Shortage of manpower expected as govt rolls out more projects
PENAMPANG: Sabah Builders Association (SBA) is looking forward to a better year albeit the challenges that will come their way.
Its president Henry Tsen said that among the challenges SBA members may face is the shortage of manpower, especially skilled workers and truck drivers.
There is also the possible further hike in the cost of building materials due to the six per cent service tax on logistics and construction materials commencing March 1 this year and the imminent reduction of subsidies for RON 95 and diesel, he said.
Speaking to reporters at SBA’s Chinese New Year celebration here on Saturday, Tsen said after starving for construction projects since 2019, contractors can now breathe a sigh of relief with the start of the Year of the Dragon as the government is now rolling out numerous projects like the 19 packages of Phase 1B of the Pan Borneo Highway, rural road projects as well as the replacement and rebuilding of hundreds of dilapidated school buildings.
Similarly, private developments are now starting to launch their commercial and housing projects after putting them on hold for the last few years.
“With more projects, the demand for licensed truck drivers will increase. There are instances of driver ‘snatching’ going on due to the shortage of manpower,” he said.
While there are numerous projects up for grabs, contractors must rejuvenate themselves to meet and overcome the everchanging challenges as well as difficulties in securing and carrying out the new projects, he said.
They should embrace new technology and invest in new and modern machinery to be cost-effective and save during the construction period.
Tsen said the current geo political turmoils like the Israel/ Hamas conflict, the US/Yemen Red Sea crises, and rising USChina tension may also affect the supply chain of imported building materials and heavy machinery.
SBA, he said, is of the view that the only way to mitigate the rising cost is that both the state and federal governments must reinstate the variation of prices clause (VOP) in all new contracts.
This will ensure that projects will not become ‘sick projects’ or be abandoned, he stressed.
“Blame cannot be put on contractors as most medium and large projects need a construction period of between two to three years to complete and if they add an effective percentage in their bid to cover for a possible hike in cost, their bid will not be competitive and they will never get any jobs,” he pointed out.
SBA, Tsen said, congratulates all contractors including its members on overcoming the difficult period of the last few years and emerging stronger as well as becoming more efficient to take on new jobs in the years ahead.
During the celebration, SBA members were given a briefing on SKK Paint by the company’s director Moriwake Ryo.