KUCHING: Parti Sarawak Bersatu (PSB) has urged the Sarawak government to award projects to reliable and capable contractors instead of RM2 companies.
President Datuk Seri Wong Soon Koh opined that RM2 companies could be among the reasons behind the many sick and delayed projects throughout Sarawak.
“Are there no other capable contractors in Sarawak that we have to rely on RM2 companies?”
Apart from that, Wong questioned how these contractors were able, in the first place, to be awarded projects by the Sarawak government.
The Bawang Assan assemblyman was responding to the newly-announced six measures to minimise critically delayed projects in Sarawak.
Under the new initiative, the Sarawak government will allow up to three payments to be made without the contract documents in the first four months of the contract period, to assist contractors with project cash flow, including those categorised as RM2 companies; to safeguard the interest of the construction industry.
According to Prof Geoffrey Williams, an economist at Malaysia University of Science and Technology, a RM2 company is a term used to refer to a small company with little paid up capital.
He explained that to register a company in Malaysia; it is necessary to issue shares worth at least RM2 to at least two shareholders to form the company.
“Usually a big paid-up company is required for government projects or big contracts as it reflects the financial stability of the company,” he explained.
Wong said he agreed that it was timely for Sarawak to take measures to revive and save these delayed or sick projects from further failure and to complete them as soon as possible.
“But, we must also take those responsible for the delay and those who have put us in this position – to be accountable and answerable,” he said, referring to the present status of project implementation reported by the Public Works Department (JKR), with 34 projects critically delayed as of Jan 27.
He opined that the authorities concerned ought to think about reforming the entire industry holistically.
