PKMM proposes limiting issuance of new contractor licence - Works Ministry

KOTA BHARU - The Works Ministry will bring a proposal from the Malaysian Malay Contractors Association (PKMM) to the Finance Ministry to limit the issuance of new contractor licences.

Its deputy minister Datuk Seri Abdul Rahman Mohamad said the proposal was put up following a glut of G1 to G7 contractors in the country compared to the relatively limited work offers.

"It is estimated that there are more than 160,000 G1 to G7 class contractors at the moment, of which 46,000 are for G1 class only.

"PKMM also requested that a whitening exercise be carried out to identify problematic contractors. I think their views are good and we will try to take this proposal be considered by the Finance Ministry besides several other related matters," he said.

He told reporters after officiating the 46th Annual General Meeting of Kelantan Malaysian Malay Contractors Association (PKMM), here, today, which was also attended by Kelantan PKMM chairman Datuk Mohd Rosdi Ab Aziz.

Commenting further, Rahman said the government has provided an allocation of approximately RM99 billion for the construction sector this year.

However, he said there is stiff competition to get projects among contractors because too many licences have been issued.

"We are concerned that there are contractors who have not been awarded projects for a long time, especially G7, when they have a lot of staff, machines and other costs," he said. - BERNAMA