KUALA LUMPUR: Construction Industry Development Board (CIDB) says there will be minimal impact on the construction sector when the Goods and Services Tax (GST) is implemented next year.
Its chief executive officer Datuk Seri Dr Judin Abdul Karim said any increase in the prices of building materials would depend on whether the products were locally made or imported.
“In the initial phases of GST, some people might take advantage and raise prices of building materials and even the cost of services.
“I am sure the government is aware of this and will take action to ensure no one takes advantage of the situation,” he said.
For ongoing construction projects, Judin said they are progressing smoothly and he does not expect delays.
Judin said this at the “Programme on Strengthening Bumiputera Renovation Contractors” through the CIDB National Accredited Renovators (CNAR), here, yesterday.
Malay Contractors Association Malaysia (PKMM) president Datuk Mokhtar Samad said he did not think the weakening of the ringgit would dampen the construction sector.
CIDB, PKMM, the Works Ministry and the Urban Wellbeing, Housing and Local Government Ministry inked a memorandum of understanding to help “accreditise” Bumiputera contractors and provide them with business opportunities in the construction sector at a more professional level. The signing was witnessed by Works Minister Datuk Seri Fadillah Yusof.
Judin said CNAR was developed on the realisation that Malaysians undertake a lot of home renovations but the contractors tasked with the jobs were not registered.
CIDB has introduced five initiatives to help improve Bumiputera contractors’ skills and credibility in the industry.
Among the initiatives are publishing a directory on Bumiputera renovation contractors 2014/2015 and setting up a branch to register them with CIDB.