ASEAN KEY DESTINATIONS
Malaysia to help contractors with govt contracts
Malaysia’s government plans to review signed development contracts with private sector in a bid help out contractors who have faced higher cost of construction materials, reported
Malaysian national news agency Bernama Sunday.
Bernama reported that Malaysia’s deputy premier Najib Tun Razak said the government had decided that certain contracts with construction companies would be given variation of price
based on the rise in prices of construction materials such as steel and cement.
“A circular will be issued by the Finance Ministry pertaining to these contracts,” the deputy premier told a news conference after opening the Bumiputera Real Estate Convention and
Exhibition 2008 organised by the Federation of Malay Economic Bodies (Gabem) at the Putra World Trade Centre.
“This is a form of our assistance. We will review the contract price. Usually, after a contract has been signed, we cannot review the price. But in these exceptional circumstances, the
government has agreed to do so. The details will be in the circular,” he said.
Asked whether the government could guarantee no project would be abandoned, Najib said: “We cannot give a guarantee. We can review the (contract) price. It will be improper for the
government to give a guarantee.”