MBAM president Oliver Wee said some of the projects mentioned in the budget were those that were already in progress.

Others were meant to enhance public infrastructure, and would benefit only contractors in the G1 to G4 category, who mostly work on small infrastructure works.

“This would be alarming for the construction industry as there were also no major allocations in the 12th Malaysia Plan for new mega infrastructure projects, despite an allocation of RM400 billion for projects for 2021 to 2025,” he said.

Wee said the construction industry had been expecting a more uplifting budget announcement.

He said the increased levy on foreign labourers would increase the cost of construction.

Wee urged Putrajaya to give incentives to projects that employed the industrialised building system, an alternative construction method that was aimed at improving productivity, since the government was pushing for digitalisation in the sector.

He also called for a stimulus package to spur investments into new developments in the private sector.

The association appealed to the government to provide more assistance for the construction industry to revive and sustain the sector.

In tabling the budget, finance minister Tengku Zafrul Aziz announced that some RM3.7 billion would be spent on small and medium-sized projects across the nation.

He also announced allocations of RM500 million for G1 to G4 infrastructure projects and RM562 million to implement the Sabo dam project.

The government will also be constructing new schools, health facilities and Kemas day care centres.