Malaysia’s construction sector is facing mounting cost pressures following sharp increases in fuel and building material prices since late March, raising concerns over project viability and execution.
Economy Minister YB Akmal Nasrullah Mohd Nasir said industry feedback presented at the National Economic Action Council (MTEN) highlighted growing risks to ongoing and planned construction projects if cost pressures persist.
Data from the Construction Industry Development Board (CIDB) showed that prices of seven key building materials — including bitumen, concrete, sand, steel and bricks — rose by an average of 12.59% during the recent peak in oil prices.
“Given that building materials account for 64.2% of total construction costs, compared to 32.8% for labour and 3.0% for machinery, the impact of price increases is significant and immediate,” Akmal said during the Global Supply Crisis Briefing today.
