The Works Ministry mulls proposal to limit granting of new contractor licence
KUALA TERENGGANU - The Works Ministry will consider a proposal to limit the granting of new licences to contractors of various classes following complaints voiced by several parties and contractors’ associations.
Deputy Works Minister Datuk Seri Abdul Rahman Mohamad said the grievances issued by the Malaysian Malay Contractors Association (PKMM) proved to be well-founded because the existing competition among players in the construction industry was currently too high.
"One of their demands is to ask the government to limit the granting of licences for the time being or to stop applications because there is a deluge resulting in some not getting job opportunities in the construction sector.
"I will take this matter to the superiors so that the voices of the grassroots are heard and thus ensure the strengthening of the MADANI government itself. Insya-Allah, the Prime Minister Datuk Seri Anwar Ibrahim will take heed of this disgruntlement and will take action,” he said.
He spoke to reporters after launching the 47th Terengganu PKMM annual general meeting which was also attended by PKMM president Datuk Seri Mohamed Fadzill Hassan, here, today.
Abdul Rahman said the ministry would bring the proposal (to restrict the granting of new licences) to the Cabinet since the matter is under its supervision through the Construction Industry Development Board (CIDB).
"The ministry will make a proposal paper to be raised in the Cabinet and if we do this, it does not need to be brought to the Parliament... unless any member of Parliament asks, we will answer in the Dewan,” he said.
Recently, media reported the association’s concern about the deluge of CIDB-approved contractors of various classes, which has put pressure on existing contractors in securing construction projects.
Based on last month’s statistics, the total number of G1 to G7 class contractors doubled when it recorded 136,000 new and existing licences compared to 60,000 licences in 2019. - BERNAMA