Both the Finance and Economic Affairs Ministries said the number of G1 contractors registered with the Construction Industry Development Board (CIDB) is currently at 21,495 companies. — Reuters pic

KUALA LUMPUR, Aug 16 — Registration for G1 class contractors, the starting tier in one of seven categories for government projects, will be open again from September 1.

The Finance and Economic Affairs Ministries said the Cabinet decision to reopen the entry-level class is made after a review of the 14-year suspension to encourage younger Bumiputera contractors who are qualified to participate in the government procurement system.

“This will provide opportunities to new Bumiputera contractors, primarily youths with technical qualifications, to actively participate in the construction industry particularly in handling government projects.

“The federal government’s hope for this is to ensure it can produce more competitive and sustainable Bumiputera contractors who can play a main role in the national construction industry,” the two ministries said in a joint statement today.

Both the Finance and Economic Affairs Ministries said the number of G1 contractors registered with the Construction Industry Development Board (CIDB) is currently at 21,495 companies.

“Of this amount, 70 per cent have registration records exceeding 20 years, a situation which does not provide any opportunities for new Bumiputera contractors to participate in government procurement,” they said.

They added that the remaining 30 per cent are contractors with registration records of between three to 20 years, according to their respective fields of speciality.

The ministries said the Cabinet will also review the ceiling value of projects for contactors in the G1 class to close the income disparity among the country’s different races involved in the construction industry.

The G1 class of contractors is the starting tier and one of seven classes under the CIDB’s Government Work Procurement Certificate.

They are limited to tender or value of work not exceeding RM200,000, and applicants for G1 must have a minimum paid-up net capital worth of RM5,000 to RM10,000, and a minimum qualification as a technical certificate holder related to the construction industry and is recognised by the board.

The other classes from G2 to G7, have a tender or value of work limit ranging from no more than RM500,000 for G2, to no limit for G7. The minimum paid-up net capital worth of applicants also differs, such as RM25,000 for G2 to RM750,000 for G7.

G7 also has the highest minimum qualification requirement for applicants from all the classes, needing two degree holders with one having at least five years of experience, or a degree holder and a diploma holder with a minimum of five years’ experience as well.