KOTA BARU: At least 70 per cent or 90,000 out of 140,000 Bumiputera contractors nationwide are now in dire straits due to fewer government projects.
They claimed there are now less tenders opened, a culmination of years of government changes which led to some projects being delayed or cancelled outright.
Malaysian Malay Contractors Association (PKMM) deputy president Datuk Mohd Rosdi Ab Aziz said contractors in G1 to G5 categories were the most affected, causing some to seek other jobs to earn a living.
He said the overall value of halted public projects were estimated to be in billions of ringgit.
He cited the examples of projects under Jana Wibawa, of which only 20 projects were continued and the status of others unclear.
"We're not saying that there are no new projects as there are still some under the Works Ministry, Rural and Regional Development Ministry, Education Ministry and others, but the number is relatively small compared to that of contractors we have nationwide.
"For example, hundreds of thousands G1 contractors have to compete for some 5,000 (government) projects," he told Berita Harian.
Mohd Rosdi said the contractors, who are registered with Construction Industry Development Board (CIDB), could not simply shut down their companies despite getting no new projects.
If they do, it will be difficult to re-obtain construction licenses and rebuild their company, he said.
He suggested that the authorities halt the issuance of new licenses to prevent an influx of contractors without jobs in the market.
Contractor classes according to project value:
G1 - RM200,000 and below
G2 - Not more than RM500,000
G3 - Not more than RM1 million
G4 - Not more than RM3 million
G5 - Not more than RM5 million
G6 - Not more than RM10 million
G7 - No limit