(May 25): Malaysian builders struggling to avoid Covid infections at work-sites have another problem on their hands: surging prices of building materials thanks to the broad commodity boom.
Firms with no cost escalation clauses in their tender contracts are hurting, according to the Master Builders Association Malaysia, which represents more than 1,000 members. It’s now seeking help from the government to shield them from the risk of surging prices.
“Contractors who have previously locked in the building materials prices before this would feel the impact of the price increase now,” Sufri Hj Mhd Zin, president of the association, said in an email to Bloomberg. “The rise in materials costs is not good for the industry, be it manufacturers, suppliers, contractors, developers and the people.”