Sarawak’s RM10.098 bln devt budget to open doors for local contractors

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Dato Ismail Su’ut

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By DayakDaily Team

KUCHING, Oct 13: Sarawak’s RM10.098 billion development expenditure for 2027 could open up more opportunities for local and Bumiputera contractors, particularly through rural infrastructure projects and road and bridge construction, says the Malaysian Malay Contractors Association (PKMM) Sarawak.

Its president, Dato Ismail Su’ut, said the allocation reflected the Sarawak government’s commitment to infrastructure development, basic amenities, and rural communities, while creating opportunities for local businesses and employment.

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In a press release today, he said the Sarawak Budget 2027, tabled by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at the Sarawak Legislative Assembly on Oct 12, included RM6.4 billion for rural development.

The Sarawak Budget 2027 proposes ordinary expenditure of RM14.845 billion, with State revenue projected at RM15.091 billion, and a budget surplus of RM246 million.

PKMM Sarawak also welcomed the RM742 million allocation for road and bridge construction, covering new roads, rural bridge upgrades, and the rehabilitation of public infrastructure.

Among the proposed projects are the dual carriageway from Kemena Bridge to Bintulu Airport, Batu Kawa to Jalan Stephen Yong, roads connecting Kampung Medong Seberang and Kampung Kekah Seberang in Dalat, and the new road from Teku and Pasai Siong to Kemuyang in Sibu.

The allocation also includes road resurfacing works in Ulu Tinjar, Marudi.

The alternative financing allocation of RM2.27 billion for the State’s main transportation networks is also expected to stimulate construction activities and strengthen local supply chains.

However, he said contractors must be given access to work packages suited to their grades, capabilities, and specialisations to ensure smaller firms could also benefit from the development spending.

“G1 and G2 contractors need access to suitable small work packages to build their track records and financial capacity, while G3 to G5 contractors should be given room to grow through medium-sized projects and subcontract packages,” he said.

He added that G6 and G7 contractors should be able to compete professionally for larger projects, including through strategic joint ventures.

PKMM Sarawak also highlighted working capital constraints faced by smaller Bumiputera contractors, particularly those in the G1 and G2 categories.

Ismail said rising costs for construction materials, labour, machinery, and site management could affect project delivery when contractors struggled to secure upfront financing.

He said the association was prepared to work with government agencies and financial institutions to expand project financing, streamline documentation, and encourage efficient progress payments.

“Our objective is not merely to ensure contractors secure projects, but also to ensure they can complete them on schedule and meet the required standards.

“PKMM is ready to work with government agencies and financial institutions to expand project financing, streamline documentation and encourage efficient progress payments,” he said.

Ismail said infrastructure development could also create jobs across transportation, logistics, construction materials, engineering, maintenance, and small and medium industries.

PKMM Sarawak also welcomed the State government’s investment in technical and vocational education and training through the Centre for Technology Excellence Sarawak (CENTEXS), Sarawak Skills, and other programmes.

Ismail said the association was ready to explore collaborations with training institutions, the Construction Industry Development Board and other agencies to support industrial training, apprenticeships, job placement and skills development.

He said the State’s development spending should be measured not only by the value of projects delivered, but also by its ability to strengthen local contractors, create employment, and improve public well-being.

“We thank the Sarawak Premier and the Sarawak government for their focus on inclusive development,” Ismail said. — DayakDaily

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