Nanta says 2027 Budget should help ease construction costs

KUALA LUMPUR: Works Minister Datuk Seri Alexander Nanta Linggi has said that the construction industry is keen for the 2027 Budget to include measures that will help alleviate the impact of escalating material and labor costs. These measures would aim to assist industry players in managing higher material costs and other essential aspects of the industry, such as workforce and wages.

Speaking at the Institution of Engineers Malaysia-CDL Academy Technical Symposium 2026, Nanta pointed out that unstable oil prices resulting from the conflict in the Middle East are also impacting the construction sector. He reiterated that the oil price instability, due to the ongoing Middle Eastern war, is a known factor. When quizzed about the effect of this instability on the construction industry, Nanta affirmed that this was indeed the case.

The specific details of the proposed measures will only become clear after the Budget is presented on October 9. The 2027 Budget, slated for October 9, is anticipated to prove beneficial for the construction and building materials industries, with predictions ranging from RM85 billion to RM90 billion in development expenditure. The Real Estate and Housing Developers Association Malaysia suggested enhancing the Housing Credit Guarantee Scheme and proposing better financing structures as potential 2027 Budget initiatives.