Prices of building materials have surged the past year, causing construction cost to rise by 12 per cent in 2007 alone. All industry players are affected, but the small-timers are hardest hit, especially if they do not have the capacity to cushion such cost increases. For this year, Master Builders Association Malaysia (MBAM) president Patrick Wong said construction cost is expected to rise 20 per cent, though if fuel prices go up, the hike may be 25 per cent. The government raised the ceiling price of steel bars and billets by 12 per cent across the board effective Dec 1, 2007. Despite the rise, which has taken steel bar prices to RM2,419 a tonne from RM1,817, contractors said they still face difficulties in getting supplies and sometimes have to make under-the-counter payments of RM150 to RM200 a tonne.
(21-1-2008 New Straits Times)
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