ALOR GAJAH: The Ministry of Entrepreneur Development (MED) has urged the government to raise the value of government works offered to G1 or Class F contractors from RM200,000 currently to RM500,000.
Minister Datuk Seri Mohd Redzuan Md Yusof said the move is in line with the rising costs of construction materials and labour besides making the contractors more competitive and resilient.
“This proposal has been brought up in the Cabinet before, and it is hoped that it will be agreed to and implemented soon,” he told reporters after the closing of the Alor Gajah Coop Run 2020 at Dataran Keris here today.
Some 2,000 people took part in the 5km and 3km fun runs.
He said his ministry and its agencies, especially the Contractor and Entrepreneur Development Division, provide a range of procurement opportunities for G1 contractors, while free construction-related courses are provided for registered G1 contractors, who now number some 24,000 nationwide.
“Some complain that there are no opportunities for them in government procurement, but the reality is otherwise. G1 contractors cannot just wait for contracts to come to them, they should make the effort to improve their expertise and work quality,” he said.
He added that the government has set up a special secretariat comprising professional construction bodies to achieve a balance between the offer price and competence, and ensure G1 contractors meet their project’s scope of work requirements. – Bernama