Govt urged to increase value of jobs for Class 'F' contractors

IPOH: Malaysian Bumiputra Class "F" Contractors Association (PERKOBF) wants the government to increase the value of jobs from the current RM200,000 to RM350,000 due to the increase of cost for materials and other items.
Association president Tukiman Radion said the present contract value was implemented 15 years ago and it is time to review it as the cost had gone up over the years.
A memorandum on the matter was presented to Prime Minister Datuk Seri Najib Abdul Razak who is also Finance Minister, two months ago.
"We hope to hear some good news during the budget presentation," he told reporters after officiating the association's Perak branch AGM here today.
"A bag of cement was sold at RM8 but now it costs RM23 ... GST is another factor with an overall hike of 20% to 25%.
"It is impossible for contractors to take up jobs if the current contract value is maintained," he added.
On another subject, Tukiman said there were some 30,000 Class "F" contractors at one time, but it has now dwindled to 24,000.
"This is due to the failure to secure jobs as in some cases, concessionaires are awarded the contracts and these small time contractors are left in the lurch.
"We want the government to rethink giving out contracts to these concessionaires, as Class "F" contractors were created to secure jobs like maintenance, cleaning and repair jobs of roads, drains, toilets and buildings," he added.
According to him, only 30% of the 24,000 Class "F" contractors managed to secure jobs while the others suffered losses.
Tukiman also said the association will carry out protests if contracts meant for Class "F" contractors were given to concessionaires.