“The government is currently studying this issue, and before contemplating or introducing any new policies, careful consideration needs to be taken based on various aspects,” he told the Dewan Rakyat today.

“One aspect includes the building materials cost index released by the statistics department, which tracks fluctuations in construction material costs nationwide.”

He added that discussions are ongoing with the relevant agencies to address and assess potential impacts on the construction industry.

Nanta was responding to a supplementary question from Roslan Hashim (PN-Kulim-Bandar Baharu) regarding government initiatives to help contractors facing higher costs of machinery and materials.

Roslan claimed that contractors who had secured projects before the diesel price increased by around 55% were now facing increased construction costs ranging from 15% to 35%.

Domestic trade and cost of living minister Armizan Mohd Ali previously said that the construction industry was never eligible for subsidised diesel, even before the commodity was rationalised on June 10.

FMT also reported that concrete producers had raised their prices following the hike in diesel prices.

Nanta reiterated that the subsidised diesel scheme introduced on Oct 19, 2021 was never extended to the construction industry.

“The purchase of diesel for construction purposes has traditionally been through commercial channels rather than the retail purchases eligible for subsidies before this diesel price adjustment.

“Existing contracts have factored in diesel prices, so there is a possibility that the construction industry will be affected by the adjustment,” he said.