Nanta speaks to the media. – Information Department photo
KUCHING (June 24): No ongoing construction projects in Malaysia have been significantly delayed or halted due to rising diesel prices, Works Minister Dato Sri Alexander Nanta Linggi assured.
Refuting claims that over 100 projects nationwide had stalled following the diesel price adjustment, Nanta said his ministry had no information to support such assertions.
“Projects that are already underway and for which Letters of Acceptance (SST) have been issued to contractors are continuing as planned.
“We do not deny that there is an impact from the price increase, but based on our observation, the increase is not significant enough to the point that contracts or projects cannot be executed,” he told a press conference following a media briefing on the implementation of targeted diesel subsidies here.
He was responding to claims that the construction sector had been severely impacted by the diesel price hike, leading to more than 100 delayed projects.
Nanta explained that while the prices of aggregates and certain building materials had increased, the adjustments were largely driven by higher logistics and transportation costs rather than the raw materials themselves.
“The price of cement, in truth, has not increased significantly. What has increased is logistics costs, and the same applies to aggregates and other building materials. The rise is mainly in transportation and logistics expenses.
“We have been monitoring the situation closely and, for the time being, there is no need for any drastic measures because the impact remains manageable and can be absorbed within existing contracts,” he said.
Also present at the press conference was Second Finance Minister Datuk Seri Amir Hamzah Azizan, who addressed concerns regarding fuel supply security and the Budi Madani Diesel subsidy mechanism.
