IT will not be a walk in the park for Bumiputera engineering and construction firms seeking to undertake subcontractor jobs in the East Coast Rail Link, said sources close to the project owner.

These firms must prove that they are competent and competitive enough to get a share of the pie in the mega-project.

Project owner Malaysia Rail Link Sdn Bhd (MRL) recently said nearly 1,000 Bumiputera companies have applied for subcontractor jobs.

ECRL’s main contractor, China Communications Construction Company Ltd (CCCC), received 1,321 applications from companies registered with the Construction Industry Development Board during a pre-qualification exercise.

Of the total number of applicants for subcontractor works, 994 Bumiputera companies applied, or 72.25%.

“The Bumiputera companies must be competitive to be able to survive the construction industry. They must have a pool of talent and skilled workers who have seen through many similar projects,” a source told The Malaysian Insight.

He said the companies must also have a reliable supply chain, creditors and healthy funding.

The project’s main contractor is looking for subcontractors that are as competitive as itself, he added.

“There will be no room for subcontractors to phase out their parcel again. Obviously, the contractor is looking for genuine and hands-on subcontractors.”

He said Bumiputera firms stand an even chance to win tenders if they can prove to be competitive in both the commercial and technical aspects.

The commercial aspect of a company refers to its finances, exposure and funding, he said, whereas technical know-how is about experience, manpower, machinery and supply-chain aspects.

“If a Bumiputera-registered company is run by good partners, it can be very competitive and win jobs in the open tender.

“Whether they like it or not, there is no free lunch as far as the ECRL project is concerned.”

Under the revised deal for the RM44 billion rail link, Putrajaya got the concession to increase the participation of local contractors in civil works from 30% to 40%.

This is to ensure there are more opportunities for local companies, especially Bumiputera firms.

A pre-qualification exercise was held last month to identify potential subcontractors to fill the 40% local content quota.

MRL and CCCC will announce the shortlisted companies by year-end.

The revised project will connect the east coast states of Kelantan, Terengganu and Pahang with the central states of Negri Sembilan and Selangor, and the administrative capital of Putrajaya. – June 20, 2019.