PKBM welcomes RM7.5 billion procurement boost for Bumiputera contractors in Budget 2027

In Budget 2027, the Malaysian government raised the procurement allocation for G1-G4 Bumiputera contractors to RM7.5 billion, up from RM4 billion this year, a change lauded by the Bumiputera Contractors Association of Malaysia (PKBM). President Datuk Seri Dr Azman Yusoff said the RM3.5 billion increase should broaden participation of Bumiputera firms, especially SMEs, in public works and enhance fairness in contract awards.

He also praised the revival of the Variation of Price (VOP) clause to mitigate higher diesel and bitumen expenses, urging clear implementation guidelines. Additionally, PKBM supported the new rule allowing public-interest projects valued at up to RM5 million to be procured through a quotation process using JKR pre-approved designs, which could accelerate construction of facilities such as schools and clinics. The association thanked Prime Minister Datuk Seri Anwar Ibrahim and the MADANI Government for considering contractor concerns during the budget engagement session on September 30.