Master Builders Association (MBAM) even cautioned that the prices of houses could increase owing to this reason.
“The levy hike will impact the construction industry,” said MBAM deputy president Foo Chek Lee.
He said there were about 130 sub-sectors including manufacturing and services, which would pass the cost back to the industry.
“Ultimately, we will pass the additional costs to the end users or purchasers,” he said.
The Government, he added, should instead look into legalising the existing illegal foreign workers.
“By doing so, this will bring in extra revenue to the Government instead of increasing the levy,” said Foo in a press conference yesterday.
MBAM said the construction industry was looking at a 10% increase in labour cost and a 2% increase in overall costs.
“Two per cent is the bottom line for some of us. The profit margin in construction is usually a single digit. Some don’t even make 2%,” said former president Kwan Foh-Kwai.
The association’s vice-president Tan Sri A.K. Nathan said the Government should also understand that the construction industry could not operate without foreign workers.
“It is almost impossible to get local workers. This is a fact,” he said.
The association said locals were not willing to work in the construction industry despite the willingness of the industry players to train them.
“Malaysians don’t even want to work as crane operators.
“We are willing to train them and pay as high as RM3,000 a month, but they are not interested.
“They prefer to work in air conditioned areas with short hours.”
He said foreign labourers were usually paid just above the minimum wage, but with overtime, they could take home RM2,000 to RM3,000 a month.
MIC Youth chief C. Sivarraajh said about 80% of small and medium scale enterprises (SMEs) would try to survive the increase in levies by passing the additional cost to customers or shutting their operations.
“Business sustainability is at stake. Jobs are also at stake, even for local workers when businesses find great difficulty in sustaining their operations,” he said in a statement.
The new charges, which were announced on Sunday, would see the foreign worker levy for manufacturing, construction and service sectors being increased to RM2,500.
The levy for those in the plantation and agriculture sectors had been raised to RM1,500.
Previously, the levy was between RM410 and RM1,850, depending on the industry and the location.
Sivarraajh said the Government should have consulted stakeholders before imposing the levy hike.
He said businesses were already paying a hefty cost such as the new minimum wage, higher costs of energy and raw materials, but lower sales as a result of the weakening ringgit.
“Everybody will suffer from the raise – plantation, construction, services – because all sectors employ foreign workers extensively.”
State secretary Datuk Seri Farizan Darus said the relevant documents for the two projects — 10.11ha in Pantai Jerejak and 14.16ha in Bayan Mutiara — were open for public viewing from 9am to 4.30pm.
“Visitors have to register at Level 3, Komtar, and make their payment first,” he told a press conference after a gathering with the state civil servants in Jen Hotel yesterday.
Farizan said viewers were allowed to bring only pens and pencils into the hall to copy the contents.
“However, no recording devices or handphones are allowed and they can request to buy the copied documents,” he said.
Farizan added that group viewing would be available for three people.
He, however, stressed that the state would disclose the documents only for the two projects approved by the present government as the two concessionaires refused to declassify the agreements on deals made with the previous state government.
“Our hands are tied. We can’t do anything since the agreements, which involved reclamation of 1,400 acres, were made by the Barisan Nasional administration,” he said.
While we are still waiting for Nadayu 290 at Bukit Gambier, here is yet another condominium proposed next to it.
The newly proposed development comprises a 39-storey building with 222 residential units. It is strategically located along Jalan Bukit Gambier, about 1.5km from University Science Malaysia (USM). Other amenities such as schools, convenient stores, banks, eateries and markets are also just a short drive away.
Details to be available upon project launch.
Project Name: (to be confirmed)
Location: Bukit Gambier, Penang
Property Type: Condominium
Built-up Area: (to be confirmed)
Indicative Price: (to be confirmed)
Total Units: 222
Developer: Pingat Mutiara Sdn. Bhd.
Eco Marina is an upcoming gated and guarded landed development by Eco World, located in the northern part of Batu Kawan. The masterplan of this development comprises a 150-acre waterfront and international standard golf course with homes offering stunning views of the sea and golfing greens.
The first phase, slated for launch in 2016, will debut a resort-inspired zero-lot bungalows sitting on hill slopes with unobstructed sea views overlooking Penang bridge and the island.
Check out the aerial view at actual site below.