilities;
- Construction of roads and provision of treated water, electricity and housing to uplift the standard of living of Orang Asli community;
- Upgrading and construction of roads and bridges;
- Improving the provision of basic infrastructure in Sabah and Sarawak; and,
- Accelerating green initiatives in construction sector.
However, most of the projects are considered on-going and expected to be completed within the next few years through RMK-12. Therefore, the industry is still being hopeful for new mega projects to be announced during the upcoming Budget 2022 Tabulation.
MBAM’s Wish List for Budget 2022
In anticipation of the announcement of the 2022 Budget, MBAM has some hopes for the construction industry as follows:
- Projects to kick-start soon and expedite tender process
- It is hoped that mega infrastructure projects and construction projects that can help the people such as the construction of roads, affordable housing, bridges, schools and hospitals for year 2022 will be distributed immediately to contractors.
- Suggestion for more open tenders to encourage fair and competitive bidding.
- Extension of Moratorium Period for Businesses
- Extension of moratorium until 30 June 2022 and that the benefits of the moratorium be extended to cover limited companies as well as leasing companies.
- Easing of Cash Flow
- Reduce financing cost for construction projects through interest subsidy or Government guarantee for project loans to lower the cost and ensure viability.
- Government departments to abolish time-consuming administrative procedures and increase business costs especially during the COVID-19 pandemic.
- Subsidies and Tax Incentives for New Construction Machinery or Machinery
- Specific subsidies and tax reduction incentives for new construction machinery and equipment with new technologies and safety features to promote the development of industrialisation and automation in the construction industry.
- These tax reductions and incentives must include construction machinery spare parts.
- Providing Land for the Construction of Workers’ Accommodation / Centralised Labour Quarters (CLQ)
- Government to provide suitable land to set up workers’ accommodation to accommodate more workers. It is hoped that the Government can help provide infrastructure and facilities such as electricity, water, communication and others.
MBAM is now on LinkedIn and Telegram. Follow us today to get updated news.
Facebook – https://www.facebook.com/masterbuildersassociationmalaysia
LinkedIn – https://www.linkedin.com/company/master-builders-association-malaysia
Telegram Channel – https://t.me/mbamalaysia
Tan Sri Sufri Hj Mhd Zin PSM, SSAP, DPTJ
President, MBAM