Builders warn of construction material shortage

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KUALA LUMPUR: Master Builders Association Malaysia (MBAM) yesterday warned that supply shortages in the construction sector would lead to price instability, affecting the entire value chain if not addressed holistically.

MBAM president Matthew Tee said in a statement that construction companies are mindful of a shortage in building materials such as sand, aggregates and ready-mixed concrete, which can raise construction cost and burden builders.

“The nation is in the midst of several major construction projects such as the Klang Valley Mass Rapid Transit project and ongoing housing projects like [the] PR1MA housing development to address the needs of the rakyat.

“These supply shortages can lead to price instability and ultimately increase in project cost. This will not only impact contractors, but the whole value chain. In the end, it is the rakyat who will suffer,” he said.

Tee said MBAM had received feedback from its affiliates on delays in permit and licence renewal by the authorities.

He said this will disrupt the construction industry supply chain and raise raw material prices.

“In conclusion, the construction industry is facing a lot of challenges, from shortage of skilled manpower to shortage of building materials.

“In order to protect the legitimate interests of our members, we seek the cooperation of all parties in identifying and studying the issues arising in the construction industry and to discuss and explore solutions to overcome all barriers and come out with a holistic solution to help the industry as this will ultimately benefit the rakyat and the nation,” Tee said.

This article first appeared in The Edge Financial Daily, on January 29, 2014.

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