The Master Builders Association Malaysia while lauding the crucial role the national budget will play in providing critical infrastructure works, the association has also raised concerns on potential rise in material cost and the introduction of carbon tax.

It was announced that Budget 2025 is of RM421 billion made up of RM325 billion operating expenditure and development expenditure of RM86 billion. This year's budget places a much-needed emphasis on advancing essential infrastructure which will create opportunities for contractors such as 17 packages under the Pan Borneo Sabah Phase IB with a value of RM 9.7 billion and Sabah and Sarawak Link road worth RM7.4 billion, Sarawak Cancer Centre with allocation RM1 billion, the RM2.6 billion allocated to maintain federal roads, RM1 billion to repair non main roads and FELDA roads and roads damaged by floods, RM3.0 billion allocated for upgrading and maintenance of schools and classrooms as well as another RM1 billion for the
upgrade of facilities in 543 schools especially in Sabah and Sarawak as well as RM450 million worth of projects for G1 to G4 contractors.
The association while commending the government's proactive measures in Budget 2025, which prioritises key infrastructure projects and underscores the critical role of the construction sector in driving Malaysia's socio-economic development particularly in transportation and housing. However, is particularly concerned on how to improve supply chains and ensuring the availability of key construction materials in 2025. This is expected to help stabilise costs and enhance project viability across the board.

President Oliver HC Wee said that it must be pointed out that the implementation of the Multi-Tier Levy Mechanism (MTLM), the increase of minimum wages from RM1, 500 to RM1, 700 and the revision of RON95 subsidy in mid- 2025 will have an impact on the construction industry moving forward. MBAM urge the government not to concentrate on the carbon tax now but instead should grant more incentives for such utilisation in order to encourage the industry to commit and move forward towards the direction.

He also noted that construction contract is a fixed price contract. Any removal of subsidies or changes in policy will impact contractors. We expect contractor to be more cautious as cost will be increasing.