Additional RM250 mln allocation helps recovery of small contractors

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KUALA LUMPUR: The additional allocation of RM250 million for the maintenance of federal roads for the benefit of small Bumiputera contractors can help drive the group’s recovery post-Covid-19 pandemic.

IZR Ventures managing director Muhammad Ridzwan Ab Manaf said the government’s move could help boost the road maintenance sector, especially for small Bumiputera companies, thus reducing accidents due to damaged roads.

“The additional fund may provide a platform for small contractors to develop their companies and subsequently compete with larger companies,” he told Bernama when contacted.

Muhammad Ridzwan also called for the transparent distribution of the allocation to eligible and experienced contractors to ensure the quality of work and avoid repeated repairs at the same location.

The extra allocation announced by Prime Minister Datuk Seri Anwar Ibrahim on Tuesday brings the total allocation for periodic maintenance of federal roads to RM1 billion compared to RM750 million announced in Budget 2023.

According to Anwar, the government understands the importance and need for regular maintenance of federal roads to ensure the safety and comfort of road users.

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Meanwhile, WZS Builders Sdn Bhd director Wan Zairul Shah Wan Khalid said the additional allocation needs to be spent prudently, adding that the government must ensure that it is directly distributed to contractors without involving brokers as middlemen.

“If this (broker involvement) happens, we are afraid the cost will increase, and the quality of work will not be as stipulated in the contract. When this happens, the losers are the people,” he said.

As such, Wan Zairul Shah called for the involvement of non-governmental organisations to ensure the distribution process is done fairly. – BERNAMA

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