KUALA LUMPUR (Oct 9): The Master Builders Association Malaysia (MBAM) welcomed Budget 2027’s infrastructure and development allocations, but said their success would ultimately depend on timely project delivery, infrastructure quality, sustainable employment and tangible benefits to the rakyat.
MBAM said the budget provides significant opportunities for the construction sector through RM83 billion in federal development expenditure, supplemented by RM25 billion in government-linked investment company investments, RM11 billion in public private investments and RM14.2 billion from federal statutory bodies.
It also welcomed the increase in financing guarantees under Syarikat Jaminan Pembiayaan Perniagaan Bhd and Credit Guarantee Corp Malaysia Bhd to RM32 billion, as well as the expansion of financing facilities that could support contractors’ working capital, plant purchases and technology adoption.
Among the infrastructure measures highlighted by MBAM were RM2.5 billion for the National Non Revenue Water programme to replace 1,900km of ageing critical pipes, RM100 million for flood retention ponds and river maintenance in the Klang Valley, and various water, sewerage and flood mitigation projects.
The association, however, said the RM100 million allocation for flood mitigation in the Klang Valley was modest relative to the scale of the problem and called for the government’s infrastructure review to be followed promptly by funded works.
MBAM also welcomed RM2.3 billion for rural roads, RM3.3 billion for basic rural infrastructure and nearly RM700 million for local authority small projects, saying these works could provide opportunities for Grade G1 to G4 contractors.
“We ask that they be tendered promptly in the first half of 2027 and paid on time, as cash flow remains the main constraint for smaller firms,” MBAM said.
For Sabah and Sarawak, MBAM highlighted RM3.3 billion for road projects, including the Pan Borneo Highway, Sarawak Sabah Link Road and Trans Borneo sections, as well as RM350 million for federal road maintenance specifically for G1 to G4 contractors.
The association also called for meaningful participation by Malaysian contractors in major industrial and strategic developments, including projects linked to the Johor Singapore Special Economic Zone, data centres, logistics assets and border economic zones.
On housing, MBAM welcomed nearly RM1 billion for Rumah Mesra Rakyat and Residensi Rakyat, RM20 billion in housing loan guarantees to assist about 80,000 first time buyers, and full or partial stamp duty exemptions for first homes priced up to RM750,000.
MBAM also welcomed the reintroduction of the Variation of Price clause to address higher diesel and bitumen costs, but urged the government to extend the mechanism to other building materials.
It said clearer implementation timelines, funding commitments and procurement schedules were needed for several major public infrastructure projects that remain at the planning or agreement stage.
MBAM also cautioned that higher minimum wages would raise costs in the labour intensive construction sector and called for a clear price adjustment mechanism for existing public and private contracts.
It welcomed the RM8 billion cross-ministry allocation for technical and vocational education and training and CIDB’s programme to train 10,000 youths in robotics and digital technologies, saying training should be aligned with industry needs such as industrialised building systems and digital construction.