PUTRAJAYA (Jan 7): The depreciation of the ringgit against the US dollar will not have a huge impact on construction costs, said Datuk Seri Dr Judin bin Abd Karim, chief executive of the Construction Industry Development Board (CIDB).

"Most of the materials are local. The ringgit will not have a lot of impact on the actual cost", he told reporters today at the sidelines of a seminar organised by CIDB.

He added that unless it is infrastructure projects which require contractors to import equipment and machinery, the ringgit’s slide against the greenback would have minimal impact on construction costs.

On whether falling oil prices would result in lower material costs and hence lower construction cost, Judin said the impact was still unclear.

Meanwhile, Judin foresees a boost in construction activities over the next few months when rebuilding work for the areas affected by the recent floods begins.

"There will be a lot of rebuilding work and repair to be done. Infrastructure like roads and bridges have to be repaired too," he said, adding that the Public Works Department (JKR) is working day and night to get those affected by the floods back to their daily lives.