MBAM president Oliver Wee said initiatives like the multi-tier levy mechanism for the employment of foreign workers, the RM1,700 minimum wage and targeted RON95 petrol subsidies will have an impact on the industry.

“Construction contracts are fixed-price contracts. Any removal of subsidies or changes in policy will impact contractors. We expect contractors to be more cautious as costs will increase,” he said in a statement.

Wee also urged the government against focussing on imposing carbon tax for now, and to instead give more incentives to encourage the industry to move towards using greener technology.

Nonetheless, he welcomed the overall budget, lauding its focus on advancing essential infrastructure through various projects, like the construction of roads, health facilities and schools, among others.

He said this would benefit many G1 to G4 contractors, while these projects would drive the nation’s socio-economic development.