Budget 2027: PKBM Lauds RM7.5 Bln Procurement Allocation For Bumiputera Contractors
KUALA LUMPUR, Oct 10 (Bernama) -- The Bumiputera Contractors Association of Malaysia (PKBM) has welcomed the increase in government procurement allocations for G1 to G4 Bumiputera contractors to RM7.5 billion under Budget 2027, from RM4 billion this year.
Its president, Datuk Seri Dr Azman Yusoff, said the RM3.5 billion increase would help expand Bumiputera contractors’ involvement in government projects.
He said the association hoped the higher allocation would translate into more project opportunities, greater transparency in contract distribution and fair access for qualified contractors.
“It is hoped that the initiative will strengthen the competitiveness, financial standing and capabilities of Bumiputera contractors, particularly small and medium enterprises (SMEs) in the construction sector,” he said in a statement.
Azman also welcomed the government's decision to reintroduce the Variation of Price (VOP) clause to address rising diesel and bitumen costs, describing it as crucial in helping contractors cope with higher project implementation costs.
He expressed hope that the VOP implementation mechanism would be clearly outlined and effectively implemented to ensure that eligible contractors benefited from the measure.
Meanwhile, Azman lauded the decision to allow public-interest projects valued at up to RM5 million, using Public Works Department (JKR) pre-approved plans, to be procured through the quotation method.
He said the initiative could expedite the implementation of public facility projects, including quarters, schools, hostels, clinics and halls, while creating more opportunities for qualified local contractors.
PKBM expressed appreciation to Prime Minister Datuk Seri Anwar Ibrahim and the MADANI Government for listening to the views and concerns of Bumiputera contractors during the Budget 2027 engagement session on Sept 30.
The association reaffirmed its support for the government's efforts to strengthen the construction industry and enhance opportunities for Bumiputera contractors, while expressing hope that the announced initiatives would be implemented transparently and effectively.
--BERNAMA