Encourage big companies to pay their contractors
DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw calls on the big companies to pay their contractors who have fulfilled their contracts.
The Deputy Prime Minister Datuk Seri Najib Tun Razak should take upon himself to encourage companies to pay their contractors. It has become a habit for some contractors to delay payment of contractors. Although these contractors have done their work, some companies still invent excuses to defer or stop payment.
As the Finance Minister has asked for ideas through his blog and email, I have reminded him of the non-payment by companies to contractors. I hope he investigates this immediately and presents solutions to break the bad habit of some companies.
According to the Construction Industry Development Board (CIDB), there are about 303 government projects nationwide worth RM9.2 billion. Whether these are implemented using the Malaysia Industrialised Building System (IBS) or other system, all must be done fairly consistent with international standard. The government can show leadership by paying its contractors promptly.
The world economic recession causes havoc. Our export-oriented industry is affected. Although we may not be as badly hit as countries such as Singapore, our economy is slowing down. The U.K. is officially in recession. Our construction industry, manufacturing and small and medium enterprises are beginning to suffer.
Last November, the Government announced the first stimulus package of RM 7 billion. This is being given in stages. Let us hope that this package is distributed efficiently.
Happy New Year. Let us wish that the Year of the Ox bring good tidings: the economy will recover fast.
Tan Seng Giaw