Malaysia urged to screen contractors to cut “unhealthy” competition
Malaysia’s deputy prime minister Ahmad Zahid Hamidi has called for contractors to be screened before being allowed to bid for work to reduce what he called “unhealthy competition”.
Speaking at the annual general meeting of the Malaysian Malay Contractors Association (PKMM), Zahid Hamidi said the move would make the sector more sustainable for what state news agency Bernama described as “real players” and “truly active” builders.
“This (screening) must be done. Otherwise, we will continue to compete against each other,” he said.
“Some of this competition is healthy, but a lot of it is unhealthy,” he added.
Zahid Hamidi said trust in the current ministry would be necessary for the system overhaul.
PKMM president Mohd Rosdi Ab Aziz also argued for a screening process, citing that the procedure would protect against cartel affiliated construction groups.
Zahid Hamidi also backed contractors facing project delays due to payment issues: “There might be about five to seven per cent of contractor errors… but how can a contractor want to continue working if the available funds aren’t paid.”
