Contractors may see supply chain overstretched in coming years — Gamuda CEO

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SHAH ALAM (Dec 7): Local contractors may face cost pressures from a tightening supply chain in the years to come, according to Gamuda Bhd group managing director Datuk Lin Yun Ling.

"When we speak to fellow contractors, many are concerned about the supply chain being overstretched," Ling told reporters after the group's annual general meeting today.

Although construction costs in the last few years have been "benign", Lin warned against complacency over the next two or three years.

He explained that with the onslaught of major construction projects across the country, small and medium-sized subcontractors are likely to get much busier.

As a result, prices may go up to a certain extent, Lin said, adding that Gamuda would take active steps to manage this challenge.

On the subject of the East Coast Rail Link, Lin said that while foreign funding can help ease cost pressures for local contractors, the high likelihood of foreign participation would result in missing out on the benefits of local participation.