The Construction Industry Development Board (CIDB) has been asked to set up a price monitoring unit to monitor the price of construction materials in the market.

"Prices will be analysed every month. That way, we will have a better idea of the problems faced by contractors due to the increasing cost of materials. We will then report it to the cabinet to decide the appropriate action to take," Works Minister S Samy Vellu told a press conference today.

He said two monitoring committees, one at the ministry and the other at state level have been set up even before the 9th Malaysia Plan (9MP) was unveiled.

"We've asked the state governments to appoint an exco member to take charge of public works, hold regular meetings in order to get feedback of work progress. Relevant information received by the ministry will be relayed to the cabinet," he said.

He added that the mechanism was to respond to complaints from contractors that the cost of construction materials have been increasing especially since the fuel price hike.

Earlier, delivering a paper entitled "Revitalising the Construction Industry - Infrastructure Development Opportunities Under the 9th Malaysia Plan' in the National Convention 9MP 2006, the minister said the government will place emphasis on the implementation of the open tender system for its projects.

Development expenditure increases

He said to achieve expenditure efficiency, the use of cost benefit analysis and output analysis will be made a norm.

"Priority of programmes and projects will be based on achieving policy objectives with maximum benefit, high multiplier effect and minimum leakages," he added.

Samy said a total approach to program and project effectiveness will be adopted to include minimum variation from approved scope and costs as well as taking into consideration the requisite operating expenditure.

He expected development expenditure of the public sector to increase from RM70.9 billion in 2005 to RM89.7 billion in 2010.

"For the construction industry, the 9MP is akin to a dose of oxygen for an anaemic patient. The construction industry has been anaemic for the past two years recording growth of minus 1.5 percent and minus 1.1 percent successively," he said.

He said the 9MP was a reason for the construction industry to rejoice, notwithstanding the fact that the Works Ministry had secured a budget reduction from RM19,333 million in the 8MP to RM18,623 million in the 9MP.

Responding to a question from a contractor who climed she has not been paid after completing a government school project five years ago, Samy said he will highlight her plight to the Ministry of Education.

He also blamed the past inefficiency on the Project Management Consultant (PMC) - a consortium set up by the Finance Ministry.

"We have again and again told the cabinet that the PMC is not working. They do not have the capability, manpower nor experiences" Samy claimed.

The two-day convention is jointly organised by Asian Strategy & Leadership Institute (Asli), Malaysian Economic Association and the Centre for Public Policy Studies. It will continue tomorrow.