Malaysia Construction Groups Dispute Government's Cost Pressure Claims
Construction industry groups in Malaysia have spoken out against the country's government assertions that cost pressures on contractors are manageable. The Master Builders Association Malaysia (MBAM) and the Bumiputera Contractors Association (PKBM) said macroeconomic indicators and statistical averages do not fully reflect operational costs faced by contractors on the ground.
According to MBAM and PKBM, several key construction inputs have seen substantial price increases in recent months. Industrial diesel prices rose 44% to RM4.26 per litre in July 2026 from RM2.95 in February, while bitumen prices increased 42% to RM3,025 per tonne from RM2,125 per tonne over the same period.
The associations also pointed out that haulage costs have risen between 15% and 40% since October 2025 due to stricter enforcement of transport capacity limits. Other cost pressures cited by MBAM and PKBM include the RM1,700 minimum wage and record-high copper prices.