Of the total, RM24 billion was lost last year, and RM18 billion so far this year, works minister Fadillah Yusof said.

“Due to Covid-19, there was a drop in construction of 19.4% in 2020 and 10% in the first quarter of this year,” he told Ahmad Nazlan Idris (BN-Jerantut), who wanted to know the impact on the industry caused by the pandemic and the challenges ahead.

However, he said, there was an increase of 40.3% in construction activities in the second quarter of this year.

Fadillah said the challenges faced by industry players included price increases in construction materials, higher wages and shortage of workers caused by foreigners who had returned home and were unable to come back.

He also said the recalibration regulations for employers to hire foreign workers were stringent and had resulted in delays in hiring them.

To overcome the challenges, he said, the works ministry had created a national construction cost centre to help contractors to compare prices, create variation of prices, and ensure workers were fully vaccinated.

Fadillah also said that with the gradual opening of all economic sectors nationwide, the prices of construction materials were expected to stabilise.