Rising construction costs a challenge

Sunrise Bhd managing director Datuk Michael Yam views the rise in construction costs as a major challenge. As for challenges, the rising costs are a major concern. Construction costs will continue to increase in tandem with the escalating costs of building materials. Rising oil prices and logistics will also impact the industry. As land, particularly those in prime location, is gradually depleted, prices of remaining pieces of land escalate with decreasing supply, exacerbated by increasing demand from developers. Also, the increase in cost of not only replacing labour but professional and technical personnel as they seek employment in lucrative markets, such as the Gulf Cooperation Council countries, Singapore and Vietnam, would drive costs up.

(2-1-2008 The Edge)