CIDB: Act 520 amendment won't lift construction costs

The CIDB deputy chief executive, Datuk Dr Ts Gerald Sundaraj, has stated that the recent amendment to the Fourth Schedule of Act 520 is unlikely to cause an increase in construction material prices. The main objective of the amendment, according to Gerald, is to ensure that construction products and materials used in Malaysia comply with the required standards, rather than adding unnecessary costs to the industry.

He expressed confidence that this amendment would not affect the price of goods but would provide assurance that developers, builders, and contractors are using quality products. Gerald emphasized that the use of quality materials would also ensure better performance during the maintenance phase, as they tend to last longer and require fewer replacements.

He explained that testing costs would vary depending on the type of construction product and the necessary tests, such as tensile tests for rebar, rather than having a standard fee. The six-month transition period for compliance, beginning in February 2027, should be sufficient for industry players to adjust, as it is not the first time the Fourth Schedule has been modified.