MBAM urges government to open construction industry supply chain

KUALA LUMPUR (June 24): The construction industry is facing a material shortage problem as its supply chain is not allowed to operate during  Full Movement Control Order (FMCO), hence Master Builders Association Malaysia (MBAM) has urged the government to allow related industries to resume operations to ensure the critical and essential construction works will not be disrupted.

In today's statement, MBAM said that ever since the start of the FMCO, the supply chain has been disrupted.

“Quarries were not allowed to operate, supply of building materials such as aggregates had decreased, and the few ready-mixed concrete batching plants allowed to operate cannot meet the supply of concrete to contractors,” the association claimed.

It said that the allowed critical construction works, which are still in operation throughout this FMCO, are facing low stock rates of supply chain. If this persists, this essential construction work will not be able to continue.

On June 10, 2021, the industry was informed that quarry operators were only allowed to supply building materials from their existing stockpile, while blasting and extraction were barred.

“Currently, the steel and cement players are only allowed 10% workforce idling doing maintenance works, with no production operations. The steel and cement players both are critical supply chains of the construction industry supplying steel and cement products to critical infrastructure projects like MRT, LRT3, ECRL and others.

“With nearly one month of stoppage of productions, the supply chain to the above critical projects and other various projects will be disrupted. Once the existing stocks of building materials are exhausted, ultimately the projects will be delayed or temporarily stopped due to non-supply of building materials,” MBAM commented.

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