Expand price variation clause to other materials, says builders’ group

The Master Builders Association Malaysia (MBAM) has urged the Malaysian government to expand the variation of price (VOP) clause to cover additional materials, beyond diesel and bitumen. MBAM President Kenneth Liew welcomed the reintroduction of the clause in the 2027 budget, citing its role in mitigating the impact of rising costs for labour, materials, and fuel.

Liew also advocated for a review of the RM100 million allocated to address flash flooding in the Klang Valley, stating that the current budget is insufficient to tackle the issue. The Klang Valley flood allocation is relatively small compared to the severity of the problem, and MBAM urges for a comprehensive evaluation. Furthermore, Liew called for clearer implementation timelines and funding commitments for major public infrastructure projects, such as Johor Bahru's elevated autonomous rapid transit project and the Lebir dam in Kelantan, which are currently in the planning or agreement stage.

He emphasized the importance of transparent, rule-based procurement under the Government Procurement Act, which is set to commence in 2027, to protect public funds and contractors. Liew concluded by highlighting that the 2027 budget provides a crucial opportunity to enhance infrastructure, stimulate economic activity, and create employment opportunities for Malaysian businesses and workers, with success ultimately measured by the timely delivery of projects, infrastructure quality, sustainable employment, and tangible benefits for the rakyat.