Malaysia construction sector hit by oil price surge

News World Malaysia construction sector hit by oil price surge Photo: BBC + ↺ − 16px Malaysia’s construction sector is facing growing pressure as rising global oil prices linked to Middle East tensions drive up costs and threaten project viability, industry representatives said. The United Malaysia Contractors Association warned that higher fuel prices are increasing transportation, machinery and raw material costs across the construction supply chain, particularly affecting key inputs such as steel and cement, News.Az reports, citing Reuters. RECOMMENDED STORIES Malaysia issues alert over persistent high temperatures 6 fuel ships to Australia cancelled or deferred: energy minister Elon Musk offers to pay TSA salaries amid shutdown US Navy minesweepers assigned to Middle East spotted in Malaysia The surge in expenses has pushed many projects beyond initial budgets, squeezing profit margins as most contracts were signed at fixed prices and did not account for such volatility. Contractors are now being forced to absorb additional costs, leading to mounting financial losses. Small and medium sized firms are among the hardest hit, with cash flow challenges intensifying due to rising costs and delayed payments. Limited access to financing is further worsening the situation, raising concerns over potential business closures. The association also cautioned that escalating costs are already disrupting project timelines, with some developments delayed or temporarily halted, posing ...