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21 JUNE 2026

Friday, July 10, 2026

Explain construction material price hike, Sarawak groups tell suppliers

 Two business chambers and a contractors' association say the price increases should not be blamed solely on the removal of diesel subsidies.

The three business groups highlighted the challenges faced by contractors in Sarawak, particularly those carrying out the Rural Transformation Programme and other fixed-price government projects.
PETALING JAYA:
Three Sarawak business groups have urged suppliers to explain the increase in construction material prices, instead of solely attributing the hikes to the removal of diesel subsidies.

The Sarawak Bumiputera Entrepreneurs Chamber (DUBS), Dayak Chamber of Commerce and Industry (DCCI), and Sarawak Malay Contractors Association (PKMM) said if price increases are driven by other factors, including labour, maintenance, spare parts, or inflation, they should be specified.

The groups also called for a fairer implementation of the diesel subsidy rationalisation to protect contractors and businesses in the state, Dayak Daily reported.

DUBS information chief Hadzman Johny said the impact of the diesel subsidy rationalisation varies depending on a company’s operations and eligibility under the subsidised diesel control system (SKDS).

He said ready-mixed concrete mixer trucks, for example, were eligible for the SKDS fleet card scheme.

“If these vehicles continue to receive subsidised diesel, it is reasonable for contractors, developers, and industry stakeholders to seek clarification on how much increased fuel costs have actually contributed to the announced price adjustments,” he said.

The groups also highlighted the challenges faced by contractors, particularly those carrying out the Rural Transformation Programme and other fixed-price government projects.

They said these contractors are bearing increased fuel and operating costs following the subsidy reforms, without corresponding adjustments to their contracts.

They urged the government to reassess SKDS diesel quotas for businesses operating in remote areas and consider cost adjustments for the affected ongoing projects. - FMT

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