The Public Works Ministry is evaluating the impact of rising material costs due to West Asian tensions, focusing on supply chain resilience and strategic mitigation.

KUALA LUMPUR: The Public Works Ministry (KKR) is conducting a comprehensive assessment to formulate mitigation strategies following a rise in construction costs attributed to geopolitical tensions in West Asia.

Minister Datuk Seri Alexander Nanta Linggi stated the evaluation involves collaboration with relevant agencies and industry players, covering project implementation, cost structures, and supply chain resilience.

He emphasised the government views the cost implications seriously, particularly the impact from the closure of the Strait of Hormuz which has disrupted global energy supply stability.

“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,” he said in a Facebook post.

Nanta Linggi noted that since the primary cause is global geopolitical factors beyond domestic control, the pressure of rising costs is also being experienced by most other countries.

He added that the approach taken must therefore be strategic, targeted, and driven by data.

The Construction Industry Development Board Malaysia (CIDB) will strengthen its role as an industry coordinator by mobilising cooperation to formulate policy recommendations and pragmatic intervention measures.

The minister stressed the government remains committed to ensuring the continuity of national development projects and maintaining sector stability through responsive and sustainability-oriented policies.

 The Sun Malaysia