The Malaysian Insight

LOCAL construction projects backed by China companies have stalled due to the novel coronavirus Covid-19 outbreak, but industry players are not too worried about its overall impact.

They told The Malaysian Insight the China projects are suspended because their workforce is now stranded in China due to the outbreak.

They, however, said the local construction sector generally is not reliant on China labourers, nor dependent on China for raw materials.

While the exact number of suspended projects involving China companies is unavailable, industry statistics showed that last year, 264 Chinese firms were involved in the Malaysian construction sector involving projects with a total value of RM31 billion.

United Malaysia Kin Cho Hong Association president Leong Kien Keong told The Malaysian Insight that projects backed by Chinese firms have been temporarily suspended.

“This is because their workers returned to China for the Lunar New Year, and it is unfortunate that the outbreak happened then. With some cities locked down, workers have not been able to return.”

He said most other projects are proceeding as usual.

“Local companies hire from Bangladesh, Indonesia and locally, so there’s no labour issue with those projects,” Leong said.

Klang Kin Cho Hong consultant Ng Tong Chun said the outbreak ias having only a limited impact on the Malaysian construction industry, adding that the sector is already in the midst of a downturn.

Ng also said most raw materials required, such as cement and steel, are manufactured locally and minimally sourced from China.

Malaysia Master Builders’ Association president Foo Chek Lee agreed, saying materials previously imported from China are also available locally.

“Previously, you could get them cheaper from China, so industry players all ordered from there. But now, we can find the same material locally, and it’s more than enough to meet demand,” he said.

Foo, however, urged construction workers to be prepared and remain cautious, including by wearing face masks, keeping an eye on their body temperature and to take all necessary preventive measures against the virus.

The outbreak, which started in Wuhan, China, has seen a worldwide death toll of more than 1,300 and the number of confirmed cases rose to more than 60,000. Malaysia has 19 confirmed cases, involving 13 Chinese visitors and six Malaysians. – February 14, 2020.