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Fairplay And Equal Opportunity Requires The Prime Minister To Open Up The RM 28 Billion Allocation In The Construction Sector This Year To Non-Bumi Contractors


Press Statement
by
Lim Guan Eng

(Melaka, Monday): Whilst Prime Minister Datuk Seri Abdullah Ahmad Badawi’s announcement that RM 28 billion shall be allocated for construction projects this year is good news for the dormant construction sector, fairplay and equal opportunity requires that non-bumi contractors be allowed to participate and bid for these government contracts. DAP regrets that the ban on non-bumi contractors have been accepted by MCA, Gerakan and MIC as their basic policy until they did not dare to even demand that such ban on non-bumi contractors getting government work is lifted. 

The ban on awarding government projects to non-bumi contractors is illogical and incomprehensible when they have also been issued Class A, B, C, D, E or F licenses by the Works Ministry. Why should a licensed bumi contractor be awarded government projects but not to a non-bumi contractor with similar license even though he is equally qualified? Further there is no provision in our Federal Constitution that allows the government to exclude non-bumi contractors who have licenses from being awarded government projects. 

The construction sector has been badly hit and left out of economic growth over the past three years. The 2004/5 Economic Report issued by the Finance Ministry showed that in 2003, 2004 and 2005 the construction sector contributed 0.1%, 0% and 0.1% to the country’s economic growth. With nearly zero contribution to the country’s economic growth, many non-bumi contractors who rely solely of private sector are out of work.  

The government should therefore step in and assist these non-bumi contractors by opening up government contracts to them. When the construction sector is revived, the domestic market will also profit as unlike the manufacturing and services sector, most of the money earned in the construction sector is spent on the domestic market. 

The government must realize that economic growth of more than 7% this year is limited to industries and sectors that does not impact on ordinary Malaysians. The 2004/2005 Economic states that both the manufacturing and services sectors are expected to contribute nearly 90% of this year’s economic growth. As for the construction sector, with its direct and indirect benefits to the local population, the contribution to economic growth is almost nil. 

The government should try to assist the construction sector by ensuring that government contracts are spread to the many and not the few contractors. Further, the time has come to open up government contracts to non-bumi contractors. Even opening up 50% of government contracts to open tender system where all bumi and non-bumi contractors can bid would go a long way to help the long-suffering construction industry.  

(14/2/2005)


* Lim Guan Eng, DAP Secretary-General