THE Malaysian construction sector saw a 50% dip in the first six months of the year, down to RM32 billion from RM62 billion from the corresponding period last year, said Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed.

He said the drop was as a result of many projects being suspended due to the government-imposed movement-control order.

He added that during this period, almost 100% of construction works were suspended. 

“Most of the affected projects were those undertaken by the private sector but government projects too have been impacted,” he told reporters after a briefing on the upgrading of the National Sports Council’s 14-storey dormitory and podium in Bukit Jalil today. 

“Although a third of the projects are the government’s, the effect is huge,” he added. 

Data from the Statistics Department showed the industry has dipped by 44.5% in August. 

Mustapa also said only 48.48%, or RM33.4 billion, of the allocation for government development projects has been spent as at August 26.

He said the amount spent has yet to reach half of the year’s allocation for the purpose, despite the fact that it is already September. 

“This has become an issue for the government as we want to revitalise the economy, but there are many factors that have affected the performance, such as the Covid-19 pandemic. 

“However, the government, via the Works Ministry and the Public Works Department, has taken several proactive steps to accelerate the development projects,” he said. – September 3, 2020.