Accra:The Bumiputera Contractors Association of Malaysia (PKBM) has expressed approval for the government's decision to raise procurement allocations for G1 to G4 Bumiputera contractors to RM7.5 billion in Budget 2027, up from RM4 billion this year.

According to BERNAMA News Agency, the president of PKBM, Datuk Seri Dr Azman Yusoff, stated that this RM3.5 billion increase is expected to enhance Bumiputera contractors' participation in government projects. The association anticipates that the increased allocation will lead to more project opportunities, improved transparency in contract distribution, and fair access for qualified contractors.

Azman emphasized that this initiative aims to bolster the competitiveness, financial stability, and capabilities of Bumiputera contractors, especially small and medium enterprises (SMEs) within the construction sector. He also supported the government's move to reintroduce the Variation of Price (VOP) clause, which addresses rising diesel and bitumen costs, and highlighted the importance of a clear and effective implementation mechanism for VOP to benefit eligible contractors.

Additionally, Azman praised the decision to permit public-interest projects valued at up to RM5 million to be procured through the quotation method, using Public Works Department (JKR) pre-approved plans. This approach is expected to speed up the implementation of public facility projects such as quarters, schools, hostels, clinics, and halls and create more opportunities for local contractors.

The PKBM conveyed its gratitude to Prime Minister Datuk Seri Anwar Ibrahim and the MADANI Government for considering the views and concerns of Bumiputera contractors during the Budget 2027 engagement session. The association reiterated its support for the government's efforts to strengthen the construction industry and improve opportunities for Bumiputera contractors, hoping for transparent and effective implementation of the proposed initiatives.