KOTA BHARU (July 16): The implementation of the Variation of Price (VOP) following the targeted diesel subsidy is expected to be settled in a month, Deputy Works Minister Datuk Seri Ahmad Maslan said.

He added that the Works Ministry (KKR) had met with Finance Minister II Datuk Seri Amir Hamzah Azizan, the Treasury Secretary and the Director of the National Budget Office to discuss about the implementation of the VOP.

“During the meeting, the Construction Industry Development Board (CIDB) team and KKR requested that considerations on VOP be given to contracts implemented before the announcement of the targeted diesel subsidy.

“The Finance Ministry has also agreed and will hold a discussion soon involving the percentage of VOP that will be given to contracts involved in projects before the targeted diesel subsidy,” he told reporters after officiating the 47th Annual General Meeting of the Kelantan state Malaysian Malay Contractors Association (PKKM) here on Tuesday.

“I would like to inform that the diesel subsidy provided by the government to the people previously was about RM14 billion. Now we are only retracting RM4 billion in subsidies that are supposed to be given to the public… we still give RM10 billion.

“Therefore, we will work on implementing this VOP. If subsidies are given to heavy machinery linked to the construction sector, savings won’t reach RM4 billion,” he said.

Ahmad also pointed out that not all construction materials were impacted by the recent targeted diesel subsidy as some materials could be brought in using vehicles that qualified for the fleet card.

“There are some construction materials that can be brought in using vehicles using the fleet card, not all construction materials are impacted by the recent subsidy,” he said.

The government agreed in principle last Saturday to implement the VOP to assist contractors faced with rising costs of construction materials to ensure projects can be completed on time. 

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