Master Builders Association Malaysia president Kenneth Liew said the construction sector’s heavy reliance on foreign workers means the additional cost will not be limited to basic wages but also involves overtime rates and related payments.

PETALING JAYA: A minimum wage hike risks increasing operating costs in the construction sector, which could in turn drive up property prices and project costs, the Master Builders Association Malaysia (MBAM) said today.

Its president, Kenneth Liew, said the cost of labour was among the largest components in the construction industry, making any increase in the minimum wage likely to affect employers’ operating costs.

Kenneth Liew.

Liew said the construction sector’s heavy reliance on foreign workers meant the additional cost would not be limited to basic wages but would also involve overtime rates and related payments.