Answer for Oral Question PL278

QUESTION

Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin

YANG BERHORMAT AWANG HAJI SALLEH BOSTAMAN BIN HAJI ZAINAL ABIDIN asks Yang Berhormat Menteri Pembangunan to state whether the Ministry plans to restructure the implementation of RKN12 mega projects into smaller packages for the sustainability of local businesses? In addition, what are the plans to require subcontract quotas, encourage joint ventures, and implement transparent monitoring to strengthen the participation of local contractors in a systematic and sustainable manner?

ANSWER

Yang Berhormat Menteri Pembangunan

• Thank you Yang Berhormat Yang Di-Pertua. Thank you also to Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin for raising the question regarding mega projects under RKN 12 being restructured into smaller packages as well as efforts to strengthen the participation of local contractors.

• In answering this question, I am pleased to inform that in every tender, provision is indeed made in the tender schedule for a statement on the involvement of registered sub-contractors. Usually, the main contractor for a mega project does engage sub-contractors owned by local citizens to carry out specialised works even though no quota is set. Meanwhile, for projects that may require the involvement of foreign companies, the company concerned must have a usahasama (joint venture) with a local company registered with ABCi. In this matter, the Ministry is still examining the need to make subcontracting compulsory, taking into account the level of expertise, availability of machinery and equipment, and the capability of local construction companies in the implementation of mega projects.

• As is also commonly practiced, usahasama between the Main Contractor and sub-contractor for projects under RKN 12 remains the practice, as in the following examples:

• The Projek Menaiktaraf Loji Rawatan Kumbahan Gadong Fasa 2, Pintu Malim dan Stesen-Stesen Pengepam Pembetungan with a total project price of $8,188,880.00, which commenced implementation on 25 February 2025, has 5 sub-contractor participations from local companies with the following scopes of work: a) Parm Sdn Bhd – Mechanical works, piping and part of the civil works. b) PDN Sdn Bhd – Electrical works and cable laying. c) Progressive Impact Technology (B) Sdn Bhd – SCADA system for remote control and data collection. d) Brutech Corp – Instrumentation. e) TBT Sdn Bhd – Piling works.

• The Projek Membina Stesen Pengepam Air Mentah Baharu Badas dan Memasang Paip Air Mentah dari Badas ke kawasan SPARK with a contract sum of $21,111,112.00 has 7 sub-contractors consisting of local construction companies registered with ABCi, with scopes of work as follows: a) Energy Heavy Equipment Sendirian Berhad for piling works. b) Kim Engineering Sdn Bhd for pipe jacking works. c) Bhaskar Sdn Bhd for structural works. d) Steel Max Asia Sdn Bhd for welding works. e) GWS Engineering Sdn Bhd also for welding works. f) Elmech Engineering Sdn Bhd for mechanical and electrical works for pumps. g) Adabena Sdn Bhd for electrical works.

• Overall, the Ministry of Development through existing practices continues to support the participation of local contractors through the implementation of sub-contracts and usahasama in projects being carried out. Although no special quota has been set at this time, the active participation of local contractors is always encouraged and monitored in order to strengthen the national construction industry ecosystem.

• Yang Berhormat Yang Di-Pertua. That is all that Kaola is able to convey in answering the question raised by Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin.