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KUALA LUMPUR - Corporate figure Tan Sri Rozali Ismail has urged the government to review how public projects are awarded, saying more technical and high-value contracts should be channelled to capable local contractors, particularly Bumiputera companies, instead of continuing to favour foreign firms.
Speaking after the opening ceremony and the 44th Annual General Meeting of the Federal Territory Malay Contractors Association (PKMMWP) on Wednesday, Rozali said the Malay Contractors Association of Malaysia (PKMM) would submit a resolution urging the government to reassess its contract award mechanism to ensure it remains consistent with its original aim of developing Bumiputera contractors.
"We see many projects currently being awarded to foreign contractors. There may be certain factors involved, including bilateral agreements, but Bumiputera companies deserve to be given a greater role.
"Even if projects are awarded to foreign companies, local contractors should be involved as joint venture partners rather than merely serving as subcontractors, so they can gain experience, carry out the work and share in the profits," he said.
Rozali said the issue extends beyond small-scale or maintenance works, covering mega projects awarded through international tenders.
Rejecting claims that local contractors lack the necessary expertise, he said Malaysian companies have already proven their capabilities by successfully delivering projects overseas.
"Local contractors have also proven themselves, as many Malaysian companies have carried out projects in China, India and the Middle East.
"This proves that local contractors have the capability to compete and undertake large-scale projects if they are given the opportunity," he added.
He also suggested that the government review certain tender conditions and clauses that could provide greater opportunities for local contractors while preserving fair competition.
Rozali further acknowledged that the long-standing practice of renting out contractor licences remains an issue within the construction sector.
He urged agencies including the Construction Industry Development Board Malaysia (CIDB), the Public Works Department (JKR) and the Finance Ministry to strengthen policies and monitoring mechanisms.
"I think this matter needs to be reviewed transparently so that contractor licences are not misused or rented out to other parties," he emphasised.
Meanwhile, PKMM deputy president Datuk Amran Mohamad said although the government has created various opportunities for Bumiputera contractors, challenges such as cartels, monopolies and abuse of power continue to undermine fair project distribution.
"Enforcement agencies need to play a firmer role in ensuring governance is more transparent and has greater integrity. If we want to reduce our dependence on foreign workers, we must strengthen Technical and Vocational Education and Training first.
"Otherwise, the situation will remain the same because the industry still requires skilled workers," he said.