2020 budget: Construction sector remains economic driving force, says CIDB

Datuk Ahmad Asri Abdul Hamid, CEO of the Construction Industry Development Board of Malaysia (CIDB), stated that the allowance provided in the 2020 Budget states that the government regards the construction industry as one of the main driving forces of the country’s economic development.

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The 2020 budget allocates allowances for the development and maintenance of infrastructure and social amenities.

“This shows that the government regards the construction industry as one of the main driving forces of the country’s economic development.

“These projects will further promote the development of the construction industry and have spillover effects on other economic sectors,” he said.

In addition, CIDB stated that it provided RM1 billion 1: 5 matching guarantees for specialized private equity funds to invest in Malaysian consortiums, which will encourage more Malaysian consortia to participate in overseas construction projects.

It said: “CIDB also fully supports the government’s introduction of the #WatanKerja (Locals @ Work) employment cost equalization program as an incentive to get rid of dependence on low-skilled foreign workers.”

Under this scheme, wage incentives for Malaysians who hire Malaysia to replace migrant workers are two years at RM350 or RM500 per month, depending on the industry, while employers’ corresponding employment incentives are RM250 per month. Two years

“In addition, the government will focus on motivating technical and vocational education and training (TVET) apprentices, which will encourage more local young people to take TVET courses, especially in the construction industry.”