Malaysian Bumiputera Contractors Association (PKBM) president Azman Yusoff said the problems faced by the G1 and G2 contractors include the soaring prices of building materials, a shortage of workers, a sudden jump in logistics costs and delays in the supply of construction items from abroad.

“We want the government to seriously consider targeted assistance to G1 and G2 small contractors in Budget 2023,” Berita Harian quoted him as saying in a statement. “The contribution of these thousands of contractors to the national economy and the people’s well-being is enormous.”

The budget is scheduled to be presented in the Dewan Rakyat on Oct 7.

Azman said the government could also help by giving the contractors maintenance work and other jobs in government departments.

According to the association, there are 67,475 G1 contractors and 23,777 G2 contractors.

In July, it had said that 75% to 85% of construction projects being carried out in the country were in “critical” condition following the increase in the prices of construction materials by more than 15% and the worsening inflation.