CONTRACTORS HIT BY DELAYED PAYMENT WOES
There’s a risk of projects coming to a halt, says PKMM president
CONTRACTORS working on government projects are struggling as payments for work done have been delayed, said the Malaysian Malay Contractors Association (PKMM).
Its president, Datuk Mokhtar Samad, said many of the association’s members had approached him for help as they were facing financial difficulties due to the delay in payments.
“We understand and support the government’s cost rationalisation initiative, which will benefit the country and rakyat. However, the government must also take into account the contractors’ wellbeing and that they need the payments to get by.”
He said many of the contractors were from medium- and small-sized companies and they were the most impacted due to cash flow issues.
He said the contractors affected were involved in government jobs nationwide, including road, utilities and rail projects.
He said if this situation continued, there was a risk of these projects coming to a halt, adding that this would lead to other issues.
“This can lead to increased debts, unemployment, families falling apart and social problems.”
He said this situation would not benefit the government as it would incur more cost to restart halted work.
Mokhtar, however, said he was confident the government would look into the interests of Malay contractors to ensure their participation in projects that benefit the country, such as the MRT and LRT projects, highways and other infrastructure.
A contractor, who requested anonymity, said he had not been paid for two months and was stretched thin.
“I am trying to stay afloat by delaying payments to my suppliers, who have threatened to stop my supplies. I will have to stop work if that happens,” he said.
His company is involved in a government-funded infrastructure project.
He, too, was appealing to the government for payment to keep the project going.
After the 14th General Election, the new government has halted many mega infrastructure projects, pending detailed assessment of each project.
Some of the mega projects affected are the Kuala Lumpur-Singapore High-Speed Rail, East Coast Rail Line and MRT3 projects.
Prime Minister Tun Dr Mahathir Mohamed had earlier said the projects would be scrapped, but various statements have been made after that by the Finance Ministry and Dr Mahathir that the projects might be revived when the country’s finances improve.
The LRT3 project went through a series of assessments and was given the go-ahead recently after cost-cutting measures were put in place.
It has been made known that the construction industry is going through a major “recession” with the effect being felt by all and sundry.