KUALA LUMPUR: The government should consider imposing tighter requirements for foreign business investors in Malaysia to include Bumiputera contractors in local projects.
The Malaysian Malay Contractors Association Cooperative's (KKMMB) president, Datuk Megat Ahmad Sharani Megat Sharuddin said government should make foreign investors hire the services of local companies in their operations.
While he welcomed such investment, which would help boost the economy, he hoped that Malay contractors groups would also benefit from such foreign investments.
Speaking to the NSTP at the KKMMB’s two-day 16th Annual General Meeting at this evening, Megat said at present, there are about 48,000 Bumiputera contractors who are scrambling to find government projects but failing to secure any.
“I admit, Bumiputera contractors are more comfortable to bid for government projects because the payments are more reliable and guaranteed. However, with the slow economy growth lately, many contractors are left without any projects.
“What’s worst is that foreign companies end up taking over local contractors jobs, leaving us to suffer. One such instance is a project which was awarded to a company from China,” he said.
The association’s 16th AGM that started today was launched by the Ministry of Works Corporate Planning Department’s secretary Zureen Zubir.
Megat, who is among the pioneers in the construction industry with 35 years of experience, suggested that such compulsory inclusion is made a prerequisite to benefit both the local Bumi contractors and the foreign investors.
He said these foreign companies use their own labour from China to operate and even buy most materials from there since it’s much cheaper.
“If you notice, at these foreign companies, even the sweeper would be someone from their own country. So what are the chances for locals to benefit other than the tax and investments?” Megat said, adding that it should be a win-win situation for both parties.
He added that construction business has been very competitive since the economy slowed down and this has caused many contractors to be affected.
Megat said the industry has about 80,000 registered contractors ranging from G1 (works below 200,000) to G7 (works involving 10 million and above), including the non-Bumis.
“We are willing to work harder but what can we do when we don’t get any jobs. At least by making it compulsory for foreign investors to hire our services while operating in Malaysia, we can make ends meet and stay afloat in the industry.
“How can we prove our worth if there are no opportunities given to Bumiputera contractors?”
Apart from that, Megat said the association also hopes the exclusivity of certain government projects is upheld further to only allow Bumi contractors to bid for government projects because they need it more than the non-Bumi contractors who monopolise 70 per cent of the private projects.