Penang Master Builders and Building Materials Dealers’ Association immediate past president Datuk Lim Kai Seng(insetpic) said the target was not achieved because about RM55bil worth of contracts from infrastructure projects in the East Coast had yet to be finalised and awarded.

GEORGE TOWN: The value of construction jobs tendered out in the country for 2016 failed to reach the targeted RM200bil, hitting only RM124.9bil compared to RM139.7bil in 2015.

Penang Master Builders and Building Materials Dealers’ Association immediate past president Datuk Lim Kai Seng said the target was not achieved because about RM55bil worth of contracts from infrastructure projects in the East Coast had yet to be finalised and awarded.

The association had earlier forecast that the approximately RM200bil jobs would be awarded in the country for 2016.

According to the latest Construction Industry Development Board (CIDB) report, the number of jobs tendered out in the country also dipped to 5,410 from 7,405 in 2015.

“The value of infrastructure contracts had increased to RM57.5bil from RM28.9bil in 2015, although the number dropped to 1,529 from 2,011 in 2015.

“This is because the infrastructure contracts given out are of higher value,” he said.

In Penang, the value of contracts awarded had also decreased to RM6.9bil in 2016 from RM8.1bil in 2015.

“Of the RM6.9bil, about RM2.5bil comes from infrastructure projects, which has risen from RM1.35bil in 2015.

“The number of contracts given in Penang had also dropped to 400 from 532 in 2015,” he said.

Moving on, Lim said the value of contracts tendered out this year in the country and in Penang was likely to stay flat.

“This is because the higher value infrastructure projects in the country and in Penang had already been given out in 2016.”

He said the number of projects in the country and in Penang would also decreased.

“In Penang, it is unlikely the approval for the undersea tunnel and LRT project in the Penang Transport Master Plan would be given in 2017.

“We cannot expect construction contracts for the undersea tunnel and LRT to be given out this year,” he said.

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