West Asian Conflict: KKR To Conduct Impact Assessment On Rishing Construction Material Costs

KUALA LUMPUR, March 30 (Bernama) -- The Public Works Ministry (KKR) is carrying out a comprehensive assessment to identify suitable mitigation mechanisms following the increase in construction costs due to geopolitical tensions in West Asia.

Its minister, Datuk Seri Alexander Nanta Linggi said the assessment involves collaboration with relevant agencies and industry players, covering aspects such as project implementation, cost structures, and the resilience of the construction sector’s supply chain.

The government views the implications of rising costs seriously, especially the impact of the closure of the Strait of Hormuz, which has disrupted the stability of the global energy supply chain, he added.

“This increase in costs must be addressed within a comprehensive framework, as the construction sector has significant dependence on fuel prices such as petrol and diesel, in addition to logistics and building material costs that are closely tied to international markets.

“Since the main cause is global geopolitical factors beyond domestic control, the pressure of rising costs is also being experienced by most countries. Therefore, the approach taken must be strategic, targeted, and data-driven,” he posted on Facebook today.

The Construction Industry Development Board Malaysia (CIDB) will strengthen its role as an industry coordinator by mobilising cooperation with agencies and industry players to formulate policy recommendations and pragmatic, high-impact intervention measures, he added.

He stressed that the government remains committed to ensuring the continuity of national development projects and maintaining the stability of the construction sector through responsive, adaptive, and sustainability-oriented policies for the long term.

-- BERNAMA